Fortune Brands Innovations (NYSE:FBIN) Posts Earnings Results, Misses Estimates By $0.14 EPS

Fortune Brands Innovations (NYSE:FBIN) released its earnings results on Thursday. The company reported $0.86 EPS for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.14), FiscalAI reports. The firm had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.14 billion. Fortune Brands Innovations had a return on equity of 19.28% and a net margin of 7.30%.Fortune Brands Innovations’s revenue was down 2.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.98 EPS. Fortune Brands Innovations updated its FY 2026 guidance to 3.350-3.650 EPS.

Here are the key takeaways from Fortune Brands Innovations’ conference call:

• Board announced a planned CEO transition: Nick Fink will depart and Amit Banati, a long-time board member with senior finance and commercial experience, will become CEO in May with Chair Susan Kilsby serving as interim to ensure continuity.
• Company has launched a profitability reset—headquarters workforce reduced ~10% in 2025, captured $60 million of continuous improvement savings, and identified initiatives expected to deliver an annualized $35 million operating income run rate by year-end (not included in 2026 guidance).
• 2026 guidance assumes net sales ~flat to +2%, operating margin ~14.5%-15.5%, EPS $3.35–$3.65, and free cash flow $400–$450 million, while assuming tariffs remain at current levels and ~$80M of incremental SG&A versus 2025.
• Segment mix is uneven: Security exited 2025 with strong momentum, but Outdoors lagged materially (Q4 operating income down 24%, margin down 400 bps), including loss of a key Fiberon retailer account—management says Outdoors will be the primary focus for margin restoration.
• Balance sheet and cash generation remain solid: net debt ~$2.3 billion (~2.6x EBITDA), $1.1 billion liquidity (including an extended $1.25 billion revolver), $367 million FCF in 2025 and $248 million of buybacks for the year, with a target to reduce leverage below 2.5x.

Fortune Brands Innovations Trading Down 1.2%

Shares of NYSE:FBIN traded down $0.74 during trading on Thursday, hitting $62.33. The company had a trading volume of 2,914,468 shares, compared to its average volume of 2,054,437. The stock has a market cap of $7.49 billion, a price-to-earnings ratio of 23.26, a price-to-earnings-growth ratio of 5.44 and a beta of 1.41. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.95 and a quick ratio of 0.94. The company has a fifty day simple moving average of $55.02 and a two-hundred day simple moving average of $54.15. Fortune Brands Innovations has a one year low of $44.04 and a one year high of $70.05.

Fortune Brands Innovations Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 11th. Shareholders of record on Friday, February 20th will be given a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 1.7%. This is a boost from Fortune Brands Innovations’s previous quarterly dividend of $0.25. The ex-dividend date is Friday, February 20th. Fortune Brands Innovations’s dividend payout ratio (DPR) is currently 37.31%.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on FBIN. Weiss Ratings restated a “hold (c-)” rating on shares of Fortune Brands Innovations in a research note on Monday, December 29th. Vertical Research began coverage on shares of Fortune Brands Innovations in a research note on Tuesday, October 21st. They set a “hold” rating and a $52.00 target price for the company. UBS Group decreased their price target on shares of Fortune Brands Innovations from $83.00 to $79.00 and set a “buy” rating on the stock in a research note on Friday, October 31st. Royal Bank Of Canada restated an “outperform” rating and set a $62.00 price objective on shares of Fortune Brands Innovations in a research report on Friday, January 9th. Finally, Evercore reaffirmed an “outperform” rating on shares of Fortune Brands Innovations in a report on Friday, October 31st. Four research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, Fortune Brands Innovations presently has a consensus rating of “Hold” and a consensus target price of $62.33.

Hedge Funds Weigh In On Fortune Brands Innovations

Several hedge funds have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC raised its position in Fortune Brands Innovations by 158.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 527 shares of the company’s stock valued at $27,000 after purchasing an additional 323 shares in the last quarter. Brown Brothers Harriman & Co. raised its holdings in shares of Fortune Brands Innovations by 628.9% in the fourth quarter. Brown Brothers Harriman & Co. now owns 605 shares of the company’s stock valued at $30,000 after acquiring an additional 522 shares in the last quarter. Measured Wealth Private Client Group LLC bought a new position in Fortune Brands Innovations during the 3rd quarter worth about $31,000. Caitong International Asset Management Co. Ltd raised its holdings in shares of Fortune Brands Innovations by 180.7% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 741 shares of the company’s stock valued at $40,000 after purchasing an additional 477 shares in the last quarter. Finally, Darwin Wealth Management LLC purchased a new stake in shares of Fortune Brands Innovations in the 2nd quarter worth approximately $47,000. 87.60% of the stock is currently owned by institutional investors.

About Fortune Brands Innovations

Fortune Brands Innovations (NYSE: FBIN), formerly known as Fortune Brands Home & Security, is a global leader in water innovations, specializing in the design, manufacturing and marketing of plumbing fixtures, fittings and related products. Headquartered in Deerfield, Illinois, the company leverages two iconic brands—Moen and House of Rohl—to deliver high-quality kitchen and bathroom solutions across residential and commercial markets. With a focus on performance, reliability and aesthetic design, FBIN’s portfolio spans faucets, showerheads, accessories and water filtration systems.

The company’s products are sold through a diversified network of retail partners, wholesale distributors and online channels across North America, Europe, Asia-Pacific and Latin America.