FUL

It has been about a month since the last earnings report for H. B. Fuller (FUL). Shares have added about 1.8% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is H. B. Fuller due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for H. B. Fuller Company before we dive into how investors and analysts have reacted as of late. H.B. Fuller reported adjusted earnings of $1.52 per share for the third quarter of fiscal 2026, up 21% from $1.26 a year ago. Earnings surpassed the Zacks Consensus Estimate of $1.45 by 4.8%. Net revenues rose 5.2% year over year to $938.2 million, beating the Zacks Consensus Estimate of $934.2 million by 0.4%. Results benefited from pricing execution and restructuring savings, which supported profitability despite softer volumes. Organic revenues increased 4.4%, while adjusted EBITDA grew 9% year over year. Organic revenue growth reflected a 7.4% contribution from pricing, which more than offset a 3% decline in volumes. Foreign currency translation contributed 0.7% to revenue growth, while acquisitions added 0.1%. The company's pricing initiatives helped counter higher raw material costs and weaker demand. All three global business units recorded positive organic revenue growth, highlighting the benefits of pricing execution across its portfolio. Gross profit totaled $311.7 million compared with $285.1 million in the year-ago quarter. Adjusted gross profit increased to $314.6 million from $288.4 million. Adjusted gross margin expanded 120 basis points (bps) year over year to 33.5%, primarily reflecting favorable pricing and restructuring savings. Selling, general and administrative expenses increased to $198.5 million from $175 million a year earlier. Adjusted expenses were $183 million, up 8% year over year but down 7% sequentially due to expense timing. Adjusted EBITDA reached $186.7 million compared with $170.6 million in the prior-year quarter. Adjusted EBITDA margin expanded 80 bps to a record 19.9%, reflecting improved operating leverage and continued benefits from the Quantum Leap restructuring program. The Hygiene, Health and Consumable Adhesives segment generated revenues of $413 million, up 7% year over year. Organic revenues grew 6.4%. Adjusted EBITDA increased to $72.8 million from $65.3 million, while the adjusted EBITDA margin improved 70 bps to 17.6%. Building Adhesive Solutions recorded revenues of $246.5 million, up 5.5% year over year, with organic growth of 5.2%. Adjusted EBITDA increased to $44.8 million from $41.5 million. The segment's adjusted EBITDA margin expanded 50 bps to 18.2%, contributing to the company's broader profitability improvement. Engineering Adhesives generated revenues of $278.7 million compared with $272.3 million in the year-ago quarter, representing growth of 2.4%. Organic revenues increased 0.7%, while favorable foreign currency translation contributed 1.3% and acquisitions added 0.4%. Adjusted EBITDA rose to $66.4 million from $63.4 million a year earlier. Adjusted EBITDA margin improved 50 bps to 23.8%, making Engineering Adhesives the company's highest-margin business unit. The segment delivered improved profitability despite relatively modest organic revenue growth. Cash flow from operating activities totaled $182.6 million for the first nine months of fiscal 2026, up 17% from $156.8 million in the comparable prior-year period. Capital expenditures totaled $141.7 million, while share repurchases amounted to $48.9 million. The company exited the quarter with cash and cash equivalents of $97.2 million and total debt of $2.05 billion. Net debt stood at $1.96 billion, roughly flat year over year. Net debt-to-adjusted EBITDA improved to 3 times from 3.3 times a year earlier. H.B. Fuller continues to expect fiscal 2026 net revenues to grow at a mid-single-digit rate, with organic revenues increasing at a low-single-digit rate. Pricing is projected to rise at a mid-single-digit rate, while volumes are expected to decline at a low-single-digit rate. Foreign currency translation is anticipated to contribute approximately 2%. The company now expects adjusted EBITDA between $655 million and $670 million. Adjusted earnings per share are projected in the range of $4.70-$4.85, with the core tax rate anticipated between 25.5% and 26%. Operating cash flow is expected to remain between $300 million and $325 million, excluding AMS-related items. Management remains focused on its Quantum Leap restructuring initiatives and the anticipated closing of the AMS acquisition before year-end. The company continues progressing toward its adjusted EBITDA margin target of more than 20%. Since the earnings release, investors have witnessed a downward trend in estimates revision. Currently, H. B. Fuller has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, H. B. Fuller has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report H. B. Fuller Company (FUL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RPM International (RPM) is set to report its earnings on Tuesday, October 6, 2026. The company has a market value of about $12.6 billion. Over the last twelve months, it generated $7.9 billion in revenue and $966 million in operating profit, with net income of $661 million. The reaction will turn on how the results and guidance land against expectations. Before the release, it helps to know how the stock has behaved after previous reports, and whether an early move has tended to carry on. See the earnings reaction history of all stocks RPM International's Historical Odds Of A Positive Post-Earnings Return Some observations on one-day (1D) post-earnings returns, measured from the last close before each release: - There are 20 earnings releases in the last five years, with 13 positive and 7 negative one-day (1D) returns. Positive 1D returns were seen 65% of the time. - Over the last three years, that share falls to 64% across 11 releases. - The median of the 13 positive 1D returns is 5.8%, and the median of the 7 negative ones is -3.7%. - The largest one-day reactions were 12.4% and -13.1%. The table below shows the 1D, 5-day (5D), and 21-day (21D) returns after each release, followed by summary statistics. Earnings Date | 1D | 5D | 21D 7/22/2026 | 5.8% | 10.1% | 10.0% 4/8/2026 | 12.4% | 12.4% | 6.4% 1/8/2026 | 1.7% | 6.1% | 12.1% 10/1/2025 | -0.6% | -4.4% | -7.6% 7/24/2025 | 8.6% | 5.1% | 10.1% 4/8/2025 | -9.1% | -0.8% | 3.0% 1/7/2025 | 1.1% | 2.9% | 3.0% 10/2/2024 | 6.3% | 8.0% | 7.1% 7/25/2024 | 6.8% | 9.5% | 3.1% 4/4/2024 | -5.8% | -6.6% | -8.2% 1/4/2024 | -3.0% | -0.1% | -0.2% 10/4/2023 | 6.3% | 6.1% | 0.7% 7/26/2023 | 11.2% | 13.0% | 6.6% 4/6/2023 | -3.7% | -2.7% | -3.2% 1/5/2023 | -13.1% | -9.3% | -6.3% 10/5/2022 | 3.3% | 3.5% | 3.1% 7/25/2022 | -0.7% | 5.0% | 7.7% 4/6/2022 | 4.9% | 3.2% | 2.6% 1/5/2022 | 0.3% | -4.0% | -9.2% 10/6/2021 | 2.6% | 0.9% | 12.2% Statistic | 1D | 5D | 21D # Positive | 13 | 13 | 14 # Negative | 7 | 7 | 6 Median Positive | 5.8% | 6.1% | 6.5% Median Negative | -3.7% | -4.0% | -7.0% Max Positive | 12.4% | 13.0% | 12.2% Max Negative | -13.1% | -9.3% | -9.2% Does The First Move Carry On? Another approach is to wait for the initial reaction and ask whether it tends to continue. The table below shows the correlation between the 1D return and the return over the following 5 and 21 trading days, and between the 5D return and the following 21 trading days. A value near 1 means the first move has tended to continue; near -1, to reverse; near 0, no consistent pattern. The strongest relationship over five years is between the 1D and the following 21 days, at -0.43 across 20 releases: the early move has tended to partly reverse. That is a tendency, not a rule, and it can break on any given report. History | 1D vs next 5D | 1D vs next 21D | 5D vs next 21D 5 Years | -0.40 | -0.43 | -0.19 3 Years | -0.50 | -0.43 | -0.37 Do Peers That Report First Offer A Clue? H.B. Fuller (FUL) usually reports a few weeks before RPM International and has already reported this season. The table covers the 9 reports where Fuller reported within 30 days of RPM. The correlation is 0.11; the closer to 1, the more the peer's reaction has foreshadowed RPM International's, and a negative value means it has tended to point the other way. RPM Earnings Date | RPM 1D | FUL 1D 4/8/2026 | 12.4% | 0.5% 10/1/2025 | -0.6% | -3.9% 4/8/2025 | -9.1% | 6.1% 10/2/2024 | 6.3% | 0.1% 4/4/2024 | -5.8% | -3.4% 10/4/2023 | 6.3% | 6.0% 4/6/2023 | -3.7% | -2.0% 10/5/2022 | 3.3% | 3.0% 4/6/2022 | 4.9% | 0.7% Correlation | - | 0.11 Trading around earnings is a bet on a single event. If you want upside with a smoother ride than an individual stock such as RPM can offer, consider the Trefis High Quality (HQ) Portfolio: about 30 stocks selected for consistent cash generation, strong margins, and resilient balance sheets, with a track record of outperforming a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000.

Even as market watchers debate whether H.B. Fuller (NYSE:FUL) made the right call in turning down Ancora's $1.2 billion offer for its Building Adhesive Solutions segment, the specialty adhesive maker's long-term investment thesis hinges on internal self-help over raw top-line expansion. Fundamentally, H.B. Fuller presents a story of aggressive margin optimization, backed by solid year-to-date operating cash flow generation, steady leverage reduction to improve balance sheet health, and structural footprint rationalization designed to maximize long-term return on invested capital and free cash flow conversion despite multi-year macro growth headwinds. That internal operational engine was on full display when H.B. Fuller reported its fiscal third-quarter results on September 24. Headline revenue rose 5.2% year-over-year to $938 million, accompanied by a 21% surge in adjusted EPS and a raised full-year outlook. However, a deeper look reveals that this financial performance was powered almost exclusively by pricing power and cost discipline rather than underlying volume expansion—linking directly to the company's core driver of squeezing more profit out of a stagnant top line. Organic revenue rose 4.4% during the quarter, with a 7.4% price increase doing the heavy lifting to offset a 3% decline in sales volume. Adjusted EBITDA grew 9% to $187 million, while adjusted EBITDA margin expanded 80 basis points to 19.9%, bringing the company within striking distance of management's long-sought 20% target. Every operating segment contributed to top-line gains: Hygiene, Health and Consumable Adhesives grew 6% on strength in hygiene and beverage labeling; Building Adhesive Solutions grew 5% on roofing and insulating glass demand; and Engineering Adhesives grew 5% (excluding solar) supported by ongoing aerospace strength. Internationally, performance was even stronger, led by a 9% rise in the EIMEA region, prompting CEO Celeste Mastin to note that "Europe is looking up." Behind the margin expansion lies a structural overhaul of H.B. Fuller's manufacturing footprint. The company has reduced its plant count from 82 facilities in 2024 to approximately 62 by the end of this year, with a long-term target of 55 facilities. Under its "Quantum Leap" initiative, management expects these efficiency measures to yield $75 million in annualized cost savings by 2030. Reflecting these operational gains, full-year guidance was raised to $655 million–$670 million in adjusted EBITDA and $4.70–$4.85 in adjusted EPS. Cash flow from operations rose 17% year-to-date to $183 million, while net debt to EBITDA improved to 3.0x from 3.3x a year ago. Meanwhile, the pending acquisition of Advanced Medical Solutions/AMS remains on track to close before year-end, positioning the combined business as the second-largest surgical tissue bonding provider globally. The key vulnerability in H.B. Fuller's operational story is that customer demand continues to contract, marking a third consecutive quarter of shrinking volumes. Engineering Adhesives experienced softening demand in electronics as chip shortages constrained mobile phone manufacturing in the Asia-Pacific region, a sharp reversal from the segment's strong performance in the first half of the year. Additionally, management highlighted that ordering patterns among small and mid-sized customers are fluctuating more than usual, increasing forecasting uncertainty. Supply chain bottlenecks and input cost pressures also remain persistent. Mastin described ongoing petrochemical supply disruptions as a defining feature of the current operating environment, noting that normalization is unlikely until underlying geopolitical conflicts subside, keeping raw material costs elevated. To protect supply continuity, net working capital expanded 150 basis points to 18.5% of annualized revenue as inventory was built up, while SG&A expenses grew 8%. Looking ahead to 2027, management singled out China as an area of concern due to a weak domestic consumer market and softer electronics exports. Furthermore, leverage will need to be reduced back to a target range of 2.5x to 3.0x within two years of the AMS transaction closing, pointing to potential near-term balance sheet strain from acquisition financing. Institutional positioning reflects an interesting split sentiment. Hedge fund ownership climbed from 23 funds to 28 funds in the most recent quarter, indicating building institutional interest in the company's margin execution. Conversely, short interest stands at 7.44% of float, representing a sizable bear camp focused on broader demand weakness. This short interest is primarily driven by skepticism over whether pricing increases can indefinitely offset declining volumes, alongside concerns regarding temporary balance sheet leverage following the AMS deal. Meanwhile, the stock trades at a forward P/E multiple of just 9.44x, as of September 24. Evaluated against core investor questions, does this single-digit valuation make the stock cheap or a value trap? A forward P/E under 10x appears visually cheap for a business generating 19.9% EBITDA margins, $183 million in year-to-date operating cash flow, and compounding structural cost savings. However, the low valuation multiple indicates the market is discounting the sustainability of management's margin expansion until organic volume growth turns positive. H.B. Fuller's third-quarter results highlight two opposing dynamics: an effective pricing and restructuring model driving margin expansion, set against a softer end-market environment where physical volume is declining. For bullish investors, the remaining cost savings from the Quantum Leap program and the strategic addition of AMS provide a clear pathway for continued margin expansion and earnings compounding. For bearish investors, three consecutive quarters of volume contraction and ongoing raw material supply dislocations warrant caution regarding top-line sustainability. Trading at a single-digit forward P/E multiple, the stock's valuation suggests the market is weighing these structural margin improvements against broader macro volume headwinds. While we acknowledge the potential of FUL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

This article first appeared on GuruFocus. - Revenue: Up 5.2% year-on-year; organic revenue up 4.4%, driven by 7.4% pricing, partially offset by lower volume. - Adjusted Gross Profit Margin: 33.5%, up 120 basis points versus last year. - Adjusted SG&A Expense: Up 8% year-over-year and down 7% sequentially from Q2 2026. - Adjusted EBITDA: $187 million, up 9% year-on-year. - Adjusted EBITDA Margin: 19.9%, up 80 basis points year-on-year. - Adjusted EPS: $1.52, up 21% versus the same quarter in 2025. - HHC Organic Revenue: Up 6% year-over-year; EBITDA margin 17.6%, up 70 basis points. - EA Organic Revenue: Up approximately 5% year-over-year excluding solar; up 1% including solar; EBITDA margin 23.8%, up 50 basis points. - BAS Organic Revenue: Up 5% year-over-year; EBITDA up 8%; EBITDA margin expanded 50 basis points. - Americas Organic Revenue: Up 4% year-on-year, with BAS up 9%. - EIMEA Organic Revenue: Up 9% year-on-year. - Asia Pacific Organic Revenue: Up 4% year-on-year excluding solar; approximately flat including solar. - Net Working Capital: 18.5% of annualized net revenue, up 150 basis points year-over-year. - Cash Flow from Operations: Year-to-date $183 million, up 17% year-over-year. - Net Debt to Adjusted EBITDA: Slightly less than 3 times, down from 3.3 times a year ago. - Manufacturing Facilities: Began with 82 at end of 2024; expected to exit 2026 with approximately 62; below 60 by end of 2027; goal of 55. - Quantum Leap Savings: Targeting approximately $75 million annualized conversion cost savings by end of 2030; approximately $25 million realized through end of 2026; additional $20 million to $25 million incremental savings expected in 2027. - Quantum Leap Capital Investment: $150 million over life of program; roughly $50 million in 2026; less than $25 million in 2027. - Quantum Leap One-Time Cash Costs: Approximately $50 million total, with about a third already realized. - FY2026 Net Revenue Guidance: Expected up mid-single digits; organic revenue up low single digits, with pricing up mid-single digits and volume down low single digits. - FY2026 Adjusted EBITDA Guidance: $655 million to $670 million. - FY2026 Adjusted EPS Guidance: $4.70 to $4.85. - FY2026 Cash Flow from Operations Guidance: $300 million to $325 million, excluding AMS-related items. - Warning! GuruFocus has detected 5 Warning Signs with FUL. - Is FUL fairly valued? Test your thesis with our free DCF calculator. Release Date: September 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - H.B. Fuller Co (NYSE:FUL) delivered strong Q3 2026 results with revenue up 5.2% year-over-year and organic growth of 4.4%, driven by pricing actions. - EBITDA increased 9% to $187 million, with EBITDA margin expanding 80 basis points to 19.9%, and EPS up 21% year-over-year. - All three global business units (HHC, EA, BAS) contributed to EBITDA growth and margin expansion, with HHC up 6% organic, EA up 5% excluding solar, and BAS up 5% organic. - The company is making progress on its Quantum Leap program, targeting $75 million in annualized conversion cost savings by 2030, with $25 million expected by end of 2026 and an additional $20-25 million in 2027. - The proposed acquisition of Advanced Medical Solutions (AMS) is on track to close by year-end, expected to enhance portfolio, strengthen healthcare position, and support long-term growth with deleveraging to 2.5-3x within two years. - Volumes declined year-over-year, with organic volume down low single digits, due to softness in packaging, electronics, and construction markets. - Raw material costs remain elevated and are expected to stay at or near current levels for the remainder of the year, pressuring margins despite pricing actions. - HHC volumes have been down roughly 9% over the last two years, impacted by market-wide changes such as GLP-1 drugs reducing packaged food consumption and lower household formation. - Electronics softened in Q3 due to chip shortages affecting mobile phone production in Asia Pacific, and auto demand in Asia also weakened. - The company faces ongoing supply chain disruptions and inflationary pressures, with net working capital up 150 basis points year-over-year, and leverage slightly less than 3x, though deleveraging is a priority. Q: Mike Harrison of Seaport Research Partners asked why Q3 volumes came in better than expected and what drove the margin strength.A: CEO Celeste Mastin explained that the company had anticipated customers would face constraints on non-adhesive materials, but while markets were tight, they weren't short, resulting in better volume performance. She noted demand markets are fluctuating more than usual, with order patterns varying significantly, especially among mid and small-size customers. Volumes were much stronger at the end of the quarter and that strength continued into P10. Q: Ghansham Panjabi of Baird asked about the pricing contribution and variances for fiscal 2027, including whether additional price increases are still being implemented.A: CEO Celeste Mastin stated that the year will play out with carryover pricing and raw materials in the first half, transitioning to Quantum Leap benefits in the second half. She confirmed the company continues to raise prices judiciously where warranted. CFO John Corkrean added that pricing-raw material spread will be positive next year but less significant than this year, primarily a first-half phenomenon. Quantum Leap should contribute $20 million to $25 million of incremental savings, weighted to the back half, with normal inflation merit increases in the $25 million range. Q: Jeff Zekauskas of JPMorgan asked whether the company has changed how it plans to operate H.B. Fuller over the next year or two in light of shareholder feedback.A: CEO Celeste Mastin said deleveraging will be a very high priority after closing the AMS transaction. She noted the company conducts rigorous portfolio reviews each August, which previously prompted the sale of the flooring business in 2025. The company is now applying even more scrutiny and a critical lens to business plans, seriously considering divestitures to accelerate reducing leverage. CFO John Corkrean added that Quantum Leap will generate substantial cash flow benefits, including at least 5 days of working capital inventory reduction worth $35 million, reduced CapEx, and lower maintenance capital. Q: Kevin McCarthy of Vertical Research Partners asked about the financing for the AMS deal and the medium-term plans regarding term structure and cost of debt.A: CFO John Corkrean confirmed bridge financing is in place and the company plans to execute takeout financing prior to close. The structure will likely include short-term loan B type loans and unsecured bonds, with ample debt that can be repaid quickly to support rapid deleveraging. Current 8-year fixed rates are in the 6.5% to 7% range, while term loan B rates are around 175 to 200 basis points over SOFR. Q: Mike Harrison of Seaport Research Partners asked about the unsolicited proposal for BAS, the reasons for rejection, and whether a divestiture could still make sense at a certain price.A: CEO Celeste Mastin stated the Board fairly considered the offer and will always evaluate offers as part of its fiduciary duties. BAS is significantly integrated into the company, with 62 plants globally producing multiple materials for various market segments. CFO John Corkrean explained that BAS manufactures in 25 to 30 facilities, two-thirds shared with other businesses, creating dyssynergies. BAS represents about 20% of revenue but 35% to 40% of solvents purchased, significantly impacting purchasing power. These considerations were meaningful enough to mention, though they could be overcome depending on valuation. Q: David Begleiter of Deutsche Bank asked why HHC volumes have been down roughly 9% over the last two years.A: CEO Celeste Mastin attributed the decline to two market-wide changes: the introduction of GLP-1 drugs reducing packaged food consumption, and low household formation with reduced mobility weighing on demand for home-related products. People are not filling new cupboards or changing out materials in their homes, which has significantly impacted the HHC business. Q: David Begleiter of Deutsche Bank asked about AMS business performance and whether projections from late June remain on track.A: CEO Celeste Mastin referred to AMS's recently announced first-half results, which showed adjusted EBITDA improving 8% and revenue increasing 4% versus the prior year period. She expressed excitement about adding AMS to the portfolio, projecting approximately 8% annual growth with strong organic growth prospects. Q: Ghansham Panjabi of Baird asked about demand trend lines in the EA segment, particularly regarding electronics and auto weakness.A: CEO Celeste Mastin said EA performed incredibly well in Europe and strong in the U.S., with automotive bouncing back in Q3 versus Q2. The real challenge was in Asia, particularly China, where electronics slowed with fewer shipments. CFO John Corkrean added that adjusting for solar, the business has been growing mid-single digits from a volume standpoint consistently, with the only change from Q2 to Q3 driven by electronics. Q: Lucas Beaumont of UBS asked about the high-level outlook for 2027, including whether EBITDA growth might be more constrained in the low to mid-single digit range.A: CFO John Corkrean said he wouldn't conclude low or mid-single digit EBITDA growth yet, noting it depends on broader macro conditions. He emphasized benefits specific to company execution, including positive pricing-raw material spread and meaningful Quantum Leap savings. CEO Celeste Mastin expressed optimism, highlighting the company's less than 5% share in an $80 billion industry, innovation-driven share gains like BAS's new 4SG Cofinity products, and the $75 million run-rate savings from Quantum Leap. Q: Lucas Beaumont of UBS asked how the macro environment might impact the AMS business outlook and whether it adds risk to synergy or earnings targets.A: CEO Celeste Mastin said the AMS team is making good progress on Peters Surgical synergies, including closing five facilities. The surgical tissue bonding market is growing rapidly, and the combined business will be the second largest surgical tissue bonding company in the world. She expects the business to expand despite macro challenges due to less orientation to industrial or construction fluctuations. Q: Jeff Zekauskas of JPMorgan asked about land sales and whether they are sale-leaseback structures.A: CEO Celeste Mastin clarified that these are sales of manufacturing facilities and associated land, not sale-leaseback arrangements. Proceeds will be used to pay down one-time costs from severance and other closure costs. Q: Jeff Zekauskas of JPMorgan asked For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Interested in H. B. Fuller Company? Here are five stocks we like better. - Strong Q3 performance: Revenue increased 5.2% year over year, adjusted EBITDA rose 9% to $187 million, and adjusted EPS climbed 21% to $1.52. Pricing actions and restructuring savings offset lower volumes and elevated raw-material costs. - Broad segment and margin gains: All three business units expanded margins, with organic revenue growth led by Hygiene, Health and Consumable Adhesives and supported by pricing across regions. Management said solar-exit headwinds are now fully lapped. - Outlook maintained while cost savings advance: H. B. Fuller kept its fiscal 2026 revenue outlook and now expects adjusted EBITDA of $655 million to $670 million and EPS of $4.70 to $4.85. Its Quantum Leap program targets about $75 million in annualized savings by 2030, while the proposed Advanced Medical Solutions acquisition remains on track for year-end pending regulatory approval. - Industrial Chemicals: 3 Stocks Poised for Growth in the New Year H. B. Fuller (NYSE:FUL) reported third-quarter fiscal 2026 revenue growth and higher profitability as pricing actions and restructuring savings more than offset lower volumes and elevated raw-material costs. Revenue increased 5.2% from a year earlier, while organic revenue rose 4.4%, driven by 7.4% pricing that was partly offset by lower volume. Adjusted EBITDA increased 9% to $187 million, and adjusted EBITDA margin expanded 80 basis points to 19.9%. Adjusted earnings per share rose 21% year over year to $1.52. → Microsoft's 8% Dividend Hike: Confidence Signal or Distraction From Capex Math? - Acuity Brands Lights Up Opportunity In The Industrial Sector President and Chief Executive Officer Celeste Mastin said the company continued to advance toward its target of an EBITDA margin above 20%. She attributed the quarter's performance to pricing execution, restructuring efforts and efforts to maintain supply continuity amid a disrupted petrochemical supply chain. All three global business units recorded margin expansion during the quarter. - Hygiene, Health and Consumable Adhesives: Organic revenue rose 6%, supported by hygiene, beverage labeling, and tape and label markets. Packaging softness partly offset those gains. EBITDA margin increased 70 basis points to 17.6% as the segment posted double-digit pricing performance. - Engineering Adhesives: Organic revenue increased about 5% excluding the exited solar business, led by aerospace and general industrial markets. Including solar, organic revenue increased 1%. Electronics demand softened as chip shortages affected mobile-phone production in Asia-Pacific. EBITDA margin rose 50 basis points to 23.8%, reflecting pricing and restructuring savings. - Building Adhesive Solutions: Organic revenue grew 5%, driven by roofing and insulating glass, partly offset by weakness in wood. EBITDA increased 8% and margin expanded 50 basis points, primarily from favorable pricing. → Paramount Skydance Clears a Major Warner Bros. Discovery Hurdle—Here's What Comes Next - Dividend King H.B. Fuller Rises On Hopes For Rebound By geography, organic revenue increased 4% in the Americas, where BAS grew 9%. Europe, India, Middle East and Africa organic revenue rose 9%, with positive pricing across all three business units and volume growth in engineering adhesive markets including automotive and aerospace. Asia-Pacific organic revenue increased 4% excluding solar, led by HHC packaging performance, while total organic revenue was approximately flat including solar. Mastin said the company has fully lapped its solar exit and does not expect it to have a meaningful impact on Engineering Adhesives or consolidated organic growth going forward. → Is the Fed Playing Chess With Rates—Or Just Behind the Curve Again? Management said petrochemical supply-chain dislocation remains a defining feature of its operating environment. Raw-material prices have stabilized at elevated levels and are expected to remain at or near current levels through the remainder of the year. "As conditions warrant, we will judiciously raise price to offset raw material costs and protect our margins," Mastin said. The company exited the third quarter with pricing up 7.6%, according to management. During the question-and-answer session, Mastin said volumes performed better than anticipated because customers generally were able to obtain materials other than adhesives despite tight markets. However, she said demand and order patterns have been unusually volatile, particularly among smaller customers, and volumes strengthened late in the quarter. Management identified construction and China as key areas to watch in fiscal 2027. CFO John Corkrean also cited electronics chip shortages, sluggish residential construction markets and challenges facing large consumer packaged-goods customers as external factors affecting volumes. The company said its multi-year Project Quantum Leap manufacturing and distribution optimization program remains on schedule. The initiative began with 82 manufacturing facilities at the end of 2024, and H. B. Fuller expects to exit 2026 with about 62 facilities. Excluding the proposed Advanced Medical Solutions acquisition, it expects to reduce that total below 60 by the end of 2027, progressing toward a goal of 55 facilities. Quantum Leap is expected to generate approximately $75 million in annualized conversion-cost savings by the end of 2030. Management expects roughly $25 million of benefits to be realized through the end of 2026, followed by $20 million to $25 million of incremental savings in 2027. The company expects to invest about $150 million of capital over the life of the project, including roughly $50 million in 2026 and less than $25 million in 2027. One-time cash costs are expected to total about $50 million, with proceeds from manufacturing facility and related land sales projected to more than offset those costs. Corkrean said Quantum Leap is also expected to improve cash flow through lower inventory, reduced maintenance capital spending and working-capital improvements. He said the company sees an opportunity to reduce inventory by at least five days, representing approximately $35 million of operating cash-flow benefit. For fiscal 2026, H. B. Fuller maintained its expectation for net revenue to rise by a mid-single-digit percentage and organic revenue to grow by a low-single-digit percentage. The outlook assumes mid-single-digit pricing growth and low-single-digit volume declines. The company now expects adjusted EBITDA of $655 million to $670 million and adjusted EPS of $4.70 to $4.85. Cash flow from operations, excluding AMS-related items, is still projected at $300 million to $325 million. The outlook does not include the effect of the proposed acquisition of Advanced Medical Solutions. Management said it remains on track to close the AMS transaction by year-end, subject to the required regulatory approvals. Mastin said the acquisition would strengthen the company's healthcare portfolio and provide exposure to surgical tissue bonding, which management characterized as a higher-growth medical end market. Following the transaction, the company expects leverage to return to its targeted range of 2.5 times to 3 times within two years of closing. Net debt to adjusted EBITDA was slightly below three times at the end of the third quarter, compared with 3.3 times a year earlier. H.B. Fuller Company (NYSE: FUL) develops and manufactures specialty adhesives, sealants and other chemical-based products used in industrial and commercial applications. Its solutions help customers bond, seal, coat and assemble materials across a range of products and manufacturing processes. The company serves markets including packaging, hygiene and disposable products, construction, transportation, electronics, durable assembly, woodworking, flooring, composites and renewable energy. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "H. B. Fuller Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Image source: The Motley Fool. Thursday, Sept. 24, 2026 - Investor Relations - Scott Jensen - President and Chief Executive Officer - Celeste Mastin - Executive Vice President and Chief Financial Officer - John Corkrean Operator: Hello, everyone. Thank you for joining us, and welcome to the H.B. Fuller Q3 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Scott Jensen, Investor Relations. Scott, please go ahead. Scott Jensen: Thank you, operator. Welcome to H.B. Fuller's Third Quarter 2026 Investor Conference Call. Presenting today are Celeste Mastin, President and Chief Executive Officer; and John Corkrean, Executive Vice President and Chief Financial Officer. After our prepared remarks, we will have a question-and-answer session. Before we begin, let me remind everyone that our comments today will include references to certain non-GAAP financial measures. These measures are supplemental to the results determined in accordance with GAAP. We believe that these measures are useful to investors in understanding our operating performance and to compare our performance with other companies. Reconciliation of non-GAAP measures to the nearest GAAP measure are included in our earnings release. Unless otherwise noted, comments about revenue refer to organic revenue and comments about EPS, EBITDA and profit margins refer to adjusted non-GAAP measures. We will also be making forward-looking statements during this call. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from these expectations due to factors covered in our earnings release, comments made during this call and the risk factors detailed in our filings with the SEC, all of which are available on our website at investors.hbfuller.com. I will now turn the call over to Celeste Mastin. Celeste? Celeste Mastin: Thank you, Scott, and welcome to today's call. Through disciplined execution, we delivered strong revenue, EBITDA and EPS growth in the quarter and continued to improve profitability and advance toward our EBITDA margin target of greater than 20%. Pricing actions are offsetting higher raw material costs and our restructuring efforts continue to enhance operating leverage. With the anticipated closing of the AMS acquisition before year-end, we remain focused on strengthening our portfolio, executing our Quantum Leap program and creating long-term value for shareholders. Turning to our consolidated results in the third quarter. Revenue was up 5.2% year-on-year. Adjusting for foreign exchange and acquisitions, organic growth was 4.4%, driven by pricing of 7.4%, partially offset by lower volume year-on-year. From a profitability perspective, EBITDA of $187 million increased 9% year-on-year, and EBITDA margin expanded 80 basis points to 19.9%, with EPS up 21% versus the same period last year. The continued execution of our pricing actions drove EBITDA growth and margin expansion across all 3 GBUs, enabling us to successfully offset elevated raw material inflation. Now let me move on to review the performance in each of our segments in the third quarter. HHC delivered 6% organic revenue growth year-over-year in the quarter with strength in hygiene, beverage labeling and tape and label more than offsetting softness in packaging. EBITDA margins were 17.6%, up 70 basis points versus last year, reflecting double-digit pricing performance. EA delivered organic revenue growth of approximately 5% year-over-year, excluding solar, with continued strength in aerospace and general industries. Electronics softened in the quarter as chip shortages weighed on mobile phone production in Asia Pacific, a reversal from the strong growth we saw in the first half of the year. Including solar, organic revenue increased 1% in the quarter. We have now fully lapped the solar exit and do not anticipate a meaningful impact on EA or consolidated H.B. Fuller organic growth going forward. EA EBITDA margin was 23.8%, up 50 basis points versus last year, driven by favorable pricing and restructuring savings. BAS delivered another strong quarter with organic revenue up 5% year-over-year. Growth was driven by strength in roofing and insulating glass, partially offset by softness in wood. Despite a muted construction environment, BAS delivered another quarter of consistent growth and solid execution, demonstrating the importance of the innovation the group has brought to market. EBITDA for BAS increased 8% and EBITDA margins expanded 50 basis points year-on-year, driven primarily by the impact of positive price. Geographically, Americas organic revenue was up 4% year-on-year with positive organic growth in all 3 GBUs led by BAS up 9%. Positive organic growth was driven by strong performance in roofing, insulating glass and aerospace market segments. In EIMEA, organic revenue increased 9% year-on-year with positive price in all 3 GBUs and strong volume growth in EA markets, including automotive and aerospace. Asia Pacific organic revenue was up 4% year-on-year, excluding solar, driven by strength in HHC, particularly in packaging. Total organic revenue was approximately flat year-on-year, including solar. Now let me provide an update on the petrochemical supply chain disruption and what we're seeing as we enter the fourth quarter and look toward 2027. The dislocation continues to be a defining feature of our operating environment. Supply chains remain disjointed, and we do not expect a normalization until well after the conflict subsides. We acted quickly and decisively in response to this situation and have been successful in maintaining supply continuity for our customers and will continue to do so. On raw materials, prices have stabilized at elevated levels, and we expect them to remain at or near current levels for at least the remainder of the year. As conditions warrant, we will judiciously raise price to offset raw material costs and protect our margins. We remain confident in our ability to continue mitigating inflationary pressure. Now let me take a moment to provide an update on Project Quantum Leap, our multiyear initiative to optimize our manufacturing and distribution network, improve factory utilization and service levels and increase the efficiency of our global supply chain. We continue to make good progress and implementation is tracking as expected. The team remains focused on disciplined execution and delivering the long-term benefits we've outlined. As a reminder, we began this project with 82 manufacturing facilities at the end of 2024. We expect to exit 2026 with approximately 62 facilities and excluding AMS, further reduce the footprint to below 60 by the end of 2027, while progressing to our goal of 55. These actions are improving network efficiency while positioning us to better serve our customers with a more streamlined operating model. From a financial perspective, Quantum Leap remains a significant value creation opportunity. We continue to target approximately $75 million of annualized conversion cost savings by the end of 2030. Through the end of 2026, we expect to have realized approximately $25 million of those benefits. Looking ahead, we expect the program to deliver an additional $20 million to $25 million of incremental savings in 2027. In support of this initiative, we expect to invest $150 million of capital over the life of the program. We plan to invest roughly $50 million of capital in 2026 and anticipate capital spending of less than $25 million in 2027 as key projects are completed with a further reduction in spending expected after 2027. We anticipate approximately $50 million of total onetime cash costs associated with the program with about 1/3 of those already realized. Importantly, total onetime costs are projected to be more than offset by proceeds from real estate sales. Beyond direct cost savings, Quantum Leap is expected to generate substantial cash flow benefits through improved working capital efficiency, inventory reduction and lower maintenance capital requirements. Overall, we remain on track and are even more confident today in Quantum Leap's ability to help enable meaningful earnings growth, cash flow improvement and progress toward our long-term margin objectives. Now let me turn the call over to John Corkrean to review our third quarter results in more detail and our updated outlook for the remainder of 2026. John Corkrean: Thank you, Celeste. I'll begin with some additional financial details on the third quarter. For the quarter, revenue was up 5.2% year-on-year. Currency and acquisitions contributed a positive 0.8%. Adjusting for those items, organic revenue was up 4.4% with pricing of 7.4%, offset by lower volume. Adjusted gross profit margin was 33.5%, up 120 basis points versus last year, driven by pricing execution and restructuring savings. Adjusted selling, general and administrative expense was up 8% year-over-year and down 7% sequentially from the second quarter of 2026, reflecting the timing of certain expenses. Adjusted EBITDA for the quarter of $187 million was up 9% versus last year as pricing execution and restructuring savings more than offset lower volume. Adjusted earnings per share of $1.52 was up 21% versus the same quarter in 2025, driven by higher operating income. Net working capital in the third quarter of fiscal 2026 was 18.5% of annualized net revenue, up 150 basis points year-over-year. The increase was primarily driven by actions taken to support Quantum Leap as well as strategic inventory investments made to secure raw materials and ensure supply continuity for customers. Year-to-date cash flow from operations was $183 million, up 17% year-over-year, driven by higher income. At the end of the third quarter, net debt to adjusted EBITDA was slightly less than 3x, down from 3.3x at the end of the third quarter of last year. With that, let me now turn to our guidance for the 2026 fiscal year. Please note, this outlook does not reflect the impact of our proposed acquisition of Advanced Medical Solutions. Net revenue is still expected to be up mid-single digits and organic revenue is still expected to be up low single digits versus fiscal 2025, with pricing up mid-single digits and volume down low single digits. Adjusted EBITDA for fiscal 2026 is now expected to be in the range of $655 million to $670 million, and adjusted EPS is now expected to be in the range of $4.70 to $4.85. Cash flow from operations, excluding AMS-related items, is still expected to be in the range of $300 million to $325 million. Now let me turn the call back over to Celeste to wrap us up. Celeste Mastin: Thank you, John. The financial performance John outlined reflects the strength of our strategy and execution. A key contributor to that success is the way we partner with our customers to develop innovative solutions that improve performance, address complex challenges and advance sustainability across the industries we serve. Last week, we announced the winners of our 2026 H.B. Fuller Customer Innovation Awards. These awards recognize customers who have developed solutions delivering measurable advances in sustainability, safety and performance. Winners are selected based on innovation, market impact, technical achievement and successful collaboration with H.B. Fuller teams. This year, we honored Bin Dasmal General Trading Company and Huhtamaki for innovations that demonstrate the power of collaboration and technical expertise. Bin Dasmal was recognized for developing an innovative prefabricated HVAC insulation system that improves protection against condensation and corrosion in hot, humid environments. Working together with H.B. Fuller, the company incorporated our Foster NeoClad protective vapor barrier technology into an off-site prefabrication process that reduces installation time, enhances long-term system reliability and helps extend service life in demanding climate conditions. Huhtamaki was recognized for ProDairy, a recyclable paper-based dairy cup designed to reduce plastic use while maintaining the performance required for chilled food applications. Leveraging H.B. Fuller's adhesive and coating expertise, the solution significantly reduces polyethylene content, improves recyclability and supports our customers' circular packaging goals without compromising product performance. The innovations recognized this year span diverse industries but share a common objective, applying science, engineering and collaboration to solve real-world challenges and make products and systems more sustainable, efficient and reliable. We congratulate both award winners and thank all of our customers who continue to work alongside us to bring innovative solutions to market. Their success reinforces our confidence in the long-term growth opportunities created by our technical leadership, customer intimacy and commitment to innovation. We look forward to celebrating both award winners here in St. Paul, Minnesota, on Adhesive and Sealants Day on September 29. Now let me provide a brief update on our proposed acquisition of Advanced Medical Solutions. We continue to make strong progress through the required regulatory approval process and remain on track to close the transaction by year-end. From a financial standpoint, we are committed to our deleveraging plan and expect leverage to return to our targeted range of 2.5 to 3x within 2 years of closing, supported by the strong cash generation profile of the combined company augmented by Quantum Leap. We remain confident in the strategic and financial merits of acquiring AMS. The transaction will enhance our portfolio, strengthen our position in attractive health care markets and further support our long-term growth objectives. We look forward to welcoming the AMS team and sharing additional updates on our next call. In closing, our third quarter results demonstrate the steady progress we are making across the business. We are expanding margins, advancing our operating efficiency initiatives and maintaining a disciplined approach to execution while also positioning the company for its next phase of growth. Taken together, these actions strengthen H.B. Fuller's foundation for long-term value creation. That concludes our prepared remarks for today. Operator, please open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Mike Harrison with Seaport Research Partners. Michael Harrison: So you guys came in just above the midpoint of your guidance range for Q3, and it looks like volumes were not down as much as you had expected. I think you had guided to down mid-single digit, and you were down 3%. Can you just kind of walk us through what came in different than you expected when you provided guidance, I guess, from both a volume perspective and maybe contributed to some of the margin strength that you were seeing? Celeste Mastin: Sure. Yes. So as we looked at the second half, Mike, we had anticipated that we would see more customer constraints on materials outside of adhesives. We knew we could supply, but we were concerned that they would be able to get all of the materials they needed to produce their products. And while the market has been tight on a lot of materials, it hasn't been so much short. So that resulted in a little better volume performance than we anticipated. I would also add that the demand markets are fluctuating a lot more than they usually do. Our order patterns are fluctuating more than they usually do. We're seeing instances where customers are -- especially mid- and small-sized customers are en masse doubling the amount of time or the interval between their orders. And then sometimes they shrink rapidly, particularly when the headlines are out that the price of oil has dramatically increased. So it does make volume a little more difficult to predict in this environment. In this particular quarter, we saw volumes much stronger at the end of the quarter than at the beginning of the quarter for the first couple of months, in fact. And that strength has continued into P10. Michael Harrison: All right. And then I was hoping that you could talk a little bit about how we should think about volume trends as we're starting to turn our attention to fiscal '27. So last year, volumes were down a little bit. This year, you're probably tracking toward a down 3-ish percent number. Understanding some of that has been the solar business and you said we're lapping that. But just curious, what's your confidence level that we can see volumes turn positive in fiscal '27? And I guess, what end markets do you see the most risk around volumes over the next few quarters? John Corkrean: Okay. Mike, maybe I'll try to take this one and then Celeste can add commentary. So looking ahead to 2027, focusing on things that are, let's say, specific to H.B. Fuller, we'll have fully lapped the impact of our exit of solar. So that was sort of an overhang for 3 quarters this year. We're now beyond that. It won't be an overhang next year. Obviously, closing of AMS, we're adding a higher growth business. I'd say there's a few markets in EA that were challenged, and these are more external issues. Maybe I'll pivot to sort of external impacts. Certainly, electronics has been challenged with chip shortages. There's -- I'm hopeful -- we're hopeful that, that is not an issue next year that's impacting both electronics and auto. And the construction markets have been very sluggish with high interest rates and the impact that's having on residential. Again, I don't know whether that will be resolved next year or not, but that's -- if that -- if we were to see some movement there, that would be positive. And then in HHC, as you know, it's largely driven by large CPG customers, which have struggled. So it's probably more dependent on external forces and some of those I've named. But we have a couple of things as it relates to the portfolio improvements that we've made that should support better growth going forward. Celeste Mastin: Yes. And I would supplement that, Mike, by saying I think China is the region to watch for 2027. I was really pleased with our performance in Asia this quarter because despite the fact that there was the consumer environment in China is weak and that electronics and some of their export markets were off. We still performed very well in Asia, thanks to HHC's ability to grow their business there and take share in the packaging markets in particular. Europe is looking up, and that's exciting. So I think it's less of a risk for us for 2027, more because we are gaining share in that region, being a reliable supplier matters more there and the ability to bring innovation to market matters. And then I would say that, yes, to John's point, while construction remains weak and is definitely something to watch, I feel strongly that our BAS business has brought innovation to market that has allowed them to continue to grow in a declining market. So I think watching construction, watching China are the key areas of risk for '27. Operator: Your next question comes from the line of David Begleiter with Deutsche Bank. David Begleiter: Looking just at HHC in the last 2 years, I show volumes down roughly 9%. Maybe I'm a bit off, but I think in that range. Why is that? This is all just over the Q3 period last couple of years. Celeste Mastin: Over the last 2 years. Yes. So I mean, if you think about HHC, I think one of the biggest challenges that HHC faces is a couple of market-wide changes. So one is certainly the introduction of the GLPs. A lot of our materials in HHC go into the packaging end markets, a lot less packaged food now being consumed, and you can see that in a number of the CPG food companies' results. And the second thing I would say is that's a business that I think sometimes we overlook is really very heavily influenced by household formation. And we aren't seeing residential homebuilding happen. People are not moving as much for jobs. There's a lot less mobility. And so that weighs on -- people aren't filling new cupboards. People aren't changing out materials in their homes. And so that also, I believe, has weighed on the HHC business in the last couple of years. David Begleiter: Understood. And just on AMS, how has the business been performing in the last 2 to 3 months? Are we still on track with the projections you gave us back in late June? Celeste Mastin: Well, I can't comment on their performance in the last 2 or 3 months. What I would say is they did just announce their first half performance. I would refer you there. They showed adjusted EBITDA improving by 8% first half of '26 versus first half of '25, which is how they report. And they reported a 4% revenue increase over that same period of time. So we're really excited, David. That's a business that we're looking forward to having in our portfolio. And as we look at that business and have made our own projections, we think that's a business that should -- that will be growing about 8% a year on average. So good organic growth prospects there. Operator: Your next question comes from the line of Ghansham Panjabi with Baird. Ghansham Panjabi: So just following up on the last couple of questions, specific to EA, do you sense any sort of change in the demand trend line in that segment? I know solar has come through at this point, but I think you mentioned electronics weakening due to chip shortages, and it looks like auto has started to weaken a little bit as well. So just curious as to the demand trend line there versus the rest of the portfolio. Celeste Mastin: Yes. The EA business performed incredibly well in Europe in this last quarter and strong in the U.S. So overall, I don't see the segments compromised. In fact, automotive has bounced back in Q3 versus where it was in Q2. The real challenge in the EA business in Q3 was in Asia and particularly in China. Saw a slowdown in electronics, fewer shipments of EVs. And so that weighed on the business in the quarter. But the good news is now we are wrapping around that solar impact. So we'll be clear of that come Q4. John Corkrean: Yes. And I can add just a little more detail on the trends because Celeste is right. If you adjust for solar, the business has been growing mid-single digits from a volume standpoint, low to mid-single digits and very consistent. I think the only change from Q2 to Q3 in volume was largely driven by electronics, as Celeste mentioned. Ghansham Panjabi: Okay. That's helpful. And then in terms of the variances for fiscal year '27, you sort of gave some high-level view on volumes, at least as it relates to what to watch out for. Can you give us a bit more in terms of some of the variances at this point? I think you mentioned $25 million on EBITDA incremental cost savings. What about pricing flow through? And then on pricing, are you still implementing additional increases? I think you mentioned sort of a flattening of the raw material cost curve, but logistical costs and so on and so forth have gone up significantly over the last few months as well. So just curious as to the pricing contribution the way you see it at this point for next year. Celeste Mastin: Yes. So if you look at just overall next year, I would say, high level, the way that the year will play out is you'll see some carryover of pricing and raw materials happen in that first half. That will transition more to the benefits from Quantum Leap starting to flow through in the second half that we mentioned. As far as pricing, yes, the teams, as you know, got out early on price and started raising price in Q2. Our job isn't done. We continue to raise price judiciously where it's warranted. And I say that based on region and market segment and technology base. So yes, we are still implementing price increases, and we're anticipating that will flow into the first half of next year. John Corkrean: Yes. And I think, Ghansham, just for purposes of kind of thinking about what the next year would look like at a high level from a P&L standpoint, and these comments exclude any impact of AMS. As Celeste mentioned, we will have carryover pricing, but we'll have carryover raw material impact as well. And we got out quickly on pricing. Raw materials tend to lag. So as you look at this year, we've got a positive spread between pricing and raws. We would expect that we would have a positive gap between pricing and raws next year, but not as significant as this year because we still have raws that will be rolling through. That will primarily be a first half of the year phenomenon. As Celeste mentioned, we'll sort of have annualized against that and probably there will be very little difference between pricing and raws, assuming markets don't move significantly in the second half of the year. Quantum Leap, as we said in our remarks, should contribute about $20 million to $25 million of incremental savings next year. That will be more weighted to the back half of the year. And then we'll have the normal kind of inflation merit increases, which have been in that $25 million range. So we see a view on 2027 that will grow top line and bottom line. Obviously, carryover pricing will help that from both the top line and bottom line standpoint as will Quantum Leap. And we'll provide, obviously, a lot more detail in our January call. Operator: Your next question comes from the line of Jeff Zekauskas with JPMorgan. Jeffrey Zekauskas: I think in your prepared remarks, you talked about land sales that may be something like $33 million over the next year or so. Are these sale and leaseback structures? Or is this pure sale of land? And is that the right amount of cash flow that may come to you? Celeste Mastin: So those are sales of manufacturing facilities and the land associated with those, Jeff. We're not going to lease those back. We're going to sell those facilities, and we will use those proceeds to pay down the onetime costs that we'll experience with severance and other closure costs. Jeffrey Zekauskas: Okay. And in terms of your prices, your prices for the quarter were up 7.4%, but that's the average number for the quarter. Where are they now? Are they higher than 7.4%? Celeste Mastin: Yes. We exited the quarter at 7.6%, Jeff. So we got a lot of that price early that's been working its way through. And that will continue to tick up as we continue to adjust our pricing for any raw material changes that occur. We talked about pricing on average, but it's true. Pricing changes happen differently in different regions or based on different technologies. So we've been very judicious and I would say, responsible in our pricing. Our objective is to cover raw material cost increases and maintain our margin. And that's what our plans continue to be for the upcoming year. Jeffrey Zekauskas: Since you reported your previous quarter, there's been a fair amount of clamoring by your shareholder base wanting you to do this or that. In the light of what your shareholders have said to you, in any way have you changed the way you look -- changed the way you plan to operate H.B. Fuller over the next year or 2? Celeste Mastin: Yes. So deleveraging will be a very, very high priority for us, as you can imagine, as soon as we close the AMS transaction, Jeff, in fact, we are already working hard on trying to bring our debt level down. And I would say there's going to be changes in a number of areas. One of those is, as I've said before, every August, our global market segment leaders come in, they present their 3-year strategy for the business. We do a rigorous portfolio review after that. In fact, it was -- that's what prompted the sale of our flooring business in 2025, for example. And I would say we've just been through that exercise here again in August. And coming out of that exercise, I'd say we're putting even more scrutiny and a much more critical lens on those business plans and really challenging ourselves to determine if we are, in fact, the best owner for every one of those market segments. So the possibility that we will divest something is something we're taking very seriously because we know it would accelerate reducing our leverage. The other thing is we're at a nice point in Quantum Leap where we're going to be able to really generate more cash flow as a consequence of that. And maybe, John, if you want to like walk through the improvements to cash flow that we're going to see because of Quantum Leap and because we're going to be able to operate differently because of the changes we're making through Quantum Leap. John Corkrean: Sure. And yes, that is one of the reasons we feel good about our deleveraging plan is the cash flow benefits that Quantum Leap brings. Obviously, we've talked about the $75 million of reduced conversion costs with about $50 million to come. That's obviously a cash -- an operating cash flow impact. But one of the key elements is with the changes we're making in our warehouse structure, we think we've got an opportunity to reduce working capital inventory specifically substantially, at least 5 days, which would be $35 million of benefit in operating cash flow. And then in CapEx, we'll see that come down. We've probably spent about $50 million related to enabling Quantum Leap this year in CapEx. As we said in our remarks, that will be less than $25 million next year and eventually go to 0. And the fact that we're getting out of effectively 1/3 of our plants, we would expect maintenance capital to come down by roughly 1/3, which would be $15 million. And then Project ONE is kind of -- our SAP deployment, what we call Project ONE, is coming to effectively an end in terms of implementation. We have 97% of our revenue on one instance of SAP. And we probably spent about $25 million a year in CapEx on that, and that will be substantially less. So all of those things will be positive as it relates to our cash flow and our deleveraging plan, as Celeste said, if there was an opportunity to potentially divest something that could further accelerate that, we definitely look at it. Jeffrey Zekauskas: And then lastly, John, I think maybe your CapEx from AMS would go up $20 million or so. So like in a range of capital expenditures versus 2026, should your CapEx next year inclusive of the acquisition be up or down? John Corkrean: It should be down. And I think AMS will be a little less than the $20 million you quoted, but it will be in the teens. But yes, we would say just related to certainly the fact that we're getting through the heavier spend related to Quantum Leap and the working capital opportunity we see -- I'm sorry, on CapEx of the SAP project coming to an end. Both of those things should result in a reduction in CapEx even with some additional capital from AMS. Operator: Your next question comes from the line of Patrick Cunningham with Citi. Unknown Analyst: This is [ Alex ] on for Patrick. My question was -- so your margin expansion was quite striking in 3Q despite the lower volume environment. Maybe can you help us with the puts and takes on the price/cost expansion and maybe just your confidence on expanding margins into '27? Celeste Mastin: Sure. John Corkrean: Yes, I can give a little bit of color on that. So the impact we're seeing is largely driven by pricing execution relative to raw materials flowing through. As we discussed, we got out fast on pricing. A lot of that took place in the second quarter. We did take some additional actions. So in the third quarter, we get the benefit of actions that we're taking during the second quarter flowing through to the third quarter. We had some new pricing actions. And raw materials are a bigger headwind this quarter than they were last quarter, but we had more pricing to offset that. So we sort of talked about this third quarter being sort of the period when we'll see that biggest gap between pricing and raws. And we would expect that to narrow a little bit next quarter simply because we'll see more raw material costs finally rolling through the P&L. But we're also getting savings related to Quantum Leap. By the end of this year, we'll have $25 million of savings that we've been able to achieve on a run rate basis, about $15 million this year, and that's kind of ramped up through the year. So those are really the 2 things that have driven the margin expansion. And yes, we think we will have margin expansion next year for some of the same reasons. As I said earlier, pricing and raws should be positive, less than this year, but still positive. And then Quantum Leap will have a bigger positive impact next year. Unknown Analyst: Great. And as a follow-up, just curious, how should we think about like the stability of the growth for medical end market assuming a higher for longer rate environment relative to elective procedures and surgeries? Celeste Mastin: Yes. The medical -- actually, the use of surgical bonding is not just stable, but a high-growth medical end market. And there's a number of reasons for that. I mean, certainly, the number of procedures continues to increase even in a longer rate environment. We'll still see more procedures. And there's a growing number of smaller procedures, procedures where the use of adhesive is even more likely and accepted. And so we expect this medical end market to continue to grow quickly. In fact, that was one of the things we really liked about having it in our portfolio. It delivers strong organic growth at a high margin rate, and it allows us to balance out some of the cyclicality that we have in the industrial end markets as well as in the construction market. So we think it makes for a really nice balanced portfolio, and it will be that growth spark that endures even when the market is challenging. Operator: Your next question comes from the line of Kevin McCarthy with Vertical Research Partners. Kevin McCarthy: John, can you elaborate on the financing for the AMS deal? I think you have fully committed financing in place, but maybe you can elaborate on what the medium-term plans are with regard to term structure? And what does that cost of debt look like given the volatility in the bond market these days? John Corkrean: Sure. Happy to, Kevin. So yes, as you mentioned, we do have bridge financing in place. So we are assured to have financing to close the transaction. Our plan would be to execute the takeout financing prior to close, having it contingent on the close, and we're quite far along, I would say, in planning for that. Expect to see strong interest and feel highly confident that we'll be successful. If you kind of look at the structure, that's still being discussed, but it will probably be some combination of short-term Loan B type loans and probably unsecured type bonds. We obviously want to make sure that we have ample amounts of debt that we can repay quickly because we plan to delever quickly. So that will be reflected in the structure. Financing rates, I would say right now, kind of sort of 8-year fixed rates are probably in the 6.5% to 7% range, shorter rates, Term Loan B, they've kind of been pretty consistently around 175 to 200 basis points over SOFR. So that is kind of what we're seeing right now. And as I said, we'll be moving to finalize the financing before the deal closes. Kevin McCarthy: Very helpful. And then, Celeste, there's a lot of discussion previously on the call regarding your volume of minus 3% for the quarter, including GLP-1s and chip shortages and other factors. If I just kind of zoom out the lens and think about your demand function for adhesives relative to macro metrics, do you have in your mind that it should reconverge with macro metrics over some period of time, whether that's 6 months or 18 months or some other period? How do you think about that future trajectory? Celeste Mastin: Yes. It's so hard to index this business against a collection of macro metrics because we are in so many different end markets in so many different regions. And when you think about it big picture, I mean, it's an $80 billion market, and we're less than 5% market share. And so like being able to dial in volumes in the adhesive space versus a macro collection of indices is really hard. One of the things that we do in the adhesives industry is we bring to our customers high mileage adhesives. What I mean by that is they'll start using an adhesive. And in order to further optimize production, a lot of times, we'll work with them to bring them a higher value, and you see that in higher price adhesive that they can use less of. And so that's a dynamic that's constantly occurring in this market. And so there's a component of that, that you see that really disassociates it from the macro trends, particularly the fact that our share is so low. I mean, you'll see it in a lot of our spaces when construction or automotive are doing badly or when the number of mobile phone handsets is declining, we will still be growing our business in those spaces largely because we're able to take share through technology and because we have a low share position. Operator: Your next question comes from the line of Lucas Beaumont with UBS. Lucas Beaumont: Putting together all your comments kind of on the call today, just trying to sort of think about like the high-level considerations for the business as we go into next year. So I mean, based on your fourth quarter guide, I mean, it looks like you're going to be sort of exiting with high single-digit pricing, volumes are kind of down low single digits, continued kind of cost pressure to sort of come on the raw material side. It sounds like the volume outlook has kind of been choppy across sort of different end markets and that could remain under pressure as we sort of go into next year as well. I mean, you're going to have some benefit from easier comps, I guess, with solar and just the declines from this year. But I mean, overall, this seems like a setup that might point to more constrained growth into next year before the AMS acquisition. I mean, putting all of that together, it probably points to something more in the low to mid-single-digit kind of EBITDA growth range, more like what you had in 2024 and 2025 than the high single digits you're kind of tracking towards this year. So I guess just how would you sort of put all that together for us? And any other considerations or upside factors that we should sort of work into our outlook there as well? John Corkrean: So Lucas, I'll add a little color and you kind of recapped some of the key drivers of next year from a financial assumption standpoint. And I would say, I don't know that I'd conclude low single-digit or even mid-single-digit EBITDA growth yet. I think -- and we'll come forward with all of that in January. It obviously depends on the broader macro, and we probably will have more of a view on that in 3.5, 4 months. But I think we still think there's a lot of benefit that is specific to the things that we're doing from an execution standpoint. As I mentioned, the pricing raw benefit will be positive next year, and we're ready to, as Celeste said, judiciously take additional actions if we need to. And the Quantum Leap savings are meaningful. So we'll lay that all out. I think you've got the right key considerations, and we'll provide a sort of picture as to where that gets us. But we'll grow, right? We'll grow next year. We grew this year, we grew last year. So we will grow. Celeste Mastin: Yes. And I think the -- I would also -- I'm also positive about next year, particularly because when you look at our -- again, our position in this industry. It's an $80 billion industry, and our share is less than 5%. And we now have teams that are working hard, hitting on all cylinders to deliver great innovation to our customers, and it's making a difference. Just look at BAS, not -- that's a very constrained market, particularly here in the U.S., yet that team has introduced new products that they have used to grow share. In fact, we put out a price increase on Monday where we announced the expansion of our 4SG Kofinity product range with really some new products that have decidedly better benefits for our customers and building owners. And so that is the way that we are going to continue to drive improvement in EBITDA. It's not just pricing and the regular volume mix, it's bringing innovation. And it's also delivering on our Quantum Leap commitment, which is on track, as John indicated, and will, at its conclusion, deliver $75 million of run rate savings that will influence EBITDA very favorably. Lucas Beaumont: Great. And then I guess, just given kind of the macro environment sort of challenges currently that are still choppy. I guess how do you sort of see that impacting the outlook for the AMS business? I mean, just talk us through how defensive you sort of view their sales and earnings compared to like other parts of the portfolio. I guess if 2027 ends up being a bit more challenged from a macro perspective, I guess, do you see that adding any risks on the synergy or sort of earnings target side and also just around your deleveraging considerations there? Celeste Mastin: No. In fact, the AMS team continues to make really good progress on their Peters Surgical synergies. So when we quoted our synergy target, recall that we were getting the benefit of synergies related to their closure of some 5 facilities. And they are well on track and delivering on that commitment. So we end up stepping into the business when there's already synergies in flight, which is very helpful. Now when you look at the market structure, it's a market, as I indicated before, that's growing rapidly. The use of tissue bonding in surgical procedures continues to grow. The combination of the 2 businesses makes us the second largest surgical tissue bonding company in the world. And that's a position where we anticipate not feeling the challenges of the macro environment, but more so being able to expand the business in that environment because it's less oriented to the fluctuations of the industrial or the construction spaces that we're in today. Operator: Our last question comes from the line of Mike Harrison with Seaport Research Partners. Michael Harrison: Just one more for me. I appreciate you giving me the chance to ask this one. Just on the BAS offer that you guys -- the unsolicited proposal that you guys received, the Board rejected that proposal. And one of the reasons that was noted was some dissynergies that would be associated with shared plants and maybe reduced scale and procurement impacts. Can you help us quantify those dissynergies at all? And I guess I'm curious how you're thinking about it? Is there a price for BAS at which a divestiture could still make sense even though there are maybe some heavy lifting that you -- that would be required in carving that out? Celeste Mastin: Yes. So the Board fairly considered the offer for BAS. And in any case, if we receive an offer for a component of the business or the business itself, the Board is going to do its fiduciary duties and fully evaluate that. In the case of BAS, as we indicated, it's significantly integrated into the company as a whole. And that's not unusual. In fact, if you look at our business, we have what now 62 plants around the world that generally produce 2 or 3 different materials and produce them for 15 to 20 different market segments. So they are assigned to a GBU that's more for management purposes. They, in fact, are technology-based. And so we have a lot of businesses here that are really entwined like that, as you would expect in our production and sourcing -- raw material sourcing environment. In this case, we think that we're the best owner of BAS. But we're always open-minded and willing to consider other alternatives that make sense. John Corkrean: Yes. And I can comment a little bit on just the dissynergies. As opposed to quantifying them, I'll kind of describe where they come from and then how we think about them in light of a potential divestiture. There's obviously stranded costs that you're always going to have with the divestiture. We did with flooring. Flooring was a business that was relatively tangled with our other businesses that we had 6 dedicated manufacturing plants for flooring. The materials they bought were fairly unique to the flooring business. With BAS, they probably manufacture in 25, 30 different manufacturing facilities, probably 2/3 of which they're sharing with the other businesses. So they don't have a lot of dedicated plants. So that creates some dissynergies. On the sourcing side, BAS is roughly 20% of H.B. Fuller's revenue. They probably represent about 35% to 40% of the solvents we buy. So they would -- that would have a significant impact from our purchasing power as it relates to that material, which would impact other businesses. So those are the things we look at. And all of those are over -- we can overcome all of those, right, if we could -- depending on the potential valuation of a sale of an asset. But there are real considerations and then they were meaningful enough with BAS that we thought we should mention them. Operator: We have reached the end of our Q&A session. I will now turn the call back to Celeste for closing remarks. Celeste Mastin: Thanks very much for joining us this quarter. We look forward to talking to you in January. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in H.B. Fuller Co., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and H.B. Fuller Co. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $384,839!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,385,657!* Now, it's worth noting Stock Advisor's total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 24, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fuller (FUL) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Delivered 9% EBITDA growth and 80 basis points of margin expansion by aggressively implementing pricing actions to offset elevated raw material inflation. - Organic revenue growth of 4.4% was driven by a 7.4% pricing increase, which successfully mitigated lower volumes caused by customer supply chain constraints and fluctuating order patterns. - Successfully lapped the strategic exit from the solar business, removing a significant year-over-year volume headwind for the Engineering Adhesives (EA) segment. - Project Quantum Leap is optimizing the manufacturing footprint, with plans to reduce facility count from 82 in 2024 to below 60 by the end of 2027 to enhance operating leverage. - Maintained supply continuity despite ongoing petrochemical supply chain dislocations, leveraging strategic inventory investments to protect customer service levels. - Hygiene, Health, and Consumable Adhesives (HHC) faced headwinds from lower packaged food consumption and reduced residential mobility, impacting household formation-driven demand. - Construction (BAS) segment outperformed a muted market by leveraging innovation in roofing and insulating glass to capture share in a declining environment. - Fiscal 2026 adjusted EBITDA guidance is set at $655 million to $670 million, assuming pricing remains up mid-single digits while volumes decline low-single digits. - Project Quantum Leap is expected to deliver $20 million to $25 million in incremental savings in 2027, with total annualized savings reaching $75 million by 2030. - Management expects raw material prices to stabilize at current elevated levels for the remainder of the year, with pricing carryover benefiting the first half of 2027. - Capital spending is projected to decrease significantly from $50 million in 2026 to less than $25 million in 2027 as major network optimization projects conclude. - The Advanced Medical Solutions (AMS) acquisition is on track to close by year-end, with a commitment to return leverage to the 2.5x to 3x range within two years. - Project Quantum Leap involves $50 million in one-time cash costs, which management anticipates will be fully offset by proceeds from the sale of manufacturing real estate. - Net working capital increased to 18.5% of revenue due to strategic inventory builds intended to secure raw materials and support the manufacturing network transition. - Management is conducting a rigorous portfolio review, signaling a high priority on deleveraging and the potential for further divestitures of non-core market segments. - The AMS acquisition is expected to provide a high-growth, high-margin counter-cyclical balance to the industrial and construction-heavy portions of the portfolio. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Volumes were slightly better than expected as customer material constraints outside of adhesives were less severe than anticipated. - Management noted that mid- and small-sized customers are exhibiting volatile ordering patterns, often doubling order intervals in response to macroeconomic headlines. - The Board rejected the offer due to significant operational 'dis-synergies,' noting that BAS shares two-thirds of its manufacturing facilities with other segments. - Divesting BAS would have eroded procurement scale, as the segment accounts for 35% to 40% of the company's total solvent purchasing power. - Deleveraging will be accelerated by a reduction in maintenance capital as the plant footprint shrinks and the SAP global rollout (Project ONE) concludes. - Quantum Leap is expected to unlock $35 million in cash flow through a 5-day reduction in inventory requirements via a more efficient warehouse structure. - China remains the primary region to watch due to weak consumer demand and electronics softness, though HHC is currently gaining share in Asian packaging markets. - Europe is showing signs of recovery, and management expressed confidence in continued share gains through technical leadership and reliable supply.

H. B. Fuller (FUL) came out with quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $1.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.83%. A quarter ago, it was expected that this adhesives company would post earnings of $1.37 per share when it actually produced earnings of $1.41, delivering a surprise of +2.92%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. H. B. Fuller, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $938.18 million for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 0.43%. This compares to year-ago revenues of $892.04 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. H. B. Fuller shares have lost about 14.1% since the beginning of the year versus the S&P 500's gain of 13.4%. While H. B. Fuller has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for H. B. Fuller was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.41 on $944.53 million in revenues for the coming quarter and $4.83 on $3.6 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Minerals Technologies (MTX), has yet to report results for the quarter ended September 2026. This maker of mineral, mineral-based and synthetic mineral products is expected to post quarterly earnings of $1.57 per share in its upcoming report, which represents a year-over-year change of +1.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Minerals Technologies' revenues are expected to be $552.95 million, up 3.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report H. B. Fuller Company (FUL) : Free Stock Analysis Report Minerals Technologies Inc. (MTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

H. B. Fuller (FUL) reported $938.18 million in revenue for the quarter ended August 2026, representing a year-over-year increase of 5.2%. EPS of $1.52 for the same period compares to $1.26 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $934.18 million, representing a surprise of +0.43%. The company delivered an EPS surprise of +4.83%, with the consensus EPS estimate being $1.45. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how H. B. Fuller performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Revenue- Hygiene, Health and Consumable Adhesives: $412.97 million compared to the $405.74 million average estimate based on two analysts. The reported number represents a change of +7% year over year. Net Revenue- Building Adhesive Solutions: $246.51 million versus the two-analyst average estimate of $249.88 million. Net Revenue- Engineering Adhesives: $278.7 million versus $279.86 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +2.4% change. Adjusted EBITDA- Engineering Adhesives: $66.45 million versus the two-analyst average estimate of $65.17 million. Adjusted EBITDA- Building Adhesive Solutions: $44.76 million versus $44.08 million estimated by two analysts on average. Adjusted EBITDA- Hygiene, Health and Consumable Adhesives: $72.77 million compared to the $71.86 million average estimate based on two analysts. View all Key Company Metrics for H. B. Fuller here>>> Shares of H. B. Fuller have returned -10.4% over the past month versus the Zacks S&P 500 composite's +1.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report H. B. Fuller Company (FUL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research