ST. PAUL - H.B. Fuller Company (NYSE: FUL), a global leader in industrial adhesives, reported a strong second quarter with earnings surpassing analyst expectations and an optimistic outlook for the full year.
The company posted adjusted EPS of $1.12, a notable $0.09 above the $1.03 analyst consensus. Quarterly revenue also exceeded forecasts, coming in at $917 million against an anticipated $913.62 million. H.B. Fuller's stock saw an uptick of 1.8% following the earnings announcement.
The positive earnings report has led the company to raise its full-year 2024 guidance. H.B. Fuller now projects an adjusted EPS range of $4.20 to $4.45, compared to the consensus estimate of $4.31. Additionally, the company anticipates net revenue growth between 2% to 4%, with organic revenue expected to be flat to up 2% year-on-year.
Adjusted EBITDA for the year is forecasted to be between $620 million to $640 million, representing a growth of approximately 7% to 10% over the previous year. For the third quarter specifically, adjusted EBITDA is anticipated to range from $165 million to $175 million. Net interest expense for the full year is projected to be around $130 million, while operating cash flow is expected to remain steady between $300 million and $350 million.
President and CEO Celeste Mastin commented on the results, highlighting the team's dedication to execution and strategic focus on profitable, high-growth market segments. Mastin also emphasized the company's innovative solutions and recent acquisitions, such as ND Industries, as key factors in expanding their market presence.
The company's financial health is further evidenced by a 20% year-on-year increase in adjusted EPS and a 10% rise in adjusted EBITDA, with an expanded adjusted EBITDA margin of 120 basis points to 17.1%. This financial performance underscores H.B. Fuller's success in leveraging pricing and raw material cost actions, volume growth, restructuring savings, and the benefits from recent acquisitions.
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