H.B. Fuller (FUL.N): Roughly In-line Quarter as Volume Headwinds Abate; Low-end of FY26 Guide Raised

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H.B. Fuller (FUL.N): Roughly In-line Quarter as Volume Headwinds Abate; Low-end of FY26 Guide Raised

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24 Jun 2026 17:38:29 ET │ 12 pages

H.B. Fuller (FUL.N)

Roughly In-line Quarter as Volume Headwinds Abate; Low-end of FY26

Guide Raised

CITI’S TAKE Buy

F2Q26 EPS of $1.41 came in 1c ahead of FactSet consensus and in-line Price (24 Jun 26 16:00) US$64.60

with our numbers, with adj. EBITDA of $181mm in-line. Overall organic Target price US$70.00

sales were up 2.6%, ahead of our 0.7% as volume declines were better

Expected share price return 8.4% than feared. HHC posted 3.0% organic growth, leading to >200bps of

EBITDA margin expansion Y/Y, while EA was down 1% with ~50bps of Expected dividend yield 1.5%

margin contraction Y/Y. FY26 adj. EBITDA midpoint guidance raised from Expected total return 9.8%

$660mm to $663mm as low-end of the range comes up $5mm, with Market Cap US$3,520M

overall organic revenue growth maintained at LSD. F3Q guidance

midpoint of $185mm in-line with consensus. OCF guidance midpoint

raised from $287mm to to $313mm. We will look for commentary on any

back-half volume uncertainty given only 0.4% declines seen in the Patrick CunninghamAC

quarter. We are encouraged by the cash flow outlook and incrementally +1-212-816-6684

better guide and will look for puts and takes on price/cost versus 2H patrick.cunningham@citi.com

volumes. Rachel Lee

+1-212-816-4559

Segment Analysis — F2Q26 HHC sales were up 6% Y/Y at $422mm (vs. our $394mm rachel.lee@citi.com

est). Segment organic sales increased 3% and FX was a tailwind of 3.1%. Segment Alexander Yi

EBITDA margin of 17.9% was ~50bps above our 17.4% estimate. EA sales increased +1-212-816-4220

2% Y/Y to $283mm (vs our $291mm est). Segment organic sales decreased 1% Y/Y, alexander.yi@citi.com