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Mar 29

Fortune Brands Q1 2025 Earnings Report

Fortune Brands reported revenue and earnings in line with expectations for Q1 2025, with a focus on mitigating upcoming tariff impacts.

Key Takeaways

Fortune Brands delivered Q1 2025 results that aligned with internal expectations, maintaining profitability despite revenue and net income declines.

Revenue was $1.03 billion, down 7% year-over-year.

GAAP EPS was $0.42; non-GAAP EPS before charges/gains was $0.66.

Net income declined to $51.4 million from $96.4 million a year ago.

Company aims to fully offset 2025 tariff impacts through mitigation strategies.

Total Revenue
$1.03B
Previous year: $1.11B
-6.9%
EPS
$0.66
Previous year: $0.83
-20.5%
Op. Margin (Non-GAAP)
13.1%
Previous year: 15.1%
-13.2%
Operating Margin
9.4%
Previous year: 14%
-32.9%
Net Debt to EBITDA
2.8
Gross Profit
$446M
Previous year: $470M
-5.0%
Cash and Equivalents
$340M
Previous year: $360M
-5.5%
Free Cash Flow
-$113M
Previous year: -$136M
-17.1%
Total Assets
$6.58B
Previous year: $6.79B
-3.0%

Fortune Brands

Fortune Brands

Fortune Brands Revenue by Segment

Forward Guidance

Fortune Brands did not issue formal full-year 2025 guidance due to market uncertainty but outlined EPS frameworks for various volume scenarios and emphasized its focus on offsetting tariff impacts.

Positive Outlook

  • Plans in place to fully offset anticipated 2025 tariffs
  • Strong U.S. and North American manufacturing presence
  • Continued investments in digital growth
  • Resilient cash position and balance sheet strength
  • Confidence in long-term brand and innovation strategy

Challenges Ahead

  • Lack of formal 2025 full-year guidance
  • Consumer demand and volume uncertainty
  • Revenue declined across all segments
  • Operating cash flow and free cash flow were negative
  • Ongoing macroeconomic and geopolitical challenges

Revenue & Expenses

Visualization of income flow from segment revenue to net income