Note 10 - Earnings Per Share

6 Months Ended

May 31, 2025

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 10: Earnings Per Share

A reconciliation of the common share components for the basic and diluted earnings per share calculations is as follows:

	Three Months Ended				Six Months Ended
	May 31,		June 1,		May 31,		June 1,
(Shares in thousands)	2025		2024		2025		2024
Weighted-average common shares - basic		54,443		54,946		54,721		54,824
Equivalent shares from share-based compensations plans		509		1,690		769		1,780
Weighted-average common and common equivalent shares diluted		54,952		56,636		55,490		56,604

Basic earnings per share is calculated by dividing net income attributable to H.B. Fuller by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is based upon the weighted-average number of common and common equivalent shares outstanding during the applicable period. The difference between basic and diluted earnings per share is attributable to share-based compensation awards. We use the treasury stock method to calculate the effect of outstanding shares, which computes total employee proceeds as the sum of (a) the amount the employee must pay upon exercise of the award and (b) the amount of unearned share-based compensation costs attributed to future services. 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 2,126,260 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.