Fortune Brands Innovations (FBIN) Q1 2026 earnings summary

Executive summary

• Leadership transition underway with interim CEO and CFO appointed; comprehensive CEO search reopened with focus on industry expertise and execution capability.

• Q1 2026 net sales were $1,011.3 million, down 2.1% year-over-year due to lower sales volume across all segments, primarily from demand softness and declines in China.

• Net income for Q1 2026 was $24.2 million ($0.20 per diluted share), a 53% decrease, impacted by $42.4 million in governance advisory and leadership change costs.

• Strategic priorities include operational rigor, structural optimization, and resource focus on high-return opportunities.

• Decisive actions being taken to address underperformance and adapt to volatile market conditions.

Financial highlights

• Q1 2026 net sales were $1,011.3 million, down 2.1% year-over-year; excluding China, sales declined 1.2%.

• Operating income before charges/gains was $112.1 million, down 17.5%; reported operating income was $60.2 million, down 37.9%.

• EPS before charges/gains was $0.53, down 19.7%; reported EPS was $0.20, down 52%.

• Free cash flow for Q1 2026 was negative $139.5 million, reflecting typical seasonality.

• Net debt at quarter end was $2.5 billion, with net debt to EBITDA at 2.9x.

Outlook and guidance

• Full-year 2026 net sales expected to be down low single digits or flat to up 2%; EPS before charges/gains guidance set at $3.00–$3.30.

• Operating margin before charges/gains expected at 13.5%–14.5%.

• Free cash flow guidance for 2026 is $350–$400 million.

• Second half margins expected to be up ~300 bps versus first half, with EPS more weighted to the second half.

• Guidance reflects persistent tariff environment, elevated commodity/freight costs, and cautious consumer sentiment.