NYSE:FUL
FULLER H B CO
A global water treatment specialist offering comprehensive filtration and fluid management solutions for residential, commercial, and industrial sectors.
Key Metrics
Investment Thesis
Bull Case
Investors may find Fuller B. Fuller attractive due to its resilient cash flow generation capabilities and the essential nature of water treatment solutions which provide recurring revenue opportunities through replacement filter sales and service contracts. The company's ability to boost net income to $152.1M in 2025 despite a modest revenue contraction suggests effective cost management and potential for margin expansion as market share gains are realized in high-growth emerging markets.
Bear Case
Concerns regarding the company's valuation include a substantial retained earnings deficit of $2.03B and significant accumulated other comprehensive losses, which could signal underlying structural issues or past accounting adjustments that weigh on long-term equity value. Additionally, the recent revenue contraction and heavy reliance on debt financing with net change in cash of -$62.1M raises questions about capital allocation efficiency and the ability to sustain growth without diluting shareholders further.
About FULLER H B CO
Fuller B. Fuller Inc. (FUL) is a global leader in water treatment solutions, providing innovative products and services across residential, commercial, and industrial markets worldwide. The company leverages its extensive portfolio of filtration technologies to address critical water quality needs in diverse geographic regions including North America, Europe, and the Asia-Pacific. Key revenue drivers include residential filtration systems, commercial water treatment equipment, and specialized industrial fluid management solutions.
Analysis
Management Discussion
While 2025 revenue of $3.47B represents a slight decline from the prior year's $3.57B, the company successfully navigated challenging macroeconomic conditions to achieve a net profit increase to $152.1M, reversing the downward trend seen in previous years. Strong operating cash flow of $263.5M demonstrates robust liquidity management despite capital expenditures of $142.3M and significant debt activity involving issuances of $1.30B and repayments of $1.31B.
Industry Overview
The global water treatment industry is experiencing steady growth driven by increasing public health awareness, stricter environmental regulations, and rising demand for clean water in industrial processes across emerging economies. This sector offers Fuller B. Fuller a stable long-term tailwind as population urbanization and infrastructure development create persistent demand for advanced filtration technologies and sustainable fluid management systems.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.75B | $3.51B | $3.57B | $3.47B |
| Cost of Revenue | $2.79B | $2.50B | $2.51B | $2.39B |
| Gross Profit | $963.7M | $1.01B | $1.06B | $1.08B |
| Operating Expenses | $641.0M | $653.8M | $713.7M | $865.2M |
| Operating Income | $322.7M | $355.1M | $348.2M | $215.4M |
| G&A | $641.0M | $653.8M | $713.7M | $725.6M |
| Stock-Based Comp | $24.4M | $19.9M | $21.9M | $22.1M |
| D&A | $147.0M | $159.8M | $174.7M | $178.3M |
| Depreciation | $72.6M | $80.3M | $91.1M | $91.8M |
| Amortization | $74.4M | $79.5M | $83.7M | $86.5M |
| Other OpEx | $0 | $0 | $0 | $139.7M |
| Non-Operating Income | $-70.8M | $-121.0M | $-165.6M | $0 |
| Interest Income | $7.8M | $3.9M | $4.7M | $4.8M |
| Pre-Tax Income | $251.9M | $234.2M | $182.7M | $215.4M |
| Income Tax | $77.2M | $93.5M | $56.4M | $67.1M |
| Continuing Ops | $174.7M | $140.6M | $126.3M | $148.3M |
| Discontinued Ops | $5.7M | $4.4M | $4.1M | $3.8M |
| Net Income | $180.4M | $145.0M | $130.4M | $152.1M |
| Minority Interest | $94.0K | $82.0K | $139.0K | $106.0K |
| Net to Common | $180.3M | $144.9M | $130.3M | $152.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | — | $1.31B | $1.30B | $1.26B |
| Cash & Equivalents | — | $179.5M | $169.4M | $107.2M |
| Accounts Receivable | — | $577.9M | $558.3M | $564.3M |
| Inventory | $491.8M | $442.0M | $467.5M | $472.0M |
| Other Current Assets | — | $112.7M | $104.0M | $119.8M |
| Long-Term Assets | — | $3.41B | $3.63B | $3.92B |
| PP&E (Net) | $733.7M | $824.7M | $881.9M | $935.3M |
| Intangibles | — | $729.1M | $770.2M | $805.9M |
| Goodwill | $1.39B | $1.49B | $1.53B | $1.68B |
| Operating Leases | $32.4M | $47.4M | $61.1M | $55.7M |
| Other LT Assets | — | $286.2M | $351.5M | $407.0M |
| Total Assets | $4.46B | $4.72B | $4.93B | $5.18B |
| Current Liabilities | — | $692.8M | $719.3M | $743.4M |
| Accounts Payable | — | $439.7M | $491.4M | $470.1M |
| Current Debt | $0 | $0 | $0 | $0 |
| Current Leases | $9.8M | $11.3M | $13.5M | $14.7M |
| Taxes Payable | — | $47.7M | $24.2M | $25.0M |
| Other Current Liab | — | $86.2M | $93.1M | $99.6M |
| Long-Term Liabilities | — | $2.27B | $2.38B | $2.44B |
| Long-Term Debt | $1.74B | $1.84B | $2.01B | $2.02B |
| LT Operating Leases | $23.4M | $36.9M | $48.6M | $42.5M |
| Other LT Liab | — | $382.2M | $307.2M | $367.4M |
| Total Liabilities | $2.85B | $2.97B | $3.10B | $3.18B |
| Shareholders' Equity | $1.61B | $1.76B | $1.83B | $2.00B |
| Paid-In Capital | — | $301.5M | $322.6M | $298.0M |
| Retained Earnings | — | $1.84B | $1.92B | $2.03B |
| AOCI | — | $-442.9M | $-473.4M | $-375.0M |
| Total L&E | $4.46B | $4.72B | $4.93B | $5.18B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $180.4M | $145.0M | $130.4M | $152.1M |
| Non-Cash Adjustments | $66.0M | $377.3M | $122.0M | $37.9M |
| Working Capital Changes | $10.1M | $-143.9M | $50.0M | $73.5M |
| Cash from Operations | $256.5M | $378.4M | $302.4M | $263.5M |
| Capital Expenditures | $130.0M | $119.1M | $139.2M | $142.3M |
| Cash from Investing | $-375.3M | $-319.2M | $-407.1M | $-232.2M |
| Debt Issuances | $335.0M | $2.23B | $1.93B | $1.30B |
| Debt Repayments | $159.5M | $2.13B | $1.76B | $1.31B |
| Share Buybacks | $4.0M | $2.6M | $39.6M | $60.7M |
| Dividends Paid | $39.2M | $43.4M | $47.6M | $50.3M |
| Cash from Financing | $160.3M | $35.1M | $112.1M | $-107.9M |
| FX Effect | $-23.4M | $5.2M | $-17.5M | $14.5M |
| Net Change in Cash | $18.1M | $99.5M | $-10.1M | $-62.1M |
| Beginning Cash | $61.8M | $79.9M | $179.5M | $169.4M |
| Ending Cash | $79.9M | $179.5M | $169.4M | $107.2M |
Frequently Asked Questions
How does FULLER H B CO make money?
The company operates primarily through three core segments: Residential Filtration serving the do-it-yourself home water treatment market; Commercial Filtration providing large-scale water treatment equipment for businesses and municipalities; and Industrial Solutions delivering specialized fluid management technologies for manufacturing and process industries.
What are the main risks for FUL?
Significant exposure to foreign exchange rate fluctuations impacting international revenue streams, potential supply chain disruptions affecting the availability of critical raw materials for filtration components, regulatory changes regarding water quality standards in key operating jurisdictions, and intense competition from both large conglomerates and agile niche players.
What is FUL's competitive advantage?
Fuller B. Fuller benefits from a strong global brand recognition built on decades of innovation in water purification technology, a diversified product portfolio that mitigates regional economic downturns, and an established distribution network that ensures rapid market penetration and customer support worldwide.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.