Overview

• U.S. home and security products maker's Q1 revenue fell 2%, missing analyst expectations

• Adjusted EPS for Q1 beat consensus, though it declined 20% from last year

• Company repurchased $43.5 mln of shares and cut full-year sales and EPS guidance

Outlook

• Company lowers 2026 net sales outlook to down low single digits from flat to up 2%

• Company cuts 2026 EPS before charges/gains forecast to $3.00-$3.30 from $3.35-$3.65

• Company cites increased commodity inflation and cautious consumer sentiment as weighing on outlook

Result Drivers

• INCONSISTENT EXECUTION - Interim CEO David Barry said results reflected inconsistent execution and a dynamic external environment

• INFLATION AND CONSUMER SENTIMENT - Co said increased commodity inflation and more cautious consumer sentiment weighed on performance

• MANUFACTURING FACILITY FIRE AND LEADERSHIP COSTS - Results included costs related to a manufacturing facility fire and governance advisory services and leadership transitions

Company press release: ID:nBw1RNnY9a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$1.01 bln	$1.02 bln (17 Analysts)
Q1 Adjusted EPS	Beat	$0.53	$0.52 (17 Analysts)
Q1 EPS		$0.20

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Fortune Brands Innovations Inc is $53.50, about 34% above its May 6 closing price of $39.93

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

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