H.B. Fuller Company (NYSE: FUL) reported second-quarter fiscal 2026 results on June 24, 2026, including a record operating cash flow of $121 million and a 19% year-on-year increase in adjusted diluted earnings per share.
The St. Paul, Minnesota-based company is the largest pureplay adhesives manufacturer globally, operating across hygiene, health, engineering, and building adhesive segments in more than 150 countries. H.B. Fuller reported full-year 2025 revenue of $3.5 billion.
#H.B. Fuller Posts 19% Adjusted EPS Growth on Pricing and Restructuring Gains
Net revenue for the quarter ended May 30, 2026 was $950 million, up 5.8% versus the same period in fiscal 2025. Pricing contributed 3.0 percentage points to revenue growth, more than offsetting a slight decline in volume, resulting in organic revenue growth of 2.6% year-on-year. Acquisitions contributed 0.1 percentage points, and foreign currency translation added 3.1 percentage points to reported revenue growth.
Adjusted EBITDA reached $181 million in the quarter, up 9% year-on-year, with an adjusted EBITDA margin of 19.1%, up 70 basis points from the prior year period. The company attributed the margin improvement primarily to pricing execution and savings from its Quantum Leap restructuring initiative.
Adjusted gross margin expanded 200 basis points year-on-year to 34.2%. Reported gross margin was 33.6%.
Adjusted diluted EPS was $1.41, up from $1.18 in the same quarter of fiscal 2025. Reported diluted EPS was $1.23. Net income attributable to H.B. Fuller was $68 million.
"We executed very well in the second quarter, delivering strong year-on-year revenue, EBITDA, and EPS growth, with results above the midpoint of our EBITDA guidance range," said Celeste Mastin, president and chief executive officer, in the earnings release. "Our global sourcing capabilities and swift pricing actions have enabled us to maintain supply continuity and reliably serve our customers through market disruption."
#Record Second Quarter Cash Flow Accompanies Debt Reduction
Operating cash flow of $121 million in the quarter was a record for any second quarter in H.B. Fuller's reported history, up approximately 10% year-on-year. The company said the improvement was driven primarily by higher net income.
Net working capital as a percentage of annualized net revenue declined 260 basis points sequentially from the first quarter to 16.4%. The company said cash flow delivery for fiscal 2026 is expected to be weighted toward the second half of the year.
Net debt at the end of the quarter stood at $1,958 million, down $58 million year-on-year. The net debt-to-adjusted EBITDA ratio declined to 3.1x from 3.4x at the end of the second quarter of fiscal 2025. H.B. Fuller repurchased 750,000 shares during the quarter.
#Full-Year Guidance Raised at Midpoint
H.B. Fuller raised the midpoints of its full-year adjusted EBITDA and adjusted EPS guidance following the quarter's results. The company now expects full-year fiscal 2026 adjusted EBITDA in the range of $650 million to $675 million and adjusted diluted EPS in the range of $4.60 to $4.90.
Full-year net revenue is still expected to grow at a mid-single-digit rate, with organic revenue up low-single digits and foreign exchange expected to contribute 1% to 2%. Operating cash flow guidance was updated to a range of $300 million to $325 million for fiscal 2026.
For the third quarter of fiscal 2026, the company guided for mid-single-digit net revenue growth and adjusted EBITDA in the range of $180 million to $190 million.
Mastin said the company remains focused on executing within its control, adding that the external environment remains dynamic. H.B. Fuller said its full-year outlook is subject to risks including raw material availability and pricing, foreign exchange volatility, trade policy changes, tariffs, and the pace of execution on its Quantum Leap restructuring program. Forward-looking statements in the earnings release are based on current expectations and are not guarantees of future performance.