H.B. Fuller Company (FUL) Q1 2026 earnings summary

Executive summary

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

• Net revenue for Q1 2026 was $771 million, down 2.3% year-over-year, with organic revenue declining 6.6% as positive pricing was offset by lower volumes.

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

• Net income attributable to shareholders rose to $21.0 million from $13.2 million in Q1 2025, with diluted EPS increasing to $0.38 from $0.24.

• 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; gross margin improved to 30.6%.

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

• Adjusted EPS increased 6% to $0.57 compared to Q1 2025.

• Net income attributable to shareholders: $21.0 million, up 59.1% year-over-year.

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

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.

• Management expects restructuring costs to continue into fiscal 2026 and 2027, with the majority of charges recognized in 2026.

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