Fortune Brands Innovations (NYSE:FBIN) Posts Quarterly Earnings Results, Misses Estimates By $0.14 EPS

Fortune Brands Innovations (NYSE:FBIN) issued its earnings results on Thursday. The company reported $0.86 earnings per share for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.14), FiscalAI reports. Fortune Brands Innovations had a return on equity of 18.63% and a net margin of 6.70%.The firm had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.14 billion. During the same quarter in the previous year, the firm posted $0.98 earnings per share. Fortune Brands Innovations’s quarterly revenue was down 2.4% on a year-over-year basis. Fortune Brands Innovations updated its FY 2026 guidance to 3.350-3.650 EPS.

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

• Board announced a planned CEO transition: Nick Fink will depart and Amit Banati, a long-time board member with senior finance and commercial experience, will become CEO in May with Chair Susan Kilsby serving as interim to ensure continuity.
• Company has launched a profitability reset—headquarters workforce reduced ~10% in 2025, captured $60 million of continuous improvement savings, and identified initiatives expected to deliver an annualized $35 million operating income run rate by year-end (not included in 2026 guidance).
• 2026 guidance assumes net sales ~flat to +2%, operating margin ~14.5%-15.5%, EPS $3.35–$3.65, and free cash flow $400–$450 million, while assuming tariffs remain at current levels and ~$80M of incremental SG&A versus 2025.
• Segment mix is uneven: Security exited 2025 with strong momentum, but Outdoors lagged materially (Q4 operating income down 24%, margin down 400 bps), including loss of a key Fiberon retailer account—management says Outdoors will be the primary focus for margin restoration.
• Balance sheet and cash generation remain solid: net debt ~$2.3 billion (~2.6x EBITDA), $1.1 billion liquidity (including an extended $1.25 billion revolver), $367 million FCF in 2025 and $248 million of buybacks for the year, with a target to reduce leverage below 2.5x.

Fortune Brands Innovations Stock Performance

Shares of FBIN stock traded down $11.12 on Friday, hitting $51.18. The company’s stock had a trading volume of 18,381,827 shares, compared to its average volume of 1,908,296. Fortune Brands Innovations has a fifty-two week low of $44.04 and a fifty-two week high of $70.05. The company has a market capitalization of $6.15 billion, a PE ratio of 20.72, a PEG ratio of 5.26 and a beta of 1.41. The stock’s 50 day moving average is $55.27 and its 200-day moving average is $54.17. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.94 and a current ratio of 1.95.

Fortune Brands Innovations Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 11th. Stockholders of record on Friday, February 20th will be given a $0.26 dividend. The ex-dividend date of this dividend is Friday, February 20th. This is a boost from Fortune Brands Innovations’s previous quarterly dividend of $0.25. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.0%. Fortune Brands Innovations’s dividend payout ratio (DPR) is presently 40.49%.

Fortune Brands Innovations News Roundup

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

• Positive Sentiment: Board approved a larger dividend for shareholders, which supports income-minded investors and offsets some of the earnings disappointment. Read More.
• Neutral Sentiment: Company announced a CEO transition (Amit Banati to become CEO effective May 13, 2026); leadership change could be constructive long term but creates short-term uncertainty. Read More.
• Neutral Sentiment: Management released Q4 results, a slide deck and the earnings call presentation — useful for parsing margin drivers, channel trends and cost initiatives. (These materials provide detail but didn’t prevent the negative market reaction.) Read More.
• Negative Sentiment: Q4 EPS of $0.86 and revenue of $1.08B missed consensus ($1.00 EPS; ~$1.14B revenue); revenue declined year-over-year, signaling near-term demand weakness. Read More.
• Negative Sentiment: FY2026 EPS guidance was set at $3.35–$3.65 versus Street ~4.06, and revenue guidance was trimmed — the guidance gap is the primary driver of the selloff. Read More.
• Negative Sentiment: Analysts reacted: Wolfe Research downgraded FBIN to “peer perform” after the results, and Barclays reaffirmed “equal weight” but cut its price target from $68 to $55 — pressure on sentiment and the stock’s target prices. Read More. | Read More.
• Negative Sentiment: Market reaction was sharp: unusually high volume on the drop, suggesting forced/rapid repositioning and reduced near-term conviction among some holders. Read More.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Balyasny Asset Management L.P. bought a new position in Fortune Brands Innovations during the 2nd quarter worth $77,441,000. Jane Street Group LLC grew its holdings in shares of Fortune Brands Innovations by 4,811.9% during the 2nd quarter. Jane Street Group LLC now owns 766,264 shares of the company’s stock worth $39,447,000 after purchasing an additional 750,664 shares in the last quarter. Freestone Grove Partners LP increased its position in shares of Fortune Brands Innovations by 1,390.6% in the third quarter. Freestone Grove Partners LP now owns 800,375 shares of the company’s stock worth $42,732,000 after purchasing an additional 746,679 shares during the period. Bank of America Corp DE raised its stake in Fortune Brands Innovations by 82.7% in the third quarter. Bank of America Corp DE now owns 1,420,708 shares of the company’s stock valued at $75,852,000 after purchasing an additional 643,247 shares in the last quarter. Finally, Squarepoint Ops LLC lifted its position in Fortune Brands Innovations by 339.4% during the second quarter. Squarepoint Ops LLC now owns 749,466 shares of the company’s stock worth $38,583,000 after purchasing an additional 578,882 shares during the period. 87.60% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

FBIN has been the topic of several recent analyst reports. Wolfe Research set a $64.00 price objective on shares of Fortune Brands Innovations in a research note on Friday. Weiss Ratings reissued a “hold (c-)” rating on shares of Fortune Brands Innovations in a research report on Monday, December 29th. Barclays cut Fortune Brands Innovations from an “overweight” rating to an “equal weight” rating and cut their price objective for the company from $68.00 to $55.00 in a research report on Friday. Royal Bank Of Canada reissued an “outperform” rating and set a $61.00 target price on shares of Fortune Brands Innovations in a report on Friday. Finally, Zelman & Associates downgraded Fortune Brands Innovations from an “outperform” rating to a “neutral” rating in a report on Friday. Three investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $60.30.

About Fortune Brands Innovations

Fortune Brands Innovations (NYSE: FBIN), formerly known as Fortune Brands Home & Security, is a global leader in water innovations, specializing in the design, manufacturing and marketing of plumbing fixtures, fittings and related products. Headquartered in Deerfield, Illinois, the company leverages two iconic brands—Moen and House of Rohl—to deliver high-quality kitchen and bathroom solutions across residential and commercial markets. With a focus on performance, reliability and aesthetic design, FBIN’s portfolio spans faucets, showerheads, accessories and water filtration systems.

The company’s products are sold through a diversified network of retail partners, wholesale distributors and online channels across North America, Europe, Asia-Pacific and Latin America.