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Fortune Brands Innovations
(NYSE:FBIN)
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Rating:56Neutral
Price Target:
$54.00
▲(5.32% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by deteriorating TTM profitability and weakening free-cash-flow momentum, with leverage becoming less comfortable as returns compress. Offsetting this, technical signals are broadly positive (price above major moving averages, positive MACD), and the latest call shows a credible cost/FCF focus, but near-term guidance relies on one-time tariff refunds and highlights ongoing operational and inflation headwinds.
Positive Factors
Diversified portfolio
Fortune Brands sells across three distinct end-markets (water, outdoor, security) and multiple channels. This diversification smooths exposure to any single housing or remodel cycle, supports cross-channel distribution scale, and preserves durable revenue sources as individual segment cycles diverge.
Negative Factors
Profitability compression
Margins have eroded meaningfully despite stable gross margin, implying pressures below gross profit (operating costs, service costs, and mix). Persistently lower operating margins reduce internal reinvestment capacity and return on capital, making recovery and sustainable ROE improvement a longer-term challenge.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified portfolio
Fortune Brands sells across three distinct end-markets (water, outdoor, security) and multiple channels. This diversification smooths exposure to any single housing or remodel cycle, supports cross-channel distribution scale, and preserves durable revenue sources as individual segment cycles diverge.
Read all positive factors
Fortune Brands Innovations Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales by business segment, highlighting which areas contribute most to growth and where there might be opportunities or challenges.
Breaks down sales by business segment, highlighting which areas contribute most to growth and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyFortune Brands Innovations (FBIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.56B
Dividend Yield2.25%
Average Volume (3M)2.56M
Price to Earnings (P/E)37.8
Beta (1Y)1.25
Revenue Growth-2.31%
EPS Growth-61.33%
CountryUS
Employees10,000
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)1.23
Shares Outstanding119,371,475
10 Day Avg. Volume1,906,826
30 Day Avg. Volume2,558,894
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$56.29Price Target Upside9.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)3.34
Revenue Forecast (FY)$4.35B
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, m...
How the Company Makes Money
FBIN makes money by selling branded home and security products to customers across retail, wholesale distribution, and professional trade channels, generating revenue primarily from product sales (rather than recurring subscriptions). Key revenue ...
Fortune Brands Innovations Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
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.Positive Updates
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.
Negative Updates
Water Segment Underperformance
Water sales of $605M, down 6.5% year-over-year (excluding China down 5.4%). Underlying performance weakened due to service-level challenges, carryover discrete share losses, and softness in new-construction demand. Price was up low-single digits while volume declined high-single digits in Q2.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive 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
42
Neutral
Balance Sheet
56
Neutral
Cash Flow
45
Neutral
| 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 | 471.70M | 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
Negative
51.27
Price Trends
48.22
Negative
43.35
Positive
47.19
Negative
Market Momentum
-0.46
Positive
37.80
Neutral
3.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIN, the sentiment is Negative. The current price of 51.27 is above the 20-day moving average (MA) of 49.74, above the 50-day MA of 48.22, and above the 200-day MA of 47.19, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 37.80 is Neutral, neither overbought nor oversold. The STOCH value of 3.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.57B | 24.51 | 35.36% | 0.82% | 8.57% | 8.25% | |
76 Outperform | $8.03B | 21.32 | 18.44% | 0.60% | 6.48% | 16.55% | |
69 Neutral | $4.97B | 29.02 | 17.38% | ― | 6.97% | -2.53% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $7.26B | 45.17 | 17.21% | 0.39% | 53.53% | 29.55% | |
56 Neutral | $5.56B | 37.85 | 6.31% | 1.99% | -2.31% | -61.33% | |
52 Neutral | $1.41B | -163.90 | -0.96% | ― | 14.47% | -220.54% |
* Industrials Sector Average
FBIN
Fortune Brands Innovations
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Fortune Brands Innovations Corporate Events
Executive/Board Changes
Fortune Brands Innovations Announces Legal Leadership Transition
Neutral
Jul 30, 2026
On 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 Counse...
Business Operations and StrategyExecutive/Board Changes
Fortune Brands Appoints Jesse Singh as New CEO
Positive
Jun 29, 2026
On June 29, 2026, Fortune Brands Innovations appointed former AZEK chief executive Jesse G. Singh as CEO and a Class I director, while interim chief executive David V. Barry moved into the role of executive vice president and chief operating offic...
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...
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.