H B Fuller Company Stock Earnings Reports

H.B. Fuller reported Q1 FY2026 organic revenue down 6.6% y/y (pricing +0.6%, volume -7.2%), adjusted EBITDA of $119.0M (+4% y/y) and adjusted EPS of $0.57 (+6% y/y). Margins expanded (adjusted gross margin +170 bps; EBITDA margin +90 bps) driven by pricing, raw-material cost actions and Quantum Leap restructuring savings, which more than offset volume pressure. Segment performance: Engineering Adhesives (EA) grew mid-single digits ex-solar with margin expansion; Health & Hygiene and Consumables (HHC) organic sales down ~10% due to tighter inventories, consumer downtrading and smaller pack sizes but margins improved via pricing and cost control; BAS down ~5% with flat margins. Geographically Americas down ~4% (offset by aerospace/general industry strength), EIMEA down ~11%, Asia Pacific up ~2% ex-solar (Chinese New Year timing affected Q1). Management emphasized a material supply shock from the Middle East conflict (40+ force majeure notices), leading to raw-material shortages, elevated volatility and inflationary pressure. The company has enacted a global minimum 10% price increase (effective April 1) and is actively securing and reallocating raw materials, pursuing substitutes and selectively allocating supply to priority customers. Updated FY2026 guidance: net revenue up mid-single digits, organic revenue up low-single digits, adjusted EBITDA $645M–$675M, adjusted EPS $4.55–$4.90; Q2 revenue expected up low single digits and adjusted EBITDA $175M–$185M. Capital allocation priorities shifted: near-term pause on closing M&A deals and increased emphasis on share repurchases while targeting net debt/EBITDA of 2.5–3.0x. Management calls the disruption both a material risk and a market share opportunity for H.B. Fuller because competitors face supply shortfalls.