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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 Strong Q3 with EBITDA Growth

H.B. Fuller reported a robust third quarter, with EBITDA reaching $171 million, representing a 3% increase and expanding EBITDA margin to 19.1%. The company's organic revenue was slightly negative, driven by a 1.9% volume decline, but was offset by 1% pricing growth. The actual EPS came out at $1.26, beating estimates of $1.24. The revenue performance was mixed across segments, with Engineered Adhesives (EA) outperforming, driven by strong automotive and electronics performance, while Home & Construction (HHC) declined due to consumer weakness.

Publication Date: Sep -26

📋 Highlights
  • EBITDA Growth: H.B. Fuller achieved 3% EBITDA growth to $171 million in Q3, driven by pricing actions and cost controls.
  • Margin Expansion: EBITDA margin expanded to 19.1%, reflecting ongoing portfolio shifts and operational efficiency.
  • Segment Performance: EA (Engineered Adhesives) grew 2.2% organically, while HHC declined 3.1% due to consumer weakness.
  • 2025 Guidance: Adjusted EBITDA target of $615–625 million (4–5% growth) and EPS of $4.10–$4.25 (7–11% growth) reflects margin-driven strategy.
  • Cost Savings: $55 million in price/raw material savings targeted for FY2025, with $15 million realized in H1 and $15 million expected in Q4.

Segment Performance

The EA segment saw organic revenue rise 2.2%, driven by successful integration of ND Industries products into HVAC offerings and expansion into new geographies. Medical adhesives revenue grew 60% this year, with EBITDA doubling and margins exceeding 40%. In contrast, HHC declined 3.1% due to consumer weakness, while Building Adhesives Solutions (BAS) was flat year-on-year, with a 30% organic growth in the Middle East roofing segment.

Guidance and Outlook

H.B. Fuller tightened its adjusted EBITDA range to $615 million to $625 million, representing 4% to 5% growth, and expects full-year adjusted diluted EPS to be in the range of $4.10 to $4.25, reflecting 7% to 11% growth. The company remains cautious about the macroeconomic environment, citing global economic uncertainty and a weakening manufacturing sector as potential headwinds. However, it is focused on delivering on its long-term EBITDA margin target and growth strategy through operational efficiency and portfolio optimization.

Valuation and Metrics

With a P/E Ratio of 27.65 and EV/EBITDA of 10.47, the market appears to be pricing in a certain level of growth. The company's ROE stands at 6.18%, while ROIC is at 4.76%. The Net Debt / EBITDA ratio is 4.02, indicating a relatively high level of debt. Analysts estimate next year's revenue growth at 3.2%, which is slightly above the company's current guidance. The Dividend Yield is 1.57%, providing a relatively stable return for investors.

Operational Efficiency

The company is targeting $55 million in price and raw material cost savings for the year to achieve its EBITDA guidance. While the cadence of these savings was slower than anticipated, H.B. Fuller accelerated its footprint optimization to offset this. As a result, the company expects EBITDA and EBITDA margin to improve, despite revenue headwinds due to exiting lower-margin silicon sealant product lines.

3. NewsRoom

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Atria Investments Inc Has $462,000 Stock Holdings in H. B. Fuller Company $FUL

Nov -11

Source: defenseworld.net

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Is H.B. Fuller Stock a Buy, Sell or Hold After the CFO Sold Shares?

Nov -02

Source: fool.com

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Mutual of America Capital Management LLC Sells 113,952 Shares of H. B. Fuller Company $FUL

Oct -29

Source: defenseworld.net

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Vanguard Personalized Indexing Management LLC Purchases 1,077 Shares of H. B. Fuller Company $FUL

Oct -22

Source: defenseworld.net

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H.B. Fuller Company (FUL) Analyst/Investor Day Transcript

Oct -20

Source: seekingalpha.com

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H.B. Fuller Introduces Fuller Impact to Strengthen Community Partnerships Worldwide

Oct -13

Source: businesswire.com

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Buy 2 Ideal Dividend Kings Of 25 'Safer' In October's 56

Oct -10

Source: seekingalpha.com

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H.B. Fuller Further Strengthens Board with Appointment of MedTech Leader Celine Martin to Support Growth in Medical Market

Oct -08

Source: businesswire.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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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

58.15$

Current Price

58.15$

Potential

-0.00%

Expected Cash-Flows