H.B. Fuller Company (NYSE: FUL) reported third-quarter adjusted earnings that slightly exceeded expectations, but shares dropped more than 2% pre-market Thursday after revenue came in light and management tightened its full-year guidance.
The adhesives maker reported adjusted earnings per share of $1.26, up 12% year-on-year and a penny above consensus. Revenue was $892 million, short of the $896.55 million estimate and down 2.8% from the prior year. Excluding the impact of its flooring divestiture, revenue increased 1.6%.
Adjusted EBITDA rose 3% to $171 million, with margin expanding 110 basis points to 19.1%. The company credited the improvement to favorable pricing, lower raw material costs, and efficiency initiatives.
H.B. Fuller narrowed its full-year outlook, guiding adjusted EPS to $4.10–$4.25. It forecast net revenue to decline 2%–3% for fiscal 2025, with organic revenue expected to be flat to up 1%.
