H.B. Fuller Significantly Advances Project Quantum Leap with Announcement of Seven Site Closures

The company expects $50 million in incremental savings by 2030 beyond approximately $25 million in FY26 run-rate savings.

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On track to achieve approximately $25 million in run-rate cost savings in FY26, with $50 million in incremental savings expected by 2030

ST. PAUL, Minn.--(BUSINESS WIRE)-- H.B. Fuller Company (“H.B. Fuller” or “the Company”) (NYSE: FUL), the world’s largest pureplay adhesives company, today announced significant advancements on Project Quantum Leap, its multi-year supply chain transformation initiative designed to streamline operations, enhance manufacturing and distribution capabilities, and unlock shareholder value.

Since outlining this program at its 2025 Investor Day, the Company has made meaningful progress on several major workstreams, with tangible benefits including:

• Optimizing its manufacturing network: By consolidating production into larger, more efficient facilities, H.B. Fuller has already reduced its global manufacturing footprint from 82 sites at the end of 2024 to 64 at the end of the third quarter of FY26. The Company expects to further reduce its footprint to 55 facilities by 2030, including seven recently announced site closures in North America and Europe. Certain activities from these targeted facilities are being transitioned to H.B. Fuller’s new state-of-the-art Aerospace Manufacturing Center of Excellence in Charlotte, North Carolina, while others will move to its newly operational, low cost and highly integrated site in Monterrey, Mexico.

• Modernizing distribution: H.B. Fuller is also reorienting its North American distribution network around six Regional Distribution Centers (“RDCs”) to position products closer to end customers. This transition is expected to reduce LTL shipping points by more than 80%, leading to greater inventory control, reduced working capital needs, and higher customer service levels. The RDCs are expected to support approximately 60% of total North America volume by 2030.

• Delivering significant cost savings: Project Quantum Leap is expected to generate $75 million in annual cost savings by 2030 – with approximately $25 million of those benefits realized by the end of 2026 and an additional $20-$25 million in 2027. As production moves to modernized facilities, H.B. Fuller expects operating costs on transferred volumes to decline by as much as 50%.

• Driving capital efficiencies: Cost savings are now ramping while Project Quantum Leap’s capital investment requirements are diminishing. Following approximately $100 million of capital investment through 2026, the Company anticipates less than $25 million of capital spending in 2027, with further reductions in spending after 2027. Furthermore, the modernized facilities where volumes are being concentrated are expected to require significantly less maintenance capital.

• Advancing sustainability objectives: The modernized facilities in which the Company is consolidating its footprint operate with more than 60% lower energy intensity and more than 40% lower greenhouse gas intensity relative to legacy sites.

“Project Quantum Leap is central to our strategy to drive more profitable growth by modernizing our manufacturing and distribution networks,” said Celeste Mastin, President and CEO of H.B. Fuller. “We have moved decisively from planning to execution, and these results validate the opportunity to increase efficiency, reduce operating costs, and better serve our customers. As we continue consolidating production into state-of-the-art facilities, we are building a simpler, more reliable supply chain to support the next phase of value creation for H.B. Fuller shareholders.”

About H.B. Fuller

As the largest pureplay adhesives company in the world, H.B. Fuller’s (NYSE: FUL) innovative, functional coatings, adhesives and sealants enhance the quality, safety and performance of products people use every day. Founded in 1887, with 2025 revenue of $3.5 billion, our mission to Connect What Matters is brought to life by more than 7,100 global team members who collaborate with customers across more than 30 market segments in 150 countries to develop highly specified solutions that enable customers to bring world-changing innovations to their end markets. Learn more at www.hbfuller.com.

Safe Harbor for Forward-Looking Statements:

Certain statements in this press release are forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “will be,” “will continue,” “will likely result,” “would” and similar expressions, and variations or negatives of these words or phrases. These statements are subject to various risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including but not limited to the following: the availability and pricing of raw materials; the impact of potential cybersecurity attacks and security breaches; failures in our information technology systems; the impact on the supply chain, raw material costs and pricing of our products due to military conflict, including between Russia and Ukraine; the impact on our margins and product demand due to inflationary pressures; the substantial amount of debt we have incurred to finance our acquisition of Royal, our ability to repay or refinance our debt or to incur additional debt in the future, our need for a significant amount of cash to service and repay the debt and to pay dividends on our common stock, and the effect of debt covenants that limit the discretion of management in operating the business or in paying dividends; our ability to pay dividends and to pursue growth opportunities if we continue to pay dividends according to our current dividend policy; our ability to effectively manage and realize expected benefits from completed and future mergers, acquisitions, and divestitures; our ability to achieve expected synergies, cost savings and operating efficiencies from our restructuring initiatives and operational improvement projects within the expected time frames or at all; our ability to effectively implement Project ONE; uncertain political and economic conditions; fluctuations in product demand; competing products and pricing; our geographic and product mix; disruptions to our relationships with our major customers and suppliers; regulatory compliance across our global footprint; trade policies and economic sanctions impacting our markets; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations; the impact of litigation and investigations, including for product liability and environmental matters; impairment charges on our goodwill or long-lived assets; the consequences of catastrophic events on our operations and financial results; the effect of new accounting pronouncements and accounting charges and credits; the impact of shareholder activism and a potential proxy contest; and similar matters.

Additional information about these various risks and uncertainties can be found in the “Risk Factors” section of our Form 10-K filings, and any updates to the risk factors in our Form 10-Q and 8-K filings with the SEC, but there may be other risks and uncertainties that we are unable to identify at this time or that we do not currently expect to have a material impact on the business. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261111930873/en/

Investors:
Scott Jensen
investors@hbfuller.com

Media:
Nick Capuano / Liz Cohen
Kekst CNC
Keksthbfuller@kekstcnc.com

Source: H.B. Fuller Company

Key Terms

run-rate financial

Run-rate is an estimate of a company’s future annual performance created by multiplying recent results (such as a month or quarter) to project a full year, like using current speed to guess how far you’ll travel in a year. Investors use it as a quick way to gauge growth, size and momentum and to compare firms, but it can be misleading if recent results include one-time events or seasonal swings, so it’s a rough, not definitive, forecast.

working capital financial

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

ltl shipping technical

Less-than-truckload (LTL) shipping is a freight service for moving shipments that are too large for parcel carriers but too small to fill an entire truck; multiple customers’ shipments are combined on the same trailer and each pays only for the space their cargo occupies. Carriers price LTL using factors such as weight, dimensions, freight class (which reflects handling difficulty and density), origin and destination zones, and any accessorial services; shipments are picked up, consolidated at terminals, and then sorted for final delivery, which can add handling steps and transit time compared with full-truckload moves.

greenhouse gas intensity technical

Greenhouse gas intensity measures how much planet-warming pollution a company or activity emits for each unit of output — for example per dollar of revenue, per ton of product, or per megawatt-hour of energy produced. It tells investors how emission‑efficient a business is, much like miles-per-gallon shows a car’s fuel efficiency, and helps assess regulatory, cost and reputational risks as markets and rules increasingly favor lower emissions.