HB Fuller Company has delivered stronger revenue and profitability in the third quarter of fiscal 2026, with pricing gains and restructuring savings helping offset lower volumes and higher raw material costs.
Net revenue rose 5.2% year-on-year to $938 million for the quarter ended August 29, 2026. Organic revenue increased 4.4%, with all three of the company’s global business units posting organic growth.
Profitability also improved sharply. Adjusted gross margin climbed 120 basis points to 33.5%, driven primarily by pricing execution and restructuring savings. Adjusted EBITDA rose 9% to $187 million, while the adjusted EBITDA margin reached a record 19.9%, up 80 basis points from a year earlier.
Reported diluted earnings per share came in at $1.44, while adjusted diluted EPS jumped 21% year-on-year to $1.52.
“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,” said Celeste Mastin, president and chief executive officer.
"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.”
HB Fuller said pricing increased third-quarter revenue by 7.4%, more than offsetting lower volume and producing the 4.4% organic revenue increase. Foreign currency translation added 0.7% to revenue, while acquisitions contributed another 0.1%.
Gross profit reached $312 million, with adjusted gross profit at $315 million. The company attributed most of the year-on-year improvement in adjusted gross margin to pricing execution and restructuring savings.
Adjusted SG&A expenses were $183 million, up 8% from a year earlier but down 7% sequentially from the second quarter, reflecting the timing of certain expenses.
Net income attributable to HB Fuller was $79 million, while adjusted net income reached $83 million.
HB Fuller ended the quarter with net debt of $1.957 billion, approximately flat from a year earlier. Net debt-to-adjusted EBITDA improved to 3.0 times, compared with 3.3 times at the end of the third quarter of fiscal 2025.
Net working capital increased to 18.5% of annualized net revenue, up 150 basis points year-on-year. The company said the increase was primarily due to strategic inventory investments supporting its Quantum Leap program and maintaining supply continuity amid ongoing disruption in the Middle East.
Year-to-date cash flow from operations rose 17% to $183 million.
Following its year-to-date performance, the company raised its fiscal 2026 adjusted EBITDA outlook to $655 million-$670 million.
Adjusted diluted EPS is now expected to reach $4.70-$4.85, while the core tax rate, excluding discrete items, is projected at 25.5%-26.0%.
HB Fuller maintained its forecast for fiscal 2026 net revenue growth in the mid-single digits and organic revenue growth in the low-single digits. Pricing is expected to increase in the mid-single digits, while volume is projected to decline in the low-single digits. The company now expects foreign exchange to contribute approximately 2%.
Cash flow from operations, excluding AMS-related items, remains projected at $300 million-$325 million.
The company said the anticipated AMS acquisition is expected to close before the end of the year as HB Fuller continues to focus on portfolio strengthening and its Quantum Leap program.
