H.B. Fuller's Mixed Financial Performance in 2024

By Bobby Samwell • Thursday, January 16 10:24 • Permanent Link

H.B. Fuller Company has released its financial results for the fourth quarter and fiscal year 2024, showcasing a mixed performance as it recorded both positive and negative changes in key metrics.

In fiscal year 2024, the company reported a 1.6% year-on-year increase in net revenue to $3.57 billion. However, organic revenue decreased by 1.0% due to a 2.7% unfavorable pricing, partially offset by 1.7% higher volume.

The gross margin for the fiscal year was 29.8%, with adjusted gross margin increasing by 90 basis points to 30.3% year-on-year. Net income was $130 million, while adjusted EBITDA stood at $594 million, up 2.2% year-on-year, with the adjusted EBITDA margin expanding to 16.6%.

In the fourth quarter of 2024, net revenue increased by 2.3% year-on-year to $923 million. However, the company reported a net loss of ($7) million, including an unfavorable $38 million non-cash, after-tax impact related to the flooring divestiture. Adjusted EBITDA for the quarter was $148 million, down 14% year-on-year, with an adjusted EBITDA margin of 16.1%.

Looking ahead to fiscal 2025, the company expects net revenue growth to be down 2% to 4%, adjusting for the divestiture of the flooring business. Adjusted EBITDA for fiscal 2025 is anticipated to be in the range of $600 million to $625 million, equating to growth of approximately 1% to 5% year-on-year.

The company is finalizing an expanded plan to significantly reduce its global manufacturing footprint and streamline its North American planning and logistics structure, with the aim of generating approximately $75 million in annualized cost savings once the plan is fully implemented in fiscal 2030.

H.B. Fuller's CEO, Celeste Mastin, expressed pride in the progress made in fiscal year 2024 but also acknowledged unexpected challenges in the fourth quarter, particularly in encountering a deceleration in volume across the majority of the company's end markets.

As a result of these announcements, the company's shares have moved -2.7% on the market, and are now trading at a price of $62.41. For the full picture, make sure to review H.B. Fuller's 8-K report.

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