Global adhesives and specialty chemicals manufacturer HB Fuller Company has reported first-quarter fiscal 2026 results, showing resilience in a challenging market. 

The adhesives and specialty chemicals maker posted net revenue of $771 million, down 2.3% from a year ago. Organic revenue fell 6.6% due to lower volumes, though pricing gains, acquisitions, and foreign currency translation partially offset the decline. 

Gross profit reached $236 million, with adjusted gross margin climbing to 31.3%—up 170 basis points from last year—driven by cost savings from the Quantum Leap restructuring initiative, acquisitions, and targeted pricing actions. 

Net income for the quarter was $21 million, while adjusted EBITDA rose 4% to $119 million. Adjusted EPS was $0.57, up 6% from Q1 2025. 

“In the first quarter, we delivered on our profit commitment and executed with discipline in a challenging operating environment,” said Celeste Mastin, president and CEO. “We continued to expand margins by leveraging our global sourcing strength and maintaining a focused approach to cost and portfolio management.” 

Mastin also noted potential headwinds: “Looking ahead, the geopolitical instability in the Middle East adds significant complexity, disruption, and cost to global supply chains. HB Fuller is acting swiftly and decisively to ensure we are best positioned to maintain supply continuity for our customers.  

"In addition, we recently announced a strategic pricing initiative to responsibly manage additional costs. This will allow us to further differentiate ourselves while we continue to advance our strategic priorities and create sustainable long-term value for our customers and shareholders.” 

The company’s balance sheet showed net debt of $1.968 billion, down $106 million from last year, with a net debt-to-adjusted EBITDA ratio of 3.1x. Net working capital stood at 19% of annualized net revenue, up $20 million sequentially, and operating cash flow improved $49 million year-on-year. 

Looking ahead, HB Fuller updated its fiscal 2026 guidance: net revenue is now expected to rise mid-single digits, with organic revenue up low-single digits. Adjusted EBITDA is projected between $645 million and $675 million, and adjusted EPS is expected in the $4.55–$4.90 range. For Q2, net revenue is anticipated to grow low-single digits, with adjusted EBITDA of $175–$185 million.