Fortune Brands Innovations reported Q3 2025 earnings with net income of $70.8 million, a GAAP earnings per share of $0.59 and an adjusted EPS of $1.09. Total revenue was $1.149 billion, essentially flat against the $1.155 billion reported in Q3 2024 and falling short of the $1.18 billion consensus estimate.
Operating income declined 5 % year‑over‑year to $200 million, and the operating margin contracted to 17.9 %, an 80‑basis‑point drop from 18.7 % in the prior year. A $50.1 million asset‑impairment charge, primarily affecting the Outdoors segment, and higher restructuring costs contributed to the lower operating income.
Segment performance varied: the Security segment grew 4.9 % in sales, while Water Innovations and Outdoors segments declined 2.6 % and 0.5 % respectively. The combined effect of these shifts and the impairment charge explains the flat revenue and margin pressure.
Management highlighted a continued focus on digital initiatives, noting the digital portfolio has reached a $300 million annualized run rate. The company emphasized its strategy to outperform the end market and drive long‑term value through brand strength and innovation.
Fortune Brands updated its full‑year 2025 guidance to the lower end of its prior range, projecting free cash flow of $400 million to $420 million. The company expects to offset tariff impacts through pricing and supply‑chain actions, though material cost and inventory mix pressures remain a concern. The competitive landscape includes peers such as Masco, Lixil, Newell Brands and ASSA ABLOY, with the home‑improvement sector sensitive to macroeconomic conditions.
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