H.B. Fuller 2025 Q3 Earnings Sustained Profitability with 21.5% Net Income Growth

H.B. Fuller reported mixed results for fiscal 2025 Q3, with revenue declining but earnings rising. The company beat on profitability, driven by margin expansion and disciplined cost management. While revenue fell 2.8%, the company revised its 2025 guidance, tightening EBITDA and maintaining cautious revenue expectations.

Revenue
H.B. Fuller’s total revenue declined by 2.8% year-over-year to $892.04 million in Q3 2025. The Hygiene, Health, and Consumable Adhesives segment remained the largest contributor, generating $386.07 million. Engineering Adhesives followed with $272.30 million in revenue, supported by growth in automotive and electronics markets. The Building Adhesive Solutions segment reported $233.68 million, reflecting margin improvements. Meanwhile, the Corporate Unallocated segment reported $0 in revenue, bringing the total to $892.04 million.

Earnings/Net Income
Earnings per share (EPS) surged 21.8% to $1.23 in Q3 2025, compared to $1.01 in the same period of 2024. Net income also rose by 21.5% to $67.23 million, reinforcing the company’s long-standing profitability. This demonstrates strong operational resilience and effective cost control despite macroeconomic challenges.

Price Action
Following the earnings release, H.B. Fuller’s stock price edged down 0.05% during the latest trading day. Over the past week, the stock dropped 7.53%, and it has fallen 6.77% month-to-date, reflecting mixed market sentiment.

Post Earnings Price Action Review
In the earnings call, Celeste Mastin, President and CEO, emphasized the company’s operational discipline and margin expansion, despite volume growth remaining a challenge. She highlighted strategic initiatives such as portfolio optimization, cost reductions, and pricing actions as key contributors to performance. Looking ahead, she expressed confidence in the team’s ability to execute long-term strategies and achieve EBITDA margins above 20%. The CEO pointed to EBITDA growth in HHC, momentum in the Engineering Adhesives segment, and margin improvements in the Building Adhesive Solutions division as key drivers of future performance.

CEO Commentary
Celeste Mastin underscored the company's strong margin expansion and double-digit EPS growth amid challenging macroeconomic conditions. She acknowledged the ongoing challenge of achieving volume growth but emphasized the value of portfolio optimization, cost reductions, and pricing actions. She expressed confidence in the team’s ability to execute long-term strategies, reposition the company for growth, and achieve EBITDA margins above 20%. The CEO highlighted the resilience of the Hygiene, Health, and Consumable Adhesives segment, the momentum in Engineering Adhesives, and the continued margin improvements in the Building Adhesive Solutions division as critical to sustained performance.

Guidance
H.B. Fuller provided updated 2025 guidance, tightening adjusted EBITDA to a range of $615 million to $625 million, reflecting 4–5% year-over-year growth. The company expects full-year organic revenue to remain flat to up 1%, while net revenue is projected to decline by 2–3%. For adjusted diluted EPS, it forecasts a range of $4.10 to $4.25, representing 7–11% growth. Operating cash flow is expected to be between $275 million and $300 million, with capital spending reduced to $140 million. The core tax rate is projected at 26–26.5%, and interest expense is anticipated to range between $125 million and $130 million.

Additional News
In the three weeks following the Q3 2025 earnings report on September 25, 2025, there were no notable M&A activities or executive changes at H.B. Fuller. Additionally, there were no new dividend or share buyback announcements during this period. The only related content available is the Q3 2025 Earnings Call Transcript, which unfortunately could not be accessed as the page was denied. Otherwise, no additional non-earnings-related news was publicly available or widely discussed for H.B. Fuller during this timeframe.