H.B. Fuller Company reported second quarter fiscal 2026 financial results for the period ended May 30, 2026, delivering strong year-on-year growth across revenue, earnings, and cash flow. The world's largest pure-play adhesives company posted net revenue of $950.271 million, surpassing the analyst consensus estimate of $924.792 million and representing a 5.81% increase over $898.095 million in the prior year period. Adjusted earnings per share (diluted) came in at $1.41, up 19% year-on-year and ahead of the analyst consensus estimate of $1.40. Reported EPS (diluted) was $1.23. The company also achieved record second quarter operating cash flow of $121 million, up approximately 10% year-on-year.

Key Second Quarter Financial Highlights

The following table summarizes H.B. Fuller's key financial metrics for the second quarter:

Organic revenue increased 2.6% year-on-year, driven by a 3.0% pricing increase that more than offset slightly lower volume of (0.4)%. Foreign currency translation and acquisitions contributed 3.1% and 0.1% to net revenue growth, respectively. Selling, general and administrative (SG&A) expense was $202.365 million, with adjusted SG&A of $196.498 million, up 11% year-on-year. Adjusted SG&A, excluding foreign exchange and variable compensation impacts, was up approximately 3% year-on-year.

Segment Performance

H.B. Fuller operates through three segments. The table below presents segment net revenue and adjusted EBITDA for the second quarter:

Balance Sheet and Working Capital

Net debt at the end of the second quarter of fiscal 2026 was $1,958 million, down $58 million year-on-year. Net debt-to-adjusted EBITDA stood at 3.1X, an improvement from 3.4X at the end of the second quarter of fiscal 2025. Net working capital as a percentage of annualized net revenue was 16.4%, a sequential decrease of 260 basis points versus the first quarter. Total assets as of May 30, 2026 were $5,328.793 million, compared to $5,182.706 million as of November 29, 2025.

Management Commentary

Celeste Mastin, president and chief executive officer, commented: "We executed very well in the second quarter, delivering strong year-on-year revenue, EBITDA, and EPS growth, with results above the midpoint of our EBITDA guidance range. Our global sourcing capabilities and swift pricing actions have enabled us to maintain supply continuity and reliably serve our customers through market disruption. These efforts, combined with our Quantum Leap restructuring initiative, have strengthened our competitive position and we remain confident in our ability to deliver strong financial results."

Mastin added: "While the external environment remains dynamic, our focus is clear: we are executing on what we can control, leveraging our competitive strengths, and continuing to build a business that is more durable and better positioned to deliver superior long-term growth."

Fiscal 2026 Guidance

Based on year-to-date performance, H.B. Fuller raised the midpoint of its full-year adjusted EBITDA and adjusted EPS guidance. The updated fiscal 2026 outlook is summarized below:

The updated adjusted EPS guidance range of $4.60–$4.90 compares to the analyst consensus estimate of $4.84 and the previously communicated range of $4.55–$4.90. On April 16, H.B. Fuller also increased its quarterly dividend by 4.3%.

Analyst Ratings and Price Targets

Several Wall Street analysts have recently revised their outlooks on the stock. The table below summarizes recent analyst actions:

UBS analyst Lucas Beaumont maintained a Neutral rating while raising the price target to $71 from $63. JP Morgan analyst Jeffrey Zekauskas upgraded the stock from Underweight to Neutral with a price target of $58 on May 27, 2026. Citigroup analyst Patrick Cunningham maintained a Buy rating and raised the price target from $67 to $70 on March 30, 2026. Seaport Global analyst Michael Harrison upgraded the stock from Neutral to Buy with a price target of $80 on Sept. 26, 2025. Baird analyst Ghansham Panjabi maintained an Outperform rating and boosted the price target from $60 to $75 on June 27, 2025.

H.B. Fuller Company released its 2025 Sustainability Report, detailing 2030 environmental targets and progress in integrating sustainability into its business strategy and global operations. The report indicates that nearly 60% of new product development is focused on improving the sustainability profile of customers' end products, linking these efforts to business performance and operational efficiency.

"At H.B. Fuller, sustainability is embedded in how we operate, compete, and grow," said Celeste Mastin, president and CEO. The company is introducing specific 2030 targets to strengthen accountability across its operations.

2030 Environmental Targets

The company has established several key goals for 2030, building on its existing sustainability strategy. These targets focus on reducing environmental impact across various metrics:

H.B. Fuller is also targeting engagement with top tier suppliers to improve Scope 3 emissions transparency and data quality.

Operational Performance and Efficiency

The report highlights measurable progress through initiatives designed to support operational efficiency. These include expanding renewable energy adoption at select sites supported by government incentives. The company is decreasing water use through wastewater treatment and rainwater purification systems, which have decreased consumption by approximately 60% at select sites.

Additionally, H.B. Fuller is advancing circular solutions to reduce material use, including a 50% reduction in shrink-wrap film at select sites to directly lower single-use plastic waste. These efforts are supported by governance structures and alignment with global reporting frameworks such as GRI and SASB.

Innovation and Community Impact

Sustainability is positioned as a competitive advantage, with solutions supporting cleaner energy, recyclable packaging, and efficient manufacturing across industries such as hygiene, medical, mobility, electronics, and construction.

In 2025, the company launched Fuller Impact, a global platform for philanthropic giving and community engagement focused on STEM education, youth leadership, and global citizenship. The program's impact in 2025 included:

• $1.3 million in grants awarded
• Support for 370+ organizations
• 4,800+ employee volunteer hours across 20 countries