NYSE$FUL

H.B. Fuller Company · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported net revenue growth and increased adjusted EBITDA.

H.B. Fuller reported a 13.8% increase in net revenue, driven by strong organic growth of 18.4%. Adjusted EPS increased by 34% year-on-year, and adjusted EBITDA grew by 24%, with margin expansion of 120 basis points. The company is increasing its full-year adjusted EBITDA expectations.

  • Net revenue grew 13.8% year-on-year, with organic revenue increasing 18.4%.
  • Adjusted gross margin expanded 280 basis points year-on-year.
  • Adjusted EBITDA increased 24.4% year-on-year, with adjusted EBITDA margin up 120 basis points.
  • Adjusted EPS increased 34.2% versus the prior year.

Headline financials

Total Revenue

$941M

Previous: $827M+13.8%
EPS (adj)

$1.06

Previous: $0.79+34.2%
Adjusted EBITDA

$138M

Previous: $111M+24.1%
Adj. EBITDA Margin

14.6%

No prior period
Organic Revenue Change

18.4%

Previous: 16.0%+15.0%
Capital Expenditures

-$98.4M

Previous: -$77.2M-27.3%
Free Cash Flow

-$51.9M

Previous: -$45.6M-13.7%
Net Income

$46.5M

Previous: $31.6M+47.1%
Operating Income

$88M

Previous: $59.5M+47.9%
Gross Profit

$249M

Previous: $194M+28.5%
Cash & Equivalents

$60.7M

Previous: $68.1M-10.9%
Total Assets

$4.57B

Previous: $4.26B+7.4%
Stock-Based Comp

$6.73M

Previous: $6.91M-2.6%

Revenue & EPS history

H.B. Fuller · Revenue · Quarterly

$941M

Q3 2022+13.8%vs Q3 2021
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

H.B. Fuller · $342M total across 1 segment · Q3 2022

  • Engineering Adhesives
    $342M+17.6%

Forward guidance

The company is increasing full-year expectations for adjusted EBITDA to a range of $540 to $550 million. Adjusted EPS in the fourth quarter of fiscal 2022 is expected to be in the range of $1.15 to $1.30.

Tailwinds

  • Organic revenue growth for fiscal year 2022 is expected to be in the range of 17% to 18%.
  • Adjusted EBITDA for fiscal year 2022 is expected to be in the range of $540 to $550 million.
  • Adjusted EPS in the fourth quarter of fiscal 2022 is expected to be in the range of $1.15 to $1.30.
  • Working capital, as a percentage of annualized net revenue, is expected to be in the range of 16% to 17% by fiscal year-end.
  • Full-year cash flow from operations similar to the prior year.

Headwinds

  • Slower economic conditions
  • Stronger U.S. Dollar
  • Continued raw material cost inflation
  • Net interest expense for fiscal 2022 is expected to be between $80 and $85 million reflecting higher interest rates
  • Some opportunistic refinancing before the end of the year

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 Q3 2022

Historical avgQ3 2022

-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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