# H.B. Fuller (FUL) Q2 2025 Financial Results Summary
On June 25, 2025, H.B. Fuller Company (NYSE: FUL) released its financial results for the second quarter ending May 31, 2025. Below is a summary of the reported metrics and key highlights.
## Financial Highlights
– **Net Revenue**:
– Reported at **$898 million**, a decrease of **2.1%** compared to Q2 2024.
– Adjusted for the flooring divestiture, net revenue increased by **2.8%** year-on-year.
– **Gross Profit Margin**:
– Reported at **31.9%**, adjusted gross profit margin improved to **32.2%,** an increase of **110 basis points** year-on-year.
– **Net Income**:
– Recorded at **$42 million** for the second quarter.
– **Earnings per Share (EPS)**:
– Reported diluted EPS of **$0.76**, and adjusted diluted EPS of **$1.18**, representing a **5%** increase year-on-year.
– **Adjusted EBITDA**:
– Amounted to **$166 million**, a **5%** growth compared to the same quarter last year.
– Adjusted EBITDA margin increased **130 basis points** year-on-year to **18.4%**.
– **Operating Cash Flow**:
– Increased by **$29 million** year-on-year to **$111 million**.
– **Share Repurchases**:
– Approximately **one million shares** repurchased year-to-date.
## Revenue Breakdown
– **Pricing Impact**: Contributed an increase of **0.7%**, while volume slightly fell, leading to an organic revenue growth of **0.4%** year-on-year.
– **Foreign Currency Translation**: Had a negative impact, reducing revenue by **1.2%**, and net acquisitions/divestitures impacted revenue by **1.3%**.
## Selling, General and Administrative Expenses
– **SG&A Expenses**:
– Total reported at **$186 million**, with adjusted SG&A at **$176 million**, compared to **$173 million** in Q2 2024. Adjusted SG&A remained flat year-on-year after factoring in acquisitions and divestitures.
## Balance Sheet Insights
– **Net Debt**:
– At **$2,016 million**, a decrease of **$59 million** sequentially from Q1 2025, but an increase of **$106 million** year-on-year.
– **Net Debt-to-Adjusted EBITDA Ratio**:
– Improved from **3.5X** at the end of Q1 to **3.4X** by the end of Q2 2025.
– **Net Working Capital**:
– Remained relatively flat year-on-year with a slight increase of **40 basis points** to **16.6%** in relation to annualized net revenue.
## Fiscal 2025 Outlook
– **Revenue Expectations**:
– Net revenue is anticipated to decline by **2% to 3%** for fiscal 2025, with organic revenue expected to remain flat to grow by **2%**. Foreign exchange impacts may adversely affect net revenue by **1.0% to 1.5%**.
– **Adjusted EBITDA Guidance**:
– Revised to **$615 million to $630 million**, reflecting **4% to 6%** growth year-on-year.
– **Adjusted EPS Forecast**:
– Expected to range between **$4.10 to $4.30**, translating to **7% to 12%** growth compared to the prior year.
## Conclusion
H.B. Fuller Company demonstrated solid performance in the second quarter of 2025, although revenue faced challenges due to divestitures and currency impacts. The company showed resilience through improved margins and effective cost management, leading to an encouraging adjusted EBITDA and EPS growth compared to the same period last year. The update on future guidance reflects confidence in navigating economic headwinds while supporting growth initiatives.
**Note**: Further details and a comprehensive discussion of these results can be accessed during the conference call scheduled for June 26, 2025, at 9:30 a.m. CT (10:30 a.m. ET).
| Three Months Ended | Percent of | Three Months Ended | Percent of | |
|---|---|---|---|---|
| May 31, 2025 | Net Revenue | June 1, 2024 | Net Revenue | |
| Net revenue | $898,095 | 100.0% | $917,107 | 100.0% |
| Cost of sales | (611,711) | (68.1%) | (635,055) | (69.3%) |
| Gross profit | 286,384 | 31.9% | 282,052 | 30.8% |
| Selling, general and administrative expenses | (186,340) | (20.7%) | (181,456) | (19.8%) |
| Other income, net | 7,141 | 0.8% | 3,634 | 0.4% |
| Interest expense | (34,865) | (3.9%) | (32,314) | (3.5%) |
| Interest income | 854 | 0.1% | 1,199 | 0.1% |
| Income before income taxes and income from equity method investments | 73,174 | 8.1% | 73,115 | 8.0% |
| Income taxes | (32,726) | (3.6%) | (22,418) | (2.4%) |
| Income from equity method investments | 1,397 | 0.2% | 600 | 0.1% |
| Net income including non-controlling interest | 41,845 | 4.7% | 51,297 | 5.6% |
| Net income attributable to non-controlling interest | (17) | (0.0%) | (33) | (0.0%) |
| Net income attributable to H.B. Fuller | $41,828 | 4.7% | $51,264 | 5.6% |
| Basic income per common share attributable to H.B. Fuller | $0.77 | $0.93 | ||
| Diluted income per common share attributable to H.B. Fuller | $0.76 | $0.91 | ||
| Weighted-average common shares outstanding: Basic | 54,443 | 54,946 | ||
| Diluted | 54,952 | 56,636 |
| Assets | May 31, 2025 | November 30, 2024 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $96,785 | $169,352 |
| Trade receivables (net of allowances of $10,978 and $11,621, as of May 31, 2025 and November 30, 2024, respectively) | 584,026 | 558,336 |
| Inventories | 495,588 | 467,498 |
| Other current assets | 118,176 | 104,019 |
| Total current assets | 1,294,575 | 1,299,205 |
| Property, plant and equipment | 1,861,936 | 1,864,558 |
| Accumulated depreciation | (994,409) | (982,631) |
| Property, plant and equipment, net | 867,527 | 881,927 |
| Goodwill | 1,670,078 | 1,532,221 |
| Other intangibles, net | 847,699 | 770,226 |
| Other assets | 452,578 | 449,665 |
| Total assets | $5,132,457 | $4,933,244 |
| Liabilities, non-controlling interest and total equity | ||
| Current liabilities | ||
| Notes payable | $- | $587 |
| Trade payables | 481,957 | 491,435 |
| Accrued compensation | 85,008 | 106,005 |
| Income taxes payable | 27,672 | 24,225 |
| Other accrued expenses | 97,490 | 97,038 |
| Total current liabilities | 692,127 | 719,290 |
| Long-term debt | 2,112,428 | 2,010,052 |
| Accrued pension liabilities | 55,017 | 51,755 |
| Other liabilities | 396,900 | 322,299 |
| Total liabilities | $3,256,472 | $3,103,396 |
| Commitments and contingencies (Note 13) | ||
| Equity | ||
| H.B. Fuller stockholders’ equity: Preferred stock (no shares outstanding) shares authorized – 10,045,900 | – | – |
| Common stock, par value $1.00 per share, shares authorized – 160,000,000, shares outstanding – 53,952,793 and 54,657,103 as of May 31, 2025 and November 30, 2024, respectively | $53,953 | $54,657 |
| Additional paid-in capital | 278,513 | 322,636 |
| Retained earnings | 1,954,785 | 1,924,761 |
| Accumulated other comprehensive loss | (412,553) | (473,395) |
| Total H.B. Fuller stockholders’ equity | 1,874,698 | 1,828,659 |
| Non-controlling interest | 1,287 | 1,189 |
| Total equity | 1,875,985 | 1,829,848 |
| Total liabilities, non-controlling interest and total equity | $5,132,457 | $4,933,244 |
