H.B. Fuller Co. Earnings Report

ST. PAUL, Minn. – H.B. Fuller Co. (NYSE:FUL) reported third quarter earnings that fell short of analyst expectations and lowered its full-year guidance, sending shares down sharply by 10.75% in after-hours trading on Wednesday.

The adhesives manufacturer posted adjusted earnings per share of $1.13 for the quarter ended August 31, missing the consensus estimate of $1.23. Revenue came in at $918 million, below analysts’ projections of $944.04 million.

H.B. Fuller also cut its fiscal 2024 outlook, now forecasting adjusted EPS of $4.10-$4.20, down from its previous guidance of $4.37. The company cited “year-to-date performance and current macroeconomic conditions” for the reduced forecast.

“While this quarter’s volume growth was at the low end of our expectations, we have a clear and focused strategy and a highly engaged team that is well equipped to execute and drive business success,” said CEO Celeste Mastin.

For the full year, H.B. Fuller now expects net revenue growth of approximately 2%, with organic revenue flat YoY. Adjusted EBITDA is projected to be $610-$620 million, representing 5-7% growth.

Despite the challenges, H.B. Fuller highlighted some positives, including a 70 basis point YoY expansion in adjusted EBITDA margin to 18.0% in Q3. The company also noted it remains on track to achieve its long-term margin and organic growth targets.

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