Seaport Research Highlights Margin Progress at H.B. Fuller (FUL), Flags Growth Uncertainty

H.B. Fuller’s Q4 FY2025 results, released on January 14, reflected that mixed picture. Revenue slipped 3.1% from last year to $895 million, and net income came in at $30 million. The brighter part of the report was profitability. Adjusted EBITDA jumped 14.6% to $170 million, and margins expanded meaningfully, with the adjusted EBITDA margin rising to 19.0%, up 290 basis points year-over-year.

The company also continued to keep a lid on costs. SG&A spending was $184 million in the quarter, while adjusted SG&A was slightly lower at $174 million, helped by ongoing cost-saving initiatives and lower variable compensation.

For FY2026, H.B. Fuller expects revenue to hold steady or rise slightly, projecting flat to 2% growth compared to FY2025. Organic revenue is expected to be roughly unchanged, while currency translation could add around 1%. Cash generation is also expected to remain healthy, with operating cash flow projected at $275 million–$300 million. Capital spending is expected to run around $160 million, including $50 million tied to Project Quantum Leap.