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Fortune Brands Innovations AUGUST 4 , 2026 Q2 Earnings All references to earnings per share , operating income , operating margin , and EBITDA are on a before charges / gains basis
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2 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations for our business, operations, financial performance or financial condition in addition to statements regarding our strategies and investments to enhance execution and realign our business, our expectations for the markets in which we operate, expected impacts from recently -announced organizational and leadership changes , ongoing succession planning, the market potential of our brands, trends in the housing market, the potential impact of costs, including material and labor costs, the other potential impacts of inflation, including consumer spending, expected capital spending, expected pension contributions or de-risking initiatives, the expected impact of acquisitions, dispositions and other strategic transactions, the anticipated impact of recently issued accounting standards on our financial statements, the anticipated impact of future tariff refunds and other matters that are not historical in nature. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “outlook,” “po sitioned,” “confident,” “opportunity,” “focus,” "on track" and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward- looking in nature and not historical facts. Where, in any forward- looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on current expectations, estimates, assumptions and projections of our management about our industry, business and future financial results, available at the time this presentation is issued. Alth ough we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those indicated in such statements, including but not limited to: (i) our reliance on the North American and Chinese home improvement, repair and remodel and new home construction activity leve ls, (ii) the housing market, downward changes in the general economy, unfavorable interest rates or other business conditions, (iii) the competitive natur e of consumer and trade brand businesses, (iv) our ability to execute on our strategic plans and the effectiveness of our strategies in the face of business competition, (v) our reliance on key c ustomers and suppliers, including wholesale distributors and dealers and retailers, (vi) risks associated with our recent leadership changes and our search processes to identify additional permanent members of senior management, (vii) risks relating to rapidly evolving technological change, (viii) risks associated with our ability to improve organizational productivity and global supply chain efficiency and flexibility, (ix) risks associated with global commodity and energy availability and price volatility, as well as the possibility of sustained inflation, (x) delays or outages in our inf ormation technology systems or computer networks or breaches of our information technology systems or other cybersecurity incidents, (xi) risks associated with doing business globally, including changes in trade -related tariffs (including recent U.S. tariffs announced or imposed on China, Canada, Mexico and other countries and any reciprocal actions taken by such countries) and ris ks with uncertain trade environments, (xii) risks associated with the disruption of operations, including as a result of severe weather events, (xiii) our inability to obtain raw materials an d finished goods in a timely and cost-effective manner, (xiv) risks associated with strategic acquisitions, divestitures and joint ventures, including difficulties integrating acquired companie s and the inability to achieve the expected financial results and benefits of transactions, (xv) impairments in the carrying value of goodwill or other acquired intangible assets, (xvi) risks of incre ases in our defined benefit-related costs and funding requirements, (xvii) our ability to attract and retain qualified personnel and other labor constraints, (xviii) the effect of climate change and t he impact of related changes in government regulations and consumer preferences, (xix) risks associated with environmental, social and governance matters, (xx) potential liabilities and costs f rom claims and litigation, (xxi) changes in government and industry regulatory standards, (xxii) future tax law changes or the interpretation of existing tax laws, and (xxiii) our ability to secur e and protect our intellectual property rights. These and other factors are discussed in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10 -K for the year ended December 27, 2025. We undertake no obligation to, and expressly disclaim any such obligation to, update, amend, revise or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or changes to future results over time or otherwise, except as required by law. USE OF NON-GAAP FINANCIAL INFORMATION This presentation includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as diluted earnings (loss) per share before charges / gains, operating income (loss) before charges / gains, operating margin before charges / gains, net debt, net debt to EBITDA before cha rges / gains, net sales excluding the impact of China, Outdoors net sales excluding the impact of Fiberon and free cash flow. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to th e applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the appendix.
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On the Call 3 David Barry Chief Operating Officer Ashley George Interim Chief Financial Officer Jesse Singh Chief Executive Officer
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Delivered Q2 2026 EPS1 Results In Line with Expectations However, execution is not yet where it needs to be, and we are taking the appropriate steps to close the gap Updating Full Year 2026 Guidance Our 2026 EPS1 guidance now reflects the benefit of net tariff refunds2 and incremental investments intended to improve service levels and accelerate new product development 4 Key Messages Welcome Jesse Singh as New Chief Executive Officer Focused on restoring consistent performance, serving our customers better and rebuilding credibility with our stakeholders Taking Action Against Near Term Priorities Leadership team is acting with urgency to enhance execution, optimize our cost structure and focus our portfolio on the highest return opportunities 1 EPS is on a before charges/gains basis, which is a non-GAAP financial measure. Please see the appendix hereto for reconciliations to the most directly comparable GAAP financial measure. 2 Net tariff refunds include anticipated gross tariff refunds, partially offset by increases in directly attributable variable incentive compensation costs and taxes (for EPS only).
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Market Backdrop 5 Single-Family New Construction Outlook Soft Spring season and limited visibility for remainder of 2026; outlook assumes no single-family recovery Raw Materials and Commodity Inflation Outlook Inflation continues to accelerate, especially with oil derivatives and freight costs; outlook assumes no material relief before year end Repair & Remodel Outlook Steady demand for less-discretionary and luxury categories as consumers remain cautious overall
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Q2 2026 Results Total Company Results 1 Operating income, operating margin and EPS are on a before charges/gains basis. Operating income before charges/gains, operating margin before charges/gains, and EPS before charges/gain are non-GAAP financial measures. Please see the appendix hereto for reconciliations to their most directly comparable GAAP financial measures. 2 Net sales excluding the impact of China is a non-GAAP financial measure. Please see the appendix hereto for the reconciliation to the most directly comparable GAAP financial measure. 3 Net tariff refunds include anticipated gross tariff refunds, partially offset by increases in directly attributable variable incentive compensation costs and taxes (for EPS only). 6 $ in millions (except per share amounts) Net Sales Operating Income1 Operating Margin1 EPS1 Q2 2026 $1,153.9 $235.6 20.4% $1.35 Change (4.1%) 18.4% 390 bps 35.0% Net Sales decline primarily driven by the Water business, partially offset by areas of growth in Outdoors and Security Results include a net tariff refund3 benefit of $81M to Operating Income1, 702 bps to Operating Margin1 and $0.52 to EPS1 Net Sales excluding impact of China2 were (3.5%)
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$ in millions (except per share amounts) Water Outdoors Security Corporate Consolidated Consolidated Gross Tariff Refunds $74 $8 $22 $0 $104 $122 Net Tariff Refunds: Operating Income Impact1 $66 $5 $19 ($9) $81 $81 Net Tariff Refunds: EPS Impact1 - - - - $0.52 $0.52 Impact of Tariff Refunds on Financial Results 7 Segment and consolidated results for Q2 and FY 2026 will include impact of net tariff refunds1 IEEPA largely replaced by Section 301/232 tariffs; going forward, cost structure will continue to reflect the impact of tariffs Q2 2026 FY 2026 1 Net tariff refunds include anticipated gross tariff refunds, partially offset by increases in directly attributable variable incentive compensation costs and taxes (for EPS only).
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Water 8 Segment Results Net Sales Operating Income1 Operating Margin1 Q2 2026 $605.0 $178.5 29.5% Change (6.5%) 7.9% 390 bps Net Sales impacted by service level challenges, share losses from PY and softness in wholesale; partially offset by pricing and growth in eCommerce Operating Margin1 reflects a net tariff refund3 benefit of 1,090 bps, offset by unfavorable price / cost, lower volumes and higher costs to serve our customers Quarter Highlights Q2 2026 SUMMARY 1 Operating income and operating margin are on a before charges/gains basis. Operating income before charges/gains and operating margin before charges/gains are non-GAAP financial measures. Please see the appendix hereto for reconciliations to their most directly comparable GAAP financial measures. 2 Net sales excluding the impact of China is a non-GAAP financial measure. Please see the appendix hereto for the reconciliation to the most directly comparable GAAP financial measure. 3 Net tariff refunds include anticipated gross tariff refunds, partially offset by increases in directly attributable variable incentive compensation costs and taxes (for EPS only). $ in millions Net sales excluding impact of China2 were (5.4%)
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Outdoors 9 Q2 2026 SUMMARY Segment Results Net Sales Operating Income1 Operating Margin1 Q2 2026 $364.5 $55.5 15.2% Change (3.8%) 14.2% 240 bps 1 Operating income and operating margin are on a before charges/gains basis. Operating income before charges/gains and operating margin before charges/gains are non-GAAP financial measures. Please see the appendix hereto for reconciliations to their most directly comparable GAAP financial measures. 2 Outdoors net sales excluding the impact of Fiberon is a non-GAAP financial measure. Please see the appendix hereto for the reconciliation to the most directly comparable GAAP financial measure. 3 Net tariff refunds include anticipated gross tariff refunds, partially offset by increases in directly attributable variable incentive compensation costs and taxes (for EPS only). $ in millions Net Sales were impacted by softer wholesale volumes, partially offset by growth in retail, particularly with Larson, and positive pricing Operating Margin 1 reflects a net tariff refund3 benefit of 130 bps and improved operating performance, partially offset by lower volumes and higher costs Quarter Highlights Net sales excluding impact of Fiberon2 were (1.5%)
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Security 10 Q2 2026 SUMMARY Segment Results Net Sales Operating Income1 Operating Margin1 Q2 2026 $184.4 $49.5 26.8% Change 3.8% 88.2% 1,200 bps 1 Operating income and operating margin are on a before charges/gains basis. Operating income before charges/gains and operating margin before charges/gains are non-GAAP financial measures. Please see the appendix hereto for reconciliations to their most directly comparable GAAP financial measures. 2 Net tariff refunds include anticipated gross tariff refunds, partially offset by increases in directly attributable variable incentive compensation costs and taxes (for EPS only). $ in millions Net Sales growth supported by new product launches in the commercial, retail and e-Commerce channels Operating Margin 1 reflects a net tariff refund2 benefit of 1,030 bps and improved operating performance; partially offset by higher costs Quarter Highlights
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Balance Sheet and Cash Flow 11 $210 M Cash $2.3 B Net debt 1 Down from $2.5 B in Q1 2026 2.7x Net debt / EBITDA 1 Down from 2.9x in Q1 2026; committed to Net debt / EBITDA <2.5x in the near term $1.1 B Total liquidity $858 M available under $1.25 B revolving credit facility $835 M Working capital 2 19.0% of LTM Net sales $24 M Capex YTD Capex of $44 M; Maintaining full year range of $110 M - $125 M $33 M Returns to shareholders $2 M in share repurchases and $31 M in dividends $179 M Free cash flow 1 Up $60M vs Q2 2025 Q2 2026 SUMMARY 1 EBITDA is on a before charges/gains basis. Net debt, net debt/EBITDA before charges / gains and free cash flow are non-GAAP financial measures. Please see the appendix hereto for reconciliations to their most directly comparable GAAP financial measures. 2 Please see appendix for working capital calculation. Decrease of $13 M vs Q1 2026
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2026 Full-Year Guidance & Assumptions 12 Prior* Updated Guidance Net Sales Down low single digits Down low single digits EPS1 $3.00 to $3.30 $3.22 to $3.52 Net Tariff Refund2 Benefit to EPS $0.52 Prior* Updated Market Assumptions Global Market Down low single digits Down low single digits U.S. R&R Down low single digits Down low single digits U.S. SFNC Down mid single digits Down mid single digits Total Company Financial Assumptions Operating Margin1 13.5% to 14.5% 14.0% to 15.0% Net Tariff Refund2 Benefit to Operating Income $81 million Cash Flow From Operations $475 million to $510 million $495 million to $530 million Free Cash Flow $350 million to $400 million $370 million to $420 million Other Assumptions Interest Expense $110 million to $115 million $108 million to $112 million Capex $110 million to $125 million $110 million to $125 million Tax Rate 24.0% to 24.5% 24.0% to 24.5% Share Count 120 million to 120.5 million 120 million to 120.5 million 1 Operating margin, Operating Income and EPS are on a before charges/gains basis and are presented as non-GAAP financial measures. Please see the appendix hereto for detail on why the Company is unable to provide a reconciliation to the most directly comparable GAAP financial measure for these forward-looking non-GAAP measures. * As provided in Q1 2026 Earnings Call on May 7, 2026. 2 Net tariff refunds include anticipated gross tariff refunds, partially offset by increases in directly attributable variable incentive compensation costs and taxes (for EPS only)
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Q&A 13
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Appendix 14
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New from Moen: SwivelControl Technology 15 Solves key pain point: maintaining faucet position while allowing hands free operation 100% Sink Coverage Automatic Redocking Hands Free Control
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Fortune Brands Innovations, Inc. 17 Reconciliations Of GAAP Operating Income To Operating Income Before Charges/(Gains) (a) (f) (g) (i) For definitions of Non-GAAP measures, see Definitions of Terms page (In millions) (Unaudited) (In millions) (Unaudited) Thirteen Weeks Ended Twenty-Six Weeks Ended Net sales (GAAP) June 27, 2026 June 28, 2025 $ Change % Change June 27, 2026 June 28, 2025 $ Change % Change Water $ 605.0 $ 646.9 $ (41.9 ) (6.5) $ 1,168.6 $ 1,212.3 $ (43.7) (3.6 ) Outdoors 364.5 378.8 (14.3 ) (3.8) 658.9 683.6 (24.7) (3.6 ) Security 184.4 177.6 6.8 3.8 337.7 340.6 (2.9) (0.9) Total net sales $ 1,153.9 $ 1,203.3 $ (49.4 ) (4.1) $ 2,165.2 $ 2,236.5 $ (71.3) (3.2) Thirteen Weeks Ended Twenty-Six Weeks Ended June 27, 2026 June 28, 2025 $ Change % Change June 27, 2026 June 28, 2025 $ Change % Change WATER Operating income (GAAP) $ 175.0 $ 156.0 $ 19.0 12.2 $ 278.7 $ 259.3 $ 19.4 7.5 Restructuring charges 2.8 6.3 (3.5) (55.6) 5.1 15.8 (10.7) (67.7) Other charges/(gains) Cost of products sold - - - - - 0.5 (0.5) (100.0 ) Selling, general and administrative expenses 0.1 3.2 (3.1) (96.9) 0.2 3.2 (3.0) (93.8) Asset impairment charges (f) 0.6 - 0.6 100.0 0.6 - 0.6 100.0 Operating income before charges/(gains) (a) $ 178.5 $ 165.5 $ 13.0 7.9 $ 284.6 $ 278.8 $ 5.8 2.1 OUTDOORS Operating (loss) income (GAAP) $ (177.4) $ 42.1 $ (219.5) (521.4) $ (160.0) $ 64.7 $ (224.7) (347.3) Restructuring charges 0.8 2.1 (1.3) (61.1 ) 0.9 4.7 (3.8) (80.9) Other charges/(gains) Cost of products sold 0.4 0.2 0.2 79.5 1.1 5.8 (4.7) (80.6 ) Selling, general and administrative expenses - 4.2 (4.2) (100.0) 0.1 5.2 (5.1) (98.1) Asset impairment charge (f) 228.7 - 228.7 100.0 228.7 - 228.7 100.0 Manufacturing facility fire (g) 3.0 - 3.0 100.0 6.6 - 6.6 100.0 Operating income before charges/(gains) (a) $ 55.5 $ 48.6 $ 6.9 14.2 $ 77.4 $ 80.4 $ (3.0) (3.7) SECURITY Operating income (GAAP) $ 49.1 $ 22.7 $ 26.4 116.3 $ 70.8 $ 38.7 $ 32.1 82.9 Restructuring charges 0.5 1.8 (1.3) (72.2) 0.6 5.7 (5.1) (89.5) Other charges/(gains) Cost of products sold (0.1 ) 0.4 (0.5) (125.0) - 3.7 (3.7) (100.0) Selling, general and administrative expenses - 1.4 (1.4) (100.0) (0.2) 1.4 (1.6) (114.3) Operating income before charges/(gains) (a) $ 49.5 $ 26.3 $ 23.2 88.2 $ 71.2 $ 49.5 $ 21.7 43.8 TOTAL COMPANY Operating income (loss) (GAAP) $ (9.0) $ 171.6 $ (180.6 ) (105.2) $ 51.2 $ 268.6 $ (217.4) (80.9) Restructuring charges 8.1 13.7 (5.6) (40.8) 12.5 38.5 (26.0) (67.5) Other charges/(gains) Cost of products sold 0.3 0.6 (0.3) (56.8) 1.1 10.0 (8.9) (88.7) Selling, general and administrative expenses 2.6 13.1 (10.5) (80.0) 3.6 17.8 (14.2) (80.0) Asset impairment charge (f) 229.3 - 229.3 100.0 229.3 - 229.3 100.0 Manufacturing facility fire (g) 3.0 - 3.0 100.0 6.6 - 6.6 100.0 Governance advisory services and leadership transitions (i) 1.3 - 1.3 100.0 43.6 - 43.6 100.0 Operating income before charges/(gains) (a) $ 235.6 $ 199.0 $ 36.6 18.4 $ 347.9 $ 334.9 $ 13.0 3.9
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Fortune Brands Innovations, Inc. Condensed Consolidated Balance Sheets (GAAP) 18 (In millions) (Unaudited) June 27, 2026 December 27, 2025 Assets Current assets Cash and cash equivalents $ 209.7 $ 264.0 Accounts receivable, net 607.1 513.1 Inventories 990.7 1,024.9 Other current assets 267.5 172.2 Total current assets 2,075.0 1,974.2 Property, plant and equipment, net 649.9 805.9 Goodwill 2,001.1 2,006.4 Other intangible assets, net of accumulated amortization 1,113.2 1,231.7 Assets held for sale 104.5 113.8 Other assets 398.3 388.6 Total assets $ 6,342.0 $ 6,520.6 Liabilities and equity Current liabilities Accounts payable 518.9 524.6 Other current liabilities 511.6 547.0 Total current liabilities 1,030.5 1,071.6 Long-term debt 2,551.5 2,544.9 Deferred income taxes 95.5 146.9 Other non-current liabilities 356.1 368.6 Total liabilities 4,033.6 4,132.0 Stockholders' equity 2,308.4 2,388.6 Total equity 2,308.4 2,388.6 Total liabilities and equity $ 6,342.0 $ 6,520.6
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Fortune Brands Innovations, Inc. Condensed Consolidated Statements Of Cash Flows 19 (In millions) (Unaudited) (b) For definitions of Non-GAAP measures, see Definitions of Terms page * Restricted cash of $1.1 million and $2.5 million is included in Other current assets and Other assets, respectively, as of June 27, 2026. Restricted cash of $1.3 million and $2.8 million is included in Other current assets and Other assets, respectively, as of Ju ne 28, 2025. Twenty-Six Weeks Ended June 27, 2026 June 28, 2025 Operating activities Net income $ 1.7 $ 151.6 Depreciation and amortization 84.7 102.0 Non-cash lease expense 20.1 17.9 Deferred taxes (53.4) 2.9 Asset impairment charge 229.3 - Other non-cash items 10.2 16.1 Changes in assets and liabilities, net (209.0) (224.5) Net cash provided by operating activities $ 83.6 $ 66.0 Investing activities Capital expenditures $ (43.8) $ (59.9) Proceeds from the disposition of assets 9.8 - Other investing activities, net - 2.9 Net cash used in investing activities $ (34.0) $ (57.0) Financing activities Increase in debt, net $ 5.0 $ 140.0 Proceeds from the exercise of stock options 7.7 0.7 Treasury stock purchases (45.2) (237.8) Dividends to stockholders (62.2) (60.6) Other items, net (7.8) (7.6) Net cash used in financing activities $ (102.5) $ (165.3) Effect of foreign exchange rate changes on cash $ (1.3) $ 9.6 Net decrease in cash and cash equivalents $ (54.2) $ (146.7) Cash, cash equivalents and restricted cash* at beginning of period 267.5 385.5 Cash, cash equivalents and restricted cash* at end of period $ 213.3 $ 238.8 FREE CASH FLOW Twenty-Six Weeks Ended 2026 Full Year June 27, 2026 June 28, 2025 Estimate Cash flow from operations (GAAP) $ 83.6 $ 66.0 $495 to $530 Less: Capital expenditures $ 43.8 $ 59.9 $110 to $125 Free cash flow (b) $ 39.8 $ 6.1 $370 to $420
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20 Fortune Brands Innovations, Inc. Cash Flow From Operations (GAAP) To Free Cash Flow (In millions) (Unaudited) Thirteen Weeks Ended June 27, 2026 Cash flow from operations (GAAP) $ 202.8 Less: Capital expenditures 23.5 Free cash flow (b) $ 179.3 (b) For definitions of Non-GAAP measures, see Definitions of Terms page
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21 Fortune Brands Innovations, Inc. Condensed Consolidated Statements Of Income (GAAP) (In millions, except per share amounts) (Unaudited) NM = Not meaningful Thirteen Weeks Ended Twenty-Six Weeks Ended June 27, 2026 June 28, 2025 % Change June 27, 2026 June 28, 2025 % Change Net sales $ 1,153.9 $ 1,203.3 (4.1) $ 2,165.2 $ 2,236.5 (3.2) Cost of products sold 563.2 660.1 (14.7) 1,138.8 1,238.7 (8.1) Selling, general and administrative expenses 343.8 338.8 1.5 696.5 653.7 6.5 Amortization of intangible assets 18.5 19.1 (3.1) 36.9 37.0 (0.3) Asset impairment charge 229.3 - NM 229.3 - NM Restructuring charges 8.1 13.7 (40.9) 12.5 38.5 (67.5) Operating income (loss) (9.0) 171.6 (105.2) 51.2 268.6 (80.9) Interest expense 27.4 31.2 (12.2) 53.9 59.8 (9.9) Other (income)/expense, net 0.6 (7.3) (108.2) 0.5 (8.2) (106.1) Income before taxes (37.0) 147.7 (125.1) (3.2) 217.0 (101.5) Income tax (benefit) expense (14.5) 47.4 (130.6) (4.9) 65.4 (107.5) Net income (loss) $ (22.5) $ 100.3 (122.4) $ 1.7 $ 151.6 (98.9) Diluted earnings (loss) per common share $ (0.19) $ 0.83 (122.7) $ 0.01 $ 1.24 (98.9) Diluted average number of shares outstanding 119.5 120.7 (1.0) 119.8 121.8 (1.6)
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Twenty - Six Weeks Ended Twenty-Six Weeks Ended Fifty-Two Weeks Ended December 27, 2025 June 27, 2026 June 27, 2026 Net income $ 147.2 $ 1.7 $ 148.9 Depreciation*** $ 50.0 $ 47.7 $ 97.7 Amortization of intangible assets 38.2 36.9 75.1 Restructuring charges 13.9 12.5 26.4 Other charges/(gains) 27.7 4.7 32.4 Interest expense 55.4 53.9 109.3 Asset impairment charge (f) 53.6 229.3 282.9 Manufacturing facility fire (g) 21.1 6.6 27.7 Transformation costs (h) 0.7 - 0.7 Governance advisory services and leadership transitions (i) - 43.6 43.6 Income taxes 40.7 (4.9) 35.8 EBITDA before charges/(gains) (c) $ 448.5 $ 432.0 $ 880.5 22 Fortune Brands Innovations, Inc. (In millions) (Unaudited) Reconciliations Of Income From Continuing Operations, Net Of Tax To EBITDA Before Charges/(Gains) Depreciation excludes accelerated depreciation expense of zero for the thirteen weeks ended June 27, 2026, and $(0.2) million for the twenty-six weeks ended June 27, 2026 and excludes accelerated depreciation expense of $7.3 million for the thirteen weeks ended June 28, 2025, and $15.8 million for the twenty-six weeks ended June 28, 2025. Accelerated depreciation is included in other charges/(gains). Calculation Of Net Debt-to-EBITDA Before Charges/(Gains) Ratio ** Amounts are per the Unaudited Condensed Consolidated Balance Sheet as of June 27, 2026. *** Depreciation excludes accelerated depreciation expense of $(0.2) million for the twenty-six weeks ended June 27, 2026, and $3.4 million for the twenty-six weeks ended December 27, 2025. Accelerated depreciation is included in other charges/(gains). (c) (f) (g) (h) (i) (l) (m) For definitions of Non-GAAP measures, see Definitions of Terms page NM = Not meaningful Thirteen Weeks Ended Twenty-Six Weeks Ended June 27, 2026 June 28, 2025 % Change June 27, 2026 June 28, 2025 % Change Net income (loss) $ (22.5) $ 100.3 (122.4) $ 1.7 $ 151.6 (98.9) Depreciation * $ 24.0 $ 24.9 (3.6) $ 47.7 $ 49.7 (4.0) Amortization of intangible assets 18.5 19.1 (3.1) 36.9 37.0 (0.3) Restructuring charges 8.1 13.7 (40.9) 12.5 38.5 (67.5) Other charges/(gains) 2.9 13.7 (79.0) 4.7 27.8 (83.2) Interest expense 27.4 31.2 (12.2) 53.9 59.8 (9.9) Asset impairment charge (f) 229.3 - NM 229.3 - NM Manufacturing facility fire (g) 3.0 - NM 6.6 - NM Governance advisory services and leadership transitions (i) 1.3 - NM 43.6 - NM Income taxes (14.5) 47.4 (130.6) (4.9) 65.4 (107.5) EBITDA before charges/(gains) (c) 277.5 250.3 10.9 432.0 429.8 0.5 As of June 27, 2026 Long-term debt ** $ 2,551.5 Total debt 2,551.5 Less: Cash and cash equivalents ** 209.7 Net debt (1) (l) $ 2,341.8 For the fifty-two weeks ended June 27, 2026 EBITDA before charges/(gains) (2) (c) $ 880.5 Net debt-to-EBITDA before charges/(gains) ratio (1/2) (m) 2.7
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Reconciliation Of Diluted EPS From Continuing Operations Before Charges/(Gains) 23 For the thirteen weeks ended June 27, 2026, diluted EPS before charges/(gains) is calculated as income from continuing operations on a diluted per-share basis, excluding $8.1 million ($6.1 million after tax or $0.05 per diluted share) of restructuring charges, $2.9 million ($2.1 million after tax or $0.02 per diluted share) of other charges/gains, $229.3 million ($172.0 million after tax or $1.44 per diluted share) of asset impairment charges, $3.0 million ($2.2 million after tax or $0.02 per diluted share) of net costs relating to a manufacturing facility fire and $1.3 million ($1.0 million after tax or $0.01 per diluted share) of costs associated with governance advisory services and leadership changes. For the twenty-six weeks ended June 27, 2026, diluted EPS before charges/(gains) is calculated as income from continuing operations on a diluted per-share basis, excluding $12.5 million ($9.3 million after tax or $0.08 per diluted share) of restructuring charges, $4.7 million ($3.4 million after tax or $0.03 per diluted share) of other charges/gains, $229.3 million ($172.0 million after tax or $1.44 per diluted share) of asset impairment charges, $6.6 million ($4.9 million after tax or $0.04 per diluted share) of net costs relating to a manufacturing facility fire and $43.6 million ($33.4 million after tax or $0.28 per diluted share) of costs associated with governance advisory services and leadership changes. For the thirteen weeks ended June 28, 2025, the diluted EPS before charges/(gains) is calculated as income from continuing operations on a diluted per-share basis, excluding $13.7 million ($12.7 million after tax or $0.10 per diluted share) of restructuring charges and $13.7 million ($8.1 million after tax or $0.07 per diluted share) of other charges/(gains). For the twenty-six weeks ended June 28, 2025, the diluted EPS before charges/(gains) is calculated as income from continuing operations on a diluted per-share basis, excluding $38.5 million ($29.7 million after tax or $0.25 per diluted share) of restructuring charges and $27.8 million ($20.7 million after tax or $0.17 per diluted share) of other charges/(gains). (d) (f) (g) (i) For definitions of Non-GAAP measures, see Definitions of Terms page NM = Not meaningful Thirteen Weeks Ended Twenty-Six Weeks Ended June 27, 2026 June 28, 2025 % Change June 27, 2026 June 28, 2025 % Change Earnings per common share (EPS) - Diluted Diluted EPS from continuing operations (GAAP) $ (0.19) $ 0.83 (122.7) $ 0.01 $ 1.24 (98.9) Restructuring charges 0.05 0.10 (50.0) 0.08 0.25 (68.0) Other charges/(gains) 0.02 0.07 (71.4) 0.03 0.17 (82.4) Asset impairment charge (f) 1.44 - NM 1.44 - NM Manufacturing facility fire (g) 0.02 - NM 0.04 - NM Governance advisory services and leadership transitions (i) 0.01 - NM 0.28 - NM Diluted EPS from continuing operations before charges/(gains) (d) $ 1.35 $ 1.00 35.0 $ 1.88 $ 1.66 13.3
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24 Fortune Brands Innovations, Inc. Operating Margin To Operating Margin Before Charges/(Gains) (Unaudited) (e) (f) (g) (i) For definitions of Non-GAAP measures, see Definitions of Terms page Thirteen Weeks Ended Twenty-Six Weeks Ended June 27, 2026 June 28, 2025 Change June 27, 2026 June 28, 2025 Change WATER Operating margin (e) 28.9% 24.1% 480 bps 23.8% 21.4% 240 bps Restructuring charges 0.5% 1.0% 0.5% 1.3% Other charges/(gains) Selling, general and administrative expenses - 0.5% - 0.3% Asset impairment charge (f) 0.1% - 0.1% - Before charges/(gains) operating margin (e) 29.5% 25.6% 390 bps 24.4% 23.0% 140 bps OUTDOORS Operating margin (e) (48.7%) 11.1% (5980) bps (24.3%) 9.5% (3380) bps Restructuring charges 0.2% 0.6% 0.1% 0.7% Other charges/(gains) Cost of products sold 0.1% 0.1% 0.2% 0.8% Selling, general and administrative expenses - 1.0% - 0.8% Asset impairment charge (f) 62.8% - 34.7% - Manufacturing facility fire (g) 0.8% - 1.0% - Before charges/(gains) operating margin (e) 15.2% 12.8% 240 bps 11.7% 11.8% (10) bps SECURITY Operating margin (e) 26.6% 12.8% 1380 bps 21.0% 11.4% 960 bps Restructuring charges 0.3% 1.0% 0.2% 1.7% Other charges/(gains) Cost of products sold (0.1%) 0.2% - 1.0% Selling, general and administrative expenses - 0.8% (0.1%) 0.4% Before charges/(gains) operating margin (e) 26.8% 14.8% 1200 bps 21.1% 14.5% 660 bps TOTAL COMPANY Operating margin (e) (0.8%) 14.3% (1510) bps 2.4% 12.0% (960) bps Restructuring charges 0.7% 1.1% 0.6% 1.7% Other charges/(gains) Cost of products sold - - 0.1% 0.5% Selling, general and administrative expenses 0.2% 1.1% 0.2% 0.8% Asset impairment charge (f) 19.9% - 10.6% - Manufacturing facility fire (g) 0.3% - 0.2% - Governance advisory services and leadership transitions (i) 0.1% - 2.0% - Before charges/(gains) operating margin (e) 20.4% 16.5% 390 bps 16.1% 15.0% 110 bps
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25 Fortune Brands Innovations, Inc. Reconciliation Of GAAP Net Sales To Net Sales Excluding The Impact Of China Sales (Unaudited) (j) For definitions of Non-GAAP measures, see Definitions of Terms page Thirteen Weeks Ended June 27, 2026 vs Thirteen Weeks Ended June 28, 2025 % Change Water Percentage change in net sales (GAAP) (6.5%) Excluding China sales 1.1% Net sales excluding impact of China (j) (5.4%) Thirteen Weeks Ended June 27, 2026 vs Thirteen Weeks Ended June 28, 2025 % Change Total Company Percentage change in net sales (GAAP) (4.1%) Excluding China sales 0.6% Net sales excluding impact of China (j) (3.5%) Twenty-Six Weeks Ended June 27, 2026 vs Twenty-Six Weeks Ended June 28, 2025 % Change Water Percentage change in net sales (GAAP) (3.6%) Excluding China sales 1.4% Net sales excluding impact of China (j) (2.2%) Twenty-Six Weeks Ended June 27, 2026 vs Twenty-Six Weeks Ended June 28, 2025 % Change Total Company Percentage change in net sales (GAAP) (3.2%) Excluding China sales 0.7% Net sales excluding impact of China (j) (2.5%)
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26 Fortune Brands Innovations, Inc. Reconciliation Of Outdoors GAAP Net Sales To Outdoors Net Sales Excluding Impact Of Fiberon (Unaudited) (k) For definitions of Non-GAAP measures, see Definitions of Terms page Thirteen Weeks Ended June 27, 2026 vs Thirteen Weeks Ended June 28, 2025 % Change Outdoors Percentage change in net sales (GAAP) (3.8%) Excluding Fiberon Sales (GAAP) 2.3% Net sales excluding impact of Fiberon (k) (1.5%) Twenty-Six Weeks Ended June 27, 2026 vs Twenty-Six Weeks Ended June 28, 2025 % Change Outdoors Percentage change in net sales (GAAP) (3.6%) Excluding Fiberon Sales (GAAP) 1.9% Net sales excluding impact of Fiberon (k) (1.7%)
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27 Fortune Brands Innovations, Inc. Calculation Of Working Capital As Percentage Of LTM Net Sales (In millions) (Unaudited) As of June 27, 2026 ** Accounts receivable, net $ 607.1 Inventories 990.7 Other current assets 267.5 Accounts payable (518.9) Other current liabilities (511.6) Working capital (1) $ 834.8 For the fifty-two weeks ended June 27, 2026 Net sales (2) $ 4,391.9 Working capital as percentage of LTM net sales (1/2) 19.0% ** Amounts are per the Unaudited Condensed Consolidated Balance Sheet as of March 28, 2026 Twenty-Six Weeks Ended Twenty-Six Weeks Period Fifty-Two Weeks Ended December 27, 2025 June 27, 2026 June 27, 2026 Net sales $ 2,226.7 $ 2,165.2 $ 4,391.9
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Definition of Terms: Non-GAAP Measures 28 (a) Operating income (loss) before charges/gains is calculated as operating income (loss) derived in accordance with U.S. generally accepted accounting principles (“GAAP”), excluding restructuring and other charges/gains. Operating income (loss) before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to evaluate the returns generated by the Company and its business segments. Management believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies. (b) Free cash flow is cash flow from operations calculated in accordance with U.S. generally accepted accounting principles ("GAAP") less capital expenditures. Free cash flow does not include adjustments for certain non-discretionary cash flows such as mandatory debt repayments. Free cash flow is a measure not derived in accordance with GAAP. Management believes that free cash flow provides investors with helpful supplemental information about the Company's ability to fund internal growth, make acquisitions, repay debt and related interest, pay dividends and repurchase common stock. This measure may be inconsistent with similar measures presented by other companies. (c) EBITDA before charges/gains is calculated as net income (loss) in accordance with GAAP, excluding depreciation, amortization of intangible assets, restructuring and other charges/gains, interest expense and income taxes. EBITDA before charges/gains is a measure not derived in accordance with GAAP. Management uses this measure to assess returns generated by the Company. Management believes this measure provides investors with helpful supplemental information about the Company's ability to fund internal growth, make acquisitions and repay debt and related interest. This measure may be inconsistent with similar measures presented by other companies. (d) Diluted earnings (loss) per share from continuing operations before charges/gains is calculated as income from continuing operations on a diluted per-share basis, excluding restructuring and other charges/gains. This measure is not in accordance with GAAP. Management uses this measure to evaluate the Company's overall performance and believes it provides investors with helpful supplemental information about the Company's underlying performance from period to period. However, this measure may not be consistent with similar measures presented by other companies. (e) Operating margin is calculated as the operating income in accordance with GAAP, divided by the GAAP net sales. The operating margin before charges/gains is calculated as the operating income, excluding restructuring and other charges/gains, divided by the GAAP net sales. The operating margin before charges/gains is not a measure derived in accordance with GAAP. Management uses this measure to evaluate the returns generated by the Company and its business segments. Management believes that this measure provides investors with helpful supplemental information about the Company's underlying performance from period to period. However, this measure may not be consistent with similar measures presented by other companies. (f) For the thirteen and twenty-six weeks ended June 27, 2026, impairment charges of $228.7 million were recorded related to the Fiberon asset group within the Outdoors segment. The impairment charge was related to certain identifiable intangible assets as well as property and equipment. For the thirteen and twenty-six weeks ended June 27, 2026, impairment charges of $0.6 million were recorded for certain property and equipment within the Water segment. For the twenty-six weeks ended December 27, 2025, impairment charges of $53.6 million were recorded related to the classification of certain assets to equal their fair value, less estimated costs to sell. (g) For the thirteen and twenty-six weeks ended June 27, 2026, we recognized $3.0 million and $6.6 million, respectively, related to a fire at one of our manufacturing facilities within the Outdoors segment. For the twenty-six weeks ended December 27, 2025, we recognized $21.1 million related to a fire at one of our manufacturing facilities within the Outdoors segment. (h) For the twenty-six weeks ended December 27, 2025, professional fees incurred related to ongoing transformation initiatives was $0.7 million at Corporate. (i) For the thirteen and twenty-six weeks ended June 27, 2026, the Company incurred charges of $1.3 million and $43.6 million, respectively, associated with governance advisory services and leadership transitions. (j) Net sales excluding the impact of China sales is net sales derived in accordance with GAAP excluding the impact of China sales. Management uses this measure to evaluate the overall performance of its segments and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company and its reportable segments from period to period. This measure may be inconsistent with similar measures presented by other companies.
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Additional Information: 29 For certain forward-looking non-GAAP measures (as used in this presentation, operating margin before charges / gains and EPS bef ore charges / gains), the Company is unable to provide a reconciliation to the most comparable GAAP financial measure because the information needed to reconcile the non-GAAP financial measure to the GAAP financial measure is unavailable due to the inherent difficulty of forecasting the timing and / or amount of various items that have not yet occur red, including the high variability and low visibility with respect to gains and losses associated with our defined benefit plans, which are excluded from EPS before charges / gains and restructuring and other charges, which are excluded from operating margin before charges / gains and EPS before charges / gains. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with the Company’s accounting policies for future periods requires a level of precision that is unavailable for these future perio ds and cannot be accomplished without unreasonable effort. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions. For a reconciliation of full year 2026 free cash flow guidance to full year 2026 operating cash flow guidance, see the table entitled “Free Cash Flow”. (k) Outdoors net sales excluding the impact of Fiberon sales is net sales derived in accordance with GAAP excluding the impact of Fiberon sales. Management uses this measure to evaluate the overall performance of its segments and believes this measure provides investors with helpful supplem ental information regarding the underlying performance of the Company and its reportable segments from period to period. This measure may be inconsistent with similar m easures presented by other companies. (l) Net debt is calculated as long-term debt less cash and cash equivalents. Net debt is a measure not derived in accordance wit h GAAP. Management believes this supplemental measure is useful as it reflects the Company's debt obligations after considering cash and cash equivalents available to repay such obligations. m) Net debt-to-EBITDA before charges/gains ratio is calculated as net debt divided by EBITDA before charges/gains for the trailing 52 weeks. Management believes net debt-to-EBITDA before charges/gains is a useful measure of the Company's leverage position because it provides investors with he lpful supplemental information about the Company's ability to service and repay outstanding debt using earnings from the underlying performance of the Company. This measure may be inconsistent with similar measures presented by other companies. Definition of Terms: Non-GAAP Measures (cont.)