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H.B. Fuller Company (FUL)
NYSE:FUL
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H.B. Fuller Company (FUL) AI Stock Analysis

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FUL

H.B. Fuller Company

(NYSE:FUL)

Rating:68Neutral
Price Target:
$64.00
▲(9.22%Upside)
H.B. Fuller Company maintains a solid financial position with manageable leverage and strong operational profitability. However, concerns about declining net profit margin, negative free cash flow growth, and high valuation weigh on the score. The earnings call provides balanced sentiment with positive guidance but highlights challenges in specific markets. Technical analysis shows mixed signals with potential for rebound.
Positive Factors
Cost Optimization
Cost optimization efforts, acquisition contributions, and strong demand in Construction Adhesives provide a silver lining for the FUL shares.
Mergers and Acquisitions
M&A optionality has increased for FUL, with a substantial pipeline of accretive bolt-on acquisitions expected to boost the growth profile of the company.
Negative Factors
Earnings and Guidance
Earnings below Street expectations and guidance adjusted lower.
Financial Performance
3FQ24 earnings miss and the associated FY24 guidance adjustments are a net negative for the shares.
Pricing and Cost Dynamics
The reality of a more challenging operating backdrop and unfavorable price:cost dynamics are powerful offsets.

H.B. Fuller Company (FUL) vs. SPDR S&P 500 ETF (SPY)

H.B. Fuller Company Business Overview & Revenue Model

Company DescriptionH.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products worldwide. The company operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives such as, thermoplastic, thermoset, reactive, and water-based and solvent-based products for applications in various markets, including food and beverage containers, flexible packaging, consumer goods, package integrity and re-enforcement, and non-durable goods; corrugation, folding carton, tape and label, paper converting, envelopes, books, multi-wall bags, sacks, and tissue and towel; disposable diapers, feminine care, and medical garments; and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives such as reactive, light cure, two-part liquids, silicone, polyurethane, film, and fast cure products to the appliances and filters, windows, doors and wood flooring, and textile, transportation, electronics, medical, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly through distributors and retailers. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.
How the Company Makes MoneyH.B. Fuller Company generates revenue primarily through the sale of its adhesive products and solutions across multiple industries. Its key revenue streams include industrial adhesives used in packaging, converting, nonwoven and hygiene, general assembly, and durable assembly applications. The company also earns income from construction adhesives, sealants, and specialty materials utilized in building projects. Significant partnerships with leading manufacturers and a global distribution network enhance its market reach and contribute to its earnings. Additionally, H.B. Fuller invests in research and development to innovate and create tailored solutions for specific customer requirements, reinforcing its competitive position in the market.

H.B. Fuller Company Earnings Call Summary

Earnings Call Date:Jun 25, 2025
(Q2-2025)
|
% Change Since: 4.72%|
Next Earnings Date:Sep 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with strong financial metrics in profitability and cost management, highlighted by EBITDA growth and margin expansion. However, there are notable challenges in revenue growth, particularly in the solar and residential construction markets, and regional weaknesses in EIMEA and Asia Pacific. Positive steps in sustainability and innovation offer optimism, but the overall sentiment is balanced between achievements and challenges.
Q2-2025 Updates
Positive Updates
EBITDA Margin Expansion
EBITDA grew 5% year on year to $166 million, with a margin expansion of 130 basis points to 18.4%.
Engineering Adhesives Segment Performance
EBITDA in Engineering Adhesives increased 24%, with a margin increase of 310 basis points year on year to 22.9%.
Positive Organic Revenue Growth
Organic revenue increased by 0.4%, driven by pricing growth of 0.7% despite a slight volume decrease.
Cash Flow Improvement
Operating cash flow for the second quarter increased by $29 million (36%) year on year.
Recognition for Sustainability
H.B. Fuller was named one of the world's greenest companies in 2025 by Newsweek.
Customer Innovation Awards
Awards were given to companies like CMC Packaging Automation and Chengdu Xinyu for innovations using adhesive technologies.
Negative Updates
Revenue Decline
Overall revenue decreased by 2.1% compared to the same period last year.
Weakness in Solar Market
Continued weakness in the solar market affected the Engineering Adhesives segment's revenue.
Challenges in Residential Construction
Building Adhesive Solutions sales decreased by 0.9% year on year due to weakness in glass and wood, related to residential construction.
EIMEA Market Performance
Organic revenue in EIMEA was down 2% year over year due to weak demand in construction-related end markets.
Electronics Market Slowdown in China
A temporary pause was noted in the electronics market in Asia Pacific, leading to a slowdown in exports.
Company Guidance
During H.B. Fuller's second quarter 2025 investor call, the company provided updated guidance reflecting strong financial performance. The full-year outlook for adjusted EBITDA was raised to a range of $615 million to $630 million, representing an increase of 4% to 6% year on year. The adjusted EPS guidance was also increased to a range of $4.10 to $4.30, indicating growth of between 7-12% year on year. Organic revenue is expected to be flat to up 2%, with net revenue expected to decline by 2% to 3% year on year due to foreign exchange impacts. The company reported a second-quarter EBITDA margin expansion of 130 basis points year on year to 18.4%, driven by a 5% increase in EBITDA to $166 million. The margin expansion was supported by strategic pricing actions, cost savings, and portfolio shifts towards higher-margin markets. H.B. Fuller also noted ongoing challenges and uncertainties in the operating environment, including foreign exchange volatility and constrained demand, but expressed confidence in continuing margin expansion and profit growth in the second half of the year.

H.B. Fuller Company Financial Statement Overview

Summary
H.B. Fuller Company's financial performance is solid, with strong operational profitability and manageable leverage. The company shows effective cost management but faces challenges with declining net profit margin and negative free cash flow growth. Improvement in revenue growth and cash flow efficiency is needed.
Income Statement
78
Positive
H.B. Fuller Company shows a stable financial performance with solid profitability metrics. The Gross Profit Margin stands at 29.88% TTM, indicating effective cost management. However, the Net Profit Margin has decreased to 2.92% TTM from 3.65% in the previous year due to a reduction in net income. The EBIT and EBITDA margins are strong at 9.28% and 13.52% TTM, respectively, showcasing the company's solid operating profitability. Revenue growth rate shows a slight decline, which is a concern for long-term growth potential.
Balance Sheet
74
Positive
The Balance Sheet reflects moderate financial health. The Debt-to-Equity Ratio is 1.13 TTM, indicating a balanced use of debt and equity. The Return on Equity (ROE) is 5.50% TTM, reflecting modest returns for shareholders. The Equity Ratio stands at 36.52% TTM, showing a reasonable proportion of equity in the company's asset structure. Although leverage is under control, the company should focus on improving its equity base and ROE for better financial stability.
Cash Flow
70
Positive
Cash flow analysis reveals some areas for improvement. The Operating Cash Flow to Net Income Ratio is 2.24 TTM, indicating strong cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is 1.14 TTM, which is lower than desired, suggesting limited free cash available after capital expenditures. The Free Cash Flow Growth Rate is negative, signaling a decline in cash available for discretionary purposes.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.57B3.51B3.75B3.28B2.79B
Gross Profit1.06B1.01B963.70M845.32M756.65M
EBITDA490.50M528.60M490.43M438.12M383.95M
Net Income130.26M144.91M180.31M161.39M123.72M
Balance Sheet
Total Assets4.93B4.72B4.46B4.27B4.04B
Cash, Cash Equivalents and Short-Term Investments169.35M179.45M79.91M61.79M100.53M
Total Debt2.07B1.90B1.77B1.62B1.77B
Total Liabilities3.10B2.97B2.85B2.66B2.65B
Stockholders Equity1.83B1.76B1.61B1.61B1.38B
Cash Flow
Free Cash Flow163.20M259.26M126.55M117.23M244.27M
Operating Cash Flow302.44M378.40M256.51M213.32M331.56M
Investing Cash Flow-407.08M-319.20M-375.29M-94.66M-109.46M
Financing Cash Flow112.09M35.14M160.32M-154.07M-239.21M

H.B. Fuller Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price58.60
Price Trends
50DMA
58.21
Positive
100DMA
56.23
Positive
200DMA
62.32
Negative
Market Momentum
MACD
0.16
Positive
RSI
45.38
Neutral
STOCH
14.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUL, the sentiment is Negative. The current price of 58.6 is below the 20-day moving average (MA) of 61.14, above the 50-day MA of 58.21, and below the 200-day MA of 62.32, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 45.38 is Neutral, neither overbought nor oversold. The STOCH value of 14.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FUL.

H.B. Fuller Company Risk Analysis

H.B. Fuller Company disclosed 21 risk factors in its most recent earnings report. H.B. Fuller Company reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

H.B. Fuller Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$2.85B33.1636.00%1.73%6.52%24.81%
69
Neutral
$3.08B31.114.32%3.23%3.58%-5.17%
69
Neutral
$4.79B35.6112.18%1.47%4.95%53.63%
68
Neutral
$3.16B31.785.62%1.54%-0.09%-37.60%
62
Neutral
$10.39B9.841.51%2.86%2.35%-34.25%
58
Neutral
$2.40B41.89-0.69%3.65%1.49%-105.20%
57
Neutral
$3.34B-28.05%2.00%-4.31%-1421.83%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FUL
H.B. Fuller Company
58.60
-26.68
-31.29%
OLN
Olin
21.89
-22.52
-50.71%
AVNT
Avient
33.08
-11.01
-24.97%
SSL
Sasol
5.23
-2.83
-35.11%
SXT
Sensient Technologies
111.40
34.96
45.74%
WDFC
WD-40 Company
213.84
-43.62
-16.94%

H.B. Fuller Company Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
H.B. Fuller Announces Leadership Transition and Strategic Focus
Positive
Oct 21, 2024

H.B. Fuller Company has announced the retirement of Lee R. Mitau as Chair of the Board, effective January 2025. He is succeeded by Teresa J. Rasmussen, a seasoned leader known for her global perspective and expertise in financial services. The transition is expected to support H.B. Fuller’s growth strategy as it aims to expand in high-growth markets and improve its EBITDA margin. Mitau’s departure follows years of significant contributions to the company’s development as the largest pureplay adhesives company globally.

Executive/Board Changes
H.B. Fuller Announces Retirement of Key Executive Traci Jensen
Neutral
Oct 7, 2024

Traci L. Jensen, a key executive at H.B. Fuller Company, is set to retire on November 30, 2024, after a significant 15-year tenure that included roles such as Executive Vice President and Chief Administrative Officer, and Vice President of Global Business Process Improvement. Recognized for her pivotal contributions to the company’s growth, Jensen’s departure will lead to an upcoming announcement of her successor. Her leadership and service have been highly valued by the company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025