H.B. Fuller Q1 2025 – Net Revenue Drops 2.7%

By Tamara Parker • Thursday, March 27 15:14 • Permanent Link

H.B. Fuller Company (NYSE: FUL) has reported its financial results for the first quarter ending March 1, 2025. The company's net revenue stood at $789 million, declining by 2.7% year-on-year, although organic revenue saw a 1.9% year-on-year increase. The net income was reported at $13 million, with reported EPS (diluted) at $0.24 and adjusted EPS (diluted) at $0.54. Adjusted EBITDA was $114 million, with an adjusted EBITDA margin of 14.5%.

In the first quarter of fiscal 2025, H.B. Fuller repurchased 678 thousand shares. Net revenue declined by 2.7% mainly due to unfavorable foreign currency translation and the divestiture of the flooring business. However, organic revenue was up 1.9% year-on-year, driven by improved volume.

Gross margin was reported at 28.8%, with adjusted gross margin standing at 29.6%, a slight decrease year-on-year due to increased raw material costs. Additionally, adjusted EBITDA declined by 7% versus the previous year, primarily due to higher raw material costs and variable compensation.

The company's net debt at the end of the first quarter of fiscal 2025 was $2,074 million, up $233 million sequentially versus the fourth quarter and up $409 million year-on-year. The net debt-to-adjusted EBITDA increased to 3.5x at the end of the first quarter of fiscal 2025.

Looking ahead, H.B. Fuller's full year outlook for fiscal year 2025 remains unchanged from previous communications. The company expects net revenue growth for fiscal 2025 to be down 2% to 4%, with adjusted EBITDA expected to be in the range of $600 million to $625 million, equating to growth of approximately 1% to 5% year-on-year.

Celeste Mastin, President and CEO, expressed encouragement by the first quarter's financial performance and positive organic sales growth, despite weak overall market demand conditions. However, she remains cautious given the unpredictable geopolitical conditions globally.

The company's conference call to discuss its results is scheduled for March 27, 2025, at 9:30 a.m. CT. Interested parties may participate in the live webcast on the company’s website.

H.B. Fuller, founded in 1887, operates as the largest pureplay adhesives company globally, with 2024 revenue of $3.6 billion. Today the company's shares have moved 5.0% to a price of $57.05. If you want to know more, read the company's complete 8-K report here.

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