| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 1.2K | 14.1% | 4.1% |
| Total Income | 1.2K | 14.1% | 4.1% |
| Expenditure | 1.2K | 22.3% | 12.7% |
| PBT | -37.00 | 209.5% | 125.0% |
| Net Profit | -22.50 | 193.0% | 122.4% |
| OPM | -0.78% | 6.73pp | 15.04pp |
| NPM | -1.95% | 4.34pp | 10.28pp |
| EPS | -0.19 | 195.0% | 122.9% |
Fortune Brands Announces Second Quarter Results, Underlying Financial Results In Line With Expectations
05 Aug 2026 · 5 Aug, 1:46 am
Summary
Fortune Brands Innovations, Inc. reported second quarter 2026 results with sales of $1.2 billion, down 4.1% year-over-year. GAAP EPS was ($0.19), impacted by significant charges and benefits, while EPS before charges and gains was $1.35. The company updated its full-year 2026 guidance to incorporate net tariff refunds and strategic investments. Management expressed confidence in the company's long-term potential and the opportunity to expand market position.
Key Highlights
- 1
Fortune Brands reported Q2 2026 sales of $1.2 billion, a decrease of 4.1 percent versus Q2 2025.
- 2
Q2 2026 GAAP EPS was ($0.19), which included a ($1.44) asset impairment charge and a $0.52 benefit from net tariff refunds.
- 3
EPS before charges and gains for Q2 2026 was $1.35, also inclusive of net tariff refunds.
- 4
The company delivered Q2 2026 underlying EPS in line with expectations.
- 5
Full year 2026 guidance was updated to reflect the impact of net tariff refunds and investments to enhance execution.
- 6
The company ended the quarter with $1.1 billion in liquidity and a net debt to EBITDA before charges and gains ratio of 2.7x.
- 7
In Q2 2026, the Company generated $202.8 million in operating cash flow and $179.3 million in free cash flow.
Management Comments
Jesse Singh
Our second quarter results were in line with expectations, and we continue to focus on improving execution. Since stepping into the role, I have spent time with our business teams and engaged in initial conversations with customers and channel partners. I have been impressed with the underlying strength of our brands and portfolio, and I see real opportunity to expand our position in the market across all of our businesses. Our teams are moving with urgency to serve our customers better, bring greater discipline to our cost base, refocus resources on our core businesses and generate sustainable growth. Our updated full year guidance reflects investments to execute on these opportunities. I believe the company's long-term potential is significant, and I am confident that with the right focus and investment, we can set the company up for a stronger future.
Ashley George
Overall, the commercial performance of our business and the operating environment have been consistent with our previous outlook. Looking to the second half of the year, we have updated our full-year 2026 guidance and financial assumptions to reflect the benefit of net tariff refunds1, as well as additional investments to enhance execution. We expect net tariff refunds1 to benefit full year Operating Income and EPS by $81 million and $0.52, respectively. Excluding this benefit, our full year guidance reflects our intent to fund incremental near-term investments to improve service levels and accelerate new product development.
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