H.B. Fuller We Upgrade to Overweight from Neutral

Research evidence excerpt

H.B. Fuller We Upgrade to Overweight from Neutral

J P M O R G A N North America Equity Research

26 June 2026

H.B. Fuller ▲Overweight

Previous: Neutral

We Upgrade to Overweight from Neutral FUL, FUL US

Price (25 Jun 26):$61.95

▲Price Target (Dec-26):$67.00

Prior (Dec-26):$58.00

Fuller is growing its adjusted EBITDA through higher prices and positive currency Chemicals: Specialty, Commodity,

effects in a flat to lower volume environment. Price increases of 3% and positive Agricultural, and Paper & Packaging

currency effects of 3% lifted adjusted EBITDA by 9% for 2Q:F26 and by 4% for Jeffrey J. Zekauskas AC

1H:26. Fuller expects its volume to decrease at a (4%-6%) rate for 2H:F26. We think (1-212) 622-6644

that rate of decrease is probably too sharp as a base case given that the company claims jeffrey.zekauskas@jpmorgan.com

that volumes quarter to date are more flat, and comparable to the second quarter y/y Lydia Huang

rate. We expect there to be some volume risk in 4Q:F26 should consumer products (1-212) 622-0086

customers meaningfully pull down inventory levels. We raised our EBITDA estimate lydia.huang@jpmorgan.com

for F2026 from $646m to $660m, versus $621m in F2025. Fuller’s 2Q:F26 EBITDA Silke Kueck

(1-212) 622-6503

was stronger than expected, and we think that volumes are likely to be less weak in silke.x.kueck@jpmorgan.com

the second half as Fuller’s product prices continue to rise. Our EPS estimate for F2026

Katie Zhang

is now $4.80, up from $4.65 previously and $4.24 in F2025, representing 13% growth. (1-212) 622-3262

• Fuller announced a recommended cash offer to acquire Advanced katie.zhang@jpmchase.comJ.P. Morgan Securities LLC

Medical Solutions (AMS). Fuller’s adhesive businesses tend to sell to mature

construction, automotive, and consumer markets.