Fortune Brands Innovations, Inc. · NYSE:FBIN
Fortune Brands Innovations — Q1 2026 Earnings Presentation
25 slides from Fortune Brands Innovations's earnings presentation, May 7, 2026
Slide 1: Q1 Earnings
MAY 7, 2026 Q1 Earnings All references to earnings per share, operating margin, operating income, and EBITDA 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: On the Call
On the Call Susan Kilsby David Barry Ashley George Board Chair Interim Chief Executive Officer Interim Chief Financial Officer 3
Slide 4: Key Messages
Key Messages Engaged with Shareholders and Responded to Feedback Commenced comprehensive CEO search process Fully Empowered to Drive Strategy in the Interim Leadership team is acting with urgency to enhance execution, optimize structure to drive efficiencies and focus resources on the highest return
Slide 5: CEO Observations and Near-Term Priorities
CEO Observations and Near-Term Priorities Acting with Urgency to Build Momentum Across the Organization Solid Foundation for Growth Leading, Well-Recognized Brands Talented Workforce Favorable Long-Term Industry Fundamentals Near-Term Priorities Increase Operational Rigor and Discipline Optimize our
Slide 6: Market Backdrop
Market Backdrop Macroeconomic Uncertainty Impacting Near-Term Demand Affordability, declining consumer confidence and inflationary pressures are impacting housing activity Rising Raw Materials and Commodity Costs Mitigating increasing inflation through targeted commercial and operational initiatives
Slide 7: Q1 2026 Results
Q1 2026 Results Total Company Results Net Sales Operating Income1 Operating Margin1 EPS1 Q1 2026 $1,011.3 $112.1 11.1% $0.53 Change (2.1%) (17.5%) (200) bps (19.7%) Net Sales excluding impact of China2 were (1.2%) Net sales reflect lower volumes, partially offset by Operating Income1 negatively impa
Slide 8: Water
Q1 2026 SUMMARY Water Segment Results Quarter Highlights $ in millions Sales growth in both Moen and House of Rohl was offset by weakness in Operating Operating China Net Sales Income1 Margin1 Channel inventory was stable Q1 2026 $563.7 $106.1 18.8% sequentially, but lapped large drawdown in Q1 2025
Slide 9: Outdoors
Q1 2026 SUMMARY Outdoors Segment Results Quarter Highlights $ in millions Strong sales demand at Therma-Tru Operating Operating was offset by Fiberon Net Sales Income1 Margin1 Channel inventory was a modest Q1 2026 $294.4 $21.8 7.4% headwind, as seasonal builds were lower than prior year Change (3.4
Slide 10: Security
Q1 2026 SUMMARY Security Segment Results Quarter Highlights $ in millions Growth in the commercial channel was offset by weaker retail and e-commerce Operating Operating demand Net Sales Income1 Margin1 Channel inventory declined LSD, as Q1 2026 $153.2 $21.7 14.2% channel partners managed working ca
Slide 11: Balance Sheet and Cash Flow
Q1 2026 SUMMARY Balance Sheet and Cash Flow Cash Total liquidity Net debt 1 Net debt / EBITDA 1 $223 M $918 M $2.5 B 2.9x Decrease of $41 M vs Q4 2025 $695 M available under $1.25 B Up from $2.3 B vs Q4 2025 Reflects seasonal increase in Q1; revolving credit facility remain committed to Net debt / E
Slide 12: 2026 Full-Year Guidance & Assumptions
2026 Full-Year Guidance & Assumptions Prior* Updated Net Sales Growth Flat to 2.0% Down low single digits Guidance EPS1 $3.35 to $3.65 $3.00 to $3.30 Prior* Updated Global Market Down low single digits Down low single digits Market Assumptions U.S. R&R Down low single digits Down low single digits U
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
— =| Q Fortune Brand: Appendix 14
Slide 15: Reconciliations of GAAP Operating Income to Operating Income Before Charges/Gains
Fortune Brands Innovations, Inc. (In millions) (Unaudited) Thirteen Weeks Period Net sales (GAAP) March 28, 2026 March 29, 2025 $ Change % Change Water $ 563.7 $ 565.4 $ (1.7 ) (0.3 ) Outdoors 294.4 304.7 (10.3 ) (3.4 ) Security 153.2 163.0 (9.8 ) (6.0 ) Total net sales $ 1,011.3 $ 1,033.1 $ (21.8 )
Slide 16: Condensed Consolidated Balance Sheets (GAAP)
Fortune Brands Innovations, Inc. Condensed Consolidated Balance Sheets (GAAP) (In millions) (Unaudited) March 28, 2026 December 27, 2025 Assets Current assets Cash and cash equivalents $ 223.1 $ 264.0 Accounts receivable, net 584.7 513.1 Inventories 1,038.1 1,024.9 Other current assets 177.8 172.2 T
Slide 17: Condensed Consolidated Statements Of Cash Flows
Fortune Brands Innovations, Inc. Condensed Consolidated Statements Of Cash Flows (In millions) (Unaudited) Thirteen Weeks Period March 28, 2026 March 29, 2025 Operating activities Net income $ 24.2 $ 51.4 Depreciation and amortization 42.1 51.3 Non-cash lease expense 9.9 9.4 Deferred taxes 11.9 1.7
Slide 18: Condensed Consolidated Statements Of Income (GAAP)
Fortune Brands Innovations, Inc. Condensed Consolidated Statements Of Income (GAAP) (In millions, except per share amounts) (Unaudited) Thirteen Weeks Period March 28, 2026 March 29, 2025 % Change Net sales $ 1,011.3 $ 1,033.1 (2.1) Cost of products sold 575.6 578.4 (0.5) Selling, general and admini
Slide 19: Reconciliation to EBITDA Before Charges/Gains
Fortune Brands Innovations, Inc. (In millions) (Unaudited) Reconciliations Of Income From Continuing Operations, Net Of Tax To EBITDA Before Charges/Gains Thirteen Weeks Period March 28, 2026 March 29, 2025 % Change Net income $ 24.2 $ 51.4 (52.9) Depreciation * $ 23.7 $ 24.8 (4.4) Amortization of i
Slide 20: Reconciliation Of Diluted EPS Before Charges/Gains
Reconciliation Of Diluted EPS From Continuing Operations Before Charges/Gains For the thirteen weeks ended March 28, 2026, diluted EPS before charges/gains is calculated as income from continuing operations on a diluted per-share basis, excluding $4.3 million ($3.3 million after tax or $0.03 per dil
Slide 21: Operating Margin To Operating Margin Before Charges/Gains
Fortune Brands Innovations, Inc. Operating Margin To Operating Margin Before Charges/Gains (Unaudited) Thirteen Weeks Period March 28, 2026 March 29, 2025 Change WATER Operating margin (e) 18.4% 18.3% 10 bps Restructuring charges 0.4% 1.7% Before charges/(gains) operating margin (e) 18.8% 20.0% (120
Slide 22: Reconciliation Of GAAP Net Sales To Net Sales Excluding China
Fortune Brands Innovations, Inc. Reconciliation Of GAAP Net Sales To Net Sales Excluding The Impact Of China Sales (Unaudited) Thirteen Weeks Ended March 28, 2026 vs Thirteen Weeks Ended March 29, 2025 % Change Water Percentage change in net sales (GAAP) (0.3%) Excluding China sales 1.8% Net sales e
Slide 23: Calculation Of Working Capital As Percentage Of LTM Net Sales
Fortune Brands Innovations, Inc. Calculation Of Working Capital As Percentage Of LTM Net Sales (In millions) (Unaudited) As of March 28, 2026 ** Accounts receivable, net $ 584.7 Inventories 1,038.1 Other current assets 177.8 Accounts payable (507.3) Other current liabilities (441.7) Working capital
Slide 24: Definition of Terms: Non-GAAP Measures
Definition 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 25: Additional Information
Additional Information: For certain forward-looking non-GAAP measures (as used in this presentation, operating margin before charges / gains, EPS before charges / gains and net debt to EBITDA before charges / gains), the Company is unable to provide a reconciliation to the most comparable GAAP finan
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