FULLER H B CO recently released its 10-Q report. H.B. Fuller Company formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives and other specialty chemical products through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Building Adhesive Solutions. It sells directly and through distributors and retailers across North America, Latin America, Europe, India, the Middle East, Africa and Asia Pacific, and is headquartered in Saint Paul, Minnesota.
In Item 2, management said second-quarter 2026 net revenue rose 5.8% to $950.3 million from $898.1 million a year earlier. The increase came from 3.1% favorable currency effects, 3.0% pricing and 0.1% acquisitions, partly offset by a 0.4% decline in sales volume. Gross profit margin improved 170 basis points to 33.6% from 31.9%, mainly on higher pricing and restructuring actions.
For the first six months of 2026, net revenue increased 2.0% to $1.721 billion from $1.687 billion. That reflected 3.3% favorable currency effects, 1.8% pricing and 0.4% acquisitions, partly offset by a 3.5% drop in sales volume. Gross profit margin rose 190 basis points to 32.3% from 30.4%.
Net income attributable to H.B. Fuller climbed to $67.8 million in the second quarter of 2026 from $41.8 million a year earlier, while diluted EPS increased to $1.23 from $0.76. For the first half, net income attributable to H.B. Fuller rose to $88.9 million from $55.1 million, and diluted EPS increased to $1.61 from $0.99.
Adjusted EBITDA increased 9.3% in the quarter and 7.0% in the first half, both driven mainly by higher gross profit, partly offset by higher compensation expense and foreign currency losses.
Cost of sales in the second quarter was $630.6 million, up from $611.7 million, but fell to 66.4% of revenue from 68.1%. For the first six months, cost of sales was $1.165 billion, down from $1.173 billion, and declined to 67.7% of revenue from 69.6%. SG&A rose to $202.4 million in the quarter from $186.3 million and to $386.8 million in the first half from $367.0 million.
Other income, net was $5.6 million in the quarter, down from $7.1 million, and $12.4 million in the first half, up from $10.3 million. Interest expense fell to $32.8 million from $34.9 million in the quarter and to $65.6 million from $66.9 million in the first half. Income tax expense was $25.6 million in the quarter, with an effective tax rate of 27.8%, and $33.0 million in the first half, with an effective tax rate of 27.6%.
The company said it has approved restructuring plans from fiscal 2023 with expected costs of $85.0 million to $90.0 million, including $51.0 million to $52.0 million in cash expenditures. It had incurred $84.4 million under those plans as of May 30, 2026. It also approved global footprint optimization actions in the fourth quarter of 2025, with expected costs of $11.2 million to $13.0 million, including $6.5 million to $7.5 million in cash expenditures; $7.3 million had been incurred as of May 30, 2026. As a result of these announcements, the company's shares have moved -5.16% on the market, and are now trading at a price of $61.27. Check out the company's full 10-Q submission here.
