H.B. Fuller Company
SWB:HB1
H.B. Fuller Company
H.B. Fuller Company, a name that might not ring a bell for many, has been integral to countless products we encounter daily. Founded in 1887, this Minnesota-based company started its journey manufacturing sealing wax for food canning. Today, it stands as a global adhesive powerhouse, catering to diverse industries ranging from construction and consumer goods to automotive and electronics. The company's core operation revolves around creating specialized adhesive solutions that bind the unseen seams of industry. These adhesives serve purposes far and wide, from ensuring the structural integrity of buildings to enabling high-tech gadgetry and packaging that withstands the rigors of modern supply chains.
The way H.B. Fuller generates revenue is rooted in its strategic agility and innovation. The company's success is anchored on understanding the specific needs of its clients and developing bespoke adhesive solutions tailored to each application. By investing significantly in R&D, it remains at the cutting edge of adhesive technology, offering products that are not only effective but also environmentally sustainable. H.B. Fuller monetizes its expertise through long-term partnerships with large industrial consumers, ensuring a steady stream of income while exploring new market avenues and expanding its geographical footprint through acquisitions and alliances. This business model has not only fortified its market position but also ensured steady growth amidst evolving industry demands.
H.B. Fuller Company, a name that might not ring a bell for many, has been integral to countless products we encounter daily. Founded in 1887, this Minnesota-based company started its journey manufacturing sealing wax for food canning. Today, it stands as a global adhesive powerhouse, catering to diverse industries ranging from construction and consumer goods to automotive and electronics. The company's core operation revolves around creating specialized adhesive solutions that bind the unseen seams of industry. These adhesives serve purposes far and wide, from ensuring the structural integrity of buildings to enabling high-tech gadgetry and packaging that withstands the rigors of modern supply chains.
The way H.B. Fuller generates revenue is rooted in its strategic agility and innovation. The company's success is anchored on understanding the specific needs of its clients and developing bespoke adhesive solutions tailored to each application. By investing significantly in R&D, it remains at the cutting edge of adhesive technology, offering products that are not only effective but also environmentally sustainable. H.B. Fuller monetizes its expertise through long-term partnerships with large industrial consumers, ensuring a steady stream of income while exploring new market avenues and expanding its geographical footprint through acquisitions and alliances. This business model has not only fortified its market position but also ensured steady growth amidst evolving industry demands.
Profitability: H.B. Fuller delivered double-digit EPS growth and strong EBITDA margin expansion in Q4, with EBITDA at the top end of guidance despite lower revenue.
Revenue: Q4 net revenue declined 3.1% year-on-year, but was up about 1% excluding the flooring divestiture; organic revenue was down 1.3%.
Margin Expansion: Q4 EBITDA margin improved by 290 basis points to 19%, driven by pricing, raw material cost savings, and restructuring.
Guidance: 2026 outlook expects flat to up 2% revenue, adjusted EBITDA of $630–$660 million, and EPS of $4.35–$4.70, despite a continued challenging macro environment.
Segment Trends: Engineering Adhesives continued to outperform, especially in automotive, electronics, and aerospace, while packaging and construction-related businesses remained soft.
Q1 Impact: Q1 revenues are expected to be down due to the later Chinese New Year shifting $15–$20 million in revenue and $6–$8 million in EBITDA to Q2.
M&A Activity: Acquisitions, especially in medical adhesives and fastener coatings, are a key growth driver, with more normal M&A activity expected in 2026.
Cash Flow: Operating cash flow for 2026 is guided to $275–$300 million, with higher working capital and capital expenditures due to the Quantum Leap initiative.
