H.B. Fuller Reports 1.9% Revenue Growth, Net Income Increase in Q3 2024

H.B. Fuller Company reported a net revenue of $917.9 million for the three months ended August 31, 2024, reflecting a 1.9% increase from $900.6 million in the same period of the previous year. For the nine months ended August 31, 2024, net revenue reached $2.645 billion, up 1.4% from $2.608 billion in the prior year. The revenue growth was driven by a 3.0% contribution from acquisitions and a 3.0% increase in sales volume, although this was partially offset by a 2.6% decrease in pricing and a 1.5% negative impact from currency fluctuations.

Gross profit for the third quarter of 2024 was $275.7 million, an increase of 4.6% compared to $263.5 million in the third quarter of 2023. The gross profit margin improved by 70 basis points due to lower raw material costs and higher sales volume. For the nine-month period, gross profit rose to $797.0 million, an 8.4% increase from $735.1 million in the previous year, with a gross profit margin increase of 190 basis points.

Net income attributable to H.B. Fuller for the third quarter of 2024 was $55.4 million, compared to $37.6 million in the same quarter of 2023. Diluted earnings per share for the quarter increased to $0.98 from $0.67. For the nine months, net income was $137.6 million, up from $99.9 million, with diluted earnings per share rising to $2.43 from $1.79.

The company undertook several strategic acquisitions, including HS Butyl Limited for approximately $23.2 million, ND Industries, Inc. for $255.7 million, and Sanglier Ltd. for about $16.7 million. These acquisitions are expected to enhance H.B. Fuller’s market presence and product offerings, particularly in the European waterproofing tape market and specialty adhesives.

H.B. Fuller also implemented restructuring plans aimed at optimizing operations and integrating acquired businesses, with estimated pre-tax costs ranging from $39.1 million to $50.1 million. As of August 31, 2024, the company incurred $43.0 million in restructuring costs.

Total assets increased to $4.978 billion as of August 31, 2024, from $4.724 billion at the end of the previous fiscal year. Long-term debt rose to $2.020 billion, up from $1.837 billion, reflecting the funding of acquisitions and operational needs. The company reported total stockholders' equity of $1.841 billion, an increase from $1.756 billion.

Overall, H.B. Fuller’s financial performance in the latest quarter and nine-month period demonstrates growth in revenue and profitability, supported by strategic acquisitions and improved operational efficiencies.