H. B. Fuller Company (NYSE: FUL) released its unaudited preliminary financial results for fiscal year 2024 on Thursday, revealing challenges in the fourth quarter that fell below expectations. The company anticipates that its net revenue for fiscal year 2024 will be around $3.57 billion, slightly lower than the previous estimate of $3.576 billion, with adjusted earnings per share projected at $3.84, missing the analyst consensus of $4.16.
Adjusted EBITDA is expected to be approximately $594 million, a revision from the previous guidance range of $610 million to $620 million. Declining performance in the fourth quarter was attributed to delays in customer orders and weaker demand in key sectors such as consumer product goods, packaging, and durable goods distribution. Furthermore, the postponement of price increases until fiscal 2025 and escalating raw material expenses, particularly in Hygiene, Health, and Consumable Adhesives, played a role in the decrease in adjusted EBITDA.
Celeste Mastin, President and CEO of H. B. Fuller, acknowledged the market’s slowdown and outlined the company’s response strategy, which includes implementing new pricing measures, cost controls, and ongoing restructuring initiatives aimed at enhancing manufacturing efficiency and reducing operating expenses. The company also revised its operating cash flow outlook for fiscal 2024 to approximately $300 million, lower than the initial projection of $325 million to $350 million.
The full financial results for this fiscal year will be disclosed on January 15, 2025, followed by an investor conference call on January 16, 2025, to delve into the outcomes. As of the latest update on Thursday, FUL shares were trading down by 6.14% at $63.34.
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The article on H. B. Fuller’s adjusted fiscal year 2024 outlook, underscoring challenges like delayed orders and increasing costs, was originally published on Benzinga.com in 2025. Benzinga, however, does not offer investment advice; all rights reserved.
