v3.26.1
Note 14 - Segments
 6 Months Ended
May 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 14: Segments

 

Our three reportable operating segments consist of Hygiene, Health and Consumable Adhesives, Engineering Adhesives and Building Adhesive Solutions. We are required to report segment information in the same way that we internally organize our business for assessing performance and making decisions regarding allocation of resources. Revenue and Adjusted EBITDA of each of our segments are regularly reviewed by our chief executive officer, who acts as our chief operating decision maker, to make decisions about resources to be allocated to the segments and assess their performance. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization and foreign currency gain/loss, adjusted for other items within a relevant period which are not reflective of the segment’s operating performance in the period. Corporate expenses, other than those included in Corporate Unallocated, are allocated to each operating segment. Consistent with our internal management reporting, Corporate Unallocated includes and Adjusted EBITDA excludes amounts related to business acquisition and integration costs, organizational restructuring charges and project costs associated with our implementation of a global Enterprise Resource Planning ("ERP") system that we refer to as Project ONE. Corporate assets are not allocated to the operating segments. See below for a reconciliation of Adjusted EBITDA to net income attributable H.B. Fuller as reflected in the Consolidated Statements of Income.

 

The business components within each operating segment are managed to maximize the results of the overall operating segment rather than the results of any individual business component of the operating segment. Results of individual components of each operating segment are subject to numerous allocations of segment-wide costs that may or may not have been focused on that particular component for a particular reporting period. The costs for these allocated resources are not tracked on a “where-used” basis as financial performance is assessed at the total operating segment level.

 

Reportable operating segment financial information is as follows: 

 

  

Hygiene, Health

      

Building

             

Three Months Ended:

 

and Consumable

  

Engineering

  

Adhesive

  

Segment

  

Corporate

  

H.B. Fuller

 

May 30, 2026

 

Adhesives

  

Adhesives

  

Solutions

  

Total

  

Unallocated

  

Consolidated

 

Net revenue

 $421,861  $283,239  $245,171  $950,271  $-  $950,271 

Segment expenses and other items1

  346,297   219,695   203,757   769,749   (523)  769,226 

Adjusted EBITDA

 $75,564  $63,544  $41,414  $180,522  $523  $181,045 

Depreciation and amortization

  16,702   15,586   13,527   45,815   238   46,053 

Capital Expenditures

  7,884   8,379   3,978   20,241   26,438   46,679 

 

  

Hygiene, Health

      

Building

             

Three Months Ended:

 

and Consumable

  

Engineering

  

Adhesive

  

Segment

  

Corporate

  

H.B. Fuller

 

May 31, 2025

 

Adhesives

  

Adhesives

  

Solutions

  

Total

  

Unallocated

  

Consolidated

 

Net revenue

 $397,475  $276,418  $224,202  $898,095  $-  $898,095 

Segment expenses and other items1

  335,512   213,077   186,667   735,256   (2,821)  732,435 

Adjusted EBITDA

 $61,963  $63,341  $37,535  $162,839  $2,821  $165,660 

Depreciation and amortization

  16,353   15,393   12,867   44,613   70   44,683 

Capital Expenditures

  1,295   3,458   4,287   9,040   22,510   31,550 

 

  

Hygiene, Health

      

Building

             

Six Months Ended

 

and Consumable

  

Engineering

  

Adhesive

  

Segment

  

Corporate

  

H.B. Fuller

 

May 30, 2026

 

Adhesives

  

Adhesives

  

Solutions

  

Total

  

Unallocated

  

Consolidated

 

Net revenue

 $768,388  $525,688  $427,039  $1,721,115  $-  $1,721,115 

Segment expenses and other items1

  644,787   413,985   364,015   1,422,787   (1,421)  1,421,366 

Adjusted EBITDA

 $123,601  $111,703  $63,024  $298,328  $1,421  $299,749 

Depreciation and amortization

  33,255   31,508   27,075   91,838   580   92,418 

Capital Expenditure

  17,789   14,987   12,210   44,986   59,394   104,380 

 

  

Hygiene, Health

      

Building

             

Six Months Ended

 

and Consumable

  

Engineering

  

Adhesive

  

Segment

  

Corporate

  

H.B. Fuller

 

May 31, 2025

 

Adhesives

  

Adhesives

  

Solutions

  

Total

  

Unallocated

  

Consolidated

 

Net revenue

 $765,700  $513,177  $407,881  $1,686,758  $-  $1,686,758 

Segment expenses and other items1

  656,846   405,648   348,544   1,411,038   (4,296)  1,406,742 

Adjusted EBITDA

 $108,854  $107,529  $59,337  $275,720  $4,296  $280,016 

Depreciation and amortization

  31,083   30,559   25,538   87,180   100   87,280 

Capital Expenditure

  3,582   10,457   10,725   24,764   39,770   64,534 

 

1 Segment expenses and other items for all segments primarily include raw material costs, compensation and benefits, delivery expense, rent and lease expense, professional services, travel and entertainment, repairs and maintenance and other manufacturing overhead.

 

Reconciliation of Net income attributable to H.B. Fuller to Adjusted EBITDA:

 

  

Three Months Ended

  

Six Months Ended

 
  

May 30,

  

May 31,

  

May 30,

  

May 31,

 
  

2026

  

2025

  

2026

  

2025

 

Net income attributable to H.B. Fuller

 $67,805  $41,828  $88,850  $55,076 
                 

Adjustments:

                

Acquisition project costs

  1,395   3,602   2,325   13,430 

Organizational realignment

  4,413   6,635   14,435   15,409 

Project One

  2,387   2,581   5,440   5,646 

Other1

  3,024   44   2,929   44 

Discrete tax items

  356   13,961   454   14,952 

Income tax effect on adjustments

  (1,848)  (3,999)  (5,386)  (9,907)

Adjusted net income attributable to H.B. Fuller

  77,532   64,652   109,047   94,650 
                 

Add:

                

Interest expense2

  32,584   34,484   64,957   66,514 

Interest income

  (1,961)  (854)  (4,030)  (1,954)

Adjusted Income taxes

  27,075   22,765   37,937   33,626 

Depreciation and Amortization expense3

  45,815   44,613   91,838   87,180 

Adjusted EBITDA

 $181,045  $165,660  $299,749  $280,016 

 

1 Other for the three and six months ended May 30, 2026 includes acquired environmental liabilities and ongoing litigation and product claims related to a divested business.

2 Interest expense added back for EBITDA is adjusted for amounts already included in adjusted net income attributable to H.B. Fuller.

3 Depreciation and amortization expense added back for EBITDA is adjusted for amounts already included in adjusted net income attributable to H.B. Fuller.

 

We view the following disaggregation of net revenue by geographic region as useful to understanding the composition of revenue recognized during the respective reporting periods:

 

  

Three Months Ended May 30, 2026

 
                 
  

Hygiene, Health

      

Building

     
  

and Consumable

  

Engineering

  

Adhesive

  

Segment

 
  

Adhesives

  

Adhesives

  

Solutions

  

Total

 

Americas

 $226,877  $122,710  $133,082  $482,669 

EIMEA

  132,821   70,907   92,333   296,061 

Asia Pacific

  62,163   89,622   19,756   171,541 

Total

 $421,861  $283,239  $245,171  $950,271 

  

  

Three Months Ended May 31, 2025

 
                 
  

Hygiene, Health

      

Building

     
  

and Consumable

  

Engineering

  

Adhesive

  

Segment

 
  

Adhesives

  

Adhesives

  

Solutions

  

Total

 

Americas

 $228,018  $119,161  $126,461  $473,640 

EIMEA

  118,238   61,553   82,073   261,864 

Asia Pacific

  51,219   95,704   15,668   162,591 

Total

 $397,475  $276,418  $224,202  $898,095 

 

  

Six Months Ended May 30, 2026

 
  

Hygiene, Health

      

Building

     
  

and Consumable

  

Engineering

  

Adhesive

  

Segment

 
  

Adhesives

  

Adhesives

  

Solutions

  

Total

 

Americas

 $416,020  $227,869  $226,779  $870,668 

EIMEA

  237,176   125,299   166,526   529,001 

Asia Pacific

  115,192   172,520   33,734   321,446 

Total

 $768,388  $525,688  $427,039  $1,721,115 

 

  

Six Months Ended May 31, 2025

 
  

Hygiene, Health

      

Building

     
  

and Consumable

  

Engineering

  

Adhesive

  

Segment

 
  

Adhesives

  

Adhesives

  

Solutions

  

Total

 

Americas

 $435,372  $216,370  $222,161  $873,903 

EIMEA

  229,005   111,816   157,236   498,057 

Asia Pacific

  101,323   184,991   28,484   314,798 

Total

 $765,700  $513,177  $407,881  $1,686,758