Q4 2025 Fuller (HB) Co Earnings Call

January 15, 2026

Speaker #1: Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the HB Fuller fourth quarter 2025 earnings conference call.

Operator: Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the H.B. Fuller Q4 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press star and then the number one on your telephone keypad. I would now like to turn the call over to Scott Jensen, Head of Investor Relations. Sir, please go ahead.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question, during that time, simply press star then the number one on your telephone keypad.

Speaker #1: I would now like to turn the call over to Scott Jensen, Head of Investor Relations. Sir, please go ahead.

Speaker #2: Thank you, Operator. Welcome to HB Fuller's fourth quarter 2025 investor conference call. Presenting today are Celeste Mastin, President and Chief Executive Officer, and John Corkrean, Executive Vice President and Chief Financial Officer.

Scott Jensen: Thank you, Operator. Welcome to H.B. Fuller's Q4 2025 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. Reconciliations of non-GAAP measures to the nearest GAAP measure are included in our earnings release. Unless otherwise noted, comments about revenue refer to organic revenue, and comments about EPS, EBITDA, and profit margins refer to adjusted non-GAAP measures. We will also be making forward-looking statements during this call.

Q4 2025 Fuller (HB) Co Earnings Call

Request a DemoDemo

FUL

HB Fuller Co

Earnings

Q4 2025 Fuller (HB) Co Earnings Call

FUL

Thursday, January 15th, 2026 at 3:30 PM

Transcript

No Transcript Available

No transcript data is available for this event yet. Transcripts typically become available shortly after an earnings call ends.

Want AI-powered analysis? Try AllMind AI →

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: Reconciliations of non-GAAP measures to the nearest GAAP measure are included in our earnings release. Unless otherwise noted, comments about revenue refer to organic revenue, and comments about EPS, EBITDA, and profit margins refer to adjusted non-GAAP measures.

Speaker #2: We will also be making forward-looking statements during this call. These statements are based on current expectations and assumptions that are subject to risks and uncertainties.

Scott Jensen: These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from these expectations due to factors covered in our earnings release, comments made during this call, and the risk factors detailed in our filings with the SEC, all of which are available on our website at investors.hbfuller.com. I will now turn the call over to Celeste Mastin. Celeste.

These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from these expectations due to factors covered in our earnings release, comments made during this call, and the risk factors detailed in our filings with the SEC, all of which are available on our website at investors.hbfuller.com. I will now turn the call over to Celeste Mastin. Celeste.

Speaker #2: Actual results could differ materially from these expectations due to factors covered in our earnings release. Comments made during this call and the risk factors detailed in our filings with the SEC, all of which are available on our website at investors.hbfuller.com.

Speaker #2: I will now turn the call over to Celeste Mastin. Celeste?

Speaker #1: Thank you, Scott, and welcome everyone. Our execution and agility in the quarter and throughout the year generated double-digit EPS growth and EBITDA at the top end of our full-year guidance range.

Celeste Mastin: Thank you, Scott, and welcome everyone. Our execution and agility in the quarter and throughout the year generated double-digit EPS growth and EBITDA at the top end of our full-year guidance range amidst an unpredictable economic backdrop and challenging demand landscape. During this time, we helped our customers navigate this environment successfully, providing them with material optionality and flexibility while ensuring consistent quality and reliable availability wherever in the world they chose to make their products. These efforts, which strengthened our partnerships and enhanced H.B. Fuller's competitive positioning, are reflected in our improved profitability and sustained margin expansion. As a result, we are exiting the Q4 with strong momentum heading into 2026 and are firmly on track to achieve our target of greater than 20% EBITDA margin.

Speaker #1: Amidst an unpredictable economic backdrop and a challenging demand landscape, during this time, we helped our customers navigate this environment successfully, providing them with material optionality and flexibility, while ensuring consistent quality and reliable availability wherever in the world they chose to make their products.

Speaker #1: These efforts, which strengthened our partnerships and enhanced HB Fuller's competitive positioning, are reflected in our improved profitability and sustained margin expansion. As a result, we are exiting the fourth quarter with strong momentum heading into 2026 and are firmly on track to achieve our target of greater than 20% EBITDA margin.

Speaker #1: I am very proud of our team's resolve, resourcefulness, and the meaningful progress we made in 2025 as we continue transforming HB Fuller into a higher-growth, higher-margin company.

Celeste Mastin: I am very proud of our team's resolve, resourcefulness, and the meaningful progress we made in 2025 as we continue transforming H.B. Fuller into a higher-growth, higher-margin company. Looking at our consolidated results in the Q4, net revenue was down 3.1%, reflecting a continued weak economic backdrop and our strategic actions to reposition the portfolio. Net revenue was up about 1%, adjusting for the impact of the flooring divestiture, which was a key step in that repositioning. Organic growth was down 1.3% year-on-year, volume down 2.5%, and pricing was up 1.2% with positive pricing in all three GBUs. EBITDA for the Q4 was $170 million, up 15% year-on-year, and EBITDA margin was 19%, up 290 basis points year-on-year, driven by favorable pricing, raw material cost savings, and restructuring actions, which more than offset lower volume.

I am very proud of our team's resolve, resourcefulness, and the meaningful progress we made in 2025 as we continue transforming H.B. Fuller into a higher-growth, higher-margin company. Looking at our consolidated results in the Q4, net revenue was down 3.1%, reflecting a continued weak economic backdrop and our strategic actions to reposition the portfolio. Net revenue was up about 1%, adjusting for the impact of the flooring divestiture, which was a key step in that repositioning. Organic growth was down 1.3% year-on-year, volume down 2.5%, and pricing was up 1.2% with positive pricing in all three GBUs. EBITDA for the Q4 was $170 million, up 15% year-on-year, and EBITDA margin was 19%, up 290 basis points year-on-year, driven by favorable pricing, raw material cost savings, and restructuring actions, which more than offset lower volume.

Speaker #1: Looking at our consolidated results in the fourth quarter, net revenue was down 3.1%, reflecting a continued weak economic backdrop and our strategic actions to reposition the portfolio.

Speaker #1: Net revenue was up about 1%, adjusting for the impact of the flooring divestiture, which was a key step in that repositioning. Organic growth was down 1.3% year-on-year, volume down 2.5%, and pricing was up 1.2%, with positive pricing in all three GBUs.

Speaker #1: EBITDA for the fourth quarter was $170 million, up 15% year-on-year, and EBITDA margin was 19%, up 290 basis points year-on-year, driven by favorable pricing, raw material cost savings, and restructuring actions, which more than offset lower volume.

Speaker #1: Now let me move on to review the performance in each of our segments in the fourth quarter. In HHC, organic revenue was down 1.8% year-on-year, driven by lower volume.

Celeste Mastin: Now let me move on to review the performance in each of our segments in the Q4. In HHC, organic revenue was down 1.8% year-on-year, driven by lower volume. Strong growth in hygiene was more than offset by continued softness in packaging-related end markets. Despite the weak market and lower volumes, EBITDA was up almost 30% year-on-year for HHC in the Q4, and EBITDA margin improved 380 basis points to 17.5%, driven by favorable pricing, raw material savings, and the impact of acquisitions, which more than offset lower volume. In engineering adhesives, organic revenue increased 2.2% in the Q4, driven by both favorable pricing and volumes. Automotive, electronics, and aerospace showed continued strength. Excluding solar, which we continued to de-emphasize, EA delivered organic revenue growth of approximately 7%. As we progressed through the year, EA continued to build momentum, reflecting our successful efforts to reposition the portfolio toward higher-growth markets.

Now let me move on to review the performance in each of our segments in the Q4. In HHC, organic revenue was down 1.8% year-on-year, driven by lower volume. Strong growth in hygiene was more than offset by continued softness in packaging-related end markets. Despite the weak market and lower volumes, EBITDA was up almost 30% year-on-year for HHC in the Q4, and EBITDA margin improved 380 basis points to 17.5%, driven by favorable pricing, raw material savings, and the impact of acquisitions, which more than offset lower volume. In engineering adhesives, organic revenue increased 2.2% in the Q4, driven by both favorable pricing and volumes. Automotive, electronics, and aerospace showed continued strength. Excluding solar, which we continued to de-emphasize, EA delivered organic revenue growth of approximately 7%. As we progressed through the year, EA continued to build momentum, reflecting our successful efforts to reposition the portfolio toward higher-growth markets.

Speaker #1: Strong growth in hygiene was more than offset by continued softness in packaging-related end markets. Despite the weak market and lower volumes, EBITDA was up almost 30% year-on-year for HHC in the fourth quarter, and EBITDA margin improved 380 basis points to 17.5%, driven by favorable pricing, raw material savings, and the impact of acquisitions, which more than offset lower volume.

Speaker #1: In Engineering Adhesives, organic revenue increased 2.2% in the fourth quarter, driven by both favorable pricing and volumes. Automotive, electronics, and aerospace showed continued strength.

Speaker #1: Excluding solar, which we continued to de-emphasize, EA delivered organic revenue growth of approximately 7%. As we progress through the year, EA continued to build momentum, reflecting our successful efforts to reposition the portfolio toward higher-growth markets.

Speaker #1: Adjusted EBITDA for EA increased 17% year-on-year in the fourth quarter, driven by favorable pricing and raw materials as well as restructuring savings. EBITDA margin increased by 260 basis points year-on-year to 23.5%.

Celeste Mastin: Adjusted EBITDA for EA increased 17% year-on-year in the Q4, driven by favorable pricing and raw materials, as well as restructuring savings. EBITDA margin increased by 260 basis points year-on-year to 23.5%. In BAS, organic sales decreased 4.8% on broadly lower volume across the portfolio. Although the team is executing well, construction conditions remain muted. Additionally, BAS had a tough comparison in the Q4 of 2024 when the business delivered strong organic growth on new customer expansion. EBITDA for BAS decreased 7% versus the Q4 of last year as pricing gains and restructuring savings were more than offset by lower volume. Geographically, Americas organic revenue was flat year-on-year in the Q4. Solid growth in EA, particularly aerospace and general industries, was offset by weaker results in packaging and construction-related end markets.

Adjusted EBITDA for EA increased 17% year-on-year in the Q4, driven by favorable pricing and raw materials, as well as restructuring savings. EBITDA margin increased by 260 basis points year-on-year to 23.5%. In BAS, organic sales decreased 4.8% on broadly lower volume across the portfolio. Although the team is executing well, construction conditions remain muted. Additionally, BAS had a tough comparison in the Q4 of 2024 when the business delivered strong organic growth on new customer expansion. EBITDA for BAS decreased 7% versus the Q4 of last year as pricing gains and restructuring savings were more than offset by lower volume. Geographically, Americas organic revenue was flat year-on-year in the Q4. Solid growth in EA, particularly aerospace and general industries, was offset by weaker results in packaging and construction-related end markets.

Speaker #1: In BAS, organic sales decreased 4.8% on broadly lower volume across the portfolio, although the team is executing well. Construction conditions remain muted. Additionally, BAS had a tough comparison in the fourth quarter of 2024, when the business delivered strong organic growth on new customer expansion.

Speaker #1: EBITDA for BAS decreased 7% versus the fourth quarter of last year, as pricing gains and restructuring savings were more than offset by lower volume.

Speaker #1: Geographically, America's organic revenue was flat year-on-year in the fourth quarter. Solid growth in EA, particularly aerospace and general industries, was offset by weaker results in packaging and construction-related end markets.

Speaker #1: In EIMEA, organic revenue was down 6% year-on-year, driven by lower volume in packaging and construction, which more than offset positive results in hygiene. Asia Pacific showed solid organic revenue growth in the quarter, up 3% year-on-year, driven by higher volume.

Celeste Mastin: In EIMEA, organic revenue was down 6% year-on-year, driven by lower volume in packaging and construction, which more than offset positive results in hygiene. Asia-Pacific showed solid organic revenue growth in the quarter, up 3% year-on-year, driven by higher volume. Positive growth in EA and HHC, particularly in automotive, electronics, and packaging, more than offset lower year-on-year revenue in solar. Excluding solar, Asia-Pacific organic revenue was up 10% year-on-year. Reflecting on fiscal 2025, the economic backdrop for the manufacturing sector was weaker than expected, and end-user demand remained sluggish. However, we took proactive steps to overcome these headwinds in order to deliver on our profit commitments. Specifically, we executed well on pricing and identified meaningful opportunities to reduce raw material costs and offset tariff impacts.

In EIMEA, organic revenue was down 6% year-on-year, driven by lower volume in packaging and construction, which more than offset positive results in hygiene. Asia-Pacific showed solid organic revenue growth in the quarter, up 3% year-on-year, driven by higher volume. Positive growth in EA and HHC, particularly in automotive, electronics, and packaging, more than offset lower year-on-year revenue in solar. Excluding solar, Asia-Pacific organic revenue was up 10% year-on-year. Reflecting on fiscal 2025, the economic backdrop for the manufacturing sector was weaker than expected, and end-user demand remained sluggish. However, we took proactive steps to overcome these headwinds in order to deliver on our profit commitments. Specifically, we executed well on pricing and identified meaningful opportunities to reduce raw material costs and offset tariff impacts.

Speaker #1: Positive growth in EA and HHC, particularly in automotive, electronics, and packaging, more than offset lower year-on-year revenue in solar. Excluding solar, Asia Pacific organic revenue was up 10% year-on-year.

Speaker #1: Reflecting on fiscal 2025, the economic backdrop for the manufacturing sector was weaker than expected, and end-user demand remained sluggish. However, we took proactive steps to overcome these headwinds in order to deliver on our profit commitments.

Speaker #1: Specifically, we executed well on pricing and identified meaningful opportunities to reduce raw material costs and offset tariff impacts. We continued to reshape our portfolio by investing in higher-margin, faster-growing market segments, while selecting out of business that didn't meet our growth or profit criteria.

Celeste Mastin: We continued to reshape our portfolio by investing in higher-margin, faster-growing market segments while selecting out of business that didn't meet our growth or profit criteria. We also launched our manufacturing footprint and warehouse consolidation initiative, now known as Quantum Leap, which significantly improves our cost structure. As a result, we are exiting the year with strong momentum, driven by the determination and outstanding execution of our team. Looking ahead to 2026, we expect the economic environment to remain challenging, similar to 2025, marked by ongoing geopolitical tensions, tariff uncertainty, elevated inflation, and interest rates, and continued labor constraints, all of which are likely to weigh on manufacturing investment. Despite these challenges, we anticipate delivering another year of profit growth and margin expansion in 2026 by building on the meaningful progress we made this year while staying firmly on track to achieve our target of greater than 20% EBITDA margin.

We continued to reshape our portfolio by investing in higher-margin, faster-growing market segments while selecting out of business that didn't meet our growth or profit criteria. We also launched our manufacturing footprint and warehouse consolidation initiative, now known as Quantum Leap, which significantly improves our cost structure. As a result, we are exiting the year with strong momentum, driven by the determination and outstanding execution of our team. Looking ahead to 2026, we expect the economic environment to remain challenging, similar to 2025, marked by ongoing geopolitical tensions, tariff uncertainty, elevated inflation, and interest rates, and continued labor constraints, all of which are likely to weigh on manufacturing investment. Despite these challenges, we anticipate delivering another year of profit growth and margin expansion in 2026 by building on the meaningful progress we made this year while staying firmly on track to achieve our target of greater than 20% EBITDA margin.

Speaker #1: We also launched our manufacturing footprint and warehouse consolidation initiative, now known as Quantum Leap, which significantly improves our cost structure. As a result, we are exiting the year with strong momentum, driven by the determination and outstanding execution of our team.

Speaker #1: Looking ahead to 2026, we expect the economic environment to remain challenging, similar to 2025, marked by ongoing geopolitical tensions, tariff uncertainty, elevated inflation, and interest rates, and continued labor constraints.

Speaker #1: All of which are likely to weigh on manufacturing investment. Despite these challenges, we anticipate delivering another year of profit growth and margin expansion in 2026 by building on the meaningful progress we made this year, while staying firmly on track to achieve our target of greater than 20% EBITDA margin.

Speaker #1: Now, let me turn the call over to John Corkrean to review our fourth quarter results in more detail and our outlook for 2026.

Celeste Mastin: Now let me turn the call over to John Corkrean to review our Q4 results in more detail and our outlook for 2026.

Now let me turn the call over to John Corkrean to review our Q4 results in more detail and our outlook for 2026.

Speaker #2: Thank you, Celeste. I'll begin with some additional financial details on the fourth quarter. For the quarter, revenue was down 3.1% versus the same period last year.

Scott Jensen: Thank you, Celeste. I'll begin with some additional financial details on the Q4. For the quarter, revenue was down 3.1% versus the same period last year. Currency, acquisitions, and the divestiture of the flooring business collectively had a negative impact of 1.8%. Adjusting for those items, organic revenue was down 1.3%, driven by lower volumes. Pricing was up 1.2%, reflecting positive pricing in all three GBUs. Adjusted gross profit margin of 32.5% increased 290 basis points year-on-year. The impact of pricing, raw material cost actions, acquisitions and divestitures, and targeted cost reduction efforts drove the year-on-year increase in adjusted gross profit margin. Adjusted selling, general, and administrative expenses were down modestly year-on-year, driven by continued cost-saving efforts and lower variable compensation.

John Corkrean: Thank you, Celeste. I'll begin with some additional financial details on the Q4. For the quarter, revenue was down 3.1% versus the same period last year. Currency, acquisitions, and the divestiture of the flooring business collectively had a negative impact of 1.8%. Adjusting for those items, organic revenue was down 1.3%, driven by lower volumes. Pricing was up 1.2%, reflecting positive pricing in all three GBUs. Adjusted gross profit margin of 32.5% increased 290 basis points year-on-year. The impact of pricing, raw material cost actions, acquisitions and divestitures, and targeted cost reduction efforts drove the year-on-year increase in adjusted gross profit margin. Adjusted selling, general, and administrative expenses were down modestly year-on-year, driven by continued cost-saving efforts and lower variable compensation.

Speaker #2: Currency, acquisitions, and the divestiture of the flooring business collectively had a negative impact of 1.8%. Adjusting for those items, organic revenue was down 1.3%, driven by lower volumes.

Speaker #2: Pricing was up 1.2%, reflecting positive pricing in all three GBUs. Adjusted gross profit margin of 32.5% increased 290 basis points year-on-year. The impact of pricing, raw material cost actions, acquisitions and divestitures, and targeted cost reduction efforts drove the year-on-year increase in adjusted gross profit margin.

Speaker #2: Adjusted selling, general and administrative expenses were down modestly year-on-year, driven by continued cost-saving efforts and lower variable compensation. Adjusted EBITDA in the fourth quarter of fiscal 2025 was $170 million, up 14.6% year-on-year, driven principally by the impact of pricing and raw material cost actions, as well as restructuring savings.

Scott Jensen: Adjusted EBITDA in the Q4 of fiscal 2025 was $170 million, up 14.6% year-on-year, driven principally by the impact of pricing and raw material cost actions, as well as restructuring savings. Adjusted EBITDA margin increased 290 basis points year-on-year to 19%. Adjusted earnings per share of $1.28 was up 39% versus the Q4 of 2024, driven by higher operating income and lower shares outstanding as a result of our repurchase of approximately 1 million shares in fiscal 2025. Q4 cash flow from operations of $107 million was up 25% year-on-year, driven by higher net income. Net working capital, as a percentage of annualized net revenue, increased 130 basis points year-on-year to 15.8%.

Adjusted EBITDA in the Q4 of fiscal 2025 was $170 million, up 14.6% year-on-year, driven principally by the impact of pricing and raw material cost actions, as well as restructuring savings. Adjusted EBITDA margin increased 290 basis points year-on-year to 19%. Adjusted earnings per share of $1.28 was up 39% versus the Q4 of 2024, driven by higher operating income and lower shares outstanding as a result of our repurchase of approximately 1 million shares in fiscal 2025. Q4 cash flow from operations of $107 million was up 25% year-on-year, driven by higher net income. Net working capital, as a percentage of annualized net revenue, increased 130 basis points year-on-year to 15.8%.

Speaker #2: Adjusted EBITDA margin increased 290 basis points year-on-year to 19%. Adjusted earnings per share of $1.28 was up 39% versus the fourth quarter of 2024, driven by higher operating income and lower shares outstanding, as a result of our repurchase of approximately 1 million shares in fiscal 2025.

Speaker #2: Fourth quarter cash flow from operations of $107 million was up 25% year-on-year, driven by higher net income. Net working capital as a percentage of annualized net revenue increased 130 basis points year-on-year to 15.8%.

Speaker #2: Net debt to adjusted EBITDA of 3.1 times was down sequentially from 3.3 times at the end of the third quarter, and down from 3.5 times at the end of the first quarter, consistent with our plan to reduce leverage during the year.

Scott Jensen: Net debt to Adjusted EBITDA of 3.1x was down sequentially from 3.3x at the end of the Q4 and down from 3.5x at the end of the Q1, consistent with our plan to reduce leverage during the year. With that, let me now turn to our guidance for the 2026 fiscal year. Despite a challenging economic backdrop, which we anticipate will be similar to 2025, we expect to deliver another year of profit growth and margin improvement. We anticipate full-year net revenue to be flat to up 2% versus 2025, with organic revenue expected to be approximately flat. We also expect foreign currency translation to positively impact revenue by about 1%. We expect Adjusted EBITDA to be between $630 and 660 million as pricing and raw material cost actions, and Quantum Leap savings more than offset wage and other inflation.

Net debt to Adjusted EBITDA of 3.1x was down sequentially from 3.3x at the end of the Q4 and down from 3.5x at the end of the Q1, consistent with our plan to reduce leverage during the year. With that, let me now turn to our guidance for the 2026 fiscal year. Despite a challenging economic backdrop, which we anticipate will be similar to 2025, we expect to deliver another year of profit growth and margin improvement. We anticipate full-year net revenue to be flat to up 2% versus 2025, with organic revenue expected to be approximately flat. We also expect foreign currency translation to positively impact revenue by about 1%. We expect Adjusted EBITDA to be between $630 and 660 million as pricing and raw material cost actions, and Quantum Leap savings more than offset wage and other inflation.

Speaker #2: With that, let me now turn to our guidance for the 2026 fiscal year. Despite a challenging economic backdrop, which we anticipate will be similar to 2025, we expect to deliver another year of profit growth and margin improvement.

Speaker #2: We anticipate full-year net revenue to be flat to up 2% versus 2025, with organic revenue expected to be approximately flat. We also expect foreign currency translation to positively impact revenue by about 1%.

Speaker #2: We expect adjusted EBITDA to be between $630 million and $660 million as pricing and raw material cost actions and Quantum Leap savings more than offset wage and other inflation.

Speaker #2: We expect our 2026 core tax rate to be between 26% and 27%, compared to our 2025 core tax rate of 25.9%. We expect full-year net interest expense to be approximately $120 million, depreciation and amortization to be approximately $185 million, and the average diluted share count to be between 55 and 56 million shares, with share repurchases offsetting shares issued through compensation plans.

Scott Jensen: We expect our 2026 core tax rate to be between 26% and 27% compared to our 2025 core tax rate of 25.9%. We expect full-year net interest expense to be approximately $120 million, depreciation and amortization to be approximately $185 million, and the average diluted share count to be between 55 and 56 million shares, with share repurchases offsetting shares issued through compensation plans. These assumptions result in full-year adjusted earnings per share in the range of $4.35 to $4.70. Finally, we expect full-year operating cash flow to be between $275 and $300 million weighted to the back half of the year before approximately $160 million of capital expenditures, which includes approximately $50 million of capital related to Project Quantum Leap.

We expect our 2026 core tax rate to be between 26% and 27% compared to our 2025 core tax rate of 25.9%. We expect full-year net interest expense to be approximately $120 million, depreciation and amortization to be approximately $185 million, and the average diluted share count to be between 55 and 56 million shares, with share repurchases offsetting shares issued through compensation plans. These assumptions result in full-year adjusted earnings per share in the range of $4.35 to $4.70. Finally, we expect full-year operating cash flow to be between $275 and $300 million weighted to the back half of the year before approximately $160 million of capital expenditures, which includes approximately $50 million of capital related to Project Quantum Leap.

Speaker #2: These assumptions result in full-year adjusted earnings per share in the range of $4.35 to $4.70. Finally, we expect full-year operating cash flow to be between $275 million and $300 million, weighted to the back half of the year, before approximately $160 million of capital expenditures, which includes approximately $50 million of capital related to project Quantum Leap.

Speaker #2: Taking into account the typical seasonality of our business and the later timing of Chinese New Year, we expect first quarter revenue to be down low single digits and adjusted EBITDA to be between $110 and $120 million.

Scott Jensen: Taking into account the typical seasonality of our business and the later timing of Chinese New Year, we expect Q4 revenue to be down low single digits and Adjusted EBITDA to be between $110 and $120 million. Now let me turn the call back over to Celeste.

Taking into account the typical seasonality of our business and the later timing of Chinese New Year, we expect Q4 revenue to be down low single digits and Adjusted EBITDA to be between $110 and $120 million. Now let me turn the call back over to Celeste.

Speaker #2: Now, let me turn the call back over to

Speaker #2: Celeste. Thank

Celeste Mastin: Thank you, John. During 2025, the execution and determination of our team allowed us to deliver on our profit commitments for the year while continuing to make meaningful, positive, long-term changes to the portfolio as we build for the future, including manufacturing footprint consolidation, price and raw material management, and portfolio mix shift. M&A continues to be an important part of our value creation strategy, as we shared during our October Investor Day. In 2023 and 2024, we acquired eight companies with a combined EBITDA of $41 million. Those acquisitions delivered $73 million of EBITDA in 2025, representing a post-synergy purchase price multiple of 6.7x EBITDA. During 2025, we executed on several acquisitions in medical adhesives and fastener coating systems. Early in the year, we completed the acquisition of Gem and Medifil, formulators, manufacturers, and marketers of state-of-the-art medical-grade adhesives for internal indications.

Speaker #3: Thank you, John. During 2025, the execution and determination of our team allowed us to deliver on our profit commitments for the year, while continuing to make meaningful, positive, long-term changes to the portfolio as we build for the future, including manufacturing footprint consolidation, price and raw material management, and portfolio mix shift.

Speaker #3: M&A continues to be an important part of our value creation strategy, as we shared during our October investor day. In 2023 and 2024, we acquired eight companies with a combined EBITDA of $41 million.

Speaker #3: Those acquisitions delivered $73 million of EBITDA in 2025, representing a post-synergy purchase price multiple of 6.7 times EBITDA. During 2025, we executed on several acquisitions in medical adhesives and fastener coating systems.

Speaker #3: Early in the year, we completed the acquisition of GEM and MediFil, formulators manufacturers and marketers of state-of-the-art medical-grade adhesives for internal indications. These businesses have performed exceptionally well with revenue up approximately 15% versus pre-acquisition 2024 and EBITDA up almost 30%, consistent with our deal model.

Celeste Mastin: These businesses have performed exceptionally well, with revenue up approximately 15% versus pre-acquisition 2024 and EBITDA up almost 30%, consistent with our deal model. Recall we acquired ND Industries in 2024 for its unique encapsulated adhesive technology, knowledgeable employees, and the coating service to apply these unique adhesives to mechanical fasteners. ND Industries expanded our product range for customers in high-growth markets like automotive and aerospace and puts us in a position to provide a service, further linking us to those customers. We saw ND as a platform from which we could expand this technology and service offering globally, and in 2025, we did just that. We acquired three small fastener coating companies to aid our global expansion. Early in 2025, we acquired businesses in Taiwan and Shanghai, giving us access to the fastener coating markets in Asia.

These businesses have performed exceptionally well, with revenue up approximately 15% versus pre-acquisition 2024 and EBITDA up almost 30%, consistent with our deal model. Recall we acquired ND Industries in 2024 for its unique encapsulated adhesive technology, knowledgeable employees, and the coating service to apply these unique adhesives to mechanical fasteners. ND Industries expanded our product range for customers in high-growth markets like automotive and aerospace and puts us in a position to provide a service, further linking us to those customers. We saw ND as a platform from which we could expand this technology and service offering globally, and in 2025, we did just that. We acquired three small fastener coating companies to aid our global expansion. Early in 2025, we acquired businesses in Taiwan and Shanghai, giving us access to the fastener coating markets in Asia.

Speaker #3: Recall, we acquired ND Industries in 2024 for its unique encapsulated adhesive technology, knowledgeable employees, and the coating service to apply these unique adhesives to mechanical fasteners.

Speaker #3: ND Industries expanded our product range for customers in high-growth markets like automotive and aerospace, and puts us in a position to provide a service further linking us to those customers.

Speaker #3: We saw ND as a platform from which we could expand this technology and service offering globally, and in 2025, we did just that. We acquired three small fastener coating companies to aid our global expansion.

Speaker #3: Early in 2025, we acquired businesses in Taiwan and Shanghai, giving us access to the fastener coating markets in Asia. And in late 2025, we acquired a fastener coating business in Turkey, giving us access to the broader European and Middle Eastern markets.

Celeste Mastin: In late 2025, we acquired a fastener coating business in Turkey, giving us access to the broader European and Middle Eastern markets. Collectively, we paid $17 million for these three acquisitions, which are expected to generate $3 million of EBITDA in 2026. While the collective value sounds small, these three outposts give us access to a fast-growing half-a-billion-dollar market in Asia and Europe. This expanded platform features a differentiated technology offering, long-tenured customer relationships, and a strong competitive position in the fastener coating market. As we shared at our Investor Day, our M&A strategy is an EBITDA compounder. This is an excellent example of a platform business with a good organic growth profile that we expect to significantly expand through revenue and cost synergies as we rapidly build share in this technology-driven, fast-growing, and expandable market.

In late 2025, we acquired a fastener coating business in Turkey, giving us access to the broader European and Middle Eastern markets. Collectively, we paid $17 million for these three acquisitions, which are expected to generate $3 million of EBITDA in 2026. While the collective value sounds small, these three outposts give us access to a fast-growing half-a-billion-dollar market in Asia and Europe. This expanded platform features a differentiated technology offering, long-tenured customer relationships, and a strong competitive position in the fastener coating market. As we shared at our Investor Day, our M&A strategy is an EBITDA compounder. This is an excellent example of a platform business with a good organic growth profile that we expect to significantly expand through revenue and cost synergies as we rapidly build share in this technology-driven, fast-growing, and expandable market.

Speaker #3: Collectively, we paid $17 million for these three acquisitions, which are expected to generate $3 million of EBITDA in 2026. While the collective value sounds small, these three outposts give us access to a fast-growing, half-a-billion-dollar market in Asia and Europe.

Speaker #3: This expanded platform features a differentiated technology offering, long-tenured customer relationships, and a strong competitive position in the fastener coating market. As we shared at our investor day, our M&A strategy is an EBITDA compounder.

Speaker #3: This is an excellent example of a platform business with a good organic growth profile that we expect to significantly expand through revenue and cost synergies as we rapidly build share in this technology-driven, fast-growing, and expandable market.

Speaker #3: Finally, I would like to take this time to acknowledge and thank all our employees for their dedication and hard work throughout the year. Your commitment and the strength of our culture have enabled us to make meaningful progress on all of our strategic initiatives.

Celeste Mastin: Finally, I would like to take this time to acknowledge and thank all our employees for their dedication and hard work throughout the year. Your commitment and the strength of our culture have enabled us to make meaningful progress on all of our strategic initiatives. That same culture has been recognized externally as well, with Newsweek naming us one of America's most admired workplaces for 2026 and Forbes naming us one of America's best employers for engineers. As we look ahead to 2026, we remain committed to advancing the long-term strategic plan we have set in place. While global conditions remain unpredictable, we're taking the necessary steps to manage costs responsibly, execute our global initiatives with discipline, and navigate through this period with focus and resilience. That concludes our prepared remarks for today. Operator, please open the line for questions.

Finally, I would like to take this time to acknowledge and thank all our employees for their dedication and hard work throughout the year. Your commitment and the strength of our culture have enabled us to make meaningful progress on all of our strategic initiatives. That same culture has been recognized externally as well, with Newsweek naming us one of America's most admired workplaces for 2026 and Forbes naming us one of America's best employers for engineers. As we look ahead to 2026, we remain committed to advancing the long-term strategic plan we have set in place. While global conditions remain unpredictable, we're taking the necessary steps to manage costs responsibly, execute our global initiatives with discipline, and navigate through this period with focus and resilience. That concludes our prepared remarks for today. Operator, please open the line for questions.

Speaker #3: That same culture has been recognized externally as well, with Newsweek naming us one of America's most admired workplaces for 2026, and Forbes naming us one of America's best employers for engineers.

Speaker #3: As we look ahead to 2026, we remain committed to advancing the long-term strategic plan we have set in place. While global conditions remain unpredictable, we're taking the necessary steps to manage costs responsibly, execute our global initiatives with discipline, and navigate through this period with focus and resilience.

Speaker #3: That concludes our prepared remarks for today. Operator, please open the line for questions.

Speaker #2: At this time, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, simply press star one again.

Operator: At this time, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, simply press star one again. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Mike Harrison with Seaport Research Partners. Please go ahead.

Speaker #2: We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Mike Harrison with Seaport Research Partners.

Speaker #2: Please go ahead.

Speaker #4: Hi, good morning. Congrats on a nice finish to the year.

Mike Harrison: Hi, good morning. Congrats on a nice finish to the year.

Speaker #5: Thanks, Mike, and happy New Year.

Celeste Mastin: Thanks, Mike, and Happy New Year.

Speaker #4: Happy New Year to you. I was hoping we could start with the Q1 guidance. You mentioned a couple of times that you feel good about the momentum that you finished the year with, but for Q1, you're kind of pointing to a low single-digit top-line decline.

Mike Harrison: Happy new year to you. I was hoping we could start with the Q1 guidance. You mentioned a couple of times that you feel good about the momentum that you finished the year with, but for Q1, you're kind of pointing to a low single-digit top-line decline. I think FX is a pretty good tailwind, so maybe we're thinking more like mid-single-digit organic sales decline. Maybe just give us a little bit more color on what you think would be driving that weakness, and I'm curious if you can comment at all on what December looked like and if that's informing some of the weaker outlook.

Speaker #4: I think FX is a pretty good tailwind, so maybe we're thinking more like mid-single-digit organic sales decline. Maybe just give us a little bit more color on what you think would be driving that weakness, and I'm curious if you can comment at all on what December looked like and if that's informing some of the weaker...

Speaker #4: outlook. Yeah, so

Celeste Mastin: Yeah, so what we'll see going into Q1 will be continued performance much like we saw in the Q4 of this year. I mean, if you look at volume progression throughout Q4, what you would see is that EA was strengthening throughout the quarter. BAS was improving, but it's still weak, and in Q4, we had a pretty tough comp there of +7%. It's going to be a continually challenging environment for HHC. What we saw at the end of the year was just a step down the last couple of months, particularly by the CPG customers and their order patterns. We'll probably get a little more of an uplift there. That said, the biggest impact in Q1, Mike, is going to be Chinese New Year. The timing of Chinese New Year in Q1 will result in some of that revenue being pushed into Q2.

Speaker #5: What we'll see going into Q1 will be continued performance much like we saw in the fourth quarter of this year. I mean, if you look at volume progression throughout Q4, what you would see is that EA was strengthening throughout the quarter.

Speaker #5: BAS was improving, but it's still weak, and in Q4, we had a pretty tough comp there of plus 7%. And it's going to be a continuing challenging environment for HHC.

Speaker #5: What we saw at the end of the year was just a step down the last couple of months, particularly by the CPG customers and their order patterns.

Speaker #5: So we'll probably get a little more of an uplift there. That said, the biggest impact in Q1, Mike, is going to be Chinese New Year.

Speaker #5: So, the timing of Chinese New Year in Q1 will result in some of that revenue being pushed into Q2. I don't know if you want to comment.

Celeste Mastin: I don't know if you want to comment further, John.

I don't know if you want to comment further, John.

Speaker #5: further, John. Sure, yeah.

Mike Harrison: Sure, yeah. Sure, Mike. That's the primary reason Q1 looks a little weaker: the timing of Chinese New Year. In 2025, it was late January, early February, and in 2026, it's late February, stretching into March. Revenue declines to almost nothing during Chinese New Year and then bounces back very strong after the holiday. So last year, we saw that bounce back in Q1. This year, it'll happen in Q2. Because of this, we'll see one to two weeks of revenue move from Q1 to Q2. It probably has a revenue impact of $15 to $20 million and EBITDA impact of $6 to $8. So it's really just a shift between Q1 and Q2. You had asked about December, or how we're seeing revenue so far, and whether that's a reason we have a little softer guidance. No, I mean, it's really Chinese New Year, I'd say.

John Corkrean: Sure, yeah. Sure, Mike. That's the primary reason Q1 looks a little weaker: the timing of Chinese New Year. In 2025, it was late January, early February, and in 2026, it's late February, stretching into March. Revenue declines to almost nothing during Chinese New Year and then bounces back very strong after the holiday. So last year, we saw that bounce back in Q1. This year, it'll happen in Q2. Because of this, we'll see one to two weeks of revenue move from Q1 to Q2. It probably has a revenue impact of $15 to $20 million and EBITDA impact of $6 to $8. So it's really just a shift between Q1 and Q2. You had asked about December, or how we're seeing revenue so far, and whether that's a reason we have a little softer guidance. No, I mean, it's really Chinese New Year, I'd say.

Speaker #4: That's sure, Mike. That's the big primary reason Q1 looks a little weaker—it's the timing of Chinese New Year. In 2025, it was late January, early February, and in 2026, it's late February, stretching into March.

Speaker #4: And revenue declines to almost nothing during Chinese New Year, and then bounces back very strong after the holiday. So, last year, we saw that bounce back in Q1.

Speaker #4: This year, it'll happen in Q2. Because of this, we'll see one to two weeks of revenue move from Q1 to Q2, probably as a revenue impact of $15 to $20 million, and EBITDA impact of $6 to $8 million.

Speaker #4: So it's really just a shift between Q1 and Q2. You had asked about December, or how we're seeing revenue so far, and whether that's a reason we have had a little softer guidance.

Speaker #4: No, I mean, it's really Chinese New Year. I'd say the year started out basically as expected; things are a little weird in December with the timing of the holidays.

Mike Harrison: The year started out basically as expected. Things are a little weird in December with the timing of the holidays, but if we look at the first six weeks or so, it's tracking with what we'd expect, and so the impact of Chinese New Year is to come, but we believe that that will push some revenue into Q2. Understood. Then just wanted to ask another one on raw materials. In fiscal 2025, you started the year with a little bit of raw material versus pricing headwind, and I think that got better as the year progressed. How are you thinking about raw materials and pricing in fiscal 2026? And I'm just curious kind of what that means for the year-over-year comparison on margins.

The year started out basically as expected. Things are a little weird in December with the timing of the holidays, but if we look at the first six weeks or so, it's tracking with what we'd expect, and so the impact of Chinese New Year is to come, but we believe that that will push some revenue into Q2.

Speaker #4: But if we look at the first six weeks or so, it's tracking with what we'd expect. And so the impact of Chinese New Year is to come, but we believe that will push some revenue into Q2.

Mike Harrison: Understood. Then just wanted to ask another one on raw materials. In fiscal 2025, you started the year with a little bit of raw material versus pricing headwind, and I think that got better as the year progressed. How are you thinking about raw materials and pricing in fiscal 2026? And I'm just curious kind of what that means for the year-over-year comparison on margins.

Speaker #4: Understood. And then, I just wanted to ask another one on raw materials. In fiscal '25, you started the year with a little bit of a raw material versus pricing headwind, and I think that got better as the year progressed.

Speaker #4: How are you thinking about raw materials and pricing in fiscal '26? And I'm just curious, kind of what that means for the year-over-year comparison on margins.

Speaker #4: Is the assumption that pricing versus raws is kind of slightly positive all year, or is it maybe more of a tailwind in the first half and turning into more of a headwind or more neutral in the second half?

Mike Harrison: Is the assumption that pricing versus raws is kind of slightly positive all year, or is it maybe more of a tailwind in the first half and turning into more of a headwind or more neutral in the second half? Any kind of thoughts on that cadence would be helpful.

Is the assumption that pricing versus raws is kind of slightly positive all year, or is it maybe more of a tailwind in the first half and turning into more of a headwind or more neutral in the second half? Any kind of thoughts on that cadence would be helpful.

Speaker #4: Any kind of thoughts on that cadence would be helpful.

Speaker #5: Yeah, so in 2025, we delivered around $30 million of combined price and raw material benefit. As we mentioned in the last quarter, we anticipate seeing a carryover benefit of around $25 million into 2026. Plus, our continued efforts to reallocate sourcing to drive pricing and to drive our business towards the highest margin, most differentiated spaces has led us to increase that benefit of price and raws in 2026 to about $35 million.

Celeste Mastin: Yeah, so in 2025, we delivered around $30 million of combined price and raw material benefit. As we mentioned in the last quarter, we anticipate seeing a carryover benefit of around $25 million into 2026, plus our continued efforts to reallocate sourcing to drive pricing, to drive our business towards the highest margin, most differentiated spaces has led us to increase that benefit of price and raws in 2026 to about $35 million. So that'll be the year-over-year comparison you're going to see, Mike.

Speaker #5: So that'll be the year-over-year comparison you're going to see, Mike.

Speaker #4: I think in terms of timing, maybe slightly weighted to the first half of the year, but we will see. I'd say a favorable spread for the entire year because we will get additional new pricing.

Mike Harrison: Yeah. And I think in terms of timing, maybe slightly weighted to the first half of the year, but we will see, I'd say, a favorable spread for the entire year because we will get additional new pricing in 2026.

John Corkrean: Yeah. And I think in terms of timing, maybe slightly weighted to the first half of the year, but we will see, I'd say, a favorable spread for the entire year because we will get additional new pricing in 2026.

Speaker #4: In 2026.

Speaker #5: Yeah, you'll see expanded margins in all GBUs in 2026, much like we delivered this year.

Celeste Mastin: Yeah, you'll see expanded margins in all GBUs in 2026, much like we delivered this year.

Speaker #4: All right. Thanks very much.

Mike Harrison: All right, thanks very much.

Speaker #2: Your next question. Thanks,

Operator: Your next question.

Celeste Mastin: Thanks, Mike.

Speaker #5: Mike.

Operator: Your next question comes from the line of Ghansham Panjabi with Baird. Please go ahead.

Speaker #2: The question comes from the line of Gansham Punjabi with Baird. Please go ahead.

Speaker #6: Yeah, thank you, operator. Good morning, everybody. Good...

Ghansham Panjabi: Yeah, thank you, Operator. Good morning, everybody.

Speaker #5: Good morning, Gansham.

Celeste Mastin: Good morning, Ghansham.

Ghansham Panjabi: Good morning, Celeste. Maybe we can focus on the BAS segment and some of the drivers that impacted your Q4, and there was a lot going on in the quarter with, obviously, the government shutdown, etc. Just curious as to whether it had any impact on you. And specific to that, if it did, was there any change in trajectory December onwards?

Speaker #6: Morning, Celeste. Maybe we can focus on the BAS segment and some of the drivers that impacted your Q4. There was a lot going on in the quarter with, obviously, the government shutdown, etc. Just curious as to whether it had any impact on you.

Speaker #6: And specific to that, if it did, was there any change in trajectory in December?

Speaker #6: Onwards? Yeah, we had a tough—we had a

Celeste Mastin: Yeah, we had a tough comp in the fourth quarter for BAS. Ghansham, it was +7% in Q4 2024 for the overall BAS business. So there's a few things going on there. One is we're wrapping around a big customer win from 2024. So that's one thing you saw as an impact in Q4. We continue to be successful serving data centers, also LNG, but overall, the construction environment continues to weaken. That said, there's some pretty exciting things going on in BAS. I'm really thrilled to be taking a bigger position in LNG. We just won a big project on CP2 with our Foster product, which is used for cryogenic insulation systems. So we're going to continue to see, as that capacity expansion happens around the globe and it's growing at about 7% in LNG, we're going to continue to see wins there.

Speaker #5: Tough comp in the fourth quarter for BAS. Gansham was plus 7% in Q4 of '24 for the overall BAS business. So there's a few things going on there.

Speaker #5: One is, we're wrapping around some big customer win from 2024, so that's one thing you saw as an impact in Q4. We continue to be successful.

Speaker #5: Serving data centers, also LNG, but overall, the construction environment continues to weaken. That said, there's some pretty exciting things going on in BAS. I'm really thrilled to be taking a bigger position in LNG.

Speaker #5: We just won a big project on CP2 with our Fosters product, which is used for cryogenic insulation systems. So we're going to continue to see, as that capacity expansion happens around the globe and it's growing at about 7% in LNG, we're going to continue to see wins there.

Speaker #5: Also, we just started shipping a data center—a big data center. Ultimately, that'll be 4 million square feet at conclusion in Texas in the fourth quarter.

Celeste Mastin: Also, we just started shipping a data center, a big data center, ultimately, that'll be 4 million sq ft at conclusion in Texas in Q4. So more exciting stuff there. And also, I mean, our glass business continues to succeed. Our 4SG product grew 18% in 2025 despite a reduction of housing starts of 6%. So none of those businesses are really affected by the government shutdown. So I would take that off the table for us. I would just say tough comp, wrap around on new customer business, and a generally tough construction environment.

Also, we just started shipping a data center, a big data center, ultimately, that'll be 4 million sq ft at conclusion in Texas in Q4. So more exciting stuff there. And also, I mean, our glass business continues to succeed. Our 4SG product grew 18% in 2025 despite a reduction of housing starts of 6%. So none of those businesses are really affected by the government shutdown. So I would take that off the table for us. I would just say tough comp, wrap around on new customer business, and a generally tough construction environment.

Speaker #5: So, more exciting stuff there. And also, I mean, our glass business continues to succeed. Our 4SG product grew 18% in 2025, despite a reduction of housing starts of 6%.

Speaker #5: So, none of those businesses are really affected by the government shutdown, so I would take that off the table for us. I would just say tough comp, wrap-around on new customer business, and a generally tough construction environment.

Speaker #6: Got it. Thanks for clarifying. And then for packaging, as it relates to HHC, you called that out as weaker. Is there anything going on there relative to the recent trend line, apart from customers just managing inventory aggressively into year-end, etc.?

Ghansham Panjabi: Got it. Thanks for clarifying. Then for packaging, as it relates to HHC, you called that out as weaker. Anything going on there relative to the recent trend line apart from customers just managing inventory aggressively into year-end, etc.? Also on fiscal year 2026 guidance, I'm sorry if I missed this, but can you give us a sense as to core sales by segment? I know you're guiding towards roughly flat for the year. Thank you.

Speaker #6: And then, also on fiscal year ’26 guidance—I'm sorry if I missed this—but can you give us a sense as to core sales by segment?

Speaker #6: I know you're guiding towards roughly flat for the year. Thank you.

Speaker #5: Sure. So packaging drivers—we're seeing, really just in North America in particular, weakness from our packaging and related CPG customers. So, again, we saw a very similar trend to what we saw last year, with just kind of ongoing, slightly negative volume in that space that really took a step down in P11 and P12.

Celeste Mastin: Sure. So packaging drivers, we're seeing really just in North America in particular, weakness from our packaging and related CPG customers. So again, we saw a very similar trend to what we saw last year with just kind of ongoing slightly negative volume in that space that really took a step down in P11 and P12. And I think that's a space that's just going to continue to be challenging for us throughout HHC in general throughout the course of the next year. It's a given the issues with affordability and the lack of mobility. People aren't really moving. There's not a lot of household formation. That is weighing on that business. But we continue to introduce some exciting innovations there. The HHC business grew very well in not Europe, but in EIMEA.

Speaker #5: And I think that's a space that's just going to continue to be challenging for us throughout HHC in general, throughout the course of the next year.

Speaker #5: It's a given—the issues with affordability and the lack of mobility. People aren't really moving. There's not a lot of household formation. That is weighing on that business.

Speaker #5: But we continue to introduce some exciting innovations there. The HHC business grew very well, not in Europe, but in IMEA. So in our eIMEA sector, we took a lot of share in places like Algeria and Turkey because we’re more able to produce successfully out of our new Cairo facility.

Celeste Mastin: So in our EIMEA sector, we took a lot of share in places like Algeria and Turkey because we're more able to produce successfully out of our new Cairo facility. So that's been exciting. We're growing in India in that business. So HHC is migrating to growth in higher growth developing nations. And again, our plant strategy revolves around making sure we can produce cost-effectively in places like that to take advantage of the trend. Also, in Asia-Pacific, we had growth in our packaging business. This is related to just this recurrence in the bounce back in China that we're seeing. And we've introduced some new innovations in packaging related to anti-slip coatings in Asia that helped support and grow our business there. The business in HHC was pretty strong in packaging in Asia.

So in our EIMEA sector, we took a lot of share in places like Algeria and Turkey because we're more able to produce successfully out of our new Cairo facility. So that's been exciting. We're growing in India in that business. So HHC is migrating to growth in higher growth developing nations. And again, our plant strategy revolves around making sure we can produce cost-effectively in places like that to take advantage of the trend. Also, in Asia-Pacific, we had growth in our packaging business. This is related to just this recurrence in the bounce back in China that we're seeing. And we've introduced some new innovations in packaging related to anti-slip coatings in Asia that helped support and grow our business there. The business in HHC was pretty strong in packaging in Asia.

Speaker #5: So that's been exciting. We're growing in India in that business. So HHC's migrating to growth in higher-growth developing nations. And again, our plant strategy revolves around making sure we can produce cost-effectively in places like that to take advantage of the trend.

Speaker #5: Also in Asia Pacific, we had growth in our packaging business. This is related to just this recurrence in the bounce back in China that we're seeing.

Speaker #5: And we've introduced some new innovations in packaging related to anti-slip coatings. In Asia, that helped support and grow our business there. The business in HHC was pretty strong in packaging in Asia.

Speaker #5: And so it's a balanced story. If you look around the globe, we're migrating the business to really focus on the places where we know we can be successful, and building the supporting infrastructure within the company to do that.

Celeste Mastin: And so it's a balanced story if you look around the globe, and we're migrating the business to really focus on the places where we know we can be successful and building the supporting infrastructure within the company to do that. Now, your second question was, I think it was core sales by segment.

AllMind AI

AllMind AI

Q4 2025 Fuller (HB) Co Earnings Call

Event Details

HB Fuller Co

Q4 2025 Fuller (HB) Co Earnings Call

Open Event Documents

Search Transcript

HB Fuller Co

Q4 2025 Fuller (HB) Co Earnings Call

Transcript

No Transcript Available