Fortune Brands Innovations (NYSE:FBIN) Releases Earnings Results, Beats Expectations By $0.40 EPS

Fortune Brands Innovations (NYSE:FBIN) posted its earnings results on Tuesday. The company reported $1.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.74 by $0.40, FiscalAI reports. The business had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.12 billion. Fortune Brands Innovations had a return on equity of 17.62% and a net margin of 2.94%. The company’s revenue for the quarter was down 3.1% compared to the same quarter last year. During the same quarter last year, the firm earned $1.09 earnings per share.

Here are the key takeaways from Fortune Brands Innovations’ conference call:

• Negative Sentiment: Third-quarter sales fell 3.1% to $1.1 billion, while operating income declined 24.6% and margins contracted 390 basis points. Management lowered fourth-quarter guidance to $925 million–$995 million of sales and $0.19–$0.29 of EPS, citing weaker single-family construction, channel inventory reductions, and ongoing share losses.
• Negative Sentiment: Water remains the primary turnaround challenge, with sales down 5.5% and underlying margin pressure from unfavorable price-cost, volume deleverage, and elevated service expenses. Management does not expect full price-cost recovery until late first quarter or possibly early second quarter of 2027.
• Positive Sentiment: Fortune Brands is executing a restructuring plan that includes selling Fiberon for $160 million, exiting China’s commercial market, rationalizing its Water EMEA footprint, and realigning employees into customer-focused business units. The company expects $70 million of annualized SG&A savings by the first quarter of 2027 and more than $120 million of annual benefits by the end of 2027.
• Neutral Sentiment: Management characterized the turnaround as a multi-year effort, with near-term earnings pressure likely to continue through the first half of 2027 and the broader improvement becoming more visible in the fourth quarter of 2027. The longer-term target is to exceed 20% underlying EBITDA margins while returning to above-market growth.
• Positive Sentiment: Security’s new product launches are gaining traction, and the segment’s operating margin rose to 21.3%, while Outdoors benefited from resilient Doors performance and favorable comparisons. Third-quarter free cash flow increased to $331 million, supported by tariff refund proceeds and lower capital expenditures, and leverage is expected to decline further after the Fiberon sale.

Fortune Brands Innovations Price Performance

FBIN stock opened at $47.24 on Thursday. The company has a quick ratio of 1.05, a current ratio of 2.01 and a debt-to-equity ratio of 1.11. Fortune Brands Innovations has a 52-week low of $32.34 and a 52-week high of $64.84. The stock’s 50 day moving average is $41.22 and its two-hundred day moving average is $45.08. The company has a market capitalization of $5.64 billion, a PE ratio of 44.57, a P/E/G ratio of 2.27 and a beta of 1.25.

Fortune Brands Innovations Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 9th. Shareholders of record on Friday, November 20th will be paid a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date is Friday, November 20th. Fortune Brands Innovations’s dividend payout ratio (DPR) is 84.55%.

Insider Activity

In other Fortune Brands Innovations news, CEO Jesse Singh bought 19,560 shares of Fortune Brands Innovations stock in a transaction dated Friday, August 7th. The stock was bought at an average cost of $50.93 per share, for a total transaction of $996,190.80. Following the purchase, the chief executive officer owned 39,285 shares in the company, valued at $2,000,785.05. This represents a 99.16% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 3.32% of the stock is currently owned by insiders.

Analysts Set New Price Targets

FBIN has been the subject of a number of analyst reports. Truist Financial decreased their price target on Fortune Brands Innovations from $70.00 to $60.00 and set a “buy” rating for the company in a report on Wednesday. Wells Fargo & Company boosted their target price on shares of Fortune Brands Innovations from $48.00 to $51.00 and gave the stock an “overweight” rating in a research report on Wednesday. The Goldman Sachs Group restated a “buy” rating and issued a $68.00 target price on shares of Fortune Brands Innovations in a research note on Wednesday, August 5th. Barclays decreased their target price on shares of Fortune Brands Innovations from $47.00 to $40.00 and set an “equal weight” rating for the company in a research note on Wednesday. Finally, BMO Capital Markets raised their price target on shares of Fortune Brands Innovations from $50.00 to $53.00 and gave the company a “market perform” rating in a report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $51.27.

Key Fortune Brands Innovations News

Here are the key news stories impacting Fortune Brands Innovations this week:

• Positive Sentiment: Wells Fargo raised its price target to $51 and maintained an overweight rating. Truist cut its target to $60 from $70 but retained a buy rating, leaving both firms’ targets above the quoted $47.24 share price.
• Neutral Sentiment: FBIN said it is beginning a multi-year “Back to Business” turnaround and taking steps to revitalize performance. Its Q3 results were in line with company expectations excluding tax and tariff benefits. Fortune Brands Q3 results
• Neutral Sentiment: The company provided fourth-quarter and full-year 2026 earnings guidance; investors will look to the outlook for signs that the turnaround can improve results. 2026 earnings guidance
• Neutral Sentiment: FBIN named Morgan Fox executive vice president, chief legal officer and corporate secretary, effective December 2. Morgan Fox appointment
• Negative Sentiment: Barclays lowered its target to $40 from $47 and kept an equal-weight rating. RBC also trimmed its target, to $48 from $49, though it retained an outperform rating.
• Negative Sentiment: Quarterly revenue was $1.11 billion, below the cited $1.12 billion estimate and down 3.1% year over year. Earnings reports differ by measure: one account cited $1.14 per share versus a $0.74 consensus, while Zacks reported $0.72 adjusted EPS, missing its $0.75 estimate. Zacks Q3 earnings report

About Fortune Brands Innovations

Fortune Brands Innovations, Inc is a manufacturer and marketer of products used in residential construction, remodeling and commercial applications. The company operates through businesses focused on water management, outdoor living and home safety and security.

Its portfolio includes plumbing products under brands such as Moen and House of Rohl; doors and related products marketed through Therma-Tru; composite decking and outdoor-living products from Fiberon; and locks, safes and security products sold under Master Lock and SentrySafe.