Q3 2024 H.B. Fuller Company Earnings Call Transcript
Key Points
- H.B. Fuller Co (FUL) achieved positive organic sales growth of 0.4% in Q3 2024 despite a weak economic backdrop.
- Adjusted EBITDA grew 6% year-on-year to $165 million, with an adjusted EBITDA margin expansion of 70 basis points to 18%.
- Construction Adhesives segment saw a 10% year-on-year increase in organic sales, driven by strong demand in roofing.
- The company completed the acquisition of HS Butyl Limited, enhancing its product portfolio and market presence in Europe.
- H.B. Fuller Co (FUL) was recognized by Newsweek as one of America's most admired workplaces, highlighting its strong corporate culture and employee satisfaction.
- Volume growth came in at the low end of expectations due to slowing market demand in certain durable goods segments.
- Engineering Adhesives (EA) segment experienced a 2% decline in organic revenue, with significant volume declines in clean energy, particularly in China.
- Adjusted EBITDA for the HHC segment was down 7% year-on-year, with a 70 basis point decrease in adjusted EBITDA margin to 16.5%.
- The company lowered its full-year adjusted EBITDA guidance range to $610 million to $620 million, down from the original range of $610 million to $640 million.
- Solar business volumes were significantly down globally, with a pronounced impact in China due to overcapacity and market dynamics.
Thank you for standing by, and welcome to the H.B. Fuller Third Quarter 2024 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the call over to Steven Brazones, Vice President of Investor Relations. Please go ahead.
Thank you, operator. Welcome to H.B. Fuller's Third Quarter 2024 Investor Conference Call. Presenting today are Celeste Mastin, President and Chief Executive Officer; and John Corkrean, Executive Vice President and Chief Financial Officer. After our prepared remarks, we will have a question-and-answer session.
Before we begin, let me remind everyone that our comments today will include references to certain non-GAAP financial measures. These measures are supplemental to the results determined in accordance with GAAP. We believe that these measures are useful to investors in understanding our operating performance and to compare our performance with other companies.
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