H. B. Fuller Company

star one again. Thank you. And I would now like to turn the conference over to Steven Brazon, Vice President of Investor Relations. You may begin.

Thank you, Operator. Welcome to HB Fuller's second quarter 2025 investor conference call. Presenting today are Celeste Mastin, President and Chief Executive Officer, and John Corcoran, 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. Reconciliation 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. 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 Securities and Exchange Commission. all of which are available on our website at investors.hbfuller.com. I would now like to turn the call over to Celeste Mastin. Celeste?

Thank you, Stephen, and welcome, everyone. Our strong financial performance in the quarter is a testament to our team's disciplined execution in a highly dynamic environment, and we are performing better than the underlying markets. We remain nimble and focused on delivering positive organic revenue growth while managing costs in a deliberate manner and leveraging our global sourcing infrastructure to adeptly respond to geopolitical and market uncertainties. Our EBITDA margin expansion highlights the success of the actions we are taking, which include an increased focus on pricing, cost savings efforts, and our active portfolio shift towards higher growth, higher margin markets. While global economic activity remains subdued, we continue to perform well and are raising our full-year outlook to reflect our strong execution. Looking at our consolidated results in the second quarter, our organic sales trend remained positive, driven by organic pricing growth of 0.7% during the quarter, partially offset by slightly negative volumes. From a profitability perspective, we executed well and delivered strong results driven in part by cost savings and targeted price actions. Our ongoing portfolio transformation, including the strategic addition of higher margin businesses and divestiture of the lower margin flooring business, drove most of the year-on-year margin increase in the quarter. We grew EBITDA 5% year-on-year to $166 million, and expanded EBITDA margin by 130 basis points year-on-year to 18.4%. Now let me move on to review the performance in each of our segments in the second quarter. In HHC, organic revenue increased 1.8% year-on-year, driven by both positive volume and price. Strength in medical and flexible packaging was partially offset by weakness in end-of-line packaging and beverage labeling. EBITDA margin of 15.6% was up nearly 300 basis points versus the first quarter, reflecting seasonally higher volume and increasing pricing momentum in the segment. EBITDA margin was down year on year in the second quarter, as the favorable impact of organic growth and the contribution from the higher margin medical acquisitions were offset by higher raw material costs. In engineering adhesives, organic revenue decreased 0.4% in the second quarter. Widespread strength in transportation-related end markets, particularly in automotive, was offset by continued weakness in solar. Excluding solar, EA organic growth was positive in the second quarter. EBITDA increased 24% in EA, and EBITDA margin increased 310 basis points year-on-year to 22.9%. Favorable net pricing and raw material actions, cost savings, and the contribution from acquisitions drove the increase in EBITDA margins. In building adhesive solutions, organic sales decreased 0.9% year on year, as continued strength in roofing was offset by weakness in glass and wood, which are more closely tied to the residential construction market environment. EBITDA for building adhesive solutions increased 5% versus the second quarter of last year, and EBITDA margin expanded 60 basis points to 16.7%. Favorable net pricing and raw material actions and cost savings drove the improvement in EBITDA margin year-on-year. Geographically, America's organic revenue was up 2% year-on-year in the second quarter, returning to positive organic growth. Strength in roofing, flexible packaging, and medical principally drove the sales growth in the region. In EIMEA, year-over-year organic revenue was down 2%. Strong performance in our hygiene business was offset by weak demand in our construction-related end markets. In Asia Pacific, organic revenue was up slightly year-on-year. as strong performance in transportation-related markets was offset by slower results in solar and electronics. Looking ahead, we expect a continued challenging operating environment characterized by a high level of uncertainty and constrained demand. Also, while the dollar has recently weakened, we expect currencies to remain unpredictable. As previously discussed, our strategy to produce in the same region where we sell to customers not only results in optimal customer service, but also reduces our exposure to tariffs. To the extent we have direct tariff exposure, we will continue to offset these impacts through sourcing mitigation and targeted pricing actions. In the event of share shifts between customers, the diversification of our customer base and our geographic footprint puts us in an advantaged position. While the global economic impact of the uncertainty associated with the dynamic tariff situation is yet to be fully understood, our assumption is that volumes will be constrained for the remainder of the year. As a result, our guidance reflects slightly weaker volume in the back half of the year. However, Our pricing actions and raw material purchasing leverage will result in continued margin expansion and profit growth will accelerate in the second half. Now let me turn the call over to John Corcoran to review our second quarter results in more detail and our updated outlook for 2025. Thank you, Celeste.