NYSE$FUL
H.B. Fuller Company · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Reported third quarter 2023 results with adjusted EBITDA up 13% year-on-year.
H.B. Fuller reported net revenue of $901 million, a decrease of 4.3% year-on-year. Net income was $38 million, with adjusted EBITDA reaching $156 million, up 13% year-on-year. The company's adjusted EPS was $1.06, flat compared to the previous year.
- Net revenue was $901 million, down 4.3% year-on-year; organic revenue decreased 7.4% year-on-year, driven by lower volume.
- Adjusted gross margin of 30.0% increased 350 basis points year-on-year, driven by pricing and raw material cost actions and restructuring benefits.
- Adjusted EBITDA was $156 million, up 13% year-on-year, with adjusted EBITDA margin expanding 270 basis points year-on-year to 17.3%.
- Cash flow from operations improved $50 million year-on-year, or 87%, to $108 million.
Headline financials
Revenue & EPS history
H.B. Fuller · Revenue · Quarterly
$901M
Forward guidance
Net revenue for fiscal 2023 is expected to be in the range of $3.50 billion to $3.55 billion. Adjusted EBITDA is expected to be in the range of $580 million to $590 million. Adjusted EPS is expected to be in the range of $3.80 to $3.90.
Tailwinds
- Strategic restructuring to generate between $40 and $45 million in annual pre-tax run-rate cost savings.
- Approximately $20 million of pre-tax run-rate savings associated with the Beardow Adams integration.
- Adjusted EBITDA for fiscal 2023 is now expected to be in the range of $580 million to $590 million, equating to growth of approximately 9% to 11% versus fiscal year 2022
- Customer destocking largely ran its course in Engineering Adhesives and Construction Adhesives and peaked for Hygiene, Health, and Consumable Adhesives during the third quarter.
- Expect the continued strength of our innovation pipeline, coupled with the operating leverage created through our restructuring actions, to drive significant value for our business in 2024 and beyond.
Headwinds
- Net revenue for fiscal 2023 is now expected to be in the range of $3.50 billion to $3.55 billion with organic revenue down 4.5% to 5.5% versus fiscal 2022
- Lower volume expectations due to customer destocking actions and slower than anticipated underlying demand conditions
- Adjusted EPS (diluted) is now expected to be in the range of $3.80 to $3.90, equating to a range of down 2.5% to 5.0% year-on-year;
- Weaker than expected volumes, driven by a more adverse customer destocking impact in Hygiene, Health, and Consumable Adhesives and lower market demand in construction related markets
- Higher interest expense and unfavorable foreign currency impacts, which reduced diluted earnings per share by approximately $0.17 and $0.05, respectively, year-on-year in the third quarter.
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 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
| Quarter | Report date | Reaction (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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