H.B. Fuller Delivers Strong Q1 Results Amid Challenging Environment

H.B. Fuller Company reported a solid performance for its first quarter of 2026, executing with discipline in a challenging operating environment and expanding margins through global sourcing strength and cost management.

Celeste Mastin, President and Chief Executive Officer, noted that the company delivered on its profit commitment during the quarter, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increasing 4% year-on-year to $119 million. This was at the higher end of the company's guidance range and represented a 90-basis-point expansion in EBITDA margin to 15.4%. The growth in profitability was primarily driven by continued restructuring savings from Quantum Leap and positive impacts from price and raw material cost actions, which more than offset the effects of lower volumes.

Organic revenue declined 6.6% year-on-year during the quarter, with positive pricing being outweighed by lower volume. The company's Electronics and Aerospace (EA) segment saw organic revenue increase approximately 3%, excluding the impact of exiting the lower-margin solar business, driven by continued strength in electronics and aerospace. EBITDA for EA increased 9% in the first quarter, and EBITDA margin expanded 120 basis points year-on-year to 19.9%. Favorable net pricing and raw material cost actions, as well as restructuring benefits, drove the margin expansion.

The Home and Hygiene (HHC) segment saw organic revenue decline by 10% in the quarter, reflecting a challenging environment and tougher comparisons to the first quarter of 2025 when the business delivered 4% organic growth. Despite these headwinds, HHC managed to increase EBITDA margins by 120 basis points to 13.9%, through disciplined cost management and pricing actions.

Businesses and Adhesives (BAS) saw organic sales decrease 5.1% year-on-year during the quarter, consistent with expectations. The team executed well despite challenging weather conditions. EBITDA for BAS decreased by 1% year-over-year, and EBITDA margins were flat due to positive price and raw material actions as well as restructuring savings being offset by volume declines.

Geographically, Americas organic revenue was down 4% year-on-year. This decline was partially offset by EA's 8% growth in the aerospace and general industries market segments. The EIMEA region saw an 11% decrease in organic revenue, driven primarily by tighter customer inventory management in HHC, a weak construction market in BAS, and tough comparisons to the first quarter of 2025 when HHC revenue grew over 10%. Despite these challenges, H.B. Fuller's robust performance underscores its ability to navigate complex global markets.