H.B. Fuller Company (NYSE: FUL) is a global leader in adhesives, sealants, and coatings, providing solutions across various sectors including hygiene, health, and industrial applications. For the second quarter of fiscal 2025, which ended on May 31, the company reported a net revenue of $898 million, a decline of 2.1% compared to the same quarter in fiscal 2024. Adjusting for the recent divestiture of its flooring business, net revenue increased by 2.8% year-on-year.

Organic revenue growth was positive at 0.4%, consisting of a price increase of 0.7%, offset by a slight volume decrease of 0.3%. Currency fluctuations had a negative impact of 1.2% on revenue. The adjusted gross profit margin expanded by 110 basis points to 32.2%, attributed to cost savings, the effects of acquisitions and divestitures, and targeted pricing actions.

The adjusted EBITDA for the second quarter was $166 million, up 5% year-on-year, with an adjusted EBITDA margin of 18.4%, reflecting a 130 basis point increase from the previous year. Adjusted net income for the quarter was $65 million, translating to an adjusted diluted EPS of $1.18, also up 5% year-on-year.

Selling, general, and administrative expenses were reported at $186 million, with adjusted SG&A expenses remaining flat year-on-year at $176 million. Cash flow from operations increased by 36% to $111 million compared to the previous year.

In terms of financial guidance for the full fiscal year 2025, H.B. Fuller now expects net revenue to decline by 2% to 3%, while anticipating organic revenue to remain flat to increase by up to 2%. Adjusted EBITDA is projected to be within the range of $615 million to $630 million, resulting in a year-on-year growth of 4% to 6%. Adjusted EPS is expected to range from $4.10 to $4.30, equating to a year-on-year growth of 7% to 12%. The company plans to repurchase approximately 1 million shares by year-end.

As of the second quarter, the net debt to adjusted EBITDA ratio stood at 3.4, a decrease from 3.5 in the previous quarter, driven by an increase in EBITDA and a reduction in debt.