H.B. Fuller Q2 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Earnings Beat: H.B. Fuller reported a Q2 non-GAAP EPS of $1.41, exceeding expectations by $0.03, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Revenue Growth: The company achieved revenue of $950.27 million in Q2, marking a 5.8% year-over-year increase and surpassing market expectations by $25.21 million, indicating sustained demand for its products and reinforcing its market position.
- Fiscal 2026 Outlook Update: Based on year-to-date performance, H.B. Fuller updated its fiscal 2026 financial guidance, projecting net revenue growth in the mid-single digits and adjusted EBITDA in the range of $650 million to $675 million, showcasing confidence in future growth.
- Cash Flow Expectations: The company anticipates operating cash flow for fiscal 2026 to be between $300 million and $325 million, demonstrating robust financial management that supports future investments and expansion plans.
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Analyst Views on FUL
Wall Street analysts forecast FUL stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 63.120
Low
60.00
Averages
70.00
High
80.00
Current: 63.120
Low
60.00
Averages
70.00
High
80.00
About FUL
H.B. Fuller Company is a pureplay adhesives company. It operates as a formulator, manufacturer and marketer of adhesives, sealants and other specialty chemical products. Its Hygiene, Health and Consumable Adhesives segment manufactures and supplies adhesive products in the assembly, packaging, converting, nonwoven and hygiene, health and beauty, graphic arts and envelope markets. Its Engineering Adhesives segment produces and supplies industrial adhesives, such as reactive, light cure, two-part liquids, polyurethane, silicone, film and fast cure products. The Building Adhesive Solutions segment includes products used for the commercial roofing industry (pressure-sensitive adhesives, tapes and sealants) and heating, ventilation and air conditioning and insulation applications (duct sealants, weather barriers and fungicidal coatings and block fillers). It also includes caulks and sealants for the consumer market and professional trade, sold through retailers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
H.B. Fuller Set to Announce Q2 Earnings on June 24
- Earnings Announcement: H.B. Fuller (FUL) is set to release its Q2 2023 earnings on June 24 after market close, with consensus EPS estimates at $1.38, reflecting a 16.9% year-over-year increase, and revenue expectations of $924.79 million, up 3.0% year-over-year, indicating solid growth potential in the market.
- Historical Performance Review: Over the past two years, FUL has exceeded EPS estimates 63% of the time, while only beating revenue estimates 25% of the time, suggesting a stable performance in profitability but room for improvement in revenue growth.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen six upward revisions with no downward adjustments, indicating increased analyst confidence in the company's profitability; meanwhile, revenue estimates have experienced five upward revisions and two downward adjustments, reflecting a cautious market outlook on sales growth.
- External Pressure Factors: Activist investor Ancora is urging H.B. Fuller to abandon its bid for the UK's AMS, which could impact the company's strategic direction and market performance, necessitating close monitoring of subsequent decisions and their potential effects on stock prices.
See More
H.B. Fuller Q2 Earnings Exceed Expectations
- Earnings Beat: H.B. Fuller reported a Q2 non-GAAP EPS of $1.41, exceeding expectations by $0.03, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Revenue Growth: The company achieved revenue of $950.27 million in Q2, marking a 5.8% year-over-year increase and surpassing market expectations by $25.21 million, indicating sustained demand for its products and reinforcing its market position.
- Fiscal 2026 Outlook Update: Based on year-to-date performance, H.B. Fuller updated its fiscal 2026 financial guidance, projecting net revenue growth in the mid-single digits and adjusted EBITDA in the range of $650 million to $675 million, showcasing confidence in future growth.
- Cash Flow Expectations: The company anticipates operating cash flow for fiscal 2026 to be between $300 million and $325 million, demonstrating robust financial management that supports future investments and expansion plans.
See More
Investment Value Analysis of H.B. Fuller vs. Novozymes
- Rating Comparison: H.B. Fuller currently holds a Zacks Rank of #2 (Buy), while Novozymes A/S has a #3 (Hold), indicating that FUL is likely experiencing a more significant improvement in earnings outlook, which may attract value investors.
- Valuation Metrics: FUL's forward P/E ratio stands at 13.57, significantly lower than NVZMY's 24.55, and with a PEG ratio of 0.85, it suggests a relative undervaluation that could offer higher returns for investors.
- Book Value Comparison: FUL's P/B ratio is 1.71, compared to NVZMY's 1.93, indicating that FUL is more attractive in terms of market value relative to its book value, potentially appealing to value-seeking investors.
- Value Grades: Based on various valuation metrics, FUL has a Value grade of B, while NVZMY has a D, demonstrating that FUL is more appealing for investment in the current market environment, making it a preferred choice for value investors.
See More
H.B. Fuller to Report Q2 Earnings on June 24
- Earnings Report Announcement: H.B. Fuller is set to report its Q2 earnings on June 24, with analysts expecting earnings of $1.38 per share, reflecting market confidence in the company's profitability and potentially leading to a positive stock price impact.
- Dividend Increase: The company has raised its dividend by 4.3%, indicating optimism about future cash flows, which may attract more income-focused investors and enhance shareholder trust and market recognition.
- Market Reaction Anticipation: As the earnings report approaches, investor interest in H.B. Fuller is rising, with expectations that strong performance and dividend growth will bolster its competitive position in the industry.
- Profitability Outlook: Analysts' earnings expectations demonstrate H.B. Fuller's resilience in the current economic environment, and if actual results exceed expectations, it could trigger a stock price increase and boost market confidence in its long-term growth potential.
See More
H.B. Fuller Releases 2025 Sustainability Report
- Sustainability Goals: H.B. Fuller sets ambitious 2030 targets in its 2025 Sustainability Report, including a 25% reduction in Scope 1 and a 35% reduction in Scope 2 greenhouse gas emissions, which not only enhances the company's environmental accountability but also strengthens its competitive position in the market.
- Operational Efficiency Gains: The company aims to reduce water consumption by approximately 60% at select sites through renewable energy adoption and improved wastewater treatment systems, which will directly lower operational costs and enhance resource efficiency, thereby driving overall business performance.
- Innovation Driving Customer Growth: H.B. Fuller promotes sustainable solutions across various industries, helping customers reduce emissions and improve product performance, which is expected to further solidify its market leadership and create greater value for clients.
- Global Community Impact: In 2025, the company awarded $1.3 million through its Fuller Impact platform to support over 370 organizations, with employees contributing 4,800 volunteer hours across 20 countries, enhancing community ties and boosting employee engagement and corporate image.
See More
H.B. Fuller Invests in Advanced Oxygen Barrier Technology
- Strategic Investment: H.B. Fuller announces a strategic investment in VerdaFresh, enhancing its barrier coating offerings and accelerating the shift towards fully recyclable packaging, which is expected to significantly boost market competitiveness.
- Material Optimization: VerdaFresh's proprietary technology integrates directly into H.B. Fuller's barrier coatings, eliminating reliance on EVOH and other hard-to-recycle materials, thereby reducing overall material use and lowering environmental footprint.
- Economic and Environmental Benefits: The new technology not only enhances recyclability but also streamlines structures and reduces dependence on costly multi-layer materials, helping customers achieve both environmental and economic benefits simultaneously.
- Market Leadership: This new capability positions H.B. Fuller to lead the transition towards circular, high-performance packaging, meeting rising regulatory and consumer expectations without compromising on product shelf life and protection.
See More
H.B. Fuller Set to Announce Q2 Earnings on June 24
- Earnings Announcement: H.B. Fuller (FUL) is set to release its Q2 2023 earnings on June 24 after market close, with consensus EPS estimates at $1.38, reflecting a 16.9% year-over-year increase, and revenue expectations of $924.79 million, up 3.0% year-over-year, indicating solid growth potential in the market.
- Historical Performance Review: Over the past two years, FUL has exceeded EPS estimates 63% of the time, while only beating revenue estimates 25% of the time, suggesting a stable performance in profitability but room for improvement in revenue growth.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen six upward revisions with no downward adjustments, indicating increased analyst confidence in the company's profitability; meanwhile, revenue estimates have experienced five upward revisions and two downward adjustments, reflecting a cautious market outlook on sales growth.
- External Pressure Factors: Activist investor Ancora is urging H.B. Fuller to abandon its bid for the UK's AMS, which could impact the company's strategic direction and market performance, necessitating close monitoring of subsequent decisions and their potential effects on stock prices.
See More
H.B. Fuller Q2 Earnings Exceed Expectations
- Earnings Beat: H.B. Fuller reported a Q2 non-GAAP EPS of $1.41, exceeding expectations by $0.03, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Revenue Growth: The company achieved revenue of $950.27 million in Q2, marking a 5.8% year-over-year increase and surpassing market expectations by $25.21 million, indicating sustained demand for its products and reinforcing its market position.
- Fiscal 2026 Outlook Update: Based on year-to-date performance, H.B. Fuller updated its fiscal 2026 financial guidance, projecting net revenue growth in the mid-single digits and adjusted EBITDA in the range of $650 million to $675 million, showcasing confidence in future growth.
- Cash Flow Expectations: The company anticipates operating cash flow for fiscal 2026 to be between $300 million and $325 million, demonstrating robust financial management that supports future investments and expansion plans.
See More
Investment Value Analysis of H.B. Fuller vs. Novozymes
- Rating Comparison: H.B. Fuller currently holds a Zacks Rank of #2 (Buy), while Novozymes A/S has a #3 (Hold), indicating that FUL is likely experiencing a more significant improvement in earnings outlook, which may attract value investors.
- Valuation Metrics: FUL's forward P/E ratio stands at 13.57, significantly lower than NVZMY's 24.55, and with a PEG ratio of 0.85, it suggests a relative undervaluation that could offer higher returns for investors.
- Book Value Comparison: FUL's P/B ratio is 1.71, compared to NVZMY's 1.93, indicating that FUL is more attractive in terms of market value relative to its book value, potentially appealing to value-seeking investors.
- Value Grades: Based on various valuation metrics, FUL has a Value grade of B, while NVZMY has a D, demonstrating that FUL is more appealing for investment in the current market environment, making it a preferred choice for value investors.
See More
H.B. Fuller to Report Q2 Earnings on June 24
- Earnings Report Announcement: H.B. Fuller is set to report its Q2 earnings on June 24, with analysts expecting earnings of $1.38 per share, reflecting market confidence in the company's profitability and potentially leading to a positive stock price impact.
- Dividend Increase: The company has raised its dividend by 4.3%, indicating optimism about future cash flows, which may attract more income-focused investors and enhance shareholder trust and market recognition.
- Market Reaction Anticipation: As the earnings report approaches, investor interest in H.B. Fuller is rising, with expectations that strong performance and dividend growth will bolster its competitive position in the industry.
- Profitability Outlook: Analysts' earnings expectations demonstrate H.B. Fuller's resilience in the current economic environment, and if actual results exceed expectations, it could trigger a stock price increase and boost market confidence in its long-term growth potential.
See More
H.B. Fuller Releases 2025 Sustainability Report
- Sustainability Goals: H.B. Fuller sets ambitious 2030 targets in its 2025 Sustainability Report, including a 25% reduction in Scope 1 and a 35% reduction in Scope 2 greenhouse gas emissions, which not only enhances the company's environmental accountability but also strengthens its competitive position in the market.
- Operational Efficiency Gains: The company aims to reduce water consumption by approximately 60% at select sites through renewable energy adoption and improved wastewater treatment systems, which will directly lower operational costs and enhance resource efficiency, thereby driving overall business performance.
- Innovation Driving Customer Growth: H.B. Fuller promotes sustainable solutions across various industries, helping customers reduce emissions and improve product performance, which is expected to further solidify its market leadership and create greater value for clients.
- Global Community Impact: In 2025, the company awarded $1.3 million through its Fuller Impact platform to support over 370 organizations, with employees contributing 4,800 volunteer hours across 20 countries, enhancing community ties and boosting employee engagement and corporate image.
See More
H.B. Fuller Invests in Advanced Oxygen Barrier Technology
- Strategic Investment: H.B. Fuller announces a strategic investment in VerdaFresh, enhancing its barrier coating offerings and accelerating the shift towards fully recyclable packaging, which is expected to significantly boost market competitiveness.
- Material Optimization: VerdaFresh's proprietary technology integrates directly into H.B. Fuller's barrier coatings, eliminating reliance on EVOH and other hard-to-recycle materials, thereby reducing overall material use and lowering environmental footprint.
- Economic and Environmental Benefits: The new technology not only enhances recyclability but also streamlines structures and reduces dependence on costly multi-layer materials, helping customers achieve both environmental and economic benefits simultaneously.
- Market Leadership: This new capability positions H.B. Fuller to lead the transition towards circular, high-performance packaging, meeting rising regulatory and consumer expectations without compromising on product shelf life and protection.
See More
