Fortune Brands Innovations (FBIN) Deutsche Bank’s Chicago Industrials Summit summary

Strategic refocusing and organizational changes

• Leadership turnover and board activity prompted a shift to focus externally on brands and customers.

• Headquarters consolidation and decentralization of marketing aim to streamline operations and improve responsiveness.

• Realignment of business units is expected to be completed by year-end, with milestones including improved service levels and cost savings.

• $70 million in cost reductions targeted by year-end, with further SG&A leverage anticipated through 2027-2028.

• Corporate structure is being simplified, moving resources closer to business units and reducing indirect spend.

Product innovation and market opportunities

• Product innovation pipelines are being restarted, with a focus on faster, more impactful launches relevant to customer needs.

• Decentralized marketing and product development are expected to accelerate time-to-market and improve execution.

• Under-penetrated segments, especially in R&R (repair and remodel), are targeted for selective investment and growth.

• New marketing campaigns have launched for key brands, with investments proportional to business size.

• Portfolio reviews and selective de-investment or optimization are ongoing within business units.

Operational execution and service improvements

• Service levels, particularly in the Water business, are below target but expected to normalize by year-end, with further improvement into next year.

• Temporary increases in inventory and premium freight are being used to restore service, with these costs expected to decline as processes mature.

• S&OP system issues are being addressed by reverting to core ERP systems and rebuilding teams, with no major new investments planned.

• Operational execution improvements and addressing unprofitable portfolio segments are expected to benefit margins.

• Focus remains on long-term value creation and sustainable high service, not short-term volume gains.