v3.26.3
Note 15 - Segments
 9 Months Ended
Aug. 29, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 15: 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, and depreciation and amortization, 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

 

August 29, 2026

 

Adhesives

  

Adhesives

  

Solutions

  

Total

  

Unallocated

  

Consolidated

 

Net revenue

 $412,965  $278,700  $246,510  $938,175  $-  $938,175 

Segment expenses and other items 1

  340,192   212,253   201,750   754,195   (2,729)  751,466 

Adjusted EBITDA

 $72,773  $66,447  $44,760  $183,980  $2,729  $186,709 

Depreciation and amortization

  16,690   15,622   13,532   45,844   198   46,042 

Capital Expenditures

  4,280   7,251   3,776   15,307   21,966   37,273 

 

  

Hygiene, Health

      

Building

             

Three Months Ended:

 

and Consumable

  

Engineering

  

Adhesive

  

Segment

  

Corporate

  

H.B. Fuller

 

August 30, 2025

 

Adhesives

  

Adhesives

  

Solutions

  

Total

  

Unallocated

  

Consolidated

 

Net revenue

 $386,068  $272,297  $233,678  $892,043  $-  $892,043 

Segment expenses and other items 1

  320,744   208,870   192,205   721,819   (368)  721,451 

Adjusted EBITDA

 $65,324  $63,427  $41,473  $170,224  $368  $170,592 

Depreciation and amortization

  16,627   15,607   13,064   45,298   261   45,559 

Capital Expenditures

  -   4,916   3,007   7,923   22,136   30,059 

 

  

Hygiene, Health

      

Building

             

Nine Months Ended

 

and Consumable

  

Engineering

  

Adhesive

  

Segment

  

Corporate

  

H.B. Fuller

 

August 29, 2026

 

Adhesives

  

Adhesives

  

Solutions

  

Total

  

Unallocated

  

Consolidated

 

Net revenue

 $1,181,353  $804,387  $673,549  $2,659,289  $-  $2,659,289 

Segment expenses and other items 1

  984,979   626,237   565,765   2,176,981   (4,150)  2,172,831 

Adjusted EBITDA

 $196,374  $178,150  $107,784  $482,308  $4,150  $486,458 

Depreciation and amortization

  49,945   47,130   40,607   137,682   778   138,460 

Capital Expenditure

  22,069   22,237   15,987   60,293   81,360   141,653 

 

  

Hygiene, Health

      

Building

             

Nine Months Ended

 

and Consumable

  

Engineering

  

Adhesive

  

Segment

  

Corporate

  

H.B. Fuller

 

August 30, 2025

 

Adhesives

  

Adhesives

  

Solutions

  

Total

  

Unallocated

  

Consolidated

 

Net revenue

 $1,151,768  $785,474  $641,559  $2,578,801  $-  $2,578,801 

Segment expenses and other items 1

  977,590   614,518   540,749   2,132,857   (4,664)  2,128,193 

Adjusted EBITDA

 $174,178  $170,956  $100,810  $445,944  $4,664  $450,608 

Depreciation and amortization

  46,165   47,711   38,601   132,477   362   132,839 

Capital Expenditure

  3,582   15,373   13,732   32,687   61,906   94,593 

 

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

  

Nine Months Ended

 
  

August 29,

  

August 30,

  

August 29,

  

August 30,

 
  

2026

  

2025

  

2026

  

2025

 

Net income attributable to H.B. Fuller

 $79,182  $67,160  $168,031  $122,236 
                 

Adjustments:

                

Acquisition project costs

  (10,358)  518   (8,033)  13,948 

Organizational realignment

  5,834   4,620   20,269   20,028 

Project One

  2,700   2,499   8,140   8,146 

Other1

  8,387   1,711   11,317   1,755 

Discrete tax items

  (2,075)  (3,742)  (1,621)  11,210 

Income tax effect on adjustments

  (242)  (3,402)  (5,628)  (13,309)

Adjusted net income attributable to H.B. Fuller

  83,428   69,364   192,475   164,014 
                 

Add:

                

Interest expense2

  32,953   33,369   97,910   99,884 

Interest income

  (2,489)  (1,110)  (6,519)  (3,064)

Adjusted Income taxes

  26,973   23,671   64,910   57,297 

Depreciation and Amortization expense3

  45,844   45,298   137,682   132,477 

Adjusted EBITDA

 $186,709  $170,592  $486,458  $450,608 

 

1 Other for the three and nine months ended  August 29, 2026 includes debt extinguishment and bridge financing costs related to a pending acquisition of $7,791. Additionally, it 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 August 29, 2026

 
                 
  

Hygiene, Health

      

Building

     
  

and Consumable

  

Engineering

  

Adhesive

  

Segment

 
  

Adhesives

  

Adhesives

  

Solutions

  

Total

 

Americas

 $221,246  $120,747  $141,732  $483,725 

EIMEA

  133,534   70,289   86,563   290,386 

Asia Pacific

  58,185   87,664   18,215   164,064 

Total

 $412,965  $278,700  $246,510  $938,175 

  

  

Three Months Ended August 30, 2025

 
                 
  

Hygiene, Health

      

Building

     
  

and Consumable

  

Engineering

  

Adhesive

  

Segment

 
  

Adhesives

  

Adhesives

  

Solutions

  

Total

 

Americas

 $215,634  $117,894  $130,236  $463,764 

EIMEA

  122,251   59,778   87,934   269,963 

Asia Pacific

  48,183   94,625   15,508   158,316 

Total

 $386,068  $272,297  $233,678  $892,043 

 

  

Nine Months Ended August 29, 2026

 
  

Hygiene, Health

      

Building

     
  

and Consumable

  

Engineering

  

Adhesive

  

Segment

 
  

Adhesives

  

Adhesives

  

Solutions

  

Total

 

Americas

 $637,265  $348,616  $368,512  $1,354,393 

EIMEA

  370,710   195,587   253,089   819,386 

Asia Pacific

  173,378   260,184   51,948   485,510 

Total

 $1,181,353  $804,387  $673,549  $2,659,289 

 

  

Nine Months Ended August 30, 2025

 
  

Hygiene, Health

      

Building

     
  

and Consumable

  

Engineering

  

Adhesive

  

Segment

 
  

Adhesives

  

Adhesives

  

Solutions

  

Total

 

Americas

 $651,007  $334,265  $352,396  $1,337,668 

EIMEA

  351,256   171,594   245,170   768,020 

Asia Pacific

  149,505   279,615   43,993   473,113 

Total

 $1,151,768  $785,474  $641,559  $2,578,801