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1. Company Snapshot

1.a. Company Description

H.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.

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1.b. Last Insights on FUL

H.B. Fuller Company's recent performance was driven by improved margins and EPS, fueled by cost-cutting efforts and resilient segment performance. The company's Q2 2025 earnings beat estimates, with adjusted gross profit margin up 110 basis points year-over-year. Its strategic exit from low-margin businesses and focus on higher-margin adhesive solutions tied to infrastructure, clean energy, and advanced materials have yielded positive results. Additionally, the company's attractive valuation, with a forward earnings multiple of 14x and a sub-1 PEG, suggests potential for growth.

1.c. Company Highlights

2. H.B. Fuller Delivers Mixed Q4 2025 Results Amidst Challenging Economic Backdrop

H.B. Fuller's fourth-quarter 2025 earnings report presented a mixed bag, with net revenue declining 3.1% year-over-year, and organic revenue down 1.3%, driven by lower volumes. However, the company reported EBITDA of $170 million, up 15% year-over-year, and EBITDA margin of 19%, up 290 basis points year-over-year. The company's adjusted earnings per share (EPS) came in at $1.28, beating analyst estimates of $1.24. The revenue decline was largely attributed to lower volumes, while pricing actions and raw material management helped drive margin expansion.

Publication Date: Jan -16

📋 Highlights
  • Strong EBITDA Growth:: Q4 2025 EBITDA surged 15% YoY to $170 million, with margins rising 290 bps to 19% despite 1.3% organic revenue decline.
  • 2026 Profit Outlook:: Adjusted EBITDA guidance of $630–$660 million reflects $35M carryover benefits and $10M incremental savings from Quantum Leap initiatives.
  • Strategic Acquisitions:: Medical adhesives and fastener coating acquisitions are projected to add $3 million in EBITDA by 2026.
  • Q1 2026 Revenue Impact:: Revenue expected down low single digits due to Chinese New Year timing, shifting $15–$20 million to Q2.
  • Free Cash Flow Target:: $275–$300 million forecast for 2026, driven by higher income and stable working capital, with long-term goals to reduce working capital to <15% of revenue.

Segment Performance and Outlook

The company's Building Adhesives Systems (BAS) segment faced a tough comparison in Q4 2025, and a weakening construction environment impacted results. However, the company is excited about opportunities in LNG and data centers. In contrast, the packaging business saw weakness in North America, particularly among CPG customers, but growth in EIMEA and Asia Pacific. For 2026, the company expects revenue to be flat to up 2%, with organic revenue expected to be approximately flat.

Guidance and Expectations

H.B. Fuller expects adjusted EBITDA to be between $630 million and $660 million in 2026, driven by a $35 million improvement year-on-year from pricing and raw materials, a $5-10 million benefit from FX, and $10 million of incremental savings from Quantum Leap. The company also expects expanded margins in all GBUs in 2026, with positive pricing expected across all three GBUs, around 0.5% to 1%. The company's guidance implies a largely volume-driven impact, with self-help measures expected to drive growth.

Valuation and Metrics

With a P/E Ratio of 30.19 and EV/EBITDA of 11.07, the market appears to be pricing in a certain level of growth and margin expansion. The company's ROE of 6.18% and ROIC of 4.78% suggest a relatively stable return profile. The Net Debt / EBITDA ratio of 4.02 indicates a moderate level of leverage. Given the company's guidance and expectations, it remains to be seen whether H.B. Fuller can deliver on its growth and margin expansion targets.

3. NewsRoom

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New York State Common Retirement Fund Grows Stock Position in H. B. Fuller Company $FUL

Feb -05

Source: defenseworld.net

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Cooke & Bieler LP Increases Position in H. B. Fuller Company $FUL

Jan -26

Source: defenseworld.net

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Best Dividend Kings: January 2026

Jan -26

Source: seekingalpha.com

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H.B. Fuller Has Become Attractive After Its Post-Earnings Plunge

Jan -19

Source: seekingalpha.com

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H.B. Fuller Company (FUL) Q4 2025 Earnings Call Transcript

Jan -15

Source: seekingalpha.com

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H. B. Fuller (FUL) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Jan -14

Source: zacks.com

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H.B. Fuller Reports Fourth Quarter and Fiscal Year 2025 Results

Jan -14

Source: businesswire.com

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H.B. Fuller Likely To Report Higher Q4 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Jan -12

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.72%)

6. Segments

Hygiene, Health and Consumable Adhesives

Expected Growth: 4.5%

H.B. Fuller's Hygiene, Health and Consumable Adhesives segment growth of 4.5% is driven by increasing demand for disposable hygiene products, growing adoption of healthcare solutions, and rising consumption of packaged foods and beverages. Additionally, expanding middle-class populations in emerging markets and innovative product developments are contributing to the segment's growth.

Engineering Adhesives

Expected Growth: 4.8%

H.B. Fuller's Engineering Adhesives segment growth of 4.8% is driven by increasing demand for electric and autonomous vehicles, growth in renewable energy, and rising adoption of advanced materials in industrial manufacturing. Additionally, the company's strategic acquisitions and investments in R&D have expanded its product offerings and enhanced its market position.

Construction Adhesives

Expected Growth: 5.2%

H.B. Fuller's Construction Adhesives segment growth of 5.2% is driven by increasing demand for energy-efficient buildings, infrastructure development, and renovation activities. Additionally, the company's strategic acquisitions, product innovations, and expanding presence in emerging markets contribute to its growth momentum.

7. Detailed Products

Adhesives

H.B. Fuller offers a wide range of adhesives for various industries, including packaging, woodworking, and construction.

Sealants

H.B. Fuller's sealants are designed for sealing and protecting surfaces in various industries, including construction, automotive, and aerospace.

Coatings

H.B. Fuller's coatings are used to protect and enhance the appearance of various surfaces, including wood, metal, and plastic.

Elastomers

H.B. Fuller's elastomers are used in a variety of applications, including adhesives, sealants, and coatings.

Hygiene Adhesives

H.B. Fuller's hygiene adhesives are designed for use in disposable hygiene products, such as diapers and sanitary napkins.

Packaging Adhesives

H.B. Fuller's packaging adhesives are used in various packaging applications, including case and carton sealing, and labeling.

Woodworking Adhesives

H.B. Fuller's woodworking adhesives are designed for use in woodworking applications, including furniture, cabinetry, and flooring.

8. H.B. Fuller Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for H.B. Fuller Company is medium due to the availability of alternative adhesives and sealants from competitors.

Bargaining Power Of Customers

The bargaining power of customers for H.B. Fuller Company is low due to the company's strong relationships with its customers and the lack of concentration in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for H.B. Fuller Company is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for H.B. Fuller Company is low due to the high barriers to entry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for H.B. Fuller Company is high due to the presence of several established competitors and the need for continuous innovation to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.02%
Debt Cost 11.54%
Equity Weight 47.98%
Equity Cost 11.54%
WACC 11.54%
Leverage 108.41%

11. Quality Control: H.B. Fuller Company passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 5.4

Quality: 7.5

Yield: 1.0

Momentum: 4.0

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H.B. Fuller

A-Score: 4.6/10

Value: 4.9

Growth: 4.9

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Growth: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.06$

Current Price

66.06$

Potential

-0.00%

Expected Cash-Flows