Fortune Brands Delivers Margin and EPS Results In-line with Expectations

Fortune Brands Innovations, Inc. (“Fortune Brands” or the “Company”), an industry-leading innovation company whose purpose is to elevate every life by transforming spaces into havens, announced first quarter 2025 results.

Highlights

• Q1 2025 sales were $1.0 billion, a decrease of 7 percent versus Q1 2024; organic sales excluding the impact of China and FX were down 5 percent
• Q1 2025 earnings per share (EPS) were $0.42, a decrease of 45 percent versus a year ago; EPS before charges / gains were $0.66, a decrease of 20 percent versus Q1 2024
• The Company is implementing tariff mitigation strategies designed to fully offset anticipated 2025 tariff impacts while capitalizing on identified opportunities

“During the first quarter, we delivered margins and earnings per share in-line with our expectations,” said Fortune Brands Chief Executive Officer Nicholas Fink. “Rapidly changing geopolitical and macroeconomic environments are impacting the consumer and demand for our products. Our teams have consistently demonstrated the ability to respond promptly to challenges, and to leverage such challenges to identify and prioritize opportunities to outperform, and we will do so once again. Our teams are focused on mitigating the expected impacts of tariffs, making key investments, expanding our digital business and maintaining a strong balance sheet. We are also planning on leveraging our strong U.S. and North American manufacturing presence and continued momentum in our digital businesses to drive market outperformance.”

Fink continued, “We remain fully confident in our long-term strategy, and we believe we are well-positioned to manage cost, cash and beat the market amidst an uncertain landscape.”

Balance Sheet and Cash Flow

The Company exited the quarter with a strong balance sheet. Cash flow was in-line with expectations and driven by typical seasonality; the Company closed the quarter with $(83.4) million in operating cash flow and $(112.6) million in free cash flow. In accordance with its opportunistic, returns-based share repurchase program, the Company repurchased $175 million of shares in the quarter, and as of May 6, 2025, has repurchased $225 million of shares year to date. The Company expects to finish the year with net debt to EBITDA before charges/gains between 2.0x and 2.5x.

2025 Full-Year Guidance

Due to uncertainty around consumer demand and volumes, the Company is not providing detailed 2025 full-year guidance. However, the Company is providing the framework for EPS before charges / gains scenarios based on different volume assumptions that will be outlined during the first quarter earnings call. Fortune Brands’ teams are working on mitigating the expected impact of tariffs quickly and strategically through sourcing moves, cost out opportunities and strategic pricing. The Company remains confident in its long-term strategy of focusing on categories driven by brands and innovation, with an emphasis on attractive areas of its core and acceleration in its digital strategy.

For forward-looking non-GAAP measures (as used in this press release, net debt to EBITDA before charges / gains), the Company is unable to provide a reconciliation to the most comparable GAAP financial measure because the information needed to reconcile the non-GAAP financial measure to the GAAP financial measure is unavailable due to the inherent difficulty of forecasting the timing and / or amount of various items that have not yet occurred, including the high variability and low visibility with respect to gains and losses associated with our defined benefit plans and restructuring and other charges, which are excluded from net debt to EBITDA before charges / gains. Additionally, estimating such a GAAP measure and providing a meaningful reconciliation consistent with the Company’s accounting policies for future periods requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions.

For full results click here.

About Fortune Brands Innovations

Fortune Brands Innovations, Inc. (NYSE: FBIN), headquartered in Deerfield, Ill., is a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. The Company’s growing portfolio of brands includes Moen, Flo, House of Rohl, Aqualisa, Emtek, Therma-Tru, Larson, Fiberon, Master Lock, SentrySafe, Yale residential and August. To learn more about FBIN, its brands and environmental, social and governance (ESG) commitments, visit www.FBIN.com.

Contact:

Leigh Avsec – Media Contact – Investor.Questions@fbhs.com – (847) 484-4211

Source: Fortune Brands Innovations, Inc.