NYSE$FUL

H.B. Fuller Company · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong second quarter fiscal 2021 results driven by share gains and strong demand.

H.B. Fuller reported a strong second quarter with net revenue growth of 23% and organic revenue growth of 19%. Net income increased to $49 million, and adjusted EPS increased 38% year over year to $0.94. The company remains on track to its $200 million debt reduction target for the full year.

  • Strong operational execution, benefits from restructuring efficiencies and improved global industrial demand drove significant revenue and earnings growth versus the second quarter of fiscal 2020.
  • Revenue was up 22.7% versus the second quarter of last year. Organic revenue increased 18.8% versus the second quarter last year. Organic revenue was up 9.5% when compared with the non-COVID-impacted second quarter of 2019.
  • Net income increased to $49 million; volume leverage, pricing and operational efficiencies offset higher raw material costs and drove a 21% year-over-year increase in adjusted EBITDA to $122 million.
  • Earnings per diluted share (EPS) were $0.90; adjusted EPS of $0.94 increased 38% year over year, driven primarily by strong operating income growth and lower interest expense associated with reduced debt.

Headline financials

Total Revenue

$828M

Previous: $675M+22.7%
EPS (adj)

$0.94

Previous: $0.68+38.2%
Adjusted EBITDA

$122M

No prior period
Organic Revenue Change

18.8%

No prior period
Capital Expenditures

-$50.7M

Previous: -$54.5M+7.0%
Free Cash Flow

-$1.62M

Previous: -$22.9M+92.9%
Net Income

$49.1M

Previous: $31.6M+55.3%
Operating Income

$69.1M

Previous: $56.9M+21.5%
Gross Profit

$218M

Previous: $185M+17.7%
Cash & Equivalents

$69.6M

Previous: $70.3M-1.1%
Total Assets

$4.27B

Previous: $3.98B+7.2%
Stock-Based Comp

$5.67M

Previous: $4.53M+25.0%

Revenue & EPS history

H.B. Fuller · Revenue · Quarterly

$828M

Q2 2021+22.7%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

H.B. Fuller · $282M total across 1 segment · Q2 2021

  • Engineering Adhesives
    $282M

Forward guidance

Full year 2021 revenue growth is anticipated to be in the low double-digits versus 2020. The company expects raw material cost increases to exceed 10% on a full year basis versus 2020. The company’s prior outlook for full year adjusted EBITDA in the range of $455 million to $475 million remains unchanged.

Tailwinds

  • Full year 2021 revenue growth is anticipated to be in the low double-digits versus 2020.
  • Share gains
  • On-going recovery in global industrial production
  • Pricing actions balancing higher input costs
  • Benefits from the company’s operational improvement projects.

Headwinds

  • Raw material cost increases to exceed 10% on a full year basis versus 2020
  • Most significant margin head winds expected in the third quarter.
  • Considerable raw material and packaging shortages
  • Impacts from Storm Uri earlier this year
  • Supply-constrained environment

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 Q2 2021

Historical avgQ2 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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