NYSE$FUL

H.B. Fuller Company · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong financial results driven by operational execution, higher sales, and restructuring efficiencies.

H.B. Fuller reported a strong first quarter with organic revenue growth of 10.5% and adjusted EBITDA up 30% year-over-year. The company has raised its full year guidance on stronger outlook for revenue and EBITDA growth.

  • Significant revenue and earnings growth versus the first quarter of fiscal 2020 was driven by strong operational execution, higher sales, and benefits from restructuring efficiencies.
  • Net revenue increased 12.3% versus last year. Organic revenue increased 10.5%, driven by 21% organic growth in Engineering Adhesives segment sales.
  • Strong sales growth and restructuring efficiencies resulted in net income of $30 million; adjusted EBITDA of $101 million increased 30% year over year.
  • Earnings per diluted share (EPS) were $0.56; adjusted EPS of $0.66 nearly doubled versus the prior year quarter.

Headline financials

Total Revenue

$726M

Previous: $647M+12.3%
EPS (adj)

$0.66

Previous: $0.34+94.1%
Adjusted EBITDA

$101M

Previous: $78M+29.5%
Adj. EBITDA Margin

13.9%

Previous: 12.0%+15.8%
Organic Revenue Change

10.5%

No prior period
Capital Expenditures

-$35.3M

Previous: -$32.1M-9.8%
Free Cash Flow

-$5.49M

Previous: -$22.2M+75.3%
Net Income

$29.8M

Previous: $9.9M+201.1%
Operating Income

$48.4M

Previous: $28.8M+68.2%
Gross Profit

$192M

Previous: $170M+13.0%
Cash & Equivalents

$81.2M

Previous: $78.7M+3.1%
Total Assets

$4.11B

Previous: $4.03B+2.2%
Stock-Based Comp

$6.82M

Previous: $4.7M+45.0%

Revenue & EPS history

H.B. Fuller · Revenue · Quarterly

$726M

Q1 2021+12.3%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

H.B. Fuller · $248M total across 1 segment · Q1 2021

  • Engineering Adhesives
    $248M-0.4%

Forward guidance

H.B. Fuller has updated its planning assumptions for fiscal year 2021 based on current market conditions.

Tailwinds

  • The company anticipates high-single digit to low double-digit revenue growth.
  • Adjusted EBITDA in the range of $455 to $475 million for fiscal 2021.
  • Adjusted EBTIDA growth of 12% to 17% versus 2020, which is supported by share gains.
  • On-going recovery in global industrial production, pricing actions balancing higher input costs, and benefits from the company’s operational improvement projects.
  • Income growth and working capital improvement will enable the company to continue to drive strong cash flow and pay down an additional $200 million of debt in 2021, after dividends and approximately $95 million of capital investments.

Headwinds

  • Raw material costs are expected to rise as the year progresses driven by increasing industrial demand and supply constraints of U.S. petrochemicals resulting from severe winter weather in the Gulf Coast in February.
  • The company expects full year raw material costs to increase 5% to 8% versus 2020.
  • H.B. Fuller has implemented annualized price adjustments of more than $100 million that are effective in the second quarter which are anticipated to offset raw material increases.
  • The company is prepared to implement further increases in the third quarter, as necessary.
  • The company’s core tax rate, excluding the impact of discrete items, is anticipated to be between 26% and 29%, and full year net interest expense is estimated to be approximately $70 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.0%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+2.0%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+10.6%

Q2 2023

Best reaction

-14.0%

Q3 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-0.6%-5.5%
Q4 2025-1.9%-10.5%+4.3%
Q3 2025-3.9%+0.0%+3.7%
Q2 2025-0.6%-1.7%-2.9%
Q1 2025+6.1%+5.3%+0.5%
Q4 2024-3.2%-2.8%-5.1%
Q3 2024-0.7%-2.7%-7.2%
Q2 2024+0.9%+0.4%+11.7%
Q1 2024-4.4%-4.5%-10.1%
Q4 2023+0.0%+1.4%+0.7%
Q3 2023+6.6%+1.7%-3.5%
Q2 2023+10.6%+10.8%+12.9%
Q1 2023+0.1%-4.0%-3.2%
Q4 2022-5.3%-6.0%-1.5%
Q3 2022+1.8%-0.1%+8.8%
Q2 2022+0.7%-1.5%+1.6%
Q1 2022-0.8%+2.4%+2.8%
Q4 2021-4.6%-5.2%-7.2%
Q3 2021+8.8%+9.3%+15.4%
Q2 2021-2.8%-3.8%-4.2%
Q1 2021+8.4%+8.5%+15.8%
Q4 2020+2.2%+0.3%+11.9%
Q3 2020-0.9%-0.6%+7.5%
Q2 2020+3.5%+8.6%+9.2%
Q1 2020-2.9%+1.3%+18.9%
Q4 2019-1.6%-1.2%-3.4%
Q3 2019-0.3%-0.6%+4.0%
Q2 2019+2.4%+3.7%+9.9%
Q1 2019+3.5%+5.1%+3.9%
Q4 2018+4.7%+5.3%+13.6%
Q3 2018-7.6%-8.0%-26.1%
Q2 2018-2.3%-1.8%+2.7%
Q1 2018+2.5%-1.7%+4.1%
Q4 2017-3.6%-2.5%-6.5%
Q3 2017+4.4%+5.1%+3.2%
Q2 2017-1.8%-0.8%-0.9%
Q1 2017+0.9%-4.0%+0.6%
Q4 2016-3.9%-4.9%-1.0%
Q3 2016-7.0%-4.5%-7.8%
Q2 2016-0.8%-11.2%-0.5%
Q1 2016-0.7%
Q4 2015+3.9%
Q3 2015-3.0%
Q2 2015-1.3%
Q1 2015+1.9%
Q4 2014-2.5%
Q3 2014-14.0%
Q2 2014-5.3%
Q1 2014+3.1%
Q4 2013-3.6%
Q3 2013+6.6%
Q2 2013+1.9%
Q1 2013-2.3%
Q4 2012+6.2%
Q3 2012-9.0%
Q2 2012-1.5%
Q1 2012+0.5%
Q4 2011-0.1%
Q3 2011+5.0%
Q2 2011+2.0%
Q4 2010+0.8%
Q1 2010+0.8%
Q1 2011+1.4%
Q4 2008-1.4%
Q2 2010-1.4%
Q3 2010+1.0%
Q3 2009+1.0%
Q4 2009+1.0%

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