H.B. Fuller reported $938 million in revenue for the third quarter of fiscal 2026, an increase of 5.2% year over year, driven by pricing improvements and continued execution of its restructuring and operational efficiency initiatives.
The adhesives and specialty materials company generated $79 million in net income, with reported diluted earnings of $1.44 per share.
Adjusted EBITDA increased 9% to $187 million, while the company’s adjusted EBITDA margin reached 19.9%, an improvement of 80 basis points from the prior-year period.
The results cover the quarter ended August 29, 2026.
H.B. Fuller reported 4.4% organic revenue growth, supported by higher selling prices across its business.
Pricing increased revenue by 7.4%, more than offsetting lower sales volumes.
Foreign currency translation contributed approximately 0.7 percentage points to reported revenue growth, while acquisitions contributed an additional 0.1 percentage points.
All three of the company’s global business units generated positive organic revenue growth during the quarter.
Gross profit increased to approximately $312 million, representing a reported gross margin of 33.2%.
On an adjusted basis, gross profit reached $315 million, with an adjusted gross margin of 33.5%, representing an improvement of 120 basis points year over year.
Management attributed much of the improvement to pricing execution and savings generated by restructuring activities.
The company has been implementing initiatives intended to simplify operations, improve manufacturing efficiency, and strengthen profitability.
Those efforts helped offset higher raw material costs during the quarter.
Adjusted selling, general, and administrative expenses reached approximately $183 million, an increase of 8% year over year.
However, adjusted SG&A declined approximately 7% compared with the preceding quarter, reflecting the timing of certain expenses.
H.B. Fuller generated $83 million in adjusted net income, with adjusted diluted earnings increasing 21% to $1.52 per share.
Its reported net income of $79 million compares with approximately $67 million in the corresponding quarter of 2025.
The company’s adjusted EBITDA growth and margin expansion reflected the combined contribution of pricing increases and operating cost reductions.
H.B. Fuller is pursuing its Quantum Leap transformation program, which focuses on improving operational efficiency, strengthening its manufacturing network, and creating a more competitive cost structure.
The company also intends to expand its portfolio through acquisitions.
Management highlighted the anticipated closing of its AMS acquisition before the end of 2026 as a component of its portfolio development strategy.
On the balance sheet, H.B. Fuller reported approximately $1.96 billion in net debt at the end of the third quarter, broadly unchanged from the prior year.
Its net debt-to-adjusted EBITDA ratio improved to 3.0 times from 3.3 times a year earlier.
Net working capital represented 18.5% of annualized revenue, increasing 150 basis points year over year.
The increase was primarily attributable to strategic inventory investments supporting the Quantum Leap program and efforts to maintain supply continuity amid disruptions in the Middle East.
For the first nine months of fiscal 2026, H.B. Fuller generated $183 million in operating cash flow, an increase of 17% compared with the previous year.
Following its third-quarter performance, the company updated its fiscal 2026 financial outlook.
H.B. Fuller now expects adjusted EBITDA between $655 million and $670 million and adjusted diluted earnings of $4.70 to $4.85 per share.
Full-year revenue is still expected to increase by a mid-single-digit percentage, with low-single-digit organic revenue growth.
Management expects mid-single-digit pricing growth to offset a low-single-digit decline in volumes.
The company also maintained its expectation for $300 million to $325 million in operating cash flow, excluding AMS-related items.
Founded in 1887, H.B. Fuller develops adhesives, coatings, and sealants for customers in more than 150 countries.
The company generated approximately $3.5 billion in revenue in 2025 and employs more than 7,100 people worldwide.
KEY QUOTE:
“Through disciplined execution, we delivered strong revenue, EBITDA, and EPS growth in the quarter and continued to improve profitability and advance toward our EBITDA margin target of greater than 20 percent. Pricing actions are offsetting higher raw material costs, and our restructuring efforts continue to enhance operating leverage. With the anticipated closing of the AMS acquisition before year-end, we remain focused on strengthening our portfolio, executing our Quantum Leap program, and creating long-term value for shareholders.”
Celeste Mastin, President And CEO Of H.B. Fuller
