Fortune Brands Innovations, Inc.
Fortune Brands Innovations makes home, security, and digital products that are sold through dealers, wholesalers, home centers, showrooms, e-commerce, and other retail channels. Its portfolio is organized around Water, Outdoors, and Security, with products aimed at improving functionality, safety, sustainability, and connected-home features in residential and commercial spaces.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueKitchen and bath products, including water-related fixtures and solutions sold through trade and retail channels.
Locks, access, and safety products for residential and commercial applications.
Outdoor living and related home products sold to consumers and trade customers.
Customers
The company sells to a mix of trade and retail customers, including kitchen and bath dealers, wholesalers serving builders and remodelers, industrial and locksmith distributors, and home centers. Lowe’s and The Home Depot are especially important customers, and the company also reaches consumers through showrooms, direct-to-consumer, e-commerce, and other retail outlets.
Large retailers such as Lowe’s and The Home Depot buy broad assortments for DIY and pro customers.
Wholesalers and trade channels buy products used in new construction and renovation projects.
Specialty dealers buy water and bath products for design-led residential projects.
Industrial and locksmith distributors buy locks and access products for installation and resale.
Consumers purchase branded products online or through retail outlets for home upgrades.
Strategy
Management is focused on profitable organic growth through innovation, brand investment, and expansion into adjacent and digital categories. It also emphasizes supply chain efficiency, simplification, and disciplined capital deployment through acquisitions, joint ventures, dividends, and share repurchases.
New products and digital features help defend brands and open adjacent markets.
Lower cost, better service, and faster execution support margins and responsiveness.
Acquisitions, JVs, and buybacks are intended to enhance returns and support growth.
Geography
Q1/2026The company sells primarily in North America and China, with 2025 net sales based on country of destination of 84% in the United States, 8% in Canada, 3% in China, and 5% in other international markets. International sales were about 16% of net sales, so foreign exchange, trade policy, and local demand trends matter to results.
Share of the revenue the company reports by geography.
Risks
The business is exposed to housing and remodeling cycles in North America and China, so demand can weaken when interest rates, consumer confidence, or new-home activity soften. It also faces execution risk from technology adoption, supply chain efficiency, customer concentration, and global regulatory complexity around privacy, data security, and trade.
- Housing market and remodeling slowdownImpact: HighLikelihood: High
Demand depends heavily on North American and Chinese home improvement and new construction activity.
Exposure: North America and China
- Customer concentrationImpact: HighLikelihood: Medium
A large share of sales comes from a small number of retailers and distributors.
Exposure - Supply chain and productivity riskImpact: MediumLikelihood: High
The company relies on global sourcing and manufacturing efficiency to protect margins and service levels.
Exposure: Global supply chain
- Technology and AI execution riskImpact: MediumLikelihood: Medium
New technologies may require significant investment and may not improve results as expected.
Exposure - Regulatory and data privacy complianceImpact: MediumLikelihood: Medium
Operations are subject to changing privacy, information security, and solicitation rules in multiple jurisdictions.
Exposure
Accounting
Judgemental itemsManagement estimates obsolescence and slow-moving stock, which affects cost of sales and margins.
Impact: Inventory provision was $89.9 million at year-end 2025
Acquisitions require fair value allocation to goodwill and intangibles, affecting future amortization and impairment risk.
Impact: Customer relationships, tradenames, and technology valuations depend on forecast assumptions
These assets can be impaired if category demand or brand performance weakens.
Impact: Could create large non-cash charges
Foreign exchange hedges and net investment hedges affect OCI and future earnings reclassification.
Impact: About $11.3 million of net derivative gains were expected to reclassify within 12 months
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Last updated: 24/09/2026