H.B. Fuller (FUL.N): FUL Confirms AMS Takeover; Expected to Close YE26

Research evidence excerpt

H.B. Fuller (FUL.N): FUL Confirms AMS Takeover; Expected to Close YE26

H.B. Fuller (FUL.N)

25 June 2026 Citi Research

H.B. Fuller

Valuation

Our $70 target price is derived based on applying a 8.5x EV/EBITDA multiple to our 2027E EBITDA of ~$690 mn (subtracting

net debt of ~$2.0bn). FUL’s EV/EBITDA multiple has ranged between 7x and 11x, with an average of 9x over the past five years.

Risks

Risks that could impede FUL from reaching our target price include:

Global Growth: Strength in consumer spending across major end-markets could increase demand for FUL’s products and

improve organic sales growth. Demand in China remains a concern, albeit improved compared to the start of 2023 as the

country continues to address reopening challenges following COVID lockdowns. Additionally, international operations would

be negatively impacted by challenging economic conditions and lower consumer confidence in discretionary spending,

especially in key markets like China, Brazil, and Russia, among others.

Raw Material Costs and Availability: Raw material costs accounted for ~75% of COGS in 2024, according to the company’s

annual report., similar to paint companies, and are sourced from a number of suppliers. Gross margins could be negatively

impacted by weaker product demand from inflationary pressures, and could benefit from favorable pricing and improvements

in raw material cost management.

Currency Translation: FUL generated ~55% of sales ($1.9bn) outside the US in 2024. Changes in exchange rates between the

USD and other currencies could have a positive or negative impact on sales, cost of raw materials, and earnings.

Competitive End-Markets: FUL’s end-markets are competitive and product innovation is important to gaining market share

and maintaining strong commercial relationships.