FBIN Filings — Fortune Brands Innovations, Inc. - FilingSpy
FBIN
Fortune Brands Innovations, Inc.
A maker of home, security, and building products, Fortune Brands Innovations owns familiar brands like Moen faucets, Master Lock padlocks, and Therma-Tru entry doors. It was born in 2011 when the old Fortune Brands conglomerate split apart, spinning off its home and security division while keeping the Jim Beam spirits business. Its Moen brand traces to 1937, when a college student named Al Moen, startled by scalding water from a two-handle faucet, invented the single-handle design that made the company famous.
Outdoors segment takes a $228.7M impairment charge, pushing the company to a quarterly operating loss.
A $228.7 million in the Outdoors pushed the company to an operating loss. fell 4.1% to $1.15 billion, but widened 6.0 points to 51.2% as $104 million in tariff refunds flowed through cost of goods sold. The quarter's was defined by a non-cash , while the underlying business continued to face volume headwinds.
Key takeaways
The Outdoors swung to a $177.4 million operating loss, driven by a $228.7 million non-cash on the Fiberon business, which management stated is under strategic review.
Consolidated fell 4.1% to $1.15 billion, with lower volume across the Water and Outdoors segments attributed to market softness, service challenges, and discrete share losses.
rose 6.0 points to 51.2%, as $104.0 million in IEEPA tariff refunds were recognized, primarily benefiting the Water and Security segments.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net sales fell 4.1% to $1.15B; operating loss of $9M driven by $229M Outdoors impairment, partially offset by $104M tariff refunds.
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Consolidated decreased 4.1% in Q2 and 3.2% YTD, driven by lower volume across Water and Outdoors from market softness, service challenges, and discrete share losses.
Water rose 12.2% in Q2 on $73.9M of IEEPA tariff refunds, offsetting lower volume and higher product costs.
Security more than doubled to $49.1 million, helped by $22.4 million in tariff refunds and higher sales volume in commercial and eCommerce channels.
Corporate expenses rose 13.2% to $55.7 million, largely due to $43.6 million in governance advisory and leadership change costs recognized year-to-date.
Year-to-date improved to $83.6 million, compared to a use of $119.2 million in the first quarter, while the company held $209.7 million in cash and had $374.2 million in outstanding.
What changed
The $228.7 million Outdoors is a new development, far larger than the $49.7 million held-for-sale charge taken in Q3 FY2025, and signals a deepening strategic reassessment of the Fiberon business.
The $104.0 million in IEEPA tariff refunds represents a new, one-time benefit that did not appear in prior quarters and materially lifted and .
The Security 's more than doubled, a sharp reversal from the 34.0% decline reported in Q2 FY2025, when the segment was struggling with lower volume and cost inflation.
The Water 's China business, an $87.8 million annual in FY2025 and down 25% in Q1 FY2026, was not called out with a specific figure this quarter, suggesting the rate of decline may have stabilized or management's focus has shifted to the Outdoors restructuring.
What to watch
The outcome of the strategic review of the Fiberon business and whether the $228.7 million leads to a sale, further write-downs, or a restructuring of the Outdoors .
Whether the $104.0 million in IEEPA tariff refunds is a one-time event or whether additional refunds are expected, and how settles once this benefit is absent.
The trajectory of the Security 's to assess whether the Q2 improvement, driven partly by one-time refunds, is sustainable.
The pace of share repurchases against the $2.55 billion balance and $374.2 million in , now that year-to-date is $83.6 million.
Outdoors swung to a $177.4M operating loss in Q2, primarily due to a $228.7M for the Fiberon business under strategic review.
Security more than doubled in Q2 to $49.1M, helped by $22.4M in tariff refunds and higher sales volume in commercial and eCommerce channels.
Corporate expenses increased 13.2% in Q2 to $55.7M, largely from $43.6M in governance advisory and leadership change costs recognized year-to-date.
improved to $83.6M YTD; liquidity remains supported by $209.7M cash, a $1.25B undrawn , and $374.2M in outstanding.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in the information provided in the section entitled “Quantitative and Qualitative Disclosures about Market Risk” in our Annual Report on Form 10-K for the year ended December 27, 2025.
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There have been no material changes in the information provided in the section entitled “Quantitative and Qualitative Disclosures about Market Risk” in our Annual Report on Form 10-K for the year ended December 27, 2025.
Company states no material litigation or environmental loss is likely; all matters are ordinary-course or remote.
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The Company is party to ordinary, routine litigation incidental to its businesses and believes material loss is remote.
It asserts meritorious defenses to pending actions and is vigorously contesting them where appropriate.
Environmental remediation liabilities are estimated on an undiscounted basis, excluding insurance or third-party recoveries.
Several subsidiaries are named as potentially responsible parties under or similar state laws, with cost-sharing arrangements typically in place.
Insurance recoveries for PRP costs are very rare, and the Company believes compliance costs will not materially affect operations, cash flows, or financial condition.
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 27, 2025.
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There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 27, 2025.