Fortune Brands Innovations, Inc. · NYSE:FBIN
Fortune Brands Innovations — Baird Industrials Conference 2025
26 slides from Fortune Brands Innovations's conference presentation, November 2025
Slide 1: Baird Industrials Conference November 2025
BAIRD INDUSTRIALS CONFERENCE NOVEMBER 2025 All references to earnings per share, operating margin, operating income, EBITDA and EBITDA margin are on a before charges/gains basis
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all s
Slide 3: Fortune Brands Innovations: A Brand, Innovation and Channel Leader
FORTUNE BRANDS INNOVATIONS: A BRAND, INNOVATION AND CHANNEL LEADER Operates in attractive categories: Powered by strong secular tailwinds WATER Connected Material Outdoor Luxury Safety & Sustainability Products Conversion Living Wellness OUTDOORS Leading brands across our segments SECURITY And drive
Slide 4: Fortune Brands Innovations at a Glance
FORTUNE BRANDS INNOVATIONS AT A GLANCE TOTAL COMPANY Net Sales Operating Income1 / Margin1 EBITDA1 / Margin1 FY 2024 $4.6 Billion $780.6 Million / 16.9% $955.9 Million / 20.7% WATER OUTDOORS SECURITY 2024 Net Sales 2024 Net Sales 2024 Net Sales $2,565 Million $1,350 Million $694 Million 2024 Operati
Slide 5: Diverse Global Footprint and Supply Chain Excellence
DIVERSE GLOBAL FOOTPRINT AND SUPPLY CHAIN EXCELLENCE Global company with large North American operational footprint and North American-focused supply chain Our Supply Chain • Leveraging our global scale to strengthen our business and continue to meet demand for our products • Investing in automation
Slide 6: Connected and Digital Products, a Supercharged Growth Opportunity
CONNECTED AND DIGITAL PRODUCTS, A SUPERCHARGED GROWTH OPPORTUNITY Large Market Opportunity • $100 billion potential market for smart safety & security and energy & water control by 20301 • We estimate $15 billion in insurance claims paid annually for water-related incidents2, of which a significant
Slide 7: Successfully Executing Multi-Year Transformation
SUCCESSFULLY EXECUTING MULTI-YEAR TRANSFORMATION Redefined the Portfolio Created Business Unit-Led Organization Accelerating Execution and Growth • Focused on high-growth segments • Supported by best-in-class Centers of • Simplified leadership structure with driven by brands and innovation Excellenc
Slide 8: Long-Term Outlook Remains Attractive
LONG-TERM OUTLOOK REMAINS ATTRACTIVE While consumer sentiment is impacting near-term demand, fundamentals point to pent-up demand. HOUSING UNDERBUILD 4.7 million as of 2023 1 AGED HOUSING STOCK 40 years Median age of owner-occupied housing 2 AGGREGATE HOME EQUITY $35 trillion 77% increase since 2019
Slide 9: Capital Allocation Priorities – Investing for Growth with Attractive Returns
CAPITAL ALLOCATION PRIORITIES – INVESTING FOR GROWTH WITH ATTRACTIVE RETURNS Capital Deployment • Brand, Innovation, and Channel investments ORGANIC 2011 – 2024 1 • Investments in digital factory and connected products GROWTH • High-returning CapEx investments 16% • Acute focus on supercharged categ
Slide 10: Strong Balance Sheet
STRONG BALANCE SHEET Balance Sheet ($M) As of September 27, 2025 • No Senior Notes maturities until 2029 Cash $224 • Weighted average interest rate on outstanding debt of 4.41% Senior Notes $2,176 Commercial Paper $479 • 82% of outstanding debt is fixed rate Total Debt $2,655 • Targeting net debt to
Slide 11: Third Quarter 2025 Highlights
THIRD QUARTER 2025 HIGHLIGHTS Water Outdoors Security Digital • Outperformed end market • Larson Perfect Aisle reset • Master Lock and • Flo launched Leak Protection with POS up LSD ex-China drove DD growth; named SentrySafe campaigns drove Service subscription with Lowe’s 2025 Vendor Partner retail
Slide 12: Q3 2025: Solid Execution & Outperformed Our End Market
Q3 2025: SOLID EXECUTION & OUTPERFORMED OUR END MARKET Total Company Results Sales: $1.1 billion: Roughly Flat Operating Margin1: 17.9% ↓ 80 bps Earnings Per Share1: $1.09 ↓ 6% Sales Excluding China1: ↑ 1% Operating Income1: $206 million ↓ 5% Water Outdoors Security Sales: $619 million: ↓ 3% Sales:
Slide 13: Appendix
APPENDIX I N V E S T O R P R E S E N T A T I O N 13
Slide 14: Favorable Industry Dynamics for Therma-Tru
FAVORABLE INDUSTRY DYNAMICS FOR THERMA-TRU Background • The American Fiberglass Door Coalition filed an anti-dumping and countervailing duties petition with the Department of Commerce and International Trade Commission in March 2025 • Seeks to level the playing field relative to imported Chinese fib
Slide 15: Larson Named Lowe's 2025 Vendor of Year in the Millwork Division
LARSON NAMED LOWE’S 2025 VENDOR OF YEAR IN THE MILLWORK DIVISION • Highlights Larson’s commitment to innovation and customer experience as seen in this year’s nationwide reset of the storm door aisle at Lowe’s, which has had impressive results. • Read more here. “This award is a powerful testament t
Slide 16: Moen Brand Benefits from Consumer Trust & Innovation
MOEN BRAND BENEFITS FROM CONSUMER TRUST & INNOVATION Moen was named to TIME’s annual “Best Inventions” list for 2025 for our new innovative showering product, the Handheld That Saves Hot Water. Read more here. I N V E S T O R P R E S E N T A T I O N 16
Slide 17: Yale Assure Lock 2 Receives Accolades
YALE ASSURE LOCK 2 RECEIVES ACCOLADES • Yale Assure Lock 2 was recently named Best Smart Lock by CNET and The Spruce. • As Yale continues to shape the future of smart access, these recognitions highlight our commitment to delivering solutions that combine convenience, security and peace of mind. I N
Slide 18: GAAP Operating Income to Operating Income Before Charges/Gains and Segment EBITDA
FORTUNE BRANDS INNOVATIONS, INC. GAAP OPERATING INCOME TO OPERATING INCOME BEFORE CHARGES/GAINS A ND SEGMENT EBITDA BEFORE CHARGES/GAINS (In millions) (Unaudited) Fifty-Two Weeks Ended December 28, 2024 WATER Operating Income $ 595.1 Restructuring charges 5.9 Other charges/(gains) Cost of products s
Slide 19: GAAP Operating Margin to Operating Margin Before Charges/Gains
FORTUNE BRANDS INNOVATIONS, INC. GAAP OPERATING MARGIN TO OPERATING MARGIN BEFORE CHARGES/GAINS A ND SEGMENT EBITDA MARGIN BEFORE CHARGES/GAINS (In millions) (Unaudited) Fifty-Two Weeks Ended December 28, 2024 WATER Operating margin 23.2% Restructuring charges 0.2% Other charges/(gains) Cost of prod
Slide 20: Net Sales and Reconciliation of Income to EBITDA Before Charges/Gains
FORTUNE BRANDS INNOVATIONS, INC. NET SALES (In millions) (Unaudited) Fifty-Two Weeks Ended December 28, 2024 Net sales Water $ 2,564.6 Outdoors 1,350.1 Security 694.3 Total net sales $ 4,609.0 RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS, NET OF TAX TO EBITDA BEFORE CHARGES/GAINS AND EBITDA M
Slide 21: GAAP Operating Income and Margin to Before Charges/Gains, Q3
FORTUNE BRANDS INNOVATIONS, INC. FORTUNE BRANDS INNOVATIONS, INC. GAAP OPERATING INCOME TO OPERATING GAAP OPERATING MARGIN TO OPERATING INCOME BEFORE CHARGES/GAINS MARGIN BEFORE CHARGES/GAINS (In millions) (Unaudited) (Unaudited) Thirteen Weeks Ended Thirteen Weeks Ended September 27, September 28,
Slide 22: Reconciliation of Diluted EPS Before Charges/Gains
FORTUNE BRANDS INNOVATIONS, INC. RECONCILIATION OF DILUTED EPS FROM CONTINUING OPERATIONS BEFORE CHARGES/GAINS (Unaudited) For the thirteen weeks ended September 27, 2025, the diluted EPS before charges/(gains) is calculated as income from continuing operations on a diluted per-share basis, excludin
Slide 23: Reconciliation of GAAP Net Sales to Net Sales Excluding China
FORTUNE BRANDS INNOVATIONS, INC. RECONCILIATION OF GAAP NET SALES TO NET SALES EXCLUDING THE IMPA CT OF CHINA SALES (Unaudited) Thirteen Weeks Ended September 27, 2025 vs Thirteen Weeks Ended September 28, 2024 % Change Water Percentage change in net sales (GAAP) (2.6%) Excluding China sales 2.8% Ne
Slide 24: Calculation of Net Debt-to-EBITDA Before Charges/Gains Ratio
FORTUNE BRANDS INNOVATIONS, INC. CALCULATION OF NET DEBT-TO-EBITDA BEFORE CHARGES/GAINS RATIO (In millions) (Unaudited) As of September 27, 2025 Total debt * $ 2,654.5 Less: Cash and cash equivalents 223.9 Net debt (1) $ 2,430.6 For the fifty-two weeks ended September 27, 2025 (g) EBITDA before char
Slide 25: Definitions of Terms: Non-GAAP Measures
DEFINITIONS OF TERMS: NON-GAAP MEASURES a) Operating income (loss) before charges/gains is calculated as operating income derived in accordance with GAAP, excluding restructuring and other charges/gains. Operating income (loss) before charges/gains is a measure not derived in accordance with GAAP. M
Slide 26: Definitions of Terms: Non-GAAP Measures
DEFINITIONS OF TERMS: NON-GAAP MEASURES h) Consolidated EBITDA margin before charges/gains is calculated as income from continuing operations, net of tax in accordance with GAAP, excluding depreciation, amortization of intangible assets, restructuring and other charges/gains, interest expense and in
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