What changed in this filing

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Item 1. Financial Statements

2025-06-26 compared with 2025-03-27 · 166 added, 120 removed, 601 unchanged (32% of the section changed)

4 unchanged sentences

Three Months Ended

$ 788,663 $ 810,419

Six Months Ended

Cost of sales

( 561,588 ) ( 571,182 )

227,075 239,237

Selling, general and administrative expenses

( 180,628 ) ( 172,362 )

Other income, net

Interest expense

( 32,042 ) ( 31,901 )

Interest income

Income before income taxes and income from equity method investments

18,712 37,782

( 5,945 ) ( 7,814 )

Income from equity method investments

Net income including non-controlling interest

13,264 31,012

Net loss (income) attributable to non-controlling interest

( 16 ) ( 21 )

Net income attributable to non-controlling interest

Net income attributable to H.B.

$ 13,248 $ 30,991

Earnings per share attributable to H.B.

Fuller common stockholders:

$ 0.24 $ 0.57

$ 0.24 $ 0.55

Weighted-average common shares outstanding:

54,998 54,702

56,029 56,573

See accompanying Notes to Unaudited Consolidated Financial Statements.

3 unchanged sentences

Three Months Ended

Six Months Ended

Net income including non-controlling interest

Other comprehensive loss

Other comprehensive income (loss)

Foreign currency translation

2 unchanged sentences

Net investment hedges, net of tax

Other comprehensive loss

Comprehensive (loss) income

Other comprehensive income (loss)

Comprehensive income

Comprehensive income attributable to non-controlling interest

Comprehensive (loss) income attributable to H.B.

Comprehensive income attributable to H.B.

See accompanying Notes to Unaudited Consolidated Financial Statements.

5 unchanged sentences

$ 96,785 $ 169,352

Trade receivables (net of allowances of $ 10,222 and $ 11,621 , as of March 1, 2025 and November 30, 2024, respectively)

Trade receivables (net of allowances of $ 10,978 and $ 11,621 , as of May 31, 2025 and November 30, 2024, respectively)

584,026 558,336

39 unchanged sentences

Preferred stock ( no shares outstanding) shares authorized – 10,045,900

Common stock, par value $ 1.00 per share, shares authorized – 160,000,000 , shares outstanding – 54,189,516 and 54,657,103 as of March 1, 2025 and November 30, 2024, respectively

Common stock, par value $ 1.00 per share, shares authorized – 160,000,000 , shares outstanding – 53,952,793 and 54,657,103 as of May 31, 2025 and November 30, 2024, respectively

$ 53,953 $ 54,657

20 unchanged sentences

Balance at November 30, 2024

Comprehensive loss

Comprehensive income (loss)

Stock option exercises

2 unchanged sentences

Balance at March 1, 2025

Comprehensive income

Stock option exercises

Share-based compensation plans and other, net

Repurchases of common stock

Balance at May 31, 2025

Fuller Company Shareholders

3 unchanged sentences

Balance at December 2, 2023

Comprehensive income

Comprehensive income (loss)

Stock option exercises

2 unchanged sentences

Balance at March 2, 2024

Comprehensive income (loss)

Stock option exercises

Share-based compensation plans other, net

Repurchases of common stock

Balance at June 1, 2024

See accompanying Notes to Unaudited Consolidated Financial Statements.

2 unchanged sentences

(In thousands)

Three Months Ended

March 1, 2025

March 2, 2024

Six Months Ended

Cash flows from operating activities:

Net income including non-controlling interest

Adjustments to reconcile net income including non-controlling interest to net cash (used in) provided by operating activities:

Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:

Deferred income taxes

1 unchanged sentence

Loss on the sale of a business

Loss on impairment of intangible asset

Gain on sale or disposal of assets

Share-based compensation

Pension and other post-retirement benefit plan activity

Change in assets and liabilities, net of effects of acquisitions:

4 unchanged sentences

Income taxes payable

Accrued / prepaid pensions

Other liabilities

Foreign currency remeasurement

Net cash (used in) provided by operating activities

Net cash provided by operating activities

Cash flows from investing activities:

8 unchanged sentences

Repayment of long-term debt

Payment of debt issuance costs

Net payment of notes payable

2 unchanged sentences

Repurchases of common stock

Net cash provided by (used in) financing activities

Net cash provided by financing activities

Effect of exchange rate changes on cash and cash equivalents

44 unchanged sentences

The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to finance amounts under these arrangements.

The outstanding payment obligations that were confirmed as valid and remained outstanding as of March 1, 2025, and November 30, 2024, were approxi mately $ 3,478 and $ 5,233 , respectively.

The outstanding payment obligations that were confirmed as valid and remained outstanding as of May 31, 2025, and November 30, 2024, were approxi mately $ 6,485 and $ 5,233 , respectively.

These obligations under the Company’s supplier finance programs are included in Accounts payable in the Consolidated Balance Sheets, and the associated payments are reflected in the cash flows from operating activities section of the Consolidated Statements of Cash Flows.

6 unchanged sentences

This includes a holdback amount of

5,978 Taiwan dollar that will be paid on the

5,978 Taiwan dollar paid on the

4 -month anniversary of the closing date.

2 unchanged sentences

The acquisition fair value measurement was preliminary as of

March 1, 2025 and includes goodwill of

May 31, 2025 and includes goodwill of

$ 2,320 , other intangible assets of

3 unchanged sentences

ND Industries Taiwan is included in our Engineering Adhesives operating segment.

January 15, 2025, we completed the acquisition of GEM S.r.l.

(“GEM”) for a purchase price of

144,041 Euros, or approximately

$ 147,886 which was funded through borrowings on our credit facility and existing cash.

This includes a holdback amount of

30,000 Euros that will be paid in

three tranches of

third each year beginning

one year after the date of acquisition.

and Medifill Limited

On January 15, 2025, we completed the acquisition of GEM S.r.l.

(“GEM”) and on December 2, 2024, we completed the acquisition of Medifill Limited (Medifill") for a total purchase price of 192,130 Euros, or approximately $ 197,260 which was funded through borrowings on our credit facility and existing cash.

Included in the purchase price is a holdback to be paid in three annual tranches beginning one year after the date of acquisition.

The fair value of the holdback was 28,170 Euros or approximately $28,922 at the date of acquisition.

See Note 12 for more information on the fair value of the holdback.

Although they were independent transactions, the acquisitions of GEM and Medifill were accounted for as a single business combination under ASC 805, as they were negotiated concurrently and are economically interdependent.

Headquartered in Viareggio, Italy, GEM develops, produces and sells medical adhesives for wound closure in both surgical and topical applications.

The acquisition of GEM establishes a European headquarters for our Medical Adhesives Technologies business and expands the Company's medical adhesive offerings, further shifting our portfolio toward highly profitable, higher growth markets.

The acquisition fair value measurement

was preliminary as of

March 1, 2025

and includes goodwill of $ 59,460 , other intangible assets of $ 95,791 and other net liabilities of $ 7,365 .

G oodwill represents expected synergies from combining GEM with our existing business.

is not deductible for tax purposes.

GEM is included in our Hygiene, Health and Consumable Adhesives operating segment.

Medifill Limited

On December 2, 2024, we completed the acquisition of Medifill Limited (“Medifill”) for a purchase price of 49,919 Euros, or approximately $ 51,252 which was funded through borrowings on our credit facility and existing cash.

Headquartered in Dublin, Ireland, Medifill produces medical-grade cyanoacrylate adhesives tailored to the wound closure market.

The acquisition of Medifill establishes European production capabilities for our medical adhesive offerings.

The acquisition fair value measurement was preliminary as of March 1, 2025 and includes goodwill of $ 40,141 and other net assets of $11,111.

G oodwill represents expected synergies from combining Medifill with our existing business.

Goodwill is not d eductible for tax purposes.

Medifill is included in our Hygiene, Health and Consumable Adhesives operating segment.

Headquartered in Dublin, Ireland, Medifill produces medical-grade cyanoacrylate adhesives tailored to the wound closure market for GEM.

The acquisitions of GEM and Medifill establish a European headquarters for our Medical Adhesives Technologies business and European production capabilities for our medical adhesive offerings, further shifting our portfolio toward highly profitable, higher growth markets.

The acquisition fair value measurement was preliminary as of May 31, 2025 and includes goodwill of $ 92,653 , other intangible assets of $ 105,237 and other net liabilities of $ 630 .

G oodwill represents expected synergies from combining GEM and Medifill with our existing business.

Goodwill is not deductible for tax purposes.

GEM and Medifill are included in our Hygiene, Health and Consumable Adhesives operating segment.

HS Butyl Limited

4 unchanged sentences

It also expands our relevance to more markets and creates opportunities to deliver new, in-demand solutions for our customers, given the technology's relevance to multiple high-value applications.

The acquisition fair value measurement was preliminary as of March 1, 2025 and includes other intangible assets of $ 6,974 , goodwill of $ 2,812 and other net assets of $ 13,394 .

The acquisition fair value measurement was preliminary as of May 31, 2025 and includes other intangible assets of $ 6,974 , goodwill of $ 2,812 and other net assets of $ 13,394 .

G oodwill represents expected synergies from combining HS Butyl with our existing business.

25 unchanged sentences

The net book value of the assets sold was $ 77,242 which resulted in a $ 1,515 loss.

The loss on sale is recorded in other income net , in the Consolidated Statements of Income for the three months ended March 1, 2025.

The loss on sale is recorded in other income net , in the Consolidated Statements of Income for the six months ended May 31, 2025.

Restructuring Actions

4 unchanged sentences

Three Months Ended

March 1, 2025

March 2, 2024

Six Months Ended

Cost of sales

2 unchanged sentences

2,195 1,279 2,752 2,444

$ 2,176 $ 2,558 $ 5,687 $ 6,638

The restructuring charges are all recorded in Corporate Unallocated for segment reporting purposes.

21 unchanged sentences

Foreign currency translation

( 130 ) - - ( 130 )

Balance at March 1, 2025

Balance at May 31, 2025

$ 4,493 $ - $ - $ 4,493

3 unchanged sentences

Raw materials

$ 213,651 $ 215,936

Finished goods

254,672 251,562

Total inventories

$ 468,323 $ 467,498

Goodwill and Other Intangible Assets

The goodwill activity by reportable segment for the three months ended March 1, 2025 is presented below:

The goodwill activity by reportable segment for the six months ended May 31, 2025 is presented below:

Hygiene, Health Building

5 unchanged sentences

24,533 18,400 2,208 45,141

Balance at March 1, 2025

Balance at May 31, 2025

$ 516,078 $ 602,282 $ 551,718 $ 1,670,078

2 unchanged sentences

Balances of amortizable identifiable intangible assets, excluding goodwill and other non-amortizable intangible assets, are as follows:

March 1, 2025

Amortizable Intangible Assets

16 unchanged sentences

$ 89,572 $ 638,789 $ 38,385 $ 3,019 $ 769,765

Amortization expense with respect to amortizable intangible assets was $ 20,880 and $ 20,355 for the three months ended March 1, 2025 and March 2, 2024 , respectively.

Amortization expense with respect to amortizable intangible assets was $ 21,563 and $ 19,219 for the three months ended May 31, 2025 and June 1, 2024 , respectively, and was $ 42,443 and $ 39,574 for the six months ended May 31, 2025 and June 1, 2024 , respectively.

Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets for the next five fiscal years is as follows:

3 unchanged sentences

Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions, potential impairment, accelerated amortization or other events.

Non-amortizable intangible assets as of March 1, 2025 and November 30, 2024 were $ 452 and $ 461 , respectively, and relate to trademarks and trade names.

The change in non-amortizable assets as of March 1, 2025 compared to November 30, 2024 was due to changes in foreign currency exchange rates.

Non-amortizable intangible assets as of May 31, 2025 and November 30, 2024 were $ 0 and $ 461 , respectively, and relate to trademarks and trade names.

The change in non-amortizable assets as of May 31, 2025 compared to November 30, 2024 was due to impairment.

Long-Term Debt

On March 6, 2025, we entered into a Refinancing Amendment (the “Refinancing Amendment”), which amended the Second Amended and Restated Credit Agreement dated as of February 15, 2023, as previously amended.

Pursuant to the Refinancing Amendment under the Credit Agreement, the outstanding $ 986,545 principal amount of Term B loans (the “Amended TLB”) were refinanced.

Furthermore, the interest rate margins applicable to the Amended TLB were decreased by 25 basis points ( 0.25 percent per annum) to 175 basis points for SOFR loans and 75 basis points for prime rate loans.

Interest on Term Loan B borrowings is payable at SOFR plus an interest rate spread of 175 basis points with a SOFR floor of 50 basis points ( 6.10 percent at May 31, 2025).

The maturity date of February 15, 2030 remains unchanged.

The commitment fee rates and interest rates applicable to the revolving credit facility and the Term Loan A facility remain unchanged.

Components of Net Periodic Benefit related to Pension and Other Postretirement Benefit Plans

Three Months Ended March 1, 2025 and March 2, 2024

Three Months Ended May 31, 2025 and June 1, 2024

Pension Benefits

1 unchanged sentence

Net periodic (benefit) cost:

$ - $ - $ 368 $ 350 $ - $ -

Interest cost

3,242 3,464 1,442 1,569 249 291

Expected return on assets

( 5,717 ) ( 6,555 ) ( 1,624 ) ( 1,637 ) ( 3,484 ) ( 2,727 )

Amortization:

Prior service cost

- - 28 16 - -

Actuarial loss

1,953 1,159 475 513 ( 2,277 ) -

Net periodic (benefit) cost

$ ( 522 ) $ ( 1,932 ) $ 689 $ 811 $ ( 5,512 ) $ ( 2,436 )

Six Months Ended May 31, 2025 and June 1, 2024

Pension Benefits

Postretirement

Net periodic (benefit) cost:

Interest cost

Expected return on assets

Amortization:

Prior service cost

Actuarial loss

Net periodic (benefit) cost

Service cost is included with employee compensation cost in cost of sales and selling, general and administrative expenses in the Consolidated Statements of Income.

2 unchanged sentences

The following table provides details of total comprehensive income (loss):

Three Months Ended March 1, 2025

Three Months Ended March 2, 2024

Three Months Ended May 31, 2025

Three Months Ended June 1, 2024

Fuller Stockholders

11 unchanged sentences

( 60,068 ) 14,619 ( 45,449 ) - 163 ( 40 ) 123 -

Other comprehensive (loss) income

Other comprehensive income (loss)

$ 60,522 $ 15,346 $ 75,868 $ 48 $ ( 12,683 ) $ ( 3,473 ) $ ( 16,156 ) $ ( 32 )

Comprehensive (loss) income

Comprehensive income

$ 117,696 $ 65 $ 35,108 $ 1

Six Months Ended May 31, 2025

Six Months Ended June 1, 2024

Fuller Stockholders

Net income attributable to H.B.

Fuller and non-controlling interest

Foreign currency translation adjustment¹

Defined benefit pension plans adjustment²

Interest rate swap³

Net investment hedges³

Other comprehensive income (loss)

Comprehensive income

1 Income taxes are not provided for foreign currency translation relating to indefinite investments in international subsidiaries.

2 unchanged sentences

The components of accumulated other comprehensive loss are as follows:

March 1, 2025

Foreign currency translation adjustment

23 unchanged sentences

$ ( 473,781 ) $ ( 473,395 ) $ ( 386 )

Income tax expense for the three months ended March 1, 2025 includes $ 992 of discrete tax expense relating to various U.S.

Income tax expense for the three and six months ended May 31, 2025 includes $ 13,961 of discrete tax expense and $ 14,952 of discrete tax expense, respectively, relating to the impact of withholding tax recorded on earnings that are no longer permanently reinvested as well as other various U.S.

and foreign tax matters.

Excluding the discrete tax expense, the overall effective tax rate was 26.5 percent for the three months ended March 1, 2025 .

Income tax expense for the three months ended March 2, 2024 includes $ 2,527 of discrete tax benefit relating to various foreign tax matters, as well as an excess tax benefit related to U.S.

Excluding the discrete tax expense, the overall effective tax rate was 25.7 percent and 25.8 percent for the three and six months ended May 31, 2025 , respectively.

Income tax expense for the three and six months ended June 1, 2024 includes $ 1,317 of discrete tax expense and $ 1,210 of discrete tax benefit, respectively, relating to various foreign tax matters, as well as an excess tax benefit related to U.S.

stock compensation.

Excluding the discrete tax benefit, the overall effective tax rate was 27.4 percent for the three months ended March 2, 2024 .

As of March 1, 2025 , we had a liability of $ 15,807 recorded for gross unrecognized tax benefits (excluding interest) compared to $ 15,590 as of November 30, 2024 .

As of March 1, 2025 and November 30, 2024 , we had accrued $ 4,769 and $ 4,558 of gross interest relating to unrecognized tax benefits, respectively.

Excluding the discrete tax expense and benefit, the overall effective tax rate was 28.9 percent and 28.4 percent for the three and six months ended June 1, 2024 , respectively.

As of May 31, 2025 , we had a liability of $ 19,415 recorded for gross unrecognized tax benefits (excluding interest) compared to $ 15,590 as of November 30, 2024 .

As of May 31, 2025 and November 30, 2024 , we had accrued $ 3,204 and $ 4,558 of gross interest relating to unrecognized tax benefits, respectively.

Earnings Per Share

1 unchanged sentence

Three Months Ended

Six Months Ended

(Shares in thousands)

2 unchanged sentences

Equivalent shares from share-based compensations plans

509 1,690 769 1,780

Weighted-average common and common equivalent shares diluted

6 unchanged sentences

Share-based compensation awards for which total employee proceeds exceed the average market price over the applicable period have an antidilutive effect on earnings per share, and accordingly, are excluded from the calculation of diluted earnings per share.

Share-based compensation awards of 2,140,479 and 1,138,264 shares for the three months ended March 1, 2025 and March 2, 2024 , respectively, were excluded from diluted earnings per share calculations because they were antidilutive.

Share-based compensation awards of 2,126,260 and 787,801 shares for the three months ended May 31, 2025 and June 1, 2024 , respectively, were excluded from diluted earnings per share calculations because they were antidilutive.

Share-based compensation awards of 2,187,436 and 1,110,664 shares for the six months ended May 31, 2025 and June 1, 2024 , respectively, were excluded from diluted earnings per share calculations because they were antidilutive.

Financial Instruments

14 unchanged sentences

On February 28, 2023, after refinancing our debt, we amended t he interest rate swap agreement to our 1 -month SOFR rate debt to a fixed rate of 3.7260 in accordance with the practical expedients included in ASC 848, Reference Rate Reform .

The combined fair value of the interest rate swap was an asset of $ 38 at March 1, 2025 and was included in other assets in the Consolidated Balance Sheets.

The combined fair value of the interest rate swap was a liability of $ 1,554 at May 31, 2025 and was included in other liabilities in the Consolidated Balance Sheets.

The swap was designated for hedge accounting treatment as a cash flow hedge.

2 unchanged sentences

On March 16, 2023, we entered into an interest rate swap agreement to convert $ 300,000 of our 1 -month SOFR debt to a fixed rate of 3.7210 percent that matures on February 15, 2028.

The combined fair value of the interest rate swap was a liability of $ 148 at March 1, 2025 and was included in other liabilities in the Consolidated Balance Sheets.

The combined fair value of the interest rate swap was a liability of $ 1,383 at May 31, 2025 and was included in other liabilities in the Consolidated Balance Sheets.

The swap was designated for hedge accounting treatment as a cash flow hedge.

2 unchanged sentences

On March 16, 2023, we entered into an interest rate swap agreement to convert $ 100,000 of our 1 -month SOFR debt to a fixed rate of 3.8990 percent that matures on February 15, 2028.

The combined fair value of the interest rate swap was a liability of $ 491 a t March 1, 2025 and was included i n other liabilities in the Consolidated Balance Sheets.

The combined fair value of the interest rate swap was a liability of $ 870 a t May 31, 2025 and was included i n other liabilities in the Consolidated Balance Sheets.

The swap was designated for hedge accounting treatment as a cash flow hedge.

3 unchanged sentences

Three Months Ended

March 1, 2025

March 2, 2024

Six Months Ended

Interest rate swap contracts

6 unchanged sentences

These interest rate swap agreements mature on October 15, 2028.

The combined fair value of the interest rate swaps wa s a liability of $ 30,396 a t March 1, 2025 , and was included in ot her liabilities i n the Consolidated Balance Sheets.

The combined fair value of the interest rate swaps wa s a liability of $ 26,864 a t May 31, 2025 , and was included in ot her liabilities i n the Consolidated Balance Sheets.

The swaps were designated for hedge accounting treatment as fair value hedges.

8 unchanged sentences

We applied the practical expedients included in ASC 848, Reference Rate Reform .

As of March 1, 2025 , the combined fair value of the swaps w as a liability of $ 40,299 and was included in other liabilities in the Consol idated Balance Sheets.

As of May 31, 2025 , the combined fair value of the swaps w as a liability of $ 100,366 and was included in other liabilities in the Consol idated Balance Sheets.

The cross-currency interest rate swaps hedge a portion of the Company’s investment in Euro denominated foreign subsidiaries.

3 unchanged sentences

Any ineffective portions of net investment hedges are reclassified from accumulated other comprehensive income (loss) into earnings during the period of change.

The amount in accumulated other comprehensive income (loss) related to net investment hedge cross-currency sw aps was a loss of $ 30,487 of March 1, 2025 .

The amounts of pretax gain recognized in comprehensive income related to the net investment he dge was $ 9,244 f or the three months ended March 1, 2025 .

As of March 1, 2025 , we did not reclassify any gains or losses into earnings from net investment hedges and we do not expect to reclassify any such gain or loss into earnings within the next twelve months.

The amount in accumulated other comprehensive income (loss) related to net investment hedge cross-currency sw aps was a loss of $ 75,936 of May 31, 2025 .

The amounts of pretax loss recognized in comprehensive income related to the net investment he dge was $ 60,068 f or the three months ended May 31, 2025 .

As of May 31, 2025 , we did not reclassify any gains or losses into earnings from net investment hedges and we do not expect to reclassify any such gain or loss into earnings within the next twelve months.

No amounts related to net investment hedges have been excluded from the assessment of hedge effectiveness.

5 unchanged sentences

See Note 12 for the fair value amounts of these derivative instruments.

As of March 1, 2025 , we had forward foreign currency contracts maturing between March 3, 2025 a nd May 7, 2025.

As of May 31, 2025 , we had forward foreign currency contracts maturing between June 2, 2025 a nd July 9, 2025.

The ma rk-to-market effect associated with these contracts was largely offset by the underlying transaction gains and losses resulting from the foreign currency exposures for which these contracts relate.

The amounts of pre tax gains recognized in other income, net related to derivative instruments not designated as hedging instruments for the three months ended March 1, 2025 and March 2, 2024 wer e $ 40 a nd $ 5,061 , respectively.

The amounts of pre tax gains recognized in other income, net related to derivative instruments not designated as hedging instruments for the six months ended May 31, 2025 and June 1, 2024 wer e $ 3,453 a nd $ 263 , respectively.

Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities in the customer base and their dispersion across many different industries and countries.

As of March 1, 2025 , there were no significant concentrations of credit risk.

As of May 31, 2025 , there were no significant concentrations of credit risk.

Fair Value Measurements

9 unchanged sentences

Balances Measured at Fair Value on a Recurring Basis

The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis as of March 1, 2025 and November 30, 2024 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis as of May 31, 2025 and November 30, 2024 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

Fair Value Measurements Using:

3 unchanged sentences

4,281 - 4,281 -

Interest rate swaps, cash flow hedge assets

Foreign exchange contract liabilities

5 unchanged sentences

100,366 - 100,366 -

Holdback liability

32,346 - - 32,346

Fair Value Measurements Using:

12 unchanged sentences

51,871 - 51,871 -

The fair value of the holdback liability related to the acquisition of GEM and Medifill, based on a discounted cash flow model, was $ 32,346 as of May 31, 2025.

Adjustments to the fair value of the holdback are recorded to interest expense in the Statement of Income.

See Note 2 for further discussion regarding our acquisitions.

The following table provides details of this Level 3 liability.

Balance at November 30, 2024

Initial valuation of holdback liability

Foreign currency translation adjustment

Balance at May 31, 2025

Balances Measured at Fair Value on a Nonrecurring Basis

6 unchanged sentences

Balances Disclosed at Fair Value

Long-term debt had an estimated fair value of $ 1,974,391 and $ 2,015,468 as of March 1, 2025 and November 30, 2024 , respectively.

Long-term debt had an estimated fair value of $ 1,991,086 and $ 2,015,468 as of May 31, 2025 and November 30, 2024 , respectively.

The fair value of long-term debt is based on quoted market prices for the same or similar issues or on the current rates offered for debt of similar maturities.

8 unchanged sentences

To the extent we can reasonably estimate the amount of our probable liabilities for environmental matters, we establish an undiscounted financial provision.

We recorded liabilities of $ 3,280 and $ 3,445 as of March 1, 2025 and November 30, 2024 , respectively, for probable and reasonably estimable environmental remediation costs.

Of the amount reserved, $ 970 and $ 1,055 as of March 1, 2025 and November 30, 2024 , respectively, is attributable to a facility we own in Simpsonville, South Carolina that is a designated site under CERCLA.

We recorded liabilities of $ 3,309 and $ 3,445 as of May 31, 2025 and November 30, 2024 , respectively, for probable and reasonably estimable environmental remediation costs.

Of the amount reserved, $ 936 and $ 1,055 as of May 31, 2025 and November 30, 2024 , respectively, is attributable to a facility we own in Simpsonville, South Carolina that is a designated site under CERCLA.

While uncertainties exist with respect to the amounts and timing of the ultimate environmental liabilities, based on currently available information, we have concluded that these matters, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial condition or cash flow.

15 unchanged sentences

A summary of the number of and settlement amounts for asbestos-related lawsuits and claims is as follows:

Three Months Ended

Six Months Ended

3 Years Ended

March 1, 2025

March 2, 2024

November 30, 2024

13 unchanged sentences

The Company intends to vigorously defend itself against the claims outlined in this lawsuit.

As of March 1, 2025 , we are unable to estimate any possible loss or range of possible losses and have not recorded a loss contingency for this matter.

As of May 31, 2025 , we are unable to estimate any possible loss or range of possible losses and have not recorded a loss contingency for this matter.

Based on currently available information, we have concluded that the resolution of any pending matter, including asbestos-related litigation, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial condition or cash flow.

4 unchanged sentences

Upon repurchasing shares, we reduce our common stock for the par value of the shares with the excess being applied against additional paid-in capital.

During the first quarter of 2025, we repurchased shares under this program with an aggregate value of $ 41,153 .

During the second quarter of 2025 , we repurchased shares under this program with an aggregate value of $ 15,777 .

Of this amount, $ 300 reduced common stock and $ 15,477 reduced additional paid-in capital.

There were no shares repurchased under this program during the first quarter of 2024.

During the six months ended May 31, 2025 , we repurchased shares under this program with an aggregate value of $ 56,930 .

Of this amount, $ 978 reduced common stock and $ 55,953 reduced additional paid-in capital.

During the second quarter of 2024 , we repurchased shares under this program with an aggregate value of $ 14,262 .

Of this amount, $ 183 reduced common stock and $ 14,079 reduced additional paid-in capital.

During the six months ended June 1, 2024 , we repurchased shares under this program with an aggregate value of $ 14,262 .

Of this amount, $ 183 reduced common stock and $ 14,079 reduced additional paid-in capital.

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.

12 unchanged sentences

Three Months Ended

March 1, 2025

March 2, 2024

Income (Loss)

11 unchanged sentences

$ 898,095 $ 100,044 $ 917,107 $ 100,596

Six Months Ended

Income (Loss)

Hygiene, Health and Consumable Adhesives

$ 765,700 $ 73,349 $ 761,391 $ 97,233

Engineering Adhesives

513,177 75,028 483,688 64,807

Building Adhesive Solutions

407,881 28,691 402,150 29,126

Total segment

$ 1,686,758 $ 177,068 $ 1,647,229 $ 191,166

Corporate Unallocated

- ( 30,577 ) 80,296 ( 23,695 )

$ 1,686,758 $ 146,491 $ 1,727,525 $ 167,471

The table below provides a reconciliation of operating income to income before income taxes and income from equity method investments:

Three Months Ended

Six Months Ended

Operating income

1 unchanged sentence

Other income, net

7,141 3,634 10,347 5,135

Interest expense

1 unchanged sentence

Interest income

854 1,199 1,954 2,506

Income before income taxes and income from equity method investments

5 unchanged sentences

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 March 1, 2025

Three Months Ended May 31, 2025

Hygiene, Health

4 unchanged sentences

$ 397,475 $ 276,418 $ 224,202 $ - $ 898,095

Three Months Ended March 2, 2024

Three Months Ended June 1, 2024

Hygiene, Health

4 unchanged sentences

$ 393,313 $ 257,613 $ 222,484 $ 43,697 $ 917,107

Six Months Ended May 31, 2025

Hygiene, Health

and Consumable

$ 435,372 $ 216,370 $ 222,161 $ - $ 873,903

229,005 111,816 157,236 - 498,057

101,323 184,991 28,484 - 314,798

$ 765,700 $ 513,177 $ 407,881 $ - $ 1,686,758

Six Months Ended June 1, 2024

Hygiene, Health

and Consumable

$ 445,057 $ 194,646 $ 209,215 $ 80,296 $ 929,214

215,567 114,887 162,937 - 493,391

100,767 174,155 29,998 - 304,920

$ 761,391 $ 483,688 $ 402,150 $ 80,296 $ 1,727,525

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements