Download PDF

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.

Show Full description

1.b. Last Insights on FBIN

Fortune Brands Innovations' recent performance was driven by several factors. The company's Q4 2025 earnings call revealed softer volumes and mix pressures amid a subdued housing backdrop. Despite missing Q4 earnings and revenue estimates, with earnings of $0.86 per share, the company shows recovery potential. Institutional investors, such as First Trust Advisors LP and Federated Hermes Inc., have increased their stakes, with First Trust Advisors LP lifting its position by 9.1%. Additionally, the company has appointed Amit Banati as CEO, effective May 13, 2026. A new product launch by Fiberon, a subsidiary, also presents growth opportunities.

1.c. Company Highlights

2. Fortune Brands Innovations' Q4 2025 Earnings: A Closer Look

Fortune Brands Innovations reported total company sales of $1.1 billion for the fourth quarter, down 2% year-over-year. Excluding the impact of China, sales were flat. Consolidated operating income was $158 million, down 13%, largely due to lower sales volumes and the mix impact in the company's more profitable products and channels. Earnings per share (EPS) came in at $0.86, missing analyst estimates of $0.997. The operating margin was 14.3%, down 170 basis points from the same period last year.

Publication Date: Feb -16

📋 Highlights
  • Leadership Transition Completed: Amit Banati succeeded Nick Fink as CEO in May 2025 after Fink’s tenure from 2020, marked by navigating market uncertainties and driving profitability resets.
  • Profitability Reset Actions: $60M savings from 10% HQ workforce reduction and $35M annualized operating income savings from 2026 cost-optimization initiatives.
  • 2025 Financial Decline: Total sales declined 3% to $4.5B (down 10% to $699M operating income), with Q4 operating margin dropping 120 bps to 15.7% ($158M income).
  • Segment Contrasts: Outdoors margin fell 400 bps to 14.2% ($42M income) due to volume declines, while Security margin surged 410 bps to 13.4% ($22M income) from pricing and tariffs.
  • 2026 Guidance: Targets flat to 2% sales growth, 14.5–15.5% operating margin, and $400–450M free cash flow, with $35M cost savings from footprint optimization by 2027.

Segment Performance

The Water segment saw sales of $617 million, down 4% year-over-year, with operating income of $141 million, down 8%. The Outdoors segment reported sales of $295 million, down 3%, with operating income of $42 million, down 24%. Security sales were $166 million, up 6%, driven by higher volume and pricing actions, resulting in operating income of $22 million, up 52%. The segment results indicate a mixed performance, with the Water and Outdoors segments facing challenges, while the Security segment delivered a strong growth.

Guidance and Outlook

For 2026, the company expects net sales growth of approximately flat to 2%, with an operating income margin of 14.5% to 15.5%. The guidance assumes continued market outperformance across the portfolio, with EPS expected to be between $3.35 and $3.65. The company also expects to generate free cash flow of $400 million to $450 million in 2026. As Philip Ng mentioned, "There are several factors impacting our performance. Declines in both the Outdoors and Water segments, with Outdoors being more affected, will impact margins."

Valuation and Metrics

With a P/E Ratio of 20.67 and an EV/EBITDA of 12.54, the stock appears to be reasonably valued. The Net Debt / EBITDA ratio of 3.39 indicates a moderate level of leverage. The company's return on equity (ROE) is 12.7%, and the return on invested capital (ROIC) is 6.99%. The Free Cash Flow Yield is 7.38%, which is a positive indicator. These metrics suggest that the market has a relatively optimistic view of the company's prospects, but the recent earnings miss and guidance may lead to a re-evaluation of the stock's valuation.

3. NewsRoom

Card image cap

Investor Ed Garden Builds Stake in Fortune Brands, Seeking New CEO

00:00

Source: wsj.com

Card image cap

Fortune Brands: Recovery Potential Amid A Soft Cycle

Feb -18

Source: seekingalpha.com

Card image cap

Therma-Tru, Larson, Fiberon, Fypon and Solar Innovations Bring Breakthrough Materials and Immersive Design to the 2026 International Builders' Show

Feb -17

Source: businesswire.com

Card image cap

Fortune Brands Innovations, Inc. (FBIN) Q4 2025 Earnings Call Transcript

Feb -13

Source: seekingalpha.com

Card image cap

Why Fortune Brands Stock Crashed After Earnings

Feb -13

Source: fool.com

Card image cap

Compared to Estimates, Fortune Brands Innovations (FBIN) Q4 Earnings: A Look at Key Metrics

Feb -13

Source: zacks.com

Card image cap

Fortune Brands Innovations (FBIN) Misses Q4 Earnings and Revenue Estimates

Feb -13

Source: zacks.com

Card image cap

Fortune Brands Innovations Appoints Amit Banati as CEO

Feb -12

Source: businesswire.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

Stock-Card
Beacon Roofing Supply

A-Score: 4.7/10

Value: 4.6

Growth: 5.2

Quality: 5.0

Yield: 0.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Advanced Drainage Systems

A-Score: 4.7/10

Value: 2.7

Growth: 6.7

Quality: 6.8

Yield: 0.0

Momentum: 7.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
LP

A-Score: 4.6/10

Value: 3.3

Growth: 7.0

Quality: 6.1

Yield: 3.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Fortune Brands

A-Score: 4.3/10

Value: 5.2

Growth: 4.6

Quality: 5.4

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
AAON

A-Score: 4.0/10

Value: 2.9

Growth: 8.1

Quality: 6.4

Yield: 1.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Trex

A-Score: 3.5/10

Value: 3.8

Growth: 5.8

Quality: 7.5

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

55.93$

Current Price

55.93$

Potential

-0.00%

Expected Cash-Flows