It has been about a month since the last earnings report for H. B. Fuller (FUL Quick QuoteFUL - Free Report) . Shares have added about 1.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is H. B. Fuller due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for H. B. Fuller Company before we dive into how investors and analysts have reacted as of late.

H.B. Fuller’s Q3 Earnings Beat Estimates on Pricing & Margin Gains

H.B. Fuller reported adjusted earnings of $1.52 per share for the third quarter of fiscal 2026, up 21% from $1.26 a year ago. Earnings surpassed the Zacks Consensus Estimate of $1.45 by 4.8%.

Net revenues rose 5.2% year over year to $938.2 million, beating the Zacks Consensus Estimate of $934.2 million by 0.4%. Results benefited from pricing execution and restructuring savings, which supported profitability despite softer volumes. Organic revenues increased 4.4%, while adjusted EBITDA grew 9% year over year.

Organic revenue growth reflected a 7.4% contribution from pricing, which more than offset a 3% decline in volumes. Foreign currency translation contributed 0.7% to revenue growth, while acquisitions added 0.1%.

The company's pricing initiatives helped counter higher raw material costs and weaker demand. All three global business units recorded positive organic revenue growth, highlighting the benefits of pricing execution across its portfolio.

Margins Expand on Cost Savings

Gross profit totaled $311.7 million compared with $285.1 million in the year-ago quarter. Adjusted gross profit increased to $314.6 million from $288.4 million. Adjusted gross margin expanded 120 basis points (bps) year over year to 33.5%, primarily reflecting favorable pricing and restructuring savings.

Selling, general and administrative expenses increased to $198.5 million from $175 million a year earlier. Adjusted expenses were $183 million, up 8% year over year but down 7% sequentially due to expense timing.

Adjusted EBITDA reached $186.7 million compared with $170.6 million in the prior-year quarter. Adjusted EBITDA margin expanded 80 bps to a record 19.9%, reflecting improved operating leverage and continued benefits from the Quantum Leap restructuring program.

Hygiene and Building Segments Post Gains

The Hygiene, Health and Consumable Adhesives segment generated revenues of $413 million, up 7% year over year. Organic revenues grew 6.4%. Adjusted EBITDA increased to $72.8 million from $65.3 million, while the adjusted EBITDA margin improved 70 bps to 17.6%.

Building Adhesive Solutions recorded revenues of $246.5 million, up 5.5% year over year, with organic growth of 5.2%. Adjusted EBITDA increased to $44.8 million from $41.5 million. The segment's adjusted EBITDA margin expanded 50 bps to 18.2%, contributing to the company's broader profitability improvement.

Engineering Business Shows Growth

Engineering Adhesives generated revenues of $278.7 million compared with $272.3 million in the year-ago quarter, representing growth of 2.4%. Organic revenues increased 0.7%, while favorable foreign currency translation contributed 1.3% and acquisitions added 0.4%.

Adjusted EBITDA rose to $66.4 million from $63.4 million a year earlier. Adjusted EBITDA margin improved 50 bps to 23.8%, making Engineering Adhesives the company's highest-margin business unit. The segment delivered improved profitability despite relatively modest organic revenue growth.

Cash Flow Rises, Leverage Improves

Cash flow from operating activities totaled $182.6 million for the first nine months of fiscal 2026, up 17% from $156.8 million in the comparable prior-year period. Capital expenditures totaled $141.7 million, while share repurchases amounted to $48.9 million.

The company exited the quarter with cash and cash equivalents of $97.2 million and total debt of $2.05 billion. Net debt stood at $1.96 billion, roughly flat year over year. Net debt-to-adjusted EBITDA improved to 3 times from 3.3 times a year earlier.

Fiscal 2026 Outlook

H.B. Fuller continues to expect fiscal 2026 net revenues to grow at a mid-single-digit rate, with organic revenues increasing at a low-single-digit rate. Pricing is projected to rise at a mid-single-digit rate, while volumes are expected to decline at a low-single-digit rate. Foreign currency translation is anticipated to contribute approximately 2%.

The company now expects adjusted EBITDA between $655 million and $670 million. Adjusted earnings per share are projected in the range of $4.70-$4.85, with the core tax rate anticipated between 25.5% and 26%.

Operating cash flow is expected to remain between $300 million and $325 million, excluding AMS-related items. Management remains focused on its Quantum Leap restructuring initiatives and the anticipated closing of the AMS acquisition before year-end. The company continues progressing toward its adjusted EBITDA margin target of more than 20%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

VGM Scores

Currently, H. B. Fuller has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, H. B. Fuller has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.