Adhesives maker H.B. Fuller's Q4 revenue slightly misses expectations

Overview

• Adhesives firm's Q4 revenue slightly missed analysts' expectations

• Adjusted EPS for Q4 beat analysts' expectations

• Adjusted net income for Q4 beat analyst expectations

Outlook

• H.B. Fuller expects fiscal 2026 net revenue to be flat to up 2%

• Company anticipates fiscal 2026 adjusted EBITDA between $630 mln and $660 mln

• H.B. Fuller projects fiscal 2026 adjusted EPS between $4.35 and $4.70

Result Drivers

• PRICING AND COST ACTIONS - Adjusted gross margin increased 290 basis points year-on-year due to favorable pricing and raw material cost actions

• COST SAVINGS - SG&A expenses decreased modestly year-on-year due to continued cost-saving efforts and lower variable compensation

• REVENUE IMPACT OF DIVESTITURE - Net revenue was down 3.1% year-on-year, but adjusting for the flooring divestiture, net revenue was up 0.9% year-on-year

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for H.B. Fuller Company is $70.50, about 6.3% above its January 13 closing price of $66.30

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw3RMzkJa

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