On June 26, 2025, H.B. Fuller Co (FUL, Financial) released its 8-K filing detailing the financial results for the second quarter of fiscal 2025, which ended on May 31, 2025. The company, a leading manufacturer of adhesives, sealants, and other chemical-based products, operates through three main segments: Hygiene, Health and Consumable Adhesives, Engineering Adhesives, and Construction Adhesives. The majority of its revenue is generated from the Hygiene, Health and Consumable Adhesives segment, with significant operations in the United States.
Quarterly Financial Performance
H.B. Fuller Co reported a net revenue of $898 million for the second quarter of fiscal 2025, which represents a 2.1% decline compared to the same period in fiscal 2024. This figure narrowly missed the analyst estimate of $899.95 million. The company's reported EPS (diluted) was $0.76, significantly below the analyst estimate of $1.64. However, the adjusted EPS (diluted) was $1.18, reflecting a 5% increase year-on-year, driven by higher adjusted net income and a reduction in shares outstanding.
Key Financial Metrics and Achievements
Despite the decline in net revenue, H.B. Fuller Co achieved an adjusted EBITDA of $166 million, marking a 5% increase year-on-year. The adjusted EBITDA margin expanded by 130 basis points to 18.4%, highlighting the company's effective cost management and strategic pricing actions. Gross profit for the quarter was $286 million, with an adjusted gross profit margin of 32.2%, up 110 basis points from the previous year.
Income Statement and Cash Flow Insights
The company's net income for the quarter was $42 million, with adjusted net income reaching $65 million. Cash flow from operations increased by $29 million year-on-year to $111 million, reflecting improved operational efficiency. H.B. Fuller Co also repurchased approximately one million shares year-to-date, indicating a commitment to returning value to shareholders.
Balance Sheet and Debt Management
H.B. Fuller Co's net debt at the end of the second quarter was $2,016 million, a decrease of $59 million from the first quarter, but an increase of $106 million year-on-year. The net debt-to-adjusted EBITDA ratio improved to 3.4X from 3.5X in the previous quarter, driven by enhanced cash flow from operations and growth in adjusted EBITDA.
CEO Commentary and Strategic Outlook
H.B. Fuller President and CEO Celeste Mastin stated, “Our strong financial performance is a testament to our team's disciplined execution in a highly dynamic environment, and we are performing better than the underlying markets. We remain nimble and focused on delivering positive organic revenue growth, while managing costs in a deliberate manner and leveraging our global sourcing infrastructure to adeptly respond to geopolitical and market uncertainties.”
Conclusion and Future Outlook
H.B. Fuller Co's second-quarter performance underscores its resilience in a challenging economic landscape. The company's strategic focus on cost savings, pricing, and portfolio optimization has contributed to its financial achievements. However, the decline in net revenue and the shortfall in reported EPS compared to analyst estimates highlight ongoing challenges. Looking ahead, H.B. Fuller Co has updated its full-year guidance, expecting adjusted EBITDA growth of 4% to 6% and adjusted EPS growth of 7% to 12% year-on-year, reflecting confidence in its strategic initiatives and market positioning.
Explore the complete 8-K earnings release (here) from H.B. Fuller Co for further details.
