H.B. Fuller Company reported first‑quarter 2026 results that included net revenue of $771 million, a 6.6% year‑over‑year decline in organic revenue, and an adjusted earnings per share of $0.57 that beat the consensus estimate of $0.56 by $0.01. The company’s gross margin was 30.6%, while the adjusted gross margin rose to 31.3%, an increase of 170 basis points, driven by restructuring savings from the Quantum Leap program, acquisition impacts, and targeted price and raw‑material cost actions.
Revenue fell 6.6% to $771 million, largely because organic volume dropped 7.2% year‑over‑year. The decline was offset by a 0.6% price increase and a 0.7% revenue lift from acquisitions, while a 3.6% positive currency effect helped mitigate the volume weakness. Segment data show that the Engineering Adhesives segment grew year‑over‑year, whereas other segments experienced declines, underscoring the uneven demand across the company’s 30‑plus market segments.
Margin expansion was largely a result of the Quantum Leap restructuring, which delivered significant cost savings, and of disciplined pricing and raw‑material cost actions. Adjusted gross profit margin increased to 31.3%, up 170 basis points versus the prior year, as positive pricing and raw‑material actions and restructuring savings more than offset volume declines. Adjusted EBITDA margin rose 90 basis points to 15.4%, reflecting the same mix of cost controls and pricing power.
Management updated fiscal 2026 guidance, raising net revenue expectations to mid‑single‑digit growth and organic revenue to low‑single‑digit growth. Adjusted EBITDA is now projected between $645 million and $675 million, and adjusted EPS is expected to range from $4.55 to $4.90, a midpoint of $4.73 that exceeds the current analyst estimate implied by the data. The guidance lift signals confidence in the company’s ability to sustain profitability despite weaker top‑line growth.
"In the first quarter, we delivered on our profit commitment and executed with discipline in a challenging operating environment," said President and CEO Celeste Mastin. "Despite the revenue shortfall, our strong EBITDA performance and margin expansion reflect our operational resilience. We are committed to navigating the current supply chain challenges and are optimistic about our strategic direction." Chief Financial Officer John Corkrean added, "For the quarter, organic revenue was down 6.6% year‑over‑year, with pricing up 0.6% and volume down 7.2%. Currency had a positive impact of 3.6%, and acquisitions increased revenue by 0.7%. Adjusted gross profit margin was 31.3%, up 170 basis points versus last year, as positive pricing and raw material actions as well as restructuring savings more than offset volume declines. Adjusted selling, general and administrative expense was up 4% year‑over‑year. Adjusting for the impact of acquisitions and foreign exchange, adjusted SG&A was down slightly year‑on‑year, reflecting diligent expense management. Operating cash flow in fiscal 2026 is expected to be weighted to the second half."
"The company faces ongoing supply chain disruptions due to geopolitical tensions, with over 40 supplier force‑majeure notices, raw‑material shortages, and inflationary pressures. However, pricing strategies, restructuring savings from the Quantum Leap program, and cost management are tailwinds that support profitability. The company is pausing near‑term M&A to prioritize buybacks and debt reduction, signaling a focus on financial stability amid uncertainty."
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