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Fortune Brands Innovations (MX:FBIN)
:FBIN
Mexico Market
EarningsQ2 2026 Earnings Report

Fortune Brands Innovations (FBIN) Q2 2026 Earnings Report

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MX:FBIN Q2 2026 EPS Results

Actual EPS$22.93
Consensus EPS$13.59
Beat/MissBeat by +$9.34
One Year Ago EPS$16.98

MX:FBIN Q2 2026 Revenue Results

Actual Revenue$19.60B
Expected Revenue$19.67B
Beat/MissMissed by -$71.00M
YoY Revenue Growth-4.11%

Earnings Announcement Details

QuarterQ2 2026
Date08/04/2026
TimeAfter Close
Conference CallTuesday, August 4, 2026
MX:FBIN Upcoming Earnings
Fortune Brands Innovations's next earnings date is estimated for October 28, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:FBIN Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 04, 2026|
% Change Since:
|
Earnings Call Sentiment|Neutral
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.
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.
Tariff Refunds Boost Near-Term Results
Recognized $122M gross tariff refunds in Q2 ( $104M reduction in COGS; $81M net operating income benefit), which contributed ~700 bps to consolidated operating margin and $0.52 of EPS in the quarter. $56M of gross proceeds collected through July 31 with expectation the majority will be received before year-end 2026.
Consolidated Profitability Improvement (Q2)
Total company sales of $1.2B (down 4%) with consolidated operating income of $236M, up 18.4% year-over-year, and operating margin of 20.4%, up 390 basis points. Reported EPS was $1.35 (benefited from tariff refunds).
Security Segment Outperformance
Security sales of $184M, up 3.8% year-over-year. Segment operating income $50M, up 88.2%, and margin 26.8%, up 1,200 bps; included $19M of anticipated net tariff refunds. New product introductions (e.g., Master Lock Elite) contributed ~200 bps to sales growth and are reported to be exceeding expectations.
Outdoors Resilience and Product Momentum
Outdoors sales of $365M (down 3.8%; excluding Fiberon down 1.5%) with operating income $56M, up 14.2%, and margin 15.2% (up 240 bps), reflecting improved operating performance and $5M of tariff refund benefit. Larson and Therma-Tru show positive trends (Larson POS momentum; Therma-Tru material conversion opportunity).
Free Cash Flow and Leverage Focus
Q2 free cash flow of $179M vs $119M prior-year (increase of ~$60M, ~50% higher), helping reduce net debt to approximately $2.3B and net debt-to-EBITDA to 2.7x. Company targeting leverage below 2.5x and prioritizing free cash flow generation for reinvestment and eventual shareholder returns.
Operational and Organizational Actions
New CEO Jesse Singh and management initiatives: $70M annualized cost program (targeted ~$15M in 2026 and fully by Q1 2027), moving brand/marketing back into business units to improve execution, and active strategic review of non-core assets (e.g., Fiberon). Management expects to realign the business by year-end and show progress in 2027.
Product Innovation Showing Early Traction
Recent launches include Moen SwivelControl faucet (and Retrofit Wand) and Master Lock Elite padlock. Initial consumer and channel feedback is positive; company expects new product benefits to continue into the back half of the year and into 2027.

MX:FBIN Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 28, 2026
2026 (Q3)
12.60 / -
18.511
2026 (Q2)
13.59 / 22.93
16.98335.00% (+5.94)
2026 (Q1)
8.78 / 9.00
11.208-19.70% (-2.21)
2025 (Q4)
16.88 / 14.60
16.643-12.24% (-2.04)
2025 (Q3)
18.73 / 18.51
19.7-6.03% (-1.19)
2025 (Q2)
16.39 / 16.98
19.7-13.79% (-2.72)
2025 (Q1)
11.14 / 11.21
14.096-20.48% (-2.89)
2024 (Q4)
17.85 / 16.64
16.1333.16% (+0.51)
2024 (Q3)
19.45 / 19.70
20.209-2.52% (-0.51)
2024 (Q2)
19.04 / 19.70
18.1718.41% (+1.53)
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.
Beat
Missed