Fortune Brands Innovations (FBIN)
NYSE:FBIN
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Fortune Brands Innovations
(NYSE:FBIN)
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Rating:51Neutral
Price Target:
$38.00
▼(-6.01% Downside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weakening financial trends (multi-year revenue declines, margin and ROE compression, and higher leverage) and bearish technicals (price below all major moving averages with negative MACD). Offsetting factors include still-resilient gross margins, decent free-cash-flow conversion quality, a moderate dividend yield, and an earnings-call plan that targets H2 margin recovery via cost savings—though rising tariff/commodity headwinds and softer demand keep the near-term outlook cautious.
Positive Factors
Resilient gross margins
Fortune Brands sustains high gross margins (~41%–46%), reflecting pricing power and a favorable product mix in water and premium SKUs. That margin buffer improves durability of operating profits through cost cycles, helping absorb input inflation and support midterm margin recovery initiatives.
Negative Factors
Multi-year revenue declines
Sustained top‑line erosion since 2022 and a steep TTM revenue decline reduce scale economics and raise the bar for margin recovery. Continued volume weakness in key channels undermines pricing leverage and makes multi‑quarter operational improvements necessary to restore growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient gross margins
Fortune Brands sustains high gross margins (~41%–46%), reflecting pricing power and a favorable product mix in water and premium SKUs. That margin buffer improves durability of operating profits through cost cycles, helping absorb input inflation and support midterm margin recovery initiatives.
Read all positive factors
Fortune Brands Innovations Key Performance Indicators (KPIs)
Any
Revenue by Channel
Shows how sales are distributed across different channels, indicating the effectiveness of sales strategies and potential areas for expansion or risk.
Shows how sales are distributed across different channels, indicating the effectiveness of sales strategies and potential areas for expansion or risk.
Data provided by:
The Fly
The FlyFortune Brands Innovations (FBIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.10B
Dividend Yield1.91%
Average Volume (3M)2.96M
Price to Earnings (P/E)47.5
Beta (1Y)1.22
Revenue Growth-2.01%
EPS Growth-34.26%
CountryUS
Employees11,000
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)2.25
Shares Outstanding119,293,420
10 Day Avg. Volume2,306,930
30 Day Avg. Volume2,957,554
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)2.61
Price to Sales (P/S)1.39
P/FCF Ratio16.97
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue1.54
Enterprise Value/Gross Profit3.50
Enterprise Value/Ebitda10.40
Forecast
1Y Price Target
$46.20Price Target Upside14.27% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)3.18
Revenue Forecast (FY)$4.38B
Fortune Brands Innovations Business Overview & Revenue Model
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 comprisin...
How the Company Makes Money
FBIN makes money primarily by selling branded home and security products to channel partners (e.g., big-box and specialty retailers, distributors/wholesalers, and professional trade customers such as builders, plumbers, and contractors), as well a...
Fortune Brands Innovations Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Negative
The call outlined clear, tangible actions and several commercial and product wins (brand campaigns, award-winning products, faster commercialization, expanded cost-savings target) and affirmed balance-sheet strength. However, near-term financial performance shows meaningful weakness: consolidated sales and operating income declined, margins compressed (down ~200 bps), free cash flow was more negative, and inflation/tariff pressures rose (total headwind now ~ $180M). Management reduced 2026 sales guidance to be in line with the market and expects margin recovery primarily in H2 supported by cost savings and favorable price/cost dynamics. Given the combination of decisive remediation actions and credible long-term strategies weighed against current profit, cash-flow and demand headwinds, the negatives modestly outweigh the positives in the near term.Positive Updates
Cost Savings Target Increased
Raised annualized run-rate cost savings target from $35 million to $70 million, with $15 million expected to be captured in 2026 (over 150 basis points of potential annual margin improvement before reinvestment).
Negative Updates
Consolidated Revenue and Profit Declines
Total company sales were $1.0 billion in Q1, down 2% (down 1% ex-China), consolidated operating income fell 18% to $112 million, and operating margin decreased 200 basis points to 11.1%.
Read all updates
Q1-2026 Updates
Positive
Negative
Cost Savings Target Increased
Raised annualized run-rate cost savings target from $35 million to $70 million, with $15 million expected to be captured in 2026 (over 150 basis points of potential annual margin improvement before reinvestment).
Read all positive updates
Company Guidance
The company updated 2026 guidance to net sales down low single digits, EPS $3.00–$3.30 and operating margin 13.5%–14.5%, reflecting $15 million of 2026 cost savings (part of a $70 million annualized run-rate target that represents >150 bps of annual margin improvement and is expected to be fully realized by Q1‑2027); management now assumes total incremental headwinds of roughly $180 million (tariffs ~$100 million plus an incremental ~$40 million from commodities and freight versus prior ~$140 million), expects full‑year price to be up mid‑single digits, and anticipates a roughly 50/50 H1/H2 sales split with EPS weighted low‑40% H1 / high‑50% H2 and second‑half margins ~300 bps higher than the first half. For context, Q1 results were: total sales $1.0 billion (‑2%, ex‑China ‑1%), operating income $112 million (‑18%) and margin 11.1% (‑200 bps), EPS $0.53 (‑20%); segment Q1 sales/OI: Water $564M/$106M (flat / OI ‑6%, margin 18.8% ‑120 bps), Outdoors $294M/$22M (‑3% / OI ‑31%, margin 7.4% ‑300 bps) and Security $153M/$22M (‑6% / OI ‑7%, margin 14.2% flat); Q1 free cash flow was ‑$140M (vs. ‑$113M LY), net debt ≈$2.5B with net leverage 2.9x (target <2.5x), liquidity >$900M including ≈$695M undrawn revolver, and $75M returned to shareholders.Fortune Brands Innovations Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
52
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.44B | 4.46B | 4.61B | 4.63B | 4.72B | 4.80B |
| Gross Profit | 1.95B | 1.99B | 2.07B | 1.91B | 1.93B | 1.96B |
| EBITDA | 657.50M | 714.60M | 919.60M | 803.20M | 977.90M | 999.80M |
| Net Income | 271.70M | 298.80M | 471.90M | 404.50M | 686.70M | 772.40M |
Balance Sheet | ||||||
| Total Assets | 6.55B | 6.52B | 6.56B | 6.57B | 6.12B | 7.94B |
| Cash, Cash Equivalents and Short-Term Investments | 223.10M | 264.00M | 381.10M | 366.40M | 642.50M | 425.60M |
| Total Debt | 2.96B | 2.54B | 2.83B | 2.81B | 2.77B | 2.82B |
| Total Liabilities | 4.19B | 4.13B | 4.14B | 4.27B | 4.04B | 4.87B |
| Stockholders Equity | 2.36B | 2.39B | 2.42B | 2.29B | 2.08B | 3.06B |
Cash Flow | ||||||
| Free Cash Flow | 399.80M | 366.80M | 474.50M | 799.30M | 320.20M | 474.50M |
| Operating Cash Flow | 442.80M | 478.60M | 667.80M | 1.06B | 566.30M | 688.70M |
| Investing Cash Flow | -86.20M | -104.90M | -302.90M | -1.04B | -455.50M | -207.10M |
| Financing Cash Flow | -480.90M | -503.30M | -363.40M | -271.30M | 72.50M | -428.60M |
Fortune Brands Innovations Technical Analysis
Neutral
40.43
Price Trends
46.62
Negative
49.97
Negative
51.66
Negative
Market Momentum
-1.62
Negative
46.42
Neutral
53.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIN, the sentiment is Neutral. The current price of 40.43 is above the 20-day moving average (MA) of 39.02, below the 50-day MA of 46.62, and below the 200-day MA of 51.66, indicating a neutral trend. The MACD of -1.62 indicates Negative momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 53.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fortune Brands Innovations Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.35B | 20.05 | 17.68% | 0.69% | 6.31% | 11.06% | |
73 Outperform | $6.62B | 26.40 | 34.81% | 0.66% | 9.71% | 13.17% | |
69 Neutral | $3.89B | 15.58 | 18.85% | ― | 5.36% | -1.81% | |
67 Neutral | $11.10B | 42.48 | 13.40% | 0.53% | 28.27% | -25.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $4.10B | 47.48 | 11.48% | 1.91% | -2.01% | -34.26% | |
46 Neutral | $1.05B | -4.40 | 0.94% | ― | -4.66% | -201.96% |
* Industrials Sector Average
FBIN
Fortune Brands Innovations
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-35.80%
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Fortune Brands Innovations Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Fortune Brands Innovations Adopts Governance Reforms, Declassifies Board
Positive
May 7, 2026
At its 2026 Annual Meeting of Stockholders on May 5, 2026, Fortune Brands Innovations shareholders approved amendments to the company’s Certificate of Incorporation to remove all supermajority voting provisions and to phase out its classifie...
Business Operations and StrategyExecutive/Board Changes
Fortune Brands Announces Major Leadership and Governance Overhaul
Neutral
Mar 16, 2026
On March 16, 2026, Fortune Brands Innovations announced sweeping governance and leadership changes, including a cooperation agreement with Garden Investment Management that adds its CEO, Ed Garden, to the board as an independent Class I director. ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Fortune Brands Innovations Announces Major Leadership and Governance Changes
Negative
Mar 16, 2026
On March 16, 2026, Fortune Brands Innovations announced sweeping leadership and governance changes, launching a comprehensive search for a new chief executive after previously designated CEO Amit Banati chose not to assume the role and resigned fr...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Fortune Brands Innovations Announces CEO Transition Amid Challenges
Negative
Feb 12, 2026
On February 12, 2026, Fortune Brands Innovations unveiled a leadership transition following a difficult 2025, appointing director Amit Banati as chief executive officer effective May 13, 2026, succeeding Nicholas Fink, who will resign as CEO and d...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.