Fortune Brands Q2 adjusted EPS beats estimates

Overview

• US home, security and digital products firm's Q2 revenue fell 4.1%

• Adjusted EPS for Q2 beat analyst expectations

• Company updated full-year guidance to reflect net tariff refunds and new investments

Outlook

• Company raises 2026 EPS before charges/gains guidance to $3.22-$3.52, including $0.52 tariff refund benefit

• Fortune Brands expects 2026 net sales to be down low single digits

• Company sees 2026 operating margin before charges/gains at 14.0%-15.0%, up from prior 13.5%-14.5%

Result Drivers

• NET TARIFF REFUNDS - Co said net tariff refunds benefited Q2 operating income and EPS

• SEGMENT PERFORMANCE - Water Innovations and Outdoors segments saw sales declines, while Security posted growth

Company press release: ID:nBw7DdSXfa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 11 "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 $55.00, about 5.4% above its August 3 closing price of $52.17

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Aug 4 - Trex Company Q2 sales beat estimates, driven by volume growth

• Aug 3 - Hillman Solutions Q2 sales beat estimates on strong hardware demand

• Aug 4 - Haverty Furniture Q2 sales rise, profit doubles

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)