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Fortune Brands Innovations Inc
DUS:2FB

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Fortune Brands Innovations Inc Logo
Fortune Brands Innovations Inc
DUS:2FB
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Price: 34.6 EUR 2.98%
Market Cap: €4.3B

Fortune Brands Innovations Inc
Investor Relations

Fortune Brands Innovations makes branded products that go into homes, especially around water and entryways. Its best-known products include kitchen and bath faucets, showers, sinks, and related plumbing fixtures, as well as doors and other home hardware used in new construction and remodeling. The company does not sell services; it sells physical products through wholesale and retail channels. Its main customers are homebuilders, remodelers, contractors, distributors, and home improvement retailers, plus homeowners who buy replacement products. Fortune Brands makes money when these customers buy its brands for installation in new homes, renovation projects, or repairs. That means its sales are tied to both housing activity and the steady need to replace worn-out fixtures and home components. What makes the business model different is that it sits close to the point where a house is finished and lived in. Its products are often chosen by builders, then installed and replaced over long periods, so the company can benefit from both new construction and a large installed base of homes. Strong brand names matter here because buyers often ask for specific products by brand when they plan kitchens, bathrooms, doors, and security-related home hardware.

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Last Earnings Call
Fiscal Period
Q2 2026
Call Date
Aug 4, 2026
AI Summary
Q2 2026

Guidance cut: Fortune Brands kept sales guidance at down low-single digits, but lowered full-year EPS to $3.22 to $3.52 from $3 to $3.30 previously, citing extra investment in service, execution, and new products.

Tariff boost: Second-quarter results were helped by $122 million of gross tariff refunds, which added $81 million to operating income and $0.52 to EPS; management said there is no extra net tariff benefit assumed for the second half.

Water issues: Water was the main weak spot, with sales down 6.5% and management pointing to service-level problems, share losses, and soft new-construction demand as the main drags.

New CEO plan: Jesse Singh said the company will get back to basics by simplifying the organization, improving customer service, and investing more in growth, especially new products and connected businesses.

Cost actions: The company is on track for about $70 million of annualized cost savings by Q1 2027, with $15 million expected in 2026, while also shifting marketing and brand resources back into business units.

Outlook: Management expects a modest second-half sales improvement versus the first half, but still down year over year, with Q3 sales down 1% to 2% and Q3 EPS of $0.72 to $0.76.

Key Financials
Sales
$1.2 billion
Operating income
$236 million
Operating margin
20.4%
EPS
$1.35
Gross tariff refunds
$122 million
Net tariff benefit to operating income
$81 million
Net tariff benefit to EPS
$0.52
Water sales
$605 million
Water operating income
$179 million
Water operating margin
29.5%
Outdoors sales
$365 million
Outdoors operating income
$56 million
Outdoors operating margin
15.2%
Security sales
$184 million
Security operating income
$50 million
Security operating margin
26.8%
Free cash flow
$179 million
Net debt
approximately $2.3 billion
Net debt-to-EBITDA
2.7x
Annualized cost savings target
approximately $70 million
2026 cost savings landing
$15 million
Cash collected from tariff refunds
approximately $56 million
Q3 EPS guidance
$0.72 to $0.76
Q3 operating margin guidance
12.5% to 13%
Capital expenditures guidance
$110 million to $125 million
Commodity and freight inflation
$90 million incremental
Tariff inflation
about $100 million year-on-year
Earnings Call Recording
Other Earnings Calls

Management

Mr. Nicholas Ian Fink J.D.
CEO & Director
No Bio Available
Ms. Cheri M. Phyfer
Executive VP & Group President
No Bio Available
Mr. David V. Barry
Executive VP & CFO
No Bio Available
Ms. Hiranda S. Donoghue
Executive VP, Chief Legal Officer & Corporate Secretary
No Bio Available
Ms. Karen Ries
Senior VP & Chief Accounting Officer
No Bio Available
Leigh Avsec
VP of Investor Relations & Corporate Affairs
No Bio Available
Mr. Mark-Hans Richer
Chief Marketing Officer
No Bio Available
Ms. Kristin E. Papesh
Executive VP & Chief HR Officer
No Bio Available
Mr. Brett E. Finley
Advisor
No Bio Available
Mr. Dong Gu Lee
Executive VP and Chief Growth & Digital Officer
No Bio Available

Contacts

Address
ILLINOIS
Deerfield
1 Horizon Way, Building N
Contacts
+18474844400
www.fbin.com