Third Quarter 2026
Filed Sep 24, 2026Net revenue of $938 million, up 5.2% year-on-year; adjusted EBITDA of $187 million, up 9% year-on-year; adjusted EBITDA margin of 19.9%, up 80 basis points year-on-year.
Revenue increased 5.2% year-on-year, adjusted EBITDA increased 9% year-on-year, adjusted EBITDA margin reached a record 19.9%, and adjusted diluted EPS increased 21% year-on-year. Growth was supported by pricing and restructuring savings, although volume was down 3.0%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueGAAP | $938.2M | – | 5.2% |
| Price contribution to net revenue growthother | 7.4% | – | – |
| Volume contribution to net revenue growthother | (3.0)% | – | – |
| Organic revenue growthnon-GAAP | 4.4% | – | 4.4% |
| Foreign currency contribution to net revenue growthother | 0.7% | – | – |
| M&A contribution to net revenue growthother | 0.1% | – | – |
| Gross profitGAAP | $311.7M | – | – |
| Gross profit marginGAAP | 33.2% | – | – |
| Adjusted gross profitnon-GAAP | $314.6M | – | – |
| Adjusted gross profit marginnon-GAAP | 33.5% | – | increased 120 basis points year-on-year |
| Selling, general and administrative expensesGAAP | −$198.5M | – | – |
| Adjusted selling, general and administrative expensesnon-GAAP | −$183.0M | down 7% sequentially from the second quarter of 2026 | up 8% year-over-year |
| Income before income taxes and income from equity method investmentsGAAP | $101.2M | – | – |
| Adjusted income before income taxes and income from equity method investmentsnon-GAAP | $107.8M | – | – |
| Income taxesGAAP | −$24.66M | – | – |
| Adjusted effective income tax ratenon-GAAP | 25.0% | – | – |
| Income from equity method investmentsGAAP | $2.63M | – | – |
| Net income attributable to H.B. FullerGAAP | $79.18M | – | – |
| Adjusted net income attributable to H.B. Fullernon-GAAP | $83.43M | – | – |
| Diluted income per common share attributable to H.B. FullerGAAP | $1.44 | – | – |
| Adjusted diluted income per common share attributable to H.B. Fullernon-GAAP | $1.52 | – | up 21% year-on-year |
| Adjusted EBITDAnon-GAAP | $186.7M | – | up 9% year-on-year |
| Adjusted EBITDA marginnon-GAAP | 19.9% | – | up 80 basis points year-on-year |
| Net cash provided by operating activities, nine months ended August 29, 2026GAAP | $182.6M | – | up 17% year-on-year |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Hygiene, Health and Consumable AdhesivesOrganic growth was 6.4%; foreign currency was 0.6%; M&A was 0.0%. | $413.0M | – | 7.0% |
| Engineering AdhesivesOrganic growth was 0.7%; foreign currency was 1.3%; M&A was 0.4%. | $278.7M | – | 2.4% |
| Building Adhesive SolutionsOrganic growth was 5.2%; foreign currency was 0.3%; M&A was 0.0%. | $246.5M | – | 5.5% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal 2026 outlook
- RevenueNet revenue is still expected to be up mid-single digits; organic revenue is still expected to be up low-single digits, with pricing up mid-single digits and volume down low-single digits; the impact from foreign exchange is now expected to be approximately 2%.
- Tax rateCore tax rate, excluding the impact of discrete items, is now expected to be in the range of 25.5% to 26.0%.
- NoteAdjusted EBITDA is now expected to be in the range of $655 million to $670 million.
- NoteAdjusted EPS (diluted) is now expected to be in the range of $4.70 to $4.85.
- NoteCash flow from operations, excluding the impact of AMS-related items, is still expected to be in the range of $300 million to $325 million.
Capital returns
- Dividends paid were $(39,149) (in thousands) for the nine months ended August 29, 2026, compared with $(37,559) (in thousands) for the nine months ended August 30, 2025.
- Repurchases of common stock were $(48,862) (in thousands) for the nine months ended August 29, 2026, compared with $(60,728) (in thousands) for the nine months ended August 30, 2025.
What drove it
- Pricing increased net revenue by 7.4%, more than offsetting lower volume and producing 4.4% organic revenue growth.
- Organic revenue growth occurred in all three global business units.
- Adjusted gross profit margin increased 120 basis points year-on-year, driven mainly by pricing execution and restructuring savings.
- Adjusted EBITDA growth was driven principally by pricing and restructuring savings.
- Adjusted EBITDA growth and margin improvement occurred in all three global business units.
- The anticipated closing of the AMS acquisition is expected before year-end.
Concerns
- Volume reduced net revenue by (3.0)% in the third quarter of fiscal 2026.
- Interest expense was $(40,915) (in thousands), compared with $(33,630) (in thousands) in the third quarter of fiscal 2025.
- Net working capital as a percentage of annualized net revenue was 18.5%, up 150 basis points year-on-year, driven primarily by strategic inventory investments to support Quantum Leap and ensure supply continuity for customers amid ongoing disruption in the Middle East.
- Inventory was $582,645 (in thousands) as of August 29, 2026, compared with $502,956 (in thousands) as of August 30, 2025.
- Cash flow from operations guidance excludes the impact of AMS-related items.
What to watch
- Fiscal 2026 volume is expected to be down low-single digits while pricing is expected to be up mid-single digits.
- Foreign exchange is now expected to have an impact of approximately 2% on fiscal 2026 net revenue.
- Adjusted EBITDA guidance is $655 million to $670 million for fiscal 2026.
- Adjusted EPS guidance is $4.70 to $4.85 for fiscal 2026.
- Core tax rate guidance, excluding discrete items, is 25.5% to 26.0%.
- Cash flow from operations guidance, excluding AMS-related items, is $300 million to $325 million.
- The anticipated closing of the AMS acquisition before year-end and execution of the Quantum Leap program.
Balance sheet and cash flow
- Cash and cash equivalents were $97,230 (in thousands) as of August 29, 2026, compared with $107,213 (in thousands) as of November 29, 2025.
- Total debt was $2,054,547 (in thousands) as of August 29, 2026, compared with $2,080,470 (in thousands) as of August 30, 2025.
- Net debt was $1,957,317 (in thousands) as of August 29, 2026, compared with $1,958,012 (in thousands) as of August 30, 2025.
- Net debt-to-adjusted EBITDA was 3.0 as of August 29, 2026, compared with 3.3 as of August 30, 2025.
- Trailing twelve months adjusted EBITDA was $656,511 (in thousands) as of August 29, 2026.
- Net working capital was $693,531 (in thousands), or 18.5% of annualized net revenue, as of August 29, 2026, compared with $607,126 (in thousands), or 17.0%, as of August 30, 2025.
- Net cash provided by operating activities was $182,629 (in thousands) for the nine months ended August 29, 2026.
- Purchased property, plant and equipment was $(141,653) (in thousands) for the nine months ended August 29, 2026.
Analysis
H.B. Fuller reported a strong third quarter of fiscal 2026. Net revenue was $938,175 (in thousands), up 5.2% from $892,043 (in thousands). Price contributed 7.4% to growth and foreign currency contributed 0.7%, while volume reduced growth by (3.0)%. Organic revenue increased 4.4%, with positive organic growth in each of the three operating segments.
Profitability improved faster than revenue. GAAP gross profit margin was 33.2%, compared with 32.0% in the prior-year quarter, while adjusted gross profit margin rose to 33.5% from 32.3%. The company attributed the 120-basis-point increase in adjusted gross profit margin mainly to pricing execution and restructuring savings. Adjusted EBITDA increased to $186,709 (in thousands) from $170,592 (in thousands), and adjusted EBITDA margin reached a record 19.9% from 19.1%.
All three segments posted revenue growth and higher adjusted EBITDA margins. Hygiene, Health and Consumable Adhesives generated $412,965 (in thousands) of revenue, up 7.0%, with 6.4% organic growth. Engineering Adhesives generated $278,700 (in thousands), up 2.4%, but its 0.7% organic growth was lower than the other segments. Building Adhesive Solutions generated $246,510 (in thousands), up 5.5%, with 5.2% organic growth. Adjusted EBITDA margins were 17.6%, 23.8%, and 18.2%, respectively.
GAAP net income attributable to H.B. Fuller increased to $79,182 (in thousands) from $67,160 (in thousands), and diluted EPS was $1.44 versus $1.22. Adjusted net income was $83,428 (in thousands) compared with $69,364 (in thousands), while adjusted diluted EPS increased to $1.52 from $1.26. Interest expense increased to $(40,915) (in thousands) from $(33,630) (in thousands), a factor to monitor alongside total debt of $2,054,547 (in thousands). Net debt was approximately flat year-on-year at $1,957,317 (in thousands), while net debt-to-adjusted EBITDA improved to 3.0 from 3.3.
Working capital absorbed cash as the company made strategic inventory investments. Net working capital rose to 18.5% of annualized net revenue from 17.0% in the prior-year period, and inventory was $582,645 (in thousands). Still, nine-month operating cash flow increased to $182,629 (in thousands) from $156,756 (in thousands). Fiscal 2026 net revenue growth guidance remains mid-single digits, with low-single-digit organic growth expected, while adjusted EBITDA guidance is now $655 million to $670 million and adjusted diluted EPS guidance is $4.70 to $4.85.
Management, verbatim
Through disciplined execution, we delivered strong revenue, EBITDA, and EPS growth in the quarter and continued to improve profitability and advance toward our EBITDA margin target of greater than 20 percent.
Celeste Mastin, president and chief executive officer
Pricing actions are offsetting higher raw material costs, and our restructuring efforts continue to enhance operating leverage.
Celeste Mastin, president and chief executive officer
With the anticipated closing of the AMS acquisition before year-end, we remain focused on strengthening our portfolio, executing our Quantum Leap program, and creating long-term value for shareholders.
Celeste Mastin, president and chief executive officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- GAAP consolidated operating income was not reported as a separately labeled line item.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported; operating cash flow was reported for the nine months ended August 29, 2026.
- Quarterly capital-return figures were not reported; dividends and share repurchases were reported for the nine months ended August 29, 2026.
- Fiscal 2026 guidance for gross margin and operating expenses was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.