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Fortune Brands Innovations (FBIN) investor relations material
Fortune Brands Innovations Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Leadership transition: Nick Fink to depart as CEO, Amit Banati appointed effective May 2026, with Susan Kilsby as interim CEO during the transition.
Company navigated significant market headwinds in 2025, including volume deleverage, tariff impacts, and industry-wide volume declines, prompting a comprehensive profitability reset.
Outperformed end markets in Q4 and FY 2025 through strengthened commercial execution and organizational alignment.
Management focused on cost structure optimization, operational improvements, and broader cost reductions for 2027–2028.
$60 million in continuous improvement savings achieved in 2025; headquarters workforce reduced by 10%.
Financial highlights
Full-year 2025 sales were $4.5 billion, down 3% year-over-year; excluding China, sales declined 1%.
Operating income before charges/gains was $699.4 million, down 10.4%; operating margin at 15.7%, down 120 basis points.
EPS before charges/gains for 2025 was $3.61, down 12.4%; GAAP EPS was $2.47, down 34%.
Q4 2025 sales were $1.1 billion, down 2%; operating income before charges/gains $158.3 million, down 13%; adjusted EPS $0.86, down 12%.
Free cash flow for 2025 was $367 million, with a cash conversion rate over 120%.
Outlook and guidance
2026 guidance assumes flat to 2% net sales growth, with operating margin of 14.5%–15.5% and EPS expected in the range of $3.35–$3.65.
Free cash flow guidance for 2026 is $400–$450 million, with CapEx of $110–$140 million and $25 million in restructuring costs.
Market assumptions: low single-digit declines in global, U.S., and China markets, mid-single-digit decline in U.S. single-family new construction, and low double-digit contraction in China.
$35 million in annualized run rate operating income savings identified for 2026, not included in guidance.
Segment guidance: Water net sales flat to up 2%, margin 22.0%–23.0%; Outdoors net sales down 0.5% to up 1.5%, margin 11.5%–12.5%; Security net sales flat to up 3%, margin 15.5%–16.5%.
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