H.B. Fuller Earnings Top Estimates as Margin Expansion Offsets Revenue Decline

H.B. Fuller (NYSE: FUL) reported fourth-quarter adjusted earnings that exceeded analyst expectations, supported by significant margin expansion, but shares slipped more than 3% in pre-market trading on Thursday.

The adhesives maker posted adjusted earnings per share of $1.28, surpassing the consensus estimate of $1.23. Revenue totaled $894.8 million, slightly below expectations of $902.51 million, representing a 3.1% year-over-year decline. Excluding the impact of the flooring divestiture, revenue increased 0.9%.

Profitability improved meaningfully during the quarter, with adjusted EBITDA rising 14.6% year over year to $170 million. Adjusted EBITDA margin expanded to 19.0%, an increase of 290 basis points from the prior year, driven by favorable pricing actions, lower raw material costs, acquisition synergies, and restructuring initiatives.

Looking ahead to fiscal 2026, H.B. Fuller said it expected revenue to be flat to up 2% compared with 2025. The company projected adjusted EBITDA in the range of $630 million to $660 million and guided adjusted earnings per share between $4.35 and $4.70.