H.B. Fuller Q3 net income beats estimates on pricing actions, restructuring savings

Overview

• Adhesives maker's fiscal Q3 revenue rose 5% yr/yr but missed analyst expectations

• Adjusted EPS for fiscal Q3 rose 21% yr/yr, beating analyst expectations

• Company says margin gains driven by pricing execution and restructuring savings

Outlook

• H.B. Fuller expects fiscal 2026 adjusted EBITDA of $655 mln to $670 mln

• Company sees fiscal 2026 adjusted EPS (diluted) between $4.70 and $4.85

• H.B. Fuller expects fiscal 2026 cash flow from operations of $300 mln to $325 mln, excluding AMS items

Result Drivers

• PRICING ACTIONS - Co said pricing increased net revenue by 7.4%, offsetting lower volume and driving organic growth

• RESTRUCTURING SAVINGS - Co said restructuring efforts contributed to margin improvement and profitability

• STRATEGIC INVENTORY INVESTMENTS - Co said higher net working capital was driven by inventory investments to support Quantum Leap and supply continuity amid Middle East disruption

Company press release: ID:nBwccSYhNa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for H.B. Fuller Company is $75.00, about 46.9% above its September 22 closing price of $51.07

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Sept 22 - Evonik to launch second phase of restructuring in 2027, pursues unit sales

• Sept 22 - UK's Smiths Group FY revenue beats estimates, margin expands

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)