10-K · February 23, 2026
Fortune Brands positions itself as an industry leader across three segments (Water, Outdoors, Security) and emphasizes growth via brand investment, digital/connected products and its 'Fortune Brands Advantage' operating…
Earnings analysis · 10-Q
FBIN earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Fortune Brands Innovations reported a disappointing Q1 2026 with net sales of $1.011 billion and EPS of $0.20, significantly missing expectations of $1.011 billion in revenue and $0.54 in EPS. The company attributed the…
Read full summary
Fortune Brands Innovations reported a disappointing Q1 2026 with net sales of $1.011 billion and EPS of $0.20, significantly missing expectations of $1.011 billion in revenue and $0.54 in EPS. The company attributed the results to lower sales volume, leadership change expenses, and a weak demand environment, now guiding for a low single-digit decline in FY 2026 revenue.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.2
- Segment
- Water: $563.7M, Outdoors: $294.4M, Security: $153.2M
What stood out
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Revenue Decline
Net sales decreased by $21.8 million, or 2.1%, from $1.033 billion in Q1 2025 to $1.011 billion in Q1 2026.
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EPS Shortfall
Reported diluted EPS of $0.20 was below the consensus estimate of $0.54.
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Increased Operating Expenses
Corporate expenses surged by $37.8 million, or 84.4%, primarily due to governance advisory services and leadership changes.
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Negative Operating Cash Flow
Operating cash flow was $(119.2) million in Q1 2026, an increase in cash used from $(83.4) million in Q1 2025.
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Increased Debt Levels
Commercial paper borrowings rose to $537 million in Q1 2026 from $368.8 million in the prior quarter.
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Share Buyback Activity Continues
The company repurchased 913,091 shares for $43.5 million in Q1 2026.
What to watch
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Leadership Changes Impact Performance
Costs associated with governance advisory services and leadership changes totaled $42.4 million, adversely impacting profitability.
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High Debt Levels
Outstanding long-term debt increased to $2.2 billion, indicating potential liquidity pressures.
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Margin Pressure from Tariffs and Inflation
Increased commodity and tariff costs continued to pressure margins amid overall operational challenges.
Management's outlook
Updated full-year 2026 revenue guidance reflects a projected low single-digit decline, down from prior estimates of flat to 2% growth.
Earlier filings 4
10-Q · October 30, 2025
Fortune Brands reported Q3 net sales of $1,149.2 million, down 0.5% versus the prior-year quarter, with operating income falling to $125.9 million (down 38.6% YoY) and diluted EPS of $0.59 versus $1.09 a year ago.…
10-Q · July 31, 2025
Fortune Brands reported Q2 net sales of $1,203.3 million, down 3.0% year-over-year, while consolidated operating income fell 13.8% to $171.6 million and net income declined to $100.3 million for the quarter. Management…
10-K · February 25, 2025
Fortune Brands (FBIN) presents a strategy focused on strengthening leading brands across Water, Outdoors and Security through digital/connected products, supply-chain investments and the 'Fortune Brands Advantage'…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.