Fortune Brands Innovations Reports Q4 Earnings Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2025
0mins
Should l Buy FBIN?
Fortune Brands Innovations Inc. shares fell 16.77% as the stock hit a 20-day low.
The company reported a Q4 non-GAAP EPS of $0.86, missing expectations by $0.14, which indicates pressure on profitability and could undermine investor confidence. Additionally, the Q4 revenue of $1.08 billion represented a 1.8% year-over-year decline, falling short of market expectations by $60 million. The guidance for full-year 2026 suggests net sales are expected to be flat to a 2.0% increase, reflecting management's cautious outlook on future market conditions.
The disappointing earnings report has led to a significant drop in share price, indicating market dissatisfaction and potentially resulting in short-term capital outflows and decreased investor confidence.
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Analyst Views on FBIN
Wall Street analysts forecast FBIN stock price to rise
10 Analyst Rating
4 Buy
5 Hold
1 Sell
Moderate Buy
Current: 53.850
Low
50.00
Averages
62.63
High
79.00
Current: 53.850
Low
50.00
Averages
62.63
High
79.00
About FBIN
Fortune Brands Innovations, Inc. is focused on the home products, security and commercial building markets. The Company's segments include Water, Outdoors and Security. The Water segment manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposals. The Outdoors segment manufactures and sells fiberglass and steel entry door systems; storm, screen and security doors; composite decking, railing and cladding; urethane millwork, and wide-opening exterior door systems and outdoor enclosures. This segment sells products principally in the United States and Canada. The Security segment’s products consist of locks, safety and security devices, connected and mechanical lock out tag out solutions and electronic security products, and fire resistant safes, security containers and commercial cabinets. Its portfolio of brands includes Moen, House of Rohl, Aqualisa, SpringWell, Therma-Tru, Larson, Fiberon, Master Lock, SentrySafe and Yale residential.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Immersive Booth Design: The booth features natural textures and warm architectural lines, showcasing complete product solutions that invite visitors to experience Therma-Tru's modern entry systems and Larson's advanced storm doors, enhancing the communication of brand stories.
- Sustainable Material Application: The booth's display of sustainable, durable exterior materials supports seamless flow between brand environments, reflecting Fortune Brands Innovations' commitment to environmental responsibility and innovation, further solidifying its leadership position in the home products market.
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- New Product Launch: Fiberon introduces the revolutionary Novus fused composite decking line, which combines an exceptionally realistic appearance with unmatched durability, backed by a 50-year warranty, setting a new industry standard for composite decking.
- Immersive Experience: The booth features multiple entry points and natural textures, showcasing modern entry systems, advanced storm door technologies, and custom architectural glass structures, enhancing customer experience and conveying individual brand stories effectively.
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- Profitability Challenges: The company reported Q4 2025 sales of $1.1 billion, down 2%, with flat sales excluding China, indicating persistent market demand weakness and ongoing pressure on profitability, particularly due to significant volume deleverage.
- Cost Control Measures: Management plans to address profitability challenges through a 10% reduction in headquarters workforce and implementing $35 million in annualized operating income savings, which, while not included in the 2026 guidance, is expected to positively impact future financial performance.
- Cautious Future Outlook: The company projects net sales growth for 2026 to be “approximately flat to 2%” and expects EPS between $3.35 and $3.65, with management explicitly stating no anticipated near-term demand recovery, reflecting a cautious stance on future market conditions.
See More
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- Earnings Plummet: The company posted earnings of $0.86 per share for Q4, a 25% year-over-year decline, with GAAP earnings at only $0.66, indicating a severe drop in profitability.
- Annual Performance Issues: For the full year, Fortune's sales fell 3% to $4.5 billion, while GAAP profits crashed 34% to $2.47 per share, highlighting operational challenges amid a
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- Earnings Miss: Fortune Brands reported Q4 earnings of $0.86 per share, falling short of the $1 forecast, with sales just under $1.1 billion, leading to an 18% stock drop during midday trading, indicating strong market disappointment in its performance.
- Sales and Profit Decline: Q4 sales fell 2% year-over-year, while earnings plummeted 25%, with GAAP profits at only $0.66, highlighting significant profitability challenges amid a 'challenging external environment' and raising concerns about future growth prospects.
- Annual Performance Review: For the full year, Fortune Brands' sales declined 3% to $4.5 billion, and GAAP profits crashed 34% to $2.47 per share, reflecting increased pressure in market competition and the urgent need for effective measures to restore profitability.
- Management Changes: New CEO Amit Banati is set to take over on May 13, 2026, from Nicholas Fink, who is leaving possibly due to the company's poor performance, with Banati facing the challenge of achieving only flat to 2% sales growth targets.
See More
International Builders' Show Highlights Innovative Products
- Multi-Sensory Experience: At the International Builders' Show (IBS), iconic brands Therma-Tru, Larson, Fiberon, Fypon, and Solar Innovations unite at Booth #W3267, leveraging over 200 years of combined expertise to provide durable outer home solutions for building professionals and homeowners, showcasing industry innovation and collaboration.
- Launch of Fiberon Novus: Fiberon introduces its new fused composite decking line, Novus, which combines a realistic wood appearance with unmatched durability and a 50-year warranty, marking a significant breakthrough in composite decking aesthetics and performance, enhancing market competitiveness.
- Immersive Booth Design: The booth features natural textures and warm architectural lines, showcasing complete product solutions that invite visitors to experience Therma-Tru's modern entry systems and Larson's advanced storm doors, enhancing the communication of brand stories.
- Sustainable Material Application: The booth's display of sustainable, durable exterior materials supports seamless flow between brand environments, reflecting Fortune Brands Innovations' commitment to environmental responsibility and innovation, further solidifying its leadership position in the home products market.
See More
International Builders' Show Showcases Innovative Products
- Showcase Highlights: At the International Builders' Show, iconic brands like Therma-Tru, Larson, Fiberon, Fypon, and Solar Innovations unite at Booth #W3267, leveraging over 200 years of combined industry expertise to present durable solutions for building professionals and homeowners.
- New Product Launch: Fiberon introduces the revolutionary Novus fused composite decking line, which combines an exceptionally realistic appearance with unmatched durability, backed by a 50-year warranty, setting a new industry standard for composite decking.
- Immersive Experience: The booth features multiple entry points and natural textures, showcasing modern entry systems, advanced storm door technologies, and custom architectural glass structures, enhancing customer experience and conveying individual brand stories effectively.
- Brand Strategy: Fortune Brands Innovations emphasizes its leadership in home products and commercial building markets through this showcase, highlighting its commitment to innovation and sustainability across its brand portfolio, thereby strengthening its competitive position.
See More
Fortune Brands Innovations Appoints New CEO Amid Q4 2025 Earnings Challenges
- Leadership Transition: Fortune Brands Innovations announced the appointment of Amit Banati as the new CEO, succeeding Nicholas Fink, a change that is expected to influence the company's strategic direction amid ongoing profitability pressures.
- Profitability Challenges: The company reported Q4 2025 sales of $1.1 billion, down 2%, with flat sales excluding China, indicating persistent market demand weakness and ongoing pressure on profitability, particularly due to significant volume deleverage.
- Cost Control Measures: Management plans to address profitability challenges through a 10% reduction in headquarters workforce and implementing $35 million in annualized operating income savings, which, while not included in the 2026 guidance, is expected to positively impact future financial performance.
- Cautious Future Outlook: The company projects net sales growth for 2026 to be “approximately flat to 2%” and expects EPS between $3.35 and $3.65, with management explicitly stating no anticipated near-term demand recovery, reflecting a cautious stance on future market conditions.
See More
Fortune Brands Misses Earnings and Sales, CEO Departure
- Sales Decline: Fortune Brands reported a 2% drop in sales for Q4, failing to meet analysts' expectations of over $1.1 billion, resulting in an 18% stock price plunge on Friday.
- Earnings Plummet: The company posted earnings of $0.86 per share for Q4, a 25% year-over-year decline, with GAAP earnings at only $0.66, indicating a severe drop in profitability.
- Annual Performance Issues: For the full year, Fortune's sales fell 3% to $4.5 billion, while GAAP profits crashed 34% to $2.47 per share, highlighting operational challenges amid a
See More
Wall Street Rebounds as Inflation Data Surprises
- Inflation Data Decline: The annual inflation rate fell from 2.7% to 2.4% in January, undershooting the expected 2.5%, marking the lowest level since May 2025, indicating a potential economic slowdown that may prompt the Fed to consider interest rate cuts, thus impacting market liquidity.
- Core Inflation Eases: Core inflation, excluding food and energy, decreased from 2.7% to 2.5%, the lowest since March 2021, which could influence investor expectations regarding future interest rate policies and subsequently affect stock market performance.
- Small Caps Lead Gains: The Russell 2000 index rose nearly 1.8%, outperforming large-cap stocks, reflecting increased investor confidence in small businesses and potentially indicating optimism about economic recovery.
- Rivian Stock Surge: Rivian Automotive Inc. shares jumped 27%, marking the strongest day in the company's history, after reporting a narrower-than-expected quarterly loss, which may attract more investor interest in the electric vehicle market.
See More
Fortune Brands Stock Plummets 18% After Q4 Earnings Miss
- Earnings Miss: Fortune Brands reported Q4 earnings of $0.86 per share, falling short of the $1 forecast, with sales just under $1.1 billion, leading to an 18% stock drop during midday trading, indicating strong market disappointment in its performance.
- Sales and Profit Decline: Q4 sales fell 2% year-over-year, while earnings plummeted 25%, with GAAP profits at only $0.66, highlighting significant profitability challenges amid a 'challenging external environment' and raising concerns about future growth prospects.
- Annual Performance Review: For the full year, Fortune Brands' sales declined 3% to $4.5 billion, and GAAP profits crashed 34% to $2.47 per share, reflecting increased pressure in market competition and the urgent need for effective measures to restore profitability.
- Management Changes: New CEO Amit Banati is set to take over on May 13, 2026, from Nicholas Fink, who is leaving possibly due to the company's poor performance, with Banati facing the challenge of achieving only flat to 2% sales growth targets.
See More
