Fortune Brands Innovations, Inc. reported a decline in financial performance for the fiscal year ending December 27, 2025, with net sales of $4.46 billion, a decrease of 3.2% from $4.61 billion in 2024. The company's operating income also fell significantly, down 30.1% to $516.1 million from $737.9 million the previous year. This decline was attributed to lower sales volumes, particularly in international markets, as well as increased costs related to restructuring and asset impairments. The company’s net income for 2025 was $298.8 million, compared to $471.9 million in 2024.
The company experienced notable changes in its operational structure, including a strategic decision to consolidate its U.S. regional offices into a single headquarters in Deerfield, Illinois. This move is expected to enhance collaboration and innovation but has incurred significant restructuring costs, totaling $109.1 million for the year. Additionally, Fortune Brands made two key acquisitions: SpringWell, a water filtration company, for $105.6 million, and the Emtek and Schaub premium hardware business, along with Yale and August smart locks, for approximately $813.9 million. These acquisitions are intended to strengthen the company's position in the water and security segments.
In terms of operational metrics, the company reported a total employee headcount of approximately 10,000 as of the end of 2025. The Water segment generated $2.45 billion in sales, a decrease of 4.6%, while the Outdoors segment saw a 2.0% decline to $1.32 billion. The Security segment's sales remained relatively stable at $692.6 million, down just 0.2%. The company noted that sales to its top two customers, The Home Depot and Lowe's, accounted for 11% of total net sales each, highlighting the concentration of revenue sources.
Looking ahead, Fortune Brands anticipates continued challenges in the housing market, which has been affected by rising inflation and interest rates. The company plans to focus on organic growth initiatives and strategic acquisitions while managing costs through productivity improvements. The outlook remains cautious, with expectations of ongoing volatility in commodity prices and potential impacts from tariffs. The company aims to leverage its established brands and market position to navigate these challenges effectively.
About Fortune Brands Innovations, Inc.
Fortune Brands Innovations, Inc. is a leading consumer products company specializing in water, outdoor, and security solutions. It offers faucets, sinks, doors, decking, locks, and security devices primarily in North America and China. The company emphasizes innovation, brand strength, digital transformation, and operational efficiency to serve homeowners, builders, and retailers in competitive markets.
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