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Fortune Brands Innovations (FBIN) Q3 2026 Earnings Report
FBIN Q3 2026 EPS Results
- Actual EPS
- $1.14
- Consensus EPS
- $0.74
- Beat/Miss
- Beat by +$0.40
- One Year Ago EPS
- $1.09
FBIN Q3 2026 Revenue Results
- Actual Revenue
- $1.11B
- Expected Revenue
- $1.12B
- Beat/Miss
- Missed by -$9.64M
- YoY Revenue Growth
- -3.09%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/03/2026
- Time
- After Close
- Conference Call
- Tuesday, November 3, 2026
Fortune Brands Innovations's next earnings date is estimated for February 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call presented a mixed outlook. Management highlighted strong brands, improving service levels, substantial cost and portfolio actions, improved free cash flow and a long-term path toward more than 20% EBITDA margins. However, current operating performance remains pressured by declining sales and operating income, Water execution issues, weaker new construction, soft retail demand, channel inventory reductions, service challenges and a turnaround timeline extending into 2027. The positive strategic initiatives and long-term targets were balanced by significant near-term financial and execution challenges.
For the fourth quarter, Fortune Brands expects net sales to be in the range of approximately $925 million to $995 million and EPS before charges and gains of $0.19 to $0.29, including approximately $20 million from businesses being exited or sold, approximately $25 million from the market, approximately $55 million from channel inventory, roughly $0.14 of portfolio optimization and alignment actions, and approximately a $0.07 headwind to 4Q '26 EPS from tariff refund impact on variable compensation. For the full year, it expects sales in the range of $4.205 billion to $4.275 billion and EPS of $3.20 to $3.30, with net tariff refunds contributing approximately $0.59 of EPS and a cash tax benefit of approximately $50 million in 4Q '26. The company expects an annualized run rate of $70 million in SG&A savings by the first quarter of 2027, more than $120 million of annual benefit as it exits 2027, and the combined inflection to be fully visible in its results by Q4 2027; its longer-term target is to exceed 20% underlying EBITDA margins while driving above-market growth.
- Strong Brand Portfolio and Customer RelationshipsManagement emphasized the strength of its core brands, including Moen, House of Rohl, Therma-Tru, Larson, Master Lock and Yale, as well as longstanding relationships with customers and channel partners. Customers identified reliable service levels, closer collaboration, stronger marketing and accelerated product development as key needs that management believes are within its control.
- Service Levels ImprovedService levels improved by 10 percentage points during the quarter, with fill rates reaching the high 90s range entering the fourth quarter. The company is rebuilding its sales and operations planning process and restoring safety stock to appropriate levels.
- Organizational Realignment and SG&A Savings PlanThe company is moving away from recent centralization and realigning employees around focused business units. Approximately 40% of salaried employees were aligned to a specific business or geography earlier this year, and that figure is expected to exceed 80% by year-end. Fortune Brands is on track to deliver an annualized run rate of $70 million in SG&A savings by the first quarter of 2027.
- Fiberon DivestitureFortune Brands signed an agreement to sell its Fiberon decking business for $160 million. The transaction is expected to close before year-end, with proceeds intended to reduce net leverage and be reinvested in the business.
- Portfolio Optimization Expected to Improve EarningsThe company is restructuring its China business and rationalizing the EMEA operating footprint of a Water business. Management expects these portfolio actions to be earnings and margin accretive. The affected businesses currently generate a combined annual operating loss of approximately $50 million to $55 million on revenue of $320 million to $330 million, and the initiatives are expected to reach a full run-rate benefit by the end of next year.
- Long-Term Profitability TargetsManagement expects the actions announced to date to deliver more than $120 million of annual benefit as the company exits 2027. The longer-term target is to exceed 20% underlying EBITDA margins while driving above-market growth.
- Growth and Product Development InvestmentsThe company plans to use 2027 as a rebuilding year, investing in underpenetrated repair and remodel and commercial end markets, accelerating new-product development and launches, and improving sales and marketing execution. Product-development teams are being realigned to individual businesses and subsegments to support faster execution, with management stating that each business has opportunities for accretive growth from new products.
- Outdoors Revenue Growth and Door Business ResilienceOutdoors sales increased 0.8% to $347 million, or 3.4% excluding Fiberon, driven primarily by favorable year-over-year channel-inventory comparisons and higher price realization. Management said the Doors business remains resilient, and Therma-Tru is expected to benefit from the positive outcome of a recent antidumping case.
- Security Operating Income GrowthSecurity operating income increased 16.9% to $39 million, and operating margin expanded 350 basis points to 21.3%. Growth in the commercial channel and increased Yale penetration with multifamily customers partially offset declines in retail and e-commerce.
- Tariff Refunds and Tax BenefitsThe company recognized $29 million in gross tariff refunds in the third quarter, translating to $18 million of operating income and $0.14 of EPS after variable compensation. Full-year net tariff refunds are expected to contribute approximately $0.59 of EPS. A separate internal European legal-entity restructuring generated a $33 million net tax benefit, or $0.28 per share, and is intended to reduce future statutory reporting, legal, tax and treasury costs.
- Improved Free Cash Flow and Leverage ProfileThird-quarter free cash flow was $331 million, compared with $177 million in the prior-year quarter, primarily reflecting tariff refund proceeds and lower capital expenditures. Year-to-date free cash flow was $371 million. Net debt was approximately $2.1 billion and net debt-to-EBITDA was 2.5x, with management expecting net leverage to decline further by year-end because of the Fiberon divestiture.
- New Leadership AppointmentsThe company added Peter Clifford as Chief Financial Officer, appointed Dave Barry to lead Moen, made Rachel Roberts Moen's Chief Commercial Officer, appointed Peter DuBois as Chief Information Officer and announced Morgan Fox as Chief Legal Officer and Corporate Secretary. Management also added leadership across the Doors and Security businesses.
FBIN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 03, 2027 | 2026 (Q4) | 0.46- | 0.86 | ― | ― |
| Nov 03, 2026 | 2026 (Q3) | 0.741.14 | 1.09 | 4.59% (+0.05) | |
| Aug 04, 2026 | 2026 (Q2) | 0.801.35 | 1 | 35.00% (+0.35) | |
| May 07, 2026 | 2026 (Q1) | 0.520.53 | 0.66 | -19.70% (-0.13) | |
| Feb 12, 2026 | 2025 (Q4) | 0.990.86 | 0.98 | -12.24% (-0.12) | |
| Oct 30, 2025 | 2025 (Q3) | 1.101.09 | 1.16 | -6.03% (-0.07) | |
| Jul 31, 2025 | 2025 (Q2) | 0.961.00 | 1.16 | -13.79% (-0.16) | |
| May 06, 2025 | 2025 (Q1) | 0.660.66 | 0.83 | -20.48% (-0.17) | |
| Feb 06, 2025 | 2024 (Q4) | 1.050.98 | 0.95 | 3.16% (+0.03) | |
| Nov 06, 2024 | 2024 (Q3) | 1.151.16 | 1.19 | -2.52% (-0.03) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
