Q4 2025 Fortune Brands Innovations Inc Earnings Call Transcript
Key Points
- Fortune Brands Innovations Inc (FBIN) achieved $60 million in continuous improvement savings in 2025 and identified initiatives for an additional $35 million in savings by the end of 2026.
- The company outperformed the market for its products by approximately 130 basis points for the full year and 300 basis points in the fourth quarter, excluding China.
- FBIN successfully mitigated the dollar impact of tariffs in 2025 through strategic sourcing and pricing actions.
- The Water segment maintained strong market share with builders and saw growth in its luxury platform, House of Rohl.
- The Security segment experienced a 6% sales increase in the fourth quarter, driven by higher volume and pricing actions, with operating income up 52%.
- FBIN faced significant volume deleverage in 2025, leading to intense pressure on profitability, particularly in the fourth quarter.
- The company experienced a 3% decline in total sales for the full year, primarily due to lower volumes across segments.
- Operating income decreased by 10% for the full year, with operating margin down 120 basis points due to lower sales volume and higher manufacturing costs.
- The Outdoors segment saw a 24% decline in operating income in the fourth quarter, with operating margin decreasing by 400 basis points.
- FBIN's exposure to the Chinese market, which continues to decline, negatively impacted sales and operating margins, particularly in the Water segment.
Good afternoon, everyone. My name is [Shamali]. I will be your conference operator today.
Welcome to the Fortune Brands fourth-quarter 2025 earnings conference call.
(Operator Instructions)
At this time, I will turn the call over to Curt Worthington, Vice President of Finance and Investor Relations. Curt, please go ahead.
Good afternoon, everyone. Welcome to the Fortune Brands Innovations' fourth-quarter and full-year 2025 earnings call.
Hopefully, everyone has had a chance to review our earnings release. The earnings release and the audio replay of this call can be found on the Investors section of our fbin.com website. Beginning this quarter, we are also including an earnings presentation, which is also available on our website.
I want to remind everyone that the forward-looking statements we make on the call today, either in our prepared remarks or in the associated question-and-answer session, are based on current
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