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Fortune Brands Innovations (FBIN) AI Stock Analysis
Fortune Brands Innovations
(NYSE:FBIN)
The score is held back primarily by weakening financial performance (sharp TTM margin compression and lower free cash flow) and a less forgiving valuation (P/E ~35) for a business facing execution and inflation pressures. Offsetting factors include supportive near-term technical momentum (price above 20/50DMAs with positive MACD) and a mixed earnings outlook where cost actions, product strength (especially Security), and tariff-related benefits help results, but underlying guidance (ex-tariff) and Water execution issues remain key risks.
Fortune Brands Innovations Key Performance Indicators (KPIs)
Revenue by SegmentBreaks down sales by business segment, highlighting which areas contribute most to growth and where there might be opportunities or challenges.
Fortune Brands Innovations is navigating mixed performance across its segments. The Water segment faces a 3% sales decline, partly due to inventory destocking in Canada, while the Outdoors segment struggles with margin pressure from higher material costs. However, the Security segment shows resilience with a 5% sales increase, bolstered by e-commerce and new retail placements. Despite these challenges, the company is optimistic about outperforming the market, driven by strategic transformations and digital growth, including a promising digital portfolio expected to reach $300 million in sales by year-end.
The FlyFortune Brands Innovations (FBIN) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $5.34B
- Dividend Yield
- 2.30%
- Average Volume (3M)
- 2.26M
- Price to Earnings (P/E)
- 36.4
- Beta (1Y)
- 1.19
- Revenue Growth
- -2.31%
- EPS Growth
- -61.33%
- Country
- US
- Employees
- 10,000
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Construction Materials
Fortune Brands Innovations Business Overview & Revenue Model
Company Description
Fortune Brands Innovations, Inc. specializes in providing a diverse array of water, outdoor, and security-focused products. Their extensive offerings encompass solutions for water management, smart connected devices, outdoor living enhancements, mate...
How the Company Makes Money
FBIN makes money primarily by selling branded home and security products to channel partners and professional customers, with revenue recognized from product shipments/sales under customer purchase orders and supply arrangements. Its key revenue stre...
Fortune Brands Innovations Earnings Call Summary
The call presented a mix of meaningful near-term positives driven largely by one-time tariff refund benefits, product launches, improved free cash flow, and a clear management plan (new CEO, $70M cost program, marketing realignment). However, underlying operational weaknesses—most notably in the Water segment—service and supply-chain failures, elevated input-cost inflation, a modest downward EPS guide (excluding tariff benefit), and outstanding leverage risks temper the near-term outlook. Management has outlined prudent corrective actions and investment priorities with expected progress in 2027, but several challenges remain to be resolved in the near term.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The company maintained net sales guidance of down low-single digits (now expected slightly below the midpoint) and updated full‑year EPS to $3.22–$3.52 (which includes a $0.52 benefit from anticipated net tariff refunds; ex‑tariff EPS of $2.70–$3.00), while noting it assumes a similar operating environment to prior outlook and no commodity relief before year‑end. Quarterly guidance for Q3 is net sales down 1–2%, EPS $0.72–$0.76 and operating margin 12.5–13.0%; at the midpoint management expects second‑half margins to be ~100 bps higher than the first half, with price/cost unfavorable in Q3 and favorable in Q4. The company recognized $122M gross in tariff refunds in Q2 ($104M reduced COGS → $81M operating income / ~700 bps and $0.52 EPS; $18M reduced inventory), has collected roughly $56M of gross proceeds through July 31 (with a $9M cash inflow in Q2), does not assume additional net refund benefit in H2, and said full‑year FCF guidance incorporates the $56M proceeds; other guide points: CapEx $110–$125M, Q2 free cash flow $179M, net debt ~$2.3B (net debt/EBITDA 2.7x) and a near‑term leverage target of ~2.5x.
Fortune Brands Innovations Financial Statement Overview
Summary
Income statement deterioration is the key drag: TTM profitability compressed materially (net margin ~3.4% vs ~6.7% in 2025 and ~10.2% in 2024; EBIT margin ~6.1% vs ~11.7% in 2025) despite relatively stable gross margin. Balance sheet is manageable but less comfortable given weaker returns (ROE ~6.3% TTM) with moderately high leverage (debt-to-equity ~1.1x). Cash flow remains positive but weakened, with TTM free cash flow down notably (~$261M vs ~$367M in 2025).
Income Statement
42NeutralBalance Sheet
56NeutralCash Flow
45Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.39B | 4.46B | 4.61B | 4.63B | 4.72B | 4.80B |
| Gross Profit | 2.00B | 1.99B | 2.07B | 1.91B | 1.93B | 1.96B |
| EBITDA | 445.50M | 714.60M | 919.60M | 803.20M | 977.90M | 999.80M |
| Net Income | 148.90M | 298.80M | 471.90M | 404.50M | 686.70M | 772.40M |
Balance Sheet | ||||||
| Total Assets | 6.34B | 6.52B | 6.56B | 6.57B | 6.12B | 7.94B |
| Cash, Cash Equivalents and Short-Term Investments | 209.70M | 264.00M | 381.10M | 366.40M | 642.50M | 425.60M |
| Total Debt | 2.80B | 2.54B | 2.83B | 2.81B | 2.77B | 2.82B |
| Total Liabilities | 4.03B | 4.13B | 4.14B | 4.27B | 4.04B | 4.87B |
| Stockholders Equity | 2.31B | 2.39B | 2.42B | 2.29B | 2.08B | 3.06B |
Cash Flow | ||||||
| Free Cash Flow | 400.50M | 366.80M | 474.50M | 799.30M | 320.20M | 474.50M |
| Operating Cash Flow | 496.20M | 478.60M | 667.80M | 1.06B | 566.30M | 688.70M |
| Investing Cash Flow | -81.90M | -104.90M | -302.90M | -1.04B | -455.50M | -207.10M |
| Financing Cash Flow | -440.50M | -503.30M | -363.40M | -271.30M | 72.50M | -428.60M |
Fortune Brands Innovations Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIN, the sentiment is Positive. The current price of 44.75 is above the 20-day moving average (MA) of 40.86, above the 50-day MA of 41.11, and above the 200-day MA of 44.69, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 67.38 is Neutral, neither overbought nor oversold. The STOCH value of 82.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBIN.
Fortune Brands Innovations Risk Analysis
Fortune Brands Innovations disclosed 23 risk factors in its most recent earnings report. Fortune Brands Innovations reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
0 New RisksFortune Brands Innovations Peers Comparison
Overall Rating
TREX70Outperform
MAS69Neutral
GFF67Neutral
JHX65Neutral
NX65Neutral- FBIN54Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TREX | 70Outperform | $5.21B | 30.44 | 17.38% | ― | 6.97% | -2.53% |
| MAS | 69Neutral | $15.54B | 17.45 | -298.23% | 1.57% | 0.95% | 17.94% |
| GFF | 67Neutral | $4.58B | 22.36 | 198.41% | 0.87% | -12.03% | 209.72% |
| JHX | 65Neutral | $15.81B | 107.88 | 2.27% | ― | 42.93% | -67.45% |
| NX | 65Neutral | $947.23M | 20.80 | 6.19% | 1.55% | 1.26% | ― |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| FBIN | 54Neutral | $5.34B | 36.38 | 6.31% | 2.30% | -2.31% | -61.33% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FBIN | Fortune Brands Innovations, Inc. | 44.75 | -4.70 | -9.50% | |
| GFF | Griffon | 101.09 | 26.77 | 36.03% | |
| MAS | Masco Corporation | 80.64 | 18.10 | 28.95% | |
| NX | Quanex Building Products | 20.67 | 6.89 | 50.01% | |
| TREX | Trex Company | 51.14 | 3.20 | 6.68% | |
| JHX | James Hardie Industries PLC | 27.24 | 6.79 | 33.20% |
Fortune Brands Innovations Corporate Events
Fortune Brands Innovations Announces Key Leadership Realignment
PositiveOn October 22 and October 27, 2026, Fortune Brands Innovations announced a series of leadership and organizational changes aimed at sharpening business focus and execution. Dave Barry, currently Executive Vice President and Chief Operating Officer, w...
Fortune Brands to Divest Fiberon Composite Decking Business
NegativeOn June 27, 2026, Fortune Brands Innovations recorded a $221.2 million impairment on its Fiberon asset group within the Outdoors segment, reducing the carrying value of Fiberon customer relationship intangibles and property and equipment. The charge...
Fortune Brands Innovations Names Peter Clifford New CFO
PositiveOn Sept. 9, 2026, Fortune Brands Innovations announced that its board appointed Peter G. Clifford as Executive Vice President and Chief Financial Officer, effective Sept. 21, 2026, while interim CFO Ashley George will return to her prior role as Seni...
Fortune Brands Innovations Announces Legal Leadership Transition
NeutralOn July 24, 2026, Fortune Brands Innovations, Inc. announced that Executive Vice President, Chief Legal Officer and Corporate Secretary Hiranda S. Donoghue would depart the company, effective July 31, 2026. Vice President and Deputy General Counsel J...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 28, 2026