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1. Company Snapshot

1.a. Company Description

Fortune Brands Innovations, Inc.provides water, outdoor, and security products, including water management, connected products, outdoor living, material conversion, sustainability, safety, and wellness.The company's portfolio of brands comprising Moen, House of Rohl, Aqualisa, Therma-Tru, Larson, Fiberon, Master Lock, and SentrySafe.


Fortune Brands Innovations, Inc.was incorporated in 1988 and is headquartered in Deerfield, Illinois.

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1.b. Last Insights on FBIN

Fortune Brands Innovations, Inc.'s recent performance was negatively impacted by its Q3 earnings miss, with the company reporting $1.09 per share, falling short of the $1.1 per share estimate. Additionally, margin pressures and weakness in China and the Outdoors segment have been persistent. Although the company's Water Innovations segment showed resilience with strong EBIT margins and market share gains, particularly from Moen, overall business performance remains mixed. A stake cut by Bank of Montreal Can and DekaBank Deutsche Girozentrale also contributed to the negative sentiment.

1.c. Company Highlights

2. Fortune Brands' Solid Q3 Performance and Optimistic 2026 Outlook

Fortune Brands Innovations reported a solid third quarter in 2025, with sales of $1.1 billion, roughly flat year-over-year, and consolidated operating income of $206 million, down 5%. Earnings per share (EPS) came in at $1.09, slightly below estimates of $1.1. The company's Water segment saw sales of $619 million, down 3% year-over-year, while Outdoors sales were roughly flat, and Security sales rose 5%.

Publication Date: Nov -03

📋 Highlights
  • Flat Sales with Regional Growth: Total sales held steady at $1.1 billion, with 1% growth excluding China’s 3% decline.
  • Water Segment Outperformance: Generated $619 million in sales (down 3% YoY) but achieved flat performance excluding China and low double-digit point-of-sale growth in House of Rohl.
  • Tariff Mitigation Plan: Aims to fully offset $80 million (2025) and $200 million (2026) tariff impacts via supply chain, cost reductions, and pricing strategies.
  • Digitization Momentum: Digital portfolio nearing $300 million annualized sales with over 5 million registered users and strong new device activations.
  • Restructuring Cost Update: Raised total restructuring cost range to $100–120 million, up from prior $75–95 million, as transformation progresses ahead of schedule.

Segment Performance

The Water segment delivered market outperformance, with sales flat excluding China. The House of Rohl portfolio saw significant sales growth and delivered low double-digit point-of-sale growth. The company's digital business continues to scale, with over 5 million registered users and strong momentum in new device activations, approaching a $300 million annualized run rate.

Tariff Impact and Pricing Strategy

Fortune Brands expects to fully offset the anticipated dollar impact of tariffs in 2025 and 2026 through supply chain actions, cost-out opportunities, and strategic pricing actions. The company has made significant investments in data and digital capabilities, allowing it to better understand its customers and consumers, and make more targeted decisions. Its pricing strategy has been focused on leading where necessary, in a clear and transparent way, and incrementally, with the goal of covering costs and driving share gains.

Outlook and Guidance

The company expects to deliver year-over-year sales growth and market outperformance in the fourth quarter of 2025. For 2026, Fortune Brands anticipates a flat overall market and expects to outgrow the market, driven by growth initiatives in digital and luxury. Analysts estimate next year's revenue growth at 2.5%. The company's guidance for 2025 has been updated, with expectations for full-year water margins to be 23-24%.

Valuation and Metrics

With a P/E Ratio of 19.02, P/B Ratio of 2.62, and EV/EBITDA of 12.23, the market appears to have priced in a reasonable growth trajectory for Fortune Brands. The company's ROE of 13.87% and ROIC of 7.68% indicate a relatively healthy profitability profile. The Dividend Yield of 1.95% and Free Cash Flow Yield of 9.06% suggest a decent return for investors.

3. NewsRoom

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Ameritas Investment Partners Inc. Sells 1,092 Shares of Fortune Brands Innovations, Inc. $FBIN

Nov -28

Source: defenseworld.net

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Fortune Brands Innovations, Inc. $FBIN Stake Cut by Bank of Montreal Can

Nov -16

Source: defenseworld.net

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Teacher Retirement System of Texas Increases Stock Position in Fortune Brands Innovations, Inc. $FBIN

Nov -05

Source: defenseworld.net

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Larson Unveils New Website for Homeowners and DIYers

Nov -04

Source: businesswire.com

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Fortune Brands Innovation: Stock To Remain Rangebound

Nov -04

Source: seekingalpha.com

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Fortune Brands Innovations, Inc. $FBIN Shares Bought by Oppenheimer Asset Management Inc.

Nov -02

Source: defenseworld.net

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Fortune Brands Innovations, Inc. (FBIN) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Compared to Estimates, Fortune Brands Innovations (FBIN) Q3 Earnings: A Look at Key Metrics

Oct -31

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.70%)

6. Segments

Water

Expected Growth: 4.5%

Fortune Brands Innovations, Inc.'s Water segment growth of 4.5% is driven by increasing demand for water conservation solutions, rising adoption of smart home technologies, and growing consumer preference for eco-friendly products. Additionally, strategic acquisitions and expansion into new markets have contributed to the segment's growth.

Outdoors

Expected Growth: 4.8%

Outdoors segment of Fortune Brands Innovations, Inc. is driven by increasing consumer spending on outdoor activities, growing demand for outdoor living spaces, and rising popularity of eco-friendly products. Additionally, the company's focus on innovation, strategic acquisitions, and expansion into new markets also contribute to its 4.8% growth.

Security

Expected Growth: 5.2%

Fortune Brands Innovations, Inc.'s 5.2% growth is driven by increasing demand for home and security products, strategic acquisitions, and expansion into new markets. The company's focus on innovation, particularly in smart home technology, has also contributed to its growth. Additionally, the rising need for security and surveillance systems has boosted sales, further solidifying the company's position in the industry.

7. Detailed Products

Moen Faucets

Moen offers a wide range of faucets for kitchens, bathrooms, and bar areas, featuring innovative designs, advanced technologies, and exceptional quality.

Master Lock Padlocks

Master Lock provides a variety of padlocks, including combination locks, keyed locks, and smart locks, offering superior security and convenience.

Therma-Tru Doors

Therma-Tru offers a wide range of fiberglass and steel entry doors, patio doors, and door systems, featuring energy efficiency, durability, and style.

MasterBrand Cabinets

MasterBrand Cabinets provides a wide range of cabinetry solutions, including stock, semi-custom, and custom cabinets, for kitchens, bathrooms, and other rooms.

Fortune Brands Global Plumbing Group (GPG)

GPG offers a comprehensive range of plumbing products, including faucets, toilets, sinks, and shower systems, from leading brands like Moen, Riobel, and others.

8. Fortune Brands Innovations, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Fortune Brands Innovations, Inc. is medium due to the presence of alternative products in the market, but the company's strong brand reputation and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Fortune Brands Innovations, Inc. due to the company's strong brand reputation and customer loyalty, which reduces the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Fortune Brands Innovations, Inc. due to the presence of multiple suppliers in the market, but the company's strong relationships with suppliers mitigate this threat.

Threat Of New Entrants

The threat of new entrants is high for Fortune Brands Innovations, Inc. due to the relatively low barriers to entry in the industry, but the company's strong brand reputation and customer loyalty provide a competitive advantage.

Intensity Of Rivalry

The intensity of rivalry is high for Fortune Brands Innovations, Inc. due to the presence of multiple competitors in the market, but the company's strong brand reputation and customer loyalty provide a competitive advantage.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.14%
Debt Cost 5.57%
Equity Weight 45.86%
Equity Cost 12.15%
WACC 8.59%
Leverage 118.04%

11. Quality Control: Fortune Brands Innovations, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 7.3

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A-Score: 4.2/10

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Quality: 5.1

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A-Score: 3.7/10

Value: 2.2

Growth: 8.1

Quality: 5.8

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.73$

Current Price

50.73$

Potential

-0.00%

Expected Cash-Flows