FULLER H B CO Segments Disclosure

Note 15: Segments

 

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 Project ONE. Corporate assets are not allocated to the operating segments. Inter-segment revenues are recorded at cost plus a markup for administrative costs.

 

As of November 30, 2024, our three operating segments consisted of Hygiene, Health and Consumable Adhesives, Engineering Adhesives and Construction Adhesives. As of the beginning of fiscal 2025, we reorganized our operating segments by selling our North America Flooring business, previously part of the Construction Adhesives operating segment, and combining our Insulated Glass, Woodworking and Composite businesses, previously part of the Engineering Adhesives operating segment, with Construction Adhesives Roofing and Building Envelope and Infrastructure businesses to form the Building Adhesive Solutions operating segment. All financial results related to North America Flooring have been moved to our Corporate Unallocated segment. Prior period segment information has been recast retrospectively to reflect the realignment.

 

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 for all periods presented is as follows:

 

		Hygiene, Health								Building
Year Ended		and Consumable				Engineering				Adhesive								Corporate				H.B. Fuller
November 29, 2025		Adhesives				Adhesives				Solutions				Total				Unallocated				Consolidated
Net revenue		$	1,551,789			$	1,061,779			$	860,021			$	3,473,589			$	-			$	3,473,589
Segment expenses and other items 1			1,307,408				825,810				726,008				2,859,226				(6,297	)			2,852,929
Adjusted EBITDA		$	244,381			$	235,969			$	134,013			$	614,363			$	6,297			$	620,660
Depreciation and amortization		$	64,423			$	61,794			$	51,507			$	177,724			$	596			$	178,320
Total Assets			1,963,357				1,566,264				1,188,916				4,718,537				464,169				5,182,706
Capital Expenditure			24,059				23,945				18,438				66,442				75,833				142,275

 

		Hygiene, Health								Building
Year Ended		and Consumable				Engineering				Adhesive								Corporate				H.B. Fuller
November 30, 2024		Adhesives				Adhesives				Solutions				Total				Unallocated				Consolidated
Net revenue		$	1,546,545			$	1,009,031			$	856,503			$	3,412,079			$	156,657			$	3,568,736
Segment expenses and other items 1			1,300,795				808,519				723,332				2,832,646				142,235				2,974,881
Adjusted EBITDA		$	245,750			$	200,512			$	133,171			$	579,433			$	14,422			$	593,855
Depreciation and amortization		$	55,029			$	53,402			$	49,919			$	158,350			$	16,360			$	174,710
Total Assets			1,610,902				1,533,675				1,239,527				4,384,104				549,140				4,933,244
Capital Expenditure			26,271				18,379				36,713				81,363				57,875				139,238

 

		Hygiene, Health								Building
Year Ended		and Consumable				Engineering				Adhesive								Corporate				H.B. Fuller
December 2, 2023		Adhesives				Adhesives				Solutions				Total				Unallocated				Consolidated
Net revenue		$	1,607,607			$	973,012			$	777,518			$	3,358,137			$	152,797			$	3,510,934
Segment expenses and other items 1			1,328,533				783,637				670,465				2,782,635				147,461				2,930,096
Adjusted EBITDA		$	279,074			$	189,375			$	107,053			$	575,502			$	5,336			$	580,838
Depreciation and amortization		$	51,204			$	41,464			$	56,004			$	148,672			$	11,169			$	159,841

 

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.

 

We use both GAAP and non-GAAP financial measures, including Adjusted EBITDA, for operational and financial decision making, and to assess Company and segment business performance. Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP. Our calculation of this non-GAAP measure  may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of this non-GAAP measure has limitations and should not be considered superior to, in isolation from, or as a substitute for, related U.S. GAAP measures. The following table provides a reconciliation of the Company’s Adjusted EBITDA to net income attributable to H.B. Fuller for the years ended November 29, 2025,  November 30, 2024 and December 2, 2023:

 

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

 

		Year Ended
		November 29,				November 30,				December 2,
		2025				2024				2023
Net income attributable to H.B. Fuller		$	151,967				130,256				144,906
Adjustments:
Acquisition project costs			15,412				11,035				16,874
Organizational realignment			31,424				39,996				29,900
Project One			10,237				11,885				9,815
Business divestiture			-				47,267				-
Other1			39,155				(1,981	)			(611	)
Discrete tax items			7,467				(5,469	)			26,085
Income tax effect on adjustments			(21,054	)			(15,811	)			(10,604	)
Adjusted net income attributable to H.B. Fuller			234,608				217,178				216,365
Add:
Interest expense2			132,431				133,122				131,913
Interest income			(4,820	)			(4,679	)			(3,943	)
Income taxes			80,717				77,661				78,047
Depreciation and amortization expense3			177,724				170,573				158,456
Adjusted EBITDA			620,660				593,855				580,838

 

 

¹ Other includes losses associated with ongoing litigation and product claims related to a divested business and costs associated with the exit of a product line for the year ended November 29, 2025.

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.

 

Financial information about geographic areas

 

		Net Revenue
		2025				2024				2023
United States		$	1,521,418			$	1,623,854			$	1,551,846
China			447,066				438,512				430,948
Germany			352,447				362,919				393,029
Countries with more than 10 percent of total			2,320,931				2,425,285				2,375,823
All other countries with less than 10 percent of total			1,152,658				1,143,451				1,135,111
Total		$	3,473,589			$	3,568,736			$	3,510,934

 

		Property, Plant and Equipment, net
		2025				2024				2023
United States		$	523,282			$	472,084			$	425,765
China			109,751				109,665				110,061
Germany			101,666				98,233				114,266
All other countries with less than 10 percent of total			200,562				201,945				174,563
Total		$	935,261			$	881,927			$	824,655

 

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:

 

		November 29, 2025
		Hygiene, Health and Consumable				Engineering				Building Adhesive				Corporate
		Adhesives				Adhesives				Solutions				Unallocated				Total
Americas		$	867,316			$	449,607			$	465,363			$	-			$	1,782,286
EIMEA			476,718				235,544				334,343				-				1,046,605
Asia Pacific			207,755				376,628				60,315				-				644,698
		$	1,551,789			$	1,061,779			$	860,021			$	-			$	3,473,589

 

		November 30, 2024
		Hygiene, Health and Consumable				Engineering				Building Adhesive				Corporate
		Adhesives				Adhesives				Solutions				Unallocated				Total
Americas		$	884,512			$	414,568			$	455,280			$	156,657			$	1,911,017
EIMEA			454,336				233,560				338,273				-				1,026,169
Asia Pacific			207,697				360,903				62,950				-				631,550
		$	1,546,545			$	1,009,031			$	856,503			$	156,657			$	3,568,736

 

		December 2, 2023
		Hygiene, Health and Consumable				Engineering				Building Adhesive				Corporate
		Adhesives				Adhesives				Solutions				Unallocated				Total
Americas		$	921,934			$	379,488			$	406,647			$	152,797			$	1,860,866
EIMEA			480,483				235,922				305,482				-				1,021,887
Asia Pacific			205,190				357,602				65,389				-				628,181
		$	1,607,607			$	973,012			$	777,518			$	152,797			$	3,510,934