H.B. Fuller Q3 net income beats estimates on pricing actions, restructuring savings
Overview
Adhesives maker's fiscal Q3 revenue rose 5% yr/yr but missed analyst expectations
Adjusted EPS for fiscal Q3 rose 21% yr/yr, beating analyst expectations
Company says margin gains driven by pricing execution and restructuring savings
Outlook
H.B. Fuller expects fiscal 2026 adjusted EBITDA of $655 mln to $670 mln
Company sees fiscal 2026 adjusted EPS (diluted) between $4.70 and $4.85
H.B. Fuller expects fiscal 2026 cash flow from operations of $300 mln to $325 mln, excluding AMS items
Result Drivers
PRICING ACTIONS - Co said pricing increased net revenue by 7.4%, offsetting lower volume and driving organic growth
RESTRUCTURING SAVINGS - Co said restructuring efforts contributed to margin improvement and profitability
STRATEGIC INVENTORY INVESTMENTS - Co said higher net working capital was driven by inventory investments to support Quantum Leap and supply continuity amid Middle East disruption
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $938.17 mln | $948.19 mln (7 Analysts) |
Q3 Adjusted EPS | Beat | $1.52 | $1.47 (7 Analysts) |
Q3 Adjusted Net Income Attributable | Beat | $83.42 mln | $81.27 mln (6 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for H.B. Fuller Company is $75.00, about 46.9% above its September 22 closing price of $51.07
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)