Fuller Raises Fiscal 2026 Ebitda Outlook After Pricing Turn
Organic revenue rose 4.4% in the third quarter as pricing lifted net revenue 7.4%, and the company now sees fiscal 2026 adjusted EBITDA of $655 million to $670 million.
H.B. Fuller Company (FUL), the adhesives maker, posted a 4.4% year-on-year increase in organic revenue in the third quarter ended August 29, 2026, reversing a 6.6% organic decline in the first quarter and accelerating from 2.6% organic growth in the second quarter.
Net revenue was $938 million, up 5.2% year-on-year. Pricing increased net revenue by 7.4%, more than offsetting lower volume. Foreign currency translation and acquisitions added 0.7% and 0.1%, respectively. Organic revenue grew in all three global business units.
The pricing contribution was the quarter’s inflection. In the second quarter, pricing had lifted net revenue 3.0%; in the first quarter, it had lifted it 0.6%. President and Chief Executive Officer Celeste Mastin said pricing actions were offsetting higher raw material costs and that restructuring efforts continued to enhance operating leverage.
Adjusted EBITDA was $187 million, up 9% year-on-year, and the adjusted EBITDA margin reached a record 19.9%, up 80 basis points. Adjusted EBITDA growth and margin improvement occurred in all three global business units. Adjusted EBITDA had been $181 million in the second quarter and $119 million in the first. The EBITDA increase was principally attributable to pricing and restructuring savings.
Gross profit was $312 million. Adjusted gross profit was $315 million, and adjusted gross margin was 33.5%, up 120 basis points year-on-year. Pricing execution and restructuring savings drove the majority of that margin increase. Reported gross margin was 33.2%.
Net income attributable to H.B. Fuller was $79 million. Adjusted net income was $83 million. Reported diluted EPS was $1.44; adjusted diluted EPS was $1.52, up 21% year-on-year. Adjusted EPS had risen 19% year-on-year in the second quarter and 6% in the first.
Selling, general and administrative expense was $198 million. Adjusted SG&A was $183 million, down 7% sequentially from the second quarter, reflecting the timing of certain expenses. Other income, net was $26 million. Interest expense was $41 million.
Net debt at quarter-end was $1,957 million, approximately flat year-on-year. Net debt-to-adjusted EBITDA was 3.0 times, down from 3.3 times a year earlier. Net working capital was 18.5% of annualized net revenue, up 150 basis points year-on-year. The increase was primarily driven by strategic inventory investments to support Quantum Leap and to ensure supply continuity for customers amid ongoing disruption in the Middle East. Year-to-date cash flow from operations was $183 million, up 17% year-on-year.
Mastin said the company remained focused on strengthening its portfolio, executing the Quantum Leap program, and creating long-term value, with the anticipated closing of the AMS acquisition before year-end. She said the company continued to advance toward an EBITDA margin target of greater than 20 percent.
On year-to-date performance, the company updated fiscal 2026 guidance. Adjusted EBITDA is now expected in a range of $655 million to $670 million. Adjusted diluted EPS is now expected in a range of $4.70 to $4.85. Net revenue for fiscal 2026 is still expected to be up mid-single digits, with organic revenue still expected to be up low-single digits, pricing up mid-single digits and volume down low-single digits. The impact from foreign exchange is now expected to be approximately 2%. The core tax rate, excluding discrete items, is now expected in a range of 25.5% to 26.0%. Cash flow from operations, excluding AMS-related items, is still expected in a range of $300 million to $325 million.
The company had already increased the midpoint of full-year adjusted EBITDA and adjusted EPS guidance after the second quarter. The latest update followed year-to-date performance.