H.B. Fuller Company (FUL) investor relations material

Executive summary

• Delivered on profit commitments in Q1 2026 despite a challenging environment, expanding margins through disciplined cost and portfolio management.

• Organic revenue declined 6.6% year-over-year as positive pricing was offset by lower volumes; net revenue was $771 million, down 2.3%.

• Adjusted EBITDA reached $119 million, up 4% year-over-year, with margin expanding 90 basis points to 15.4%.

• Adjusted EPS (diluted) rose 6% year-over-year to $0.57; reported EPS was $0.38.

• Proactive response to Middle East conflict, leveraging global sourcing to mitigate supply chain disruptions and inflationary pressures.

Financial highlights

• Adjusted gross profit margin rose 170 basis points to 31.3% year-over-year.

• Adjusted EBITDA was $119 million, up 4% year-over-year.

• Adjusted net income was $32 million for the quarter.

• Cash flow from operations improved by $49 million year-over-year.

• Net-debt-to-Adjusted EBITDA was 3.1x, down from 3.5x a year ago.

Outlook and guidance

• Fiscal 2026 net revenue expected to rise mid-single digits; organic revenue up low single digits versus 2025.

• Adjusted EBITDA guidance raised to $645-$675 million; Adjusted EPS to $4.55-$4.90.

• Q2 net revenue expected up low single digits; Adjusted EBITDA $175-$185 million.

• Foreign currency translation expected to add 1%-2% to revenue.

• Capital allocation shifted toward share repurchases, pausing M&A in near term.