H.B. Fuller Company (NYSE: FUL) reported fiscal first-quarter 2026 results that fell short of analyst expectations on both earnings and revenue, though shares gained around 4% intra-day Thursday after the company raised its full-year outlook.
The adhesives manufacturer posted adjusted earnings per share of $0.57 for the quarter ended February 28, missing the consensus estimate of $0.67. Net revenue came in at $771 million, down 2.3% year over year and below the $807.79 million estimate. Organic revenue declined 6.6%, as lower volumes more than offset a 0.6% increase in pricing.
Despite the revenue pressure, the company achieved margin expansion, which it attributed to cost savings from its Quantum Leap restructuring program, contributions from acquisitions, and targeted pricing initiatives.
Adjusted EBITDA rose 4% year over year to $119 million, with margin expanding 90 basis points to 15.4%. Adjusted gross margin increased 170 basis points to 31.3%. Net debt to adjusted EBITDA remained steady at 3.1x, unchanged from the prior quarter.
H.B. Fuller raised its full-year fiscal 2026 guidance, now expecting adjusted EPS of $4.55 to $4.90, with a midpoint of $4.73 exceeding the analyst consensus of $4.52. The company also projected adjusted EBITDA in the range of $645 million to $675 million, with a midpoint of $660 million representing an improvement from prior expectations.
