H.B. Fuller Company ( (FUL) ) has released its Q1 earnings. Here is a breakdown of the information H.B. Fuller Company presented to its investors.
H.B. Fuller Company is a global leader in adhesives, sealants, and functional coatings, serving various industries with innovative solutions. Founded in 1887, the company operates in over 140 countries, providing essential products that enhance the quality and performance of everyday items.
In its first quarter of 2025, H.B. Fuller reported a net revenue of $789 million, marking a 2.7% decline from the previous year, primarily due to unfavorable foreign currency translations and the divestiture of its flooring business. However, the company achieved a 1.9% increase in organic revenue, driven by improved volumes.
Key financial metrics for the quarter included a net income of $13 million and an adjusted EBITDA of $114 million, down 7% from the previous year. The gross margin stood at 28.8%, with an adjusted gross margin of 29.6%, slightly decreasing due to higher raw material costs. The company also repurchased 678,000 shares during the quarter, reflecting its commitment to returning value to shareholders.
Despite challenges such as weak market demand and rising raw material costs, H.B. Fuller remains focused on strategic pricing, market share gains, and cost management. The company continues to pursue its long-term strategic plan, aiming for a greater than 20% EBITDA margin target.
Looking ahead, H.B. Fuller maintains a cautious outlook due to unpredictable geopolitical conditions and market demand. Nevertheless, the company is optimistic about achieving growth in organic sales and EBITDA for the year, while expanding its EBITDA margin.