Q2 2026 H.B. Fuller Company Earnings Call Transcript
Key Points
- H.B. Fuller Co (FUL) reported a 5.8% year-on-year revenue increase in the second quarter, with organic growth of 2.6% driven by a 3% increase in pricing.
- The company's EBITDA increased by 9% year-on-year, with a margin expansion of 70 basis points to 19.1%, and EPS rose by 19% compared to the same period last year.
- The acquisition of Advanced Medical Solutions (AMS) is expected to result in significant revenue and cost synergies, accelerating H.B. Fuller Co (FUL)'s transformation into a higher-growth, higher-margin business.
- H.B. Fuller Co (FUL) demonstrated strong pricing execution across its segments, contributing to improved margins and offsetting raw material cost increases.
- The company maintained supply continuity and reliability for its customers during market disruptions, showcasing its competitive strengths in global sourcing and pricing actions.
- Volume was slightly lower year-on-year, partially offsetting the positive impact of pricing on organic revenue growth.
- The Engineering Adhesives segment experienced a decline in organic revenue, primarily due to exiting the lower-margin Solar business.
- H.B. Fuller Co (FUL) anticipates continued inflationary pressures and does not expect raw material costs to fully retrace to pre-disruption levels.
- The acquisition of AMS will temporarily increase the company's leverage, with net debt to adjusted EBITDA expected to rise to approximately 4 times at the close of the transaction.
- The company faces potential volume declines in the second half of the year, particularly in consumer-related segments, due to ongoing inflationary pressures and economic uncertainty.
Hello, and welcome to the H.B. Fuller second-quarter 2026 earnings conference call. (Operator Instructions) I would now like to turn the conference over to Scott Jensen, Director of Investor Relations. You may begin.
Thank you, operator. Welcome to H.B. Fuller's second-quarter 2026 investor conference call. Presenting today are Celeste Mastin, President and Chief Executive Officer; and John Corkrean, Executive Vice President and Chief Financial Officer. After our prepared remarks, we will have a question-and-answer session.
Before we begin, let me remind everyone that our comments today will include references to certain non-GAAP financial measures. These measures are supplemental to the results determined in accordance with GAAP. We believe that these measures are useful to investors in understanding our operating performance and to compare our performance with other companies. Reconciliation of non-GAAP measures to the nearest GAAP measure are included in our earnings release.
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