Fortune Brands misses Q1 revenue expectations, lowers FY sales outlook

Fortune Brands Innovations

07/05/2026 22:09

Overview

U.S. home and security products maker's Q1 revenue fell 2%, missing analyst expectations

Adjusted EPS for Q1 beat consensus, though it declined 20% from last year

Company repurchased $43.5 mln of shares and cut full-year sales and EPS guidance

Outlook

Company lowers 2026 net sales outlook to down low single digits from flat to up 2%

Company cuts 2026 EPS before charges/gains forecast to $3.00-$3.30 from $3.35-$3.65

Company cites increased commodity inflation and cautious consumer sentiment as weighing on outlook

Result Drivers

INCONSISTENT EXECUTION - Interim CEO David Barry said results reflected inconsistent execution and a dynamic external environment

INFLATION AND CONSUMER SENTIMENT - Co said increased commodity inflation and more cautious consumer sentiment weighed on performance

MANUFACTURING FACILITY FIRE AND LEADERSHIP COSTS - Results included costs related to a manufacturing facility fire and governance advisory services and leadership transitions

Company press release: ID:nBw1RNnY9a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$1.01 bln
$1.02 bln (17 Analysts)
Q1 Adjusted EPS
Beat
$0.53
$0.52 (17 Analysts)
Q1 EPS
$0.20


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

Wall Street's median 12-month price target for Fortune Brands Innovations Inc is $53.50, about 34% above its May 6 closing price of $39.93

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)