H.B. Fuller Company (HB1) AI Stock Analysis

H.B. Fuller Company

(Frankfurt:HB1)

Rating:―N/A

Action:N/A

Date:―

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Positive Factors

Margin ExpansionPricing execution and restructuring savings are currently offsetting lower volume and elevated raw-material costs. Expanding gross profit and EBITDA margins can strengthen earnings durability, improve resilience across cycles, and provide funding for ongoing operational investment.

Negative Factors

Weak Cash ConversionReported profitability is not converting efficiently into cash, limiting the funds available for debt reduction, acquisitions, and internal investment. Persistently weak conversion would leave the company more dependent on financing and less able to absorb demand or cost pressure.

H.B. Fuller Company (HB1) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 2.78B
Dividend Yield: 1.90%
Average Volume (3M): ―
Price to Earnings (P/E): 14.2
Beta (1Y): 0.72
Revenue Growth: -4.00%
EPS Growth: 68.19%
Country: Germany
Employees: 7,100
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

H.B. Fuller Company Business Overview & Revenue Model

Company Description

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, He...

H.B. Fuller Company Earnings Call Summary

Earnings Call Date:Sep 22, 2026(Q3-2026)|% Change Since:-0.87%|Next Earnings Date:Jan 19, 2027

Earnings Call SentimentPositive

The call was predominantly positive, with strong third-quarter revenue, EBITDA, margin, EPS, cash flow, segment performance, Quantum Leap execution, and progress toward closing the AMS acquisition. The main challenges were lower volumes, volatile demand, elevated raw material costs, supply chain disruption, weakness in electronics, construction, China, and portions of HHC and BAS. Management remained confident in continued growth, margin expansion, savings realization, cash flow improvement, and deleveraging.

Positive Updates

Strong Third-Quarter Financial Performance

Revenue increased 5.2% year-over-year, while organic revenue increased 4.4%, driven by 7.4% pricing that partially offset lower volume. Adjusted EBITDA rose 9% to $187 million, adjusted EBITDA margin expanded 80 basis points to 19.9%, and adjusted EPS increased 21% to $1.52.

Negative Updates

Lower Volume Offset Organic Growth

Third-quarter organic growth of 4.4% was driven by 7.4% pricing that was partially offset by lower volume year-over-year. Fiscal 2026 guidance continues to call for volume to decline low single digits.

Company Guidance

For fiscal 2026, excluding the impact of the proposed acquisition of Advanced Medical Solutions, net revenue is still expected to be up mid-single digits, organic revenue is still expected to be up low single digits versus fiscal 2025, pricing up mid-single digits and volume down low single digits; adjusted EBITDA is now expected to be in the range of $655 million to $670 million, adjusted EPS in the range of $4.70 to $4.85, and cash flow from operations, excluding AMS-related items, in the range of $300 million to $325 million. Quantum Leap is expected to deliver approximately $75 million of annualized conversion cost savings by the end of 2030, with approximately $25 million realized through the end of 2026 and an additional $20 million to $25 million of incremental savings in 2027; capital investment is expected to be $150 million over the life of the program, roughly $50 million in 2026 and less than $25 million in 2027, with approximately $50 million of total onetime cash costs, about 1/3 already realized. The footprint is expected to decline from 82 manufacturing facilities at the end of 2024 to approximately 62 by the end of 2026, below 60 by the end of 2027 excluding AMS, and toward 55, while AMS is expected to be growing about 8% a year on average and leverage is expected to return to the targeted range of 2.5 to 3x within 2 years of closing.

H.B. Fuller Company Risk Analysis

H.B. Fuller Company disclosed 21 risk factors in its most recent earnings report. H.B. Fuller Company reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

1 New Risk

1. contained in the Annual Report on Form 10-K for the fiscal year ended November 29, 2025.Q2, 2026

H.B. Fuller Company Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:HB1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	72Outperform	$7.29B	22.97	13.48%	―	0.14%	-25.40%
RPM	69Neutral	$13.06B	19.85	21.13%	2.03%	5.96%	0.68%
EMN	65Neutral	$7.61B	11.78	10.63%	5.03%	0.40%	-6.58%
PPG	62Neutral	$26.40B	17.74	19.05%	2.30%	6.39%	27.29%
ASH	62Neutral	$3.42B	65.08	2.77%	2.25%	-1.39%	―
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

* Basic Materials Sector Average

Performance Comparison

DE:HB1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:HB1	H.B. Fuller Company	43.60	-4.57	-9.49%
ASH	Ashland Global Holdings, Inc.	74.19	24.83	50.31%
EMN	Eastman Chemical Company	66.78	8.60	14.78%
PPG	Ppg Industries, Inc.	124.89	31.09	33.15%
RPM	RPM International	107.80	2.46	2.34%
AXTA	Axalta Coating Systems	35.84	7.92	28.37%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

H.B. Fuller Company AI Stock Analysis