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Sep 27, 2025
Fortune Brands Q3 2025 Earnings Report
Delivered solid execution and outperformed end market with sales growth in key segments.
Key Takeaways
Fortune Brands Innovations reported Q3 2025 revenue of $1.15 billion, nearly flat year-over-year, with strength across all segments despite macro challenges. GAAP EPS declined to $0.59 due to impairment charges, while adjusted EPS was $1.09. Operating income before charges and gains reached $206.2 million, with a strong operating margin before charges/gains of 17.9%. The company generated $177 million in free cash flow and maintained a solid balance sheet with net debt-to-EBITDA at 2.7x.
Revenue reached $1.15 billion, down 0.5% year-over-year, outperforming end market trends.
GAAP EPS was $0.59, while non-GAAP EPS before charges/gains was $1.09.
Operating margin before charges/gains was 17.9%, compared to 18.7% last year.
Free cash flow totaled $177 million, with $223.9 million in cash and a net debt-to-EBITDA ratio of 2.7x.
Revenue by Segment
Forward Guidance
Fortune Brands narrowed its full-year 2025 guidance, expecting to finish near the low end of its prior range due to mixed market conditions but maintaining solid profitability outlook and cash generation.
Positive Outlook
- Full-year EPS before charges/gains guidance set between $3.70 and $3.80.
- Operating margin before charges/gains expected to remain between 16.0% and 17.0%.
- Strong balance sheet supports future investments and shareholder returns.
- Cash conversion projected at 125% to 135%.
- Security and Water segments continue to outperform markets.
Challenges Ahead
- Revenue expected to be flat to down 2% year-over-year.
- Free cash flow guidance lowered to $400–$420 million.
- China market projected to decline 15–20%.
- Outdoors operating margin outlook reduced to 13–14%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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