Overview

* H.B. Fuller ( FUL ) fiscal Q3 revenue declines 2.8%, slightly below analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q3 rises 12% and edges past analyst estimates

* Adjusted EBITDA increases 3% yr/yr, surpassing analyst expectations

Outlook

* Company expects fiscal 2025 net revenue to decline 2% to 3%

* H.B. Fuller ( FUL ) sees fiscal 2025 adjusted EBITDA at $615 mln to $625 mln

* Company anticipates fiscal 2025 adjusted EPS of $4.10 to $4.25

* H.B. Fuller ( FUL ) expects fiscal 2025 cash flow from operations of $275 mln to $300 mln

Result Drivers

* PRICING AND COST ACTIONS - Adjusted gross profit margin increased by 190 basis points year-on-year, driven by favorable net pricing and raw material cost actions

* DIVESTITURE IMPACT - Adjusted for the flooring divestiture, net revenue was up 1.6% year-on-year

* COST REDUCTION - Targeted cost reduction efforts contributed to the increase in adjusted gross profit margin

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $892 mln $895.80

Revenue mln (6

Analysts

)

Q3 Beat $1.26 $1.24 (6

Adjusted Analysts

EPS )

Q3 Beat $69 mln $68.60

Adjusted mln (5

Net Analysts

Income )

Q3 Beat $171 mln $169.20

Adjusted mln (6

EBITDA Analysts

)

Q3 $288 mln

Adjusted

Gross

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the specialty chemicals peer group is "buy."

* Wall Street's median 12-month price target for H.B. Fuller Company ( FUL ) is $72.00, about 17.2% above its September 23 closing price of $59.62

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)