Fortune Brands Innovations | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 1.154 B

Revenue: As of FY2026 Q2, the actual value is USD 1.154 B, missing the estimate of USD 1.164 B.

EPS: As of FY2026 Q2, the actual value is USD -0.19, missing the estimate of USD 0.8063.

EBIT: As of FY2026 Q2, the actual value is USD 18.4 M.

Fortune Brands Innovations, Inc. reported its second quarter 2026 results, with total company GAAP net sales at $1,153.9 million, representing a 4.1% decrease compared to Q2 2025. GAAP operating income was - $9.0 million, a decrease of 105.2%, and GAAP operating margin was -0.8%, a decrease of 1,510 basis points (bps). Excluding charges and gains, non-GAAP operating income was $235.6 million, an 18.4% increase, and non-GAAP operating margin was 20.4%, an increase of 390 bps. Net income for Q2 2026 was - $22.5 million, marking a -122.4% change year-over-year, while for the twenty-six weeks ended June 27, 2026, net income was $1.7 million, a -98.9% change from the prior year.

Segment Performance (Q2 2026)

• Water Innovations: Net sales were $605.0 million, a decrease of 6.5%. GAAP operating margin was 28.9% (up 480 bps), and operating margin before charges/gains was 29.5% (up 390 bps).
• Outdoors: Net sales were $364.5 million, a decrease of 3.8%. GAAP operating margin was -48.7% (down 5,980 bps), and operating margin before charges/gains was 15.2% (up 240 bps). The segment recognized $228.7 million in asset impairment charges and $3.0 million related to a manufacturing facility fire.
• Security: Net sales were $184.4 million, an increase of 3.8%. GAAP operating margin was 26.6% (up 1,380 bps), and operating margin before charges/gains was 26.8% (up 1,200 bps).

Balance Sheet and Cash Flow

The company ended the quarter with approximately $1.1 billion in liquidity and a net debt to EBITDA before charges and gains ratio of 2.7x. As of June 27, 2026, cash and cash equivalents were $209.7 million, net debt was $2,341.8 million, and $858 million was available under the revolving credit facility. For Q2 2026, operating cash flow was $202.8 million, and free cash flow was $179.3 million. The company repurchased $2 million of its shares during the quarter. For the twenty-six weeks ended June 27, 2026, net cash provided by operating activities was $83.6 million (compared to $66.0 million in the prior year period), and free cash flow was $39.8 million (compared to $6.1 million in the prior year period). Capital expenditures for the twenty-six weeks ended June 27, 2026, were - $43.8 million. Total assets were $6,342.0 million, and total liabilities were $4,033.6 million as of June 27, 2026.

Outlook / Guidance

Fortune Brands Innovations, Inc. updated its full-year 2026 guidance, expecting net sales to be down low single digits and projecting operating margin before charges/gains to be between 14.0% and 15.0%. The company estimates cash flow from operations at $495 million to $530 million, and free cash flow at $370 million to $420 million.