Fortune Brands Delivers Solid Margin Progress and Strong Cash Flow Amidst a Dynamic Environment

Fortune Brands Innovations, Inc. (“Fortune Brands” or the “Company”), an industry-leading innovation company whose purpose is to elevate every life by transforming spaces into havens, announced fourth quarter and full-year 2024 results.

Highlights:

• Q4 2024 sales were $1.1 billion, a decrease of 5 percent versus Q4 2023; organic sales excluding the impact of China and one-time disruptions were down 1 percent
• Q4 2024 earnings per share (EPS) were $0.84, an increase of 31 percent versus a year ago; EPS before charges / gains were $0.98, an increase of 3 percent versus Q4 2023
• Full-year 2024 sales were $4.6 billion, flat versus 2023; organic sales excluding the impact of China and one-time disruptions were down 2 percent
• Full-year 2024 EPS were $3.75, an increase of 18 percent versus a year ago; EPS before charges / gains were $4.12, an increase of 5 percent versus 2023
• Company announces new $1 billion share repurchase authorization to replace existing share repurchase authorization, reflecting confidence in cash generation and commitment to driving long-term shareholder value
• Company provides full-year 2025 guidance focused on outperforming the market, expanding margins while continuing to invest in key strategic priorities and generating and deploying cash

“We made significant progress in 2024 against our key digital, brand and organizational priorities. We have built a foundation for growth which we are confident will accelerate as conditions improve. Our teams continued to execute in a challenging market, and we saw areas of sales outperformance against the market in our core products portfolio, as well as accelerating digital water sales. The Company again delivered margin expansion while continuing to invest in our key priorities,” said Fortune Brands Chief Executive Officer Nicholas Fink. “We recently announced changes to our organization and leadership that will enable us to be a more aligned and agile Company with continued focus on our biggest growth opportunities.”

Comments on the Fourth Quarter

Results in the quarter were impacted by a third-party software outage in our Security distribution centers, as well as by softness in China impacting our Water Innovations segment and the impact of the southeastern U.S. hurricanes. Collectively, these impacts represented approximately a 5 percent impact to the Company’s fourth quarter organic sales.

Balance Sheet and Cash Flow

The Company exited the quarter with a strong balance sheet and generated $272 million of operating cash flow and $212 million of free cash flow in the quarter. For the full year, the Company generated $668 million of operating cash flow and $475 million of free cash flow, which represents over a 100% cash conversion ratio. In accordance with its opportunistic, returns-based share repurchase program, the Company repurchased $50 million of shares in the fourth quarter, bringing the full year total to $240 million. The Company finished the year with full availability on its revolving credit facility.

Share Repurchase Authorization

The Company announced that on February 4, 2025, its Board of Directors authorized the repurchase of up to $1 billion of shares of the Company’s outstanding common stock over the next two years on the open market or in privately negotiated transactions or otherwise (including pursuant to a Rule 10b5-1 trading plan, block trades and accelerated share repurchase transactions), in accordance with applicable securities laws. The new $1 billion share repurchase authorization announced today replaces the existing authorization, which was set to expire on January 29, 2026, and which had $409 million remaining.

The new purchases, if made, will occur from time to time depending on market conditions. The newly announced share repurchase authorization does not obligate the Company to repurchase any dollar amount or number of shares of common stock. This authorization is in effect until February 4, 2027, and may be suspended or discontinued at any time.

2025 Market and Financial Guidance

“Our full-year guidance reflects current market conditions and our expectation for continued acceleration of digital products coupled with R&R softness in the first half of 2025. Our team is navigating near-term challenges while also executing multiple foundational strategic initiatives which we expect will enable the Company to drive market beating growth,” said Fortune Brands Chief Financial Officer David Barry. “Our new $1 billion share repurchase authorization shows we continue to have full confidence in our long-term strategy, and the authorization underscores our ability to drive cash flow and working capital initiatives while being mindful of our leverage target.”

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About Fortune Brands Innovations

Fortune Brands Innovations, Inc. (NYSE: FBIN), headquartered in Deerfield, Ill., is a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. The Company’s growing portfolio of brands includes Moen, Flo, House of Rohl, Aqualisa, Emtek, Therma-Tru, Larson, Fiberon, Master Lock, SentrySafe, Yale residential and August. To learn more about FBIN, its brands and environmental, social and governance (ESG) commitments, visit www.FBIN.com.

Contact:

Leigh Avsec – Media Contact – Investor.Questions@fbhs.com – (847) 484-4211

Source: Fortune Brands Innovations, Inc.