H.B. Fuller (NYSE: FUL) announced robust financial results for its second quarter ending May 30, 2026. The company reported net revenue of $950 million, marking a 5.8% increase from the prior year. Pricing strategies contributed 3.0% to sales, effectively offsetting a slight dip in volumes and leading to a 2.6% organic revenue growth. Gross profit reached $320 million, and the adjusted gross margin expanded by 200 basis points to 34.2%, driven by effective pricing and restructuring benefits. Net income attributable to H.B. Fuller rose to $68 million, with diluted EPS at $1.23, while adjusted EPS climbed 19% year-on-year to $1.41, exceeding analyst estimates by $0.03. Adjusted EBITDA for the quarter was $181 million, up 9%.
The company also highlighted significant improvements in its balance sheet, with net debt decreasing to $1.96 billion, bringing the net debt-to-adjusted EBITDA ratio down to 3.1x. H.B. Fuller generated a record second-quarter operating cash flow of $121 million and repurchased 750,000 shares during the period. Celeste Mastin, President and CEO, attributed the strong performance to effective execution, global sourcing capabilities, and swift pricing actions, which maintained supply continuity amidst market disruptions. She also cited the company's Quantum Leap restructuring initiative as a factor in strengthening its competitive position.
Following the strong performance, management raised the midpoint of its full-year fiscal 2026 adjusted EBITDA and adjusted EPS guidance. Adjusted EBITDA is now expected to be in the range of $650 million to $675 million, and adjusted EPS is projected to be between $4.60 and $4.90. Cash flow from operations for fiscal 2026 is anticipated to be in the range of $300 million to $325 million. For the third quarter of 2026, net revenue is expected to be up mid-single digits, with adjusted EBITDA in the range of $180 million to $190 million. The company's Hygiene, Health and Consumable Adhesives segment played a key role, contributing $421.9 million in revenue, a 6.1% increase year-over-year, due to steady demand in consumer-facing applications.
