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Jun 28, 2025
Fortune Brands Q2 2025 Earnings Report
Fortune Brands reported a decline in sales and earnings for Q2 2025 but outperformed its end markets with strength in Water and Outdoors segments.
Key Takeaways
Despite a year-over-year decline in revenue and earnings, Fortune Brands delivered solid performance relative to market conditions, with strategic execution and cost control efforts supporting profitability.
Revenue was $1.2 billion, down 3% year-over-year.
GAAP EPS was $0.83, while non-GAAP EPS was $1.00.
Net income for the quarter totaled $100.3 million.
Free cash flow was $6.1 million for the quarter.
Revenue by Segment
Forward Guidance
The company maintained full-year guidance and expects to offset tariff impacts while targeting modest sales growth and margin expansion.
Positive Outlook
- Maintained full-year EPS guidance of $3.75 to $3.95 (non-GAAP)
- Expecting ~$650 million in operating cash flow
- Water segment margins expected to stay strong at 23.0%–24.0%
- Security segment sales may return to growth (-1% to +2%)
- Margin expansion planned in Outdoors (14.0%–15.0%)
Challenges Ahead
- Total sales expected to be flat to down 2% for FY 2025
- China market projected to decline 15%–20%
- U.S. Single Family New Construction expected to drop 5%–6%
- Full-year capex projected at $130M–$150M
- Corporate expense expected to increase to ~$160 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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