NYSE$FUL

H.B. Fuller Company · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported net income of $22 million and adjusted EBITDA of $110 million, which was at the high-end of the company's guidance.

H.B. Fuller reported first quarter 2023 results with net revenue of $809 million, a decrease of 5.5% year-on-year. Net income was $22 million, and adjusted EBITDA was $110 million, at the high end of the company's expectations. The company initiated strategic restructuring to align cost structure and completed a refinancing of a majority of outstanding debt.

  • Net revenue of $809 million, down 5.5% year-on-year, in-line with Company expectations
  • Adjusted gross margin of 26.9% increased 190 basis points year-on-year, driven by the combined effect of pricing and raw material cost developments
  • Adjusted EBITDA was $110 million, at the high end of Company expectations, and adjusted EBITDA margin expanded year-on-year to 13.6%
  • Cash flow from operations in the first quarter improved $23 million year-on-year

Headline financials

Total Revenue

$809M

Previous: $856M-5.5%
EPS (adj)

$0.55

Previous: $0.80-31.3%
Adjusted EBITDA

$110M

Previous: $113M-2.7%
Adj. EBITDA Margin

13.6%

No prior period
Gross Margin

26.5%

No prior period
Capital Expenditures

-$47.6M

Previous: -$48.9M+2.6%
Free Cash Flow

-$25.7M

Previous: -$10.6M-143.1%
Net Income

$21.9M

Previous: $38.3M-42.9%
Operating Income

$60.3M

Previous: $57M+5.7%
Gross Profit

$215M

Previous: $213M+0.9%
Cash & Equivalents

$125M

Previous: $63.5M+97.6%
Total Assets

$4.54B

Previous: $4.64B-2.3%
Stock-Based Comp

$4.53M

Previous: $5.09M-11.1%

Revenue & EPS history

H.B. Fuller · Revenue · Quarterly

$809M

Q1 2023-5.5%vs Q1 2022
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

H.B. Fuller · $333M total across 1 segment · Q1 2023

  • Engineering Adhesives
    $333M+11.2%

Forward guidance

The Company continues to expect adjusted EBITDA for fiscal 2023 to be in the range of $580 million to $610 million. Adjusted EPS (diluted) is now expected to be in the range of $4.10 to $4.50. Revenue for fiscal 2023 is now expected to be down 1% to 4% versus 2022.

Tailwinds

  • Adjusted EBITDA for fiscal 2023 to be in the range of $580 million to $610 million, equating to growth of approximately 9% to 15% versus fiscal year 2022
  • Adjusted EPS (diluted) is now expected to be in the range of $4.10 to $4.50, equating to growth of between 3% to 13% year-on-year
  • Fully diluted shares outstanding is now expected to be approximately 56 million
  • Operating cash flow in fiscal 2023 is still expected to be between $300 million and $350 million

Headwinds

  • Revenue for fiscal 2023 is now expected to be down 1% to 4% versus 2022
  • Organic revenue for fiscal 2023 is now expected to be in the range of down 1% to up 1%, reflecting expected demand weakness in Construction Adhesives
  • Foreign currency translation is now expected to unfavorably impact net revenue growth by between 1% and 2% in fiscal year 2023

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 2023

Historical avgQ1 2023

-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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