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Q3 Earnings NOVEMBER 3, 2026 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 and tariff refunds and other matter s that are not historical in nature. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “outlo ok,” “positioned,” “confident,” “opportunity,” “focus,” "on track" and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forwar d-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 press release is issued. Althou gh 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, (vii) risks relating to rapidly evolving technological c hange, (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 avail ability and price volatility, as well as the possibility of sustained inflation, (x) delays or outages in our information technology systems or computer networks or breaches of our information technology sy stems 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 risks with uncertain trade environments, (xii) risks associated with the disruption of operation s, including as a result of severe weather events, (xiii) our inability to obtain raw materials and finished goods in a timely and cost -effective manner, (xiv) risks associated with strategic acquisition s, divestitures and joint ventures, including difficulties integrating acquired companies 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 increases 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 the impact of related changes in government regulations and consumer preferences, (xix) risks associated w ith environmental, social and governance matters, (xx) potential liabilities and costs from claims and litigation, (xxi) changes in government and industry regulatory standards, (xxii) futur e tax law changes or the interpretation of existing tax laws, and (xxiii) our ability to secure and protect our intellectual property rights. These and other factors are discussed in Part I, Item 1A “Risk F actors” 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 cla rify 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 financial 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 the applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.
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On the Call 3 Peter Clifford Chief Financial Officer Jesse Singh Chief Executive Officer
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Setting the Stage to Rebuild and Invest For Future Growth Reinvesting SG&A and portfolio savings into accelerating our new product development pipeline and our commercial capabilities Updating Full Year 2026 Guidance Macro environment has softened; making the necessary decisions that are impacting our near-term results but are designed to set up the Company for future success 4 Key Messages Executing our Back to Business Turnaround Plan In the early stages of a multi-year improvement plan to return the business to sustainable growth and margin expansion Near-Term Focus is Stabilizing Performance Taking actions to restore execution, realign the organization and optimize our portfolio; putting us in position to achieve cost savings targets and improve our margin profile
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5 Back-to-Business Turnaround Plan Establish high-performing, customer-focused business units • Realign functions into entrepreneurial business segments • Drive growth and profit at the segment level • Lift quality, service, and responsiveness • Upgrade organizational capability Optimize the portfolio across and within the business units to revitalize our core • Address underperforming businesses and geographies • Optimize every segment for growth and profitability • Realize accretive growth in connected products Build a business-led, sustainable growth engine • Expand in underpenetrated and more resilient end markets - Commercial and R&R • Increase impact from new product launches • Sharpen sales and marketing execution Expand margins while sustaining growth investments • Benefit from cost savings and portfolio actions • Fund incremental investments in people, technology, NPI and SG&A • Scale operational excellence through AI, Lean and sourcing • Improve product engineering, pricing and mix management 1 2 3 4
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Portfolio Optimization Actions 6 Agreed to Divest Fiberon Decking Business • Agreed to sell business for $160M • Proceeds expected to be used to reduce net leverage and reinvest in the business Reorganize Operations in China • Exit commercial operations serving the Chinese domestic market • Keep manufacturing, R&D and sourcing for North American end markets Rationalize EMEA Footprint of a Water business • More competitive cost structure • Scalable capacity to support expansion and profitable growth Combined Impact Annualized, businesses in scope $320M–330M Net Sales ($50M–$55M) Operating Loss Accretive to earnings and margin; full run-rate benefit by end of 2027 Targeted Completion: End of Q3 2027Expected Close: Before Year End 2026 Targeted Completion: Q4 2027
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$ in millions (except per share amounts) Water Outdoors Security Corporate Consolidated Q4 2026 Consolidated FY 2026 Consolidated Gross Tariff Refunds $12 $2 $15 $0 $29 $1 $134 Net Tariff Refunds: Operating Income Impact 1 $8 $0 $13 ($3) $18 ($9) $90 Net Tariff Refunds: EPS Impact 1 - - - - $0.14 ($0.07) $0.59 Net Tax Benefit: EPS Impact2 - - - - $0.28 - $0.28 Impact of Tariff Refunds & Tax Items on Results 7 Reported segment and consolidated results include the impact of net tariff refunds and the net tax benefit Net tax benefit related to internal restructuring designed to streamline the legal entity structure of European operations Q3 2026 Anticipated Q4 & FY 2026 1 Net tariff refunds include gross tariff refunds and interest income (for EPS only), partially offset by increases in directly attributable variable incentive compensation costs and taxes (for EPS only). 2 Net tax benefit from an internal legal entity restructuring.
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Q3 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 gross tariff refunds and interest income (for EPS only), partially offset by increases in directly attributable variable incentive compensation costs and taxes (for EPS only). 8 $ in millions (except per share amounts) Net Sales Operating Income1 Operating Margin1 EPS1 Q3 2026 $1,113.7 $155.5 14.0% $1.14 Change (3.1%) (24.6%) (390 bps) 4.6% Net Sales decline primarily driven by the Water and Security segments, partially offset by growth in Outdoors EPS1 results include a net tax benefit of $0.28 from a legal entity restructuring transaction and a net tariff refund benefit of $0.14; Operating Income 1 benefited by $18M from the net tariff refund Net Sales excluding impact of China2 were (2.4%)
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Water 9 Segment Results Net Sales Operating Income1 Operating Margin1 Q3 2026 $584.5 $103.1 17.6% Change (5.5%) (31.8%) (680 bps) Net Sales were impacted by service levels, softer customer demand in retail and a slow down in wholesale new construction demand; these factors were partially offset by growth in the eCommerce channel Operating Margin 1 reflects a net tariff refund3 benefit of ~135 bps, offset by pricing that was below inflationary levels, volume deleverage and higher costs to serve our customers Quarter Highlights Q3 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 gross tariff refunds, partially offset by increases in directly attributable variable incentive compensation costs. $ in millions Net sales excluding impact of China2 were (4.3%)
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Outdoors 10 Q3 2026 SUMMARY Segment Results Net Sales Operating Income1 Operating Margin1 Q3 2026 $347.4 $53.3 15.3% Change 0.8% (0.3%) (20 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. $ in millions Net Sales benefited from favorable YoY comps in channel inventory and price realization; partially offset by a slow down in new construction demand in wholesale, which primarily impacted Therma-Tru Operating Margin1 reflects volume deleverage and higher material and freight costs, particularly in Larson where aluminum inflation was a headwind; these factors were partially offset by favorable mix Quarter Highlights Net sales excluding impact of Fiberon2 were 3.4%
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Security 11 Q3 2026 SUMMARY Segment Results Net Sales Operating Income1 Operating Margin1 Q3 2026 $181.8 $38.8 21.3% Change (2.4%) 16.9% 350 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 gross tariff refunds, partially offset by increases in directly attributable variable incentive compensation costs. $ in millions Net Sales were impacted by declines in retail & eCommerce primarily due to service levels, partially offset by growth in commercial and increased penetration with multi-family customers in Yale Operating Margin 1 reflects a net tariff refund2 benefit of ~715 bps, offset by an inventory adjustment related to SKU rationalization efforts, which impacted margins by ~450bps, as well as higher costs to serve customers as service levels return to historical averages Quarter Highlights
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Balance Sheet and Cash Flow 12 $231 M Cash $2.1 B Net debt 1 Down from $2.3 B in Q2 2026 2.5x Net debt / EBITDA 1 Down from 2.7x in Q2 2026; committed to Net debt / EBITDA <2.5x in the near term $1.3 B Total liquidity $1.1 B available under $1.25 B revolving credit facility $660 M Working capital 2 15.2% of LTM Net sales $16 M Capex YTD Capex of $60 M; Lowering full year range to $90 M - $100 M $71 M Returns to shareholders $40 M in share repurchases and $31 M in dividends $331 M Free cash flow 1 Up $154 M vs Q3 2025 Q3 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. Increase of $21 M vs Q2 2026
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2026 Full-Year Guidance & Assumptions 13 Prior* Updated Guidance Net Sales Down low single digits $4,205 million to $4,275 million EPS1 $3.22 to $3.52 $3.20 to $3.30 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 to high single digits Total Company Financial Assumptions Cash Flow From Operations $495 million to $530 million $480 million to $500 million Free Cash Flow $370 million to $420 million $380 million to $410 million Other Assumptions Interest Expense $108 million to $112 million $102 million to $103 million Capex $110 million to $125 million $90 million to $100 million Tax Rate 24.0% to 24.5% 18.0% to 19.0% Share Count 120 million to 120.5 million 119 million to 120 million 1 EPS is on a before charges/gains basis and is presented as a 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 this forward-looking non-GAAP measure. * As provided in Q2 2026 Earnings Call on August 4, 2026.
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Q4 2026 Guidance 14 Net Sales $925M–995M 4Q26 guidance EPS1 $0.19–$0.29 4Q26 guidance Step-Down vs. Prior Guidance Driver EPS1 Mid-Point of Previous Guidance $0.76 Impact from Businesses Subject to Portfolio Optimization Actions ~($0.08) Impact from Core Business and End Market ~($0.11) Channel Inventory ~($0.12) Portfolio Optimization & Alignment Actions ~($0.14) Net Tariff Refunds ~($0.07) Total Step-Down ~($0.52) Mid-Point of Current Guidance $0.24 1 EPS is on a before charges/gains basis and is presented as a 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 this forward-looking non-GAAP measure.
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Q&A 15
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Appendix 16
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Thirteen Weeks Ended Thirty-Nine Weeks Ended September 26, 2026 September 27, 2025 $ Change % Change September 26, 2026 September 27, 2025 $ Change % Change WATER Operating income (GAAP) $ 13.3 $ 145.9 $ (132.6) (90.9) $ 292.0 $ 405.1 $ (113.1) (27.9) Restructuring charges 13.1 4.4 8.7 197.7 18.3 20.3 (2.0) (9.9) Other charges/(gains) Cost of products sold - 0.3 (0.3) NM - 0.8 (0.8) NM Selling, general and administrative expenses 7.2 0.5 6.7 NM 7.4 3.7 3.7 NM Asset impairment charges (h) 69.5 - 69.5 NM 70.1 - 70.1 NM Operating income before charges/(gains) (a) $ 103.1 $ 151.1 $ (48.0) (31.8) $ 387.8 $ 429.9 $ (42.1) (9.8) OUTDOORS Operating (loss) income (GAAP) $ 52.3 $ (5.0) $ 57.3 1,146.0 $ (107.7) $ 59.7 $ (167.4) (280.4) Restructuring charges 0.9 0.3 0.6 NM 1.8 4.9 (3.1) (63.3) Other charges/(gains) Cost of products sold 0.5 3.0 (2.5) (83.3) 1.6 8.8 (7.2) (81.8) Selling, general and administrative expenses - 2.0 (2.0) NM 0.1 7.2 (7.1) (98.6) Asset impairment charges (h) 4.3 50.1 (45.8) (91.5) 233.0 50.1 182.9 NM Manufacturing facility fire (i) (4.7) 3.0 (7.7) NM 1.9 3.0 (1.1) (36.7) Operating income before charges/(gains) (a) $ 53.3 $ 53.4 $ (0.1) (0.3) $ 130.7 $ 133.7 $ (3.0) (2.2) SECURITY Operating income (GAAP) $ 38.4 $ 27.7 $ 10.7 38.6 $ 109.1 $ 66.4 $ 42.7 64.3 Restructuring charges 0.4 1.7 (1.3) (76.5) 1.0 7.4 (6.4) (86.5) Other charges/(gains) Cost of products sold - 0.1 (0.1) NM - 3.8 (3.8) NM Selling, general and administrative expenses - 3.7 (3.7) NM (0.2) 5.1 (5.3) NM Operating income before charges/(gains) (a) $ 38.8 $ 33.2 $ 5.6 16.9 $ 109.9 $ 82.7 $ 27.2 32.9 TOTAL COMPANY Operating income (loss) (GAAP) $ 60.4 $ 125.9 $ (65.5) (52.0) $ 111.7 $ 394.4 $ (282.7) (71.7) Restructuring charges 16.4 10.8 5.6 51.9 28.9 49.3 (20.4) (41.4) Other charges/(gains) Cost of products sold 0.5 3.4 (2.9) (85.3) 1.6 13.4 (11.8) (88.1) Selling, general and administrative expenses 8.6 12.3 (3.7) (30.1) 12.1 27.8 (15.7) (56.5) Asset impairment charges (h) 73.8 50.1 23.7 47.2 303.1 50.1 253.0 NM Manufacturing facility fire (i) (4.7) 3.0 (7.7) NM 1.9 3.0 (1.1) (36.7) Transformation costs (j) - 0.7 (0.7) NM - 3.0 (3.0) NM Governance advisory services and leadership transitions (k) 0.5 - 0.5 NM 44.2 - 44.2 NM Operating income before charges/(gains) (a) $ 155.5 $ 206.2 $ (50.7) (24.6) $ 503.5 $ 541.0 $ (37.5) (6.9) Fortune Brands Innovations, Inc. 17 Reconciliations Of GAAP Operating Income To Operating Income Before Charges/(Gains) (a) (h) (i) (j) (k) For definitions of Non-GAAP financial measures, see Definitions of Terms: Non-GAAP Financial Measures page NM = Not meaningful (In millions) (Unaudited) (In millions) (Unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended Net sales (GAAP) September 26, 2026 September 27, 2025 $ Change % Change September 26, 2026 September 27, 2025 $ Change % Change Water $ 584.5 $ 618.5 $ (34.0 ) (5.5) $ 1,753.1 $ 1,830.8 $ (77.7) (4.2 ) Outdoors 347.4 344.5 2.9 0.8 1,006.4 1,028.1 (21.7) (2.1) Security 181.8 186.2 (4.4 ) (2.4) 519.4 526.8 (7.4) (1.4 ) Total net sales $ 1,113.7 $ 1,149.2 $ (35.5 ) (3.1) $ 3,278.9 $ 3,385.7 $ (106.8) (3.2)
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Fortune Brands Innovations, Inc. Condensed Consolidated Balance Sheets (GAAP) 18 (In millions) (Unaudited) September 26, 2026 December 27, 2025 Assets Current assets Cash and cash equivalents $ 230.9 $ 264.0 Accounts receivable, net 551.2 513.1 Inventories 1,013.8 1,024.9 Other current assets 164.0 172.2 Total current assets 1,959.9 1,974.2 Property, plant and equipment, net 582.9 805.9 Goodwill 2,002.0 2,006.4 Other intangible assets, net of accumulated amortization 1,071.9 1,231.7 Assets held for sale 104.0 113.8 Other assets 413.6 388.6 Total assets $ 6,134.3 $ 6,520.6 Liabilities and equity Current liabilities Accounts payable 540.9 524.6 Other current liabilities 527.9 547.0 Total current liabilities 1,068.8 1,071.6 Long-term debt 2,296.6 2,544.9 Deferred income taxes 110.7 146.9 Other non-current liabilities 368.3 368.6 Total liabilities 3,844.4 4,132.0 Stockholders' equity 2,289.9 2,388.6 Total equity 2,289.9 2,388.6 Total liabilities and equity $ 6,134.3 $ 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 financial measures, see Definitions of Terms: Non-GAAP Financial Measures page *Restricted cash of $1.2 million and $2.0 million is included in Other current assets and Other assets, respectively, as of September 26, 2026. Restricted cash of $1.3 million and $2.3 million is included in Other current assets and Other assets, respectively, as of September 27, 2025. Thirty-Nine Weeks Ended September 26, 2026 September 27, 2025 Operating activities Net income $ 51.6 $ 222.4 Depreciation and amortization 121.2 151.5 Non-cash lease expense 30.6 31.4 Deferred taxes (39.9) 33.3 Asset impairment charge 303.1 50.1 Other non-cash items 14.1 19.4 Changes in assets and liabilities, net (50.1) (237.7) Net cash provided by operating activities $ 430.6 $ 270.4 Investing activities Capital expenditures $ (59.7) $ (87.3) Proceeds from the disposition of assets 24.3 - Other investing activities, net (1.0) 2.9 Net cash used in investing activities $ (36.4) $ (84.4) Financing activities Increase in debt, net $ (251.2) $ (20.0) Proceeds from the exercise of stock options 8.6 4.0 Treasury stock purchases (84.4) (237.8) Dividends to stockholders (93.2) (90.6) Other items, net (7.1) (8.2) Net cash used in financing activities $ (427.3) $ (352.6) Effect of foreign exchange rate changes on cash $ (0.3) $ 8.6 Net decrease in cash and cash equivalents $ (33.4) $ (158.0) Cash, cash equivalents and restricted cash* at beginning of period 267.5 385.5 Cash, cash equivalents and restricted cash* at end of period $ 234.1 $ 227.5 FREE CASH FLOW Thirty-Nine Weeks Ended 2026 Full Year September 26, 2026 September 27, 2025 Estimate Cash flow from operations (GAAP) $ 430.6 $ 270.4 $480 to $500 Less: Capital expenditures $ 59.7 $ 87.3 $90 to $100 Free cash flow (b) $ 370.9 $ 183.1 $380 to $410
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20 Fortune Brands Innovations, Inc. Reconciliation of Cash Flow From Operations (GAAP) To Free Cash Flow (In millions) (Unaudited) (b) For definitions of Non-GAAP financial measures, see Definitions of Terms: Non-GAAP Financial Measures page Thirteen Weeks Ended September 26, 2026 Cash flow from operations (GAAP) $ 347.0 Less: Capital expenditures 15.9 Free cash flow (b) $ 331.1
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21 Fortune Brands Innovations, Inc. Condensed Consolidated Statements Of Income (GAAP) (In millions, except per share amounts) (Unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended September 26, 2026 September 27, 2025 % Change September 26, 2026 September 27, 2025 % Change Net sales $ 1,113.7 $ 1,149.2 (3.1) $ 3,278.9 $ 3,385.7 (3.2) Cost of products sold 607.7 629.8 (3.5) 1,746.5 1,868.5 (6.5) Selling, general and administrative expenses 339.5 313.2 8.4 1,035.9 967.0 7.1 Amortization of intangible assets 15.9 19.4 (18.0) 52.8 56.4 (6.4) Asset impairment charges 73.8 50.1 47.3 303.1 50.1 505.0 Restructuring charges 16.4 10.8 51.9 28.9 49.3 (41.4) Operating income 60.4 125.9 (52.0) 111.7 394.4 (71.7) Interest expense 24.4 28.6 (14.7) 78.3 88.4 (11.4) Other (income)/expense, net (4.5) 2.6 (273.1) (3.9) (5.8) (32.8) Income before taxes 40.5 94.7 (57.2) 37.3 311.8 (88.0) Income tax (benefit) expense (9.4) 23.9 (139.3) (14.3) 89.4 (116.0) Net income $ 49.9 $ 70.8 (29.5) $ 51.6 $ 222.4 (76.8) Diluted earnings (loss) per common share $ 0.42 $ 0.59 (28.8) $ 0.43 $ 1.83 (76.4) Diluted average number of shares outstanding 119.3 120.5 (1.0) 119.6 121.4 (1.5)
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Thirteen Weeks Ended Thirty-Nine Weeks Ended September 26, 2026 September 27, 2025 % Change September 26, 2026 September 27, 2025 % Change Net income $ 49.9 $ 70.8 (29.5) $ 51.6 $ 222.4 (76.8) Depreciation * $ 20.6 $ 24.4 (15.6) $ 68.3 $ 74.1 (7.8) Amortization of intangible assets 15.9 19.4 (18.0) 52.8 56.4 (6.4) Restructuring charges 16.4 10.8 51.9 28.9 49.3 (41.4 ) Other charges/(gains) 9.1 15.7 (42.0) 13.7 41.2 (66.7) Interest expense 24.4 28.6 (14.7) 78.3 88.4 (11.4) Asset impairment charge (h) 73.8 50.1 47.3 303.1 50.1 505.0 Manufacturing facility fire (i) (4.7) 3.0 (256.7) 1.9 3.0 (36.7) Transformation costs (j) - 0.7 (100.0) - 3.0 (100.0 ) Governance advisory services and leadership transitions (k) 0.5 - NM 44.2 - NM Income taxes (9.4) 23.9 (139.3) (14.3) 89.4 (116.0) EBITDA before charges/(gains) (c) 196.5 247.4 (20.6) 628.5 677.3 (7.2) 22 Fortune Brands Innovations, Inc. (In millions) (Unaudited) Reconciliations Of Net Income To EBITDA Before Charges/(Gains) *Depreciation excludes accelerated depreciation expense of zero for the thirteen weeks ended September 26, 2026, and $(0.2) m illion for the thirty-nine weeks ended September 26, 2026 and excludes accelerated depreciation expense of $5.2 million for the thirteen weeks ended September 27, 2025, and $21.0 million for the thirty -nine weeks ended September 27, 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 September 26, 2026. *** Depreciation excludes accelerated depreciation expense of $(0.2) million for the thirty-nine weeks ended September 26, 2026, and $(1.8) million for the thirteen weeks ended December 27, 2025. Accelerated depreciation is included in other charges/(gains). (c) (d) (e) (h) (i) (j) (k) For definitions of Non-GAAP financial measures, see Definitions of Terms: Non-GAAP Financial Measures page NM = Not meaningful As of September 26, 2026 Long-term debt ** $ 2,296.6 Total debt 2,296.6 Less: Cash and cash equivalents ** 230.9 Net debt (1) (d) $ 2,065.7 For the fifty-two weeks ended September 26, 2026 EBITDA before charges/(gains) (2) (c) $ 829.6 Net debt-to-EBITDA before charges/(gains) ratio (1/2) (e) 2.5 Thirteen Weeks Ended Thirty-Nine Weeks Ended Fifty-Two Weeks Ended December 27, 2025 September 26, 2026 September 26, 2026 Net income $ 76.4 $ 51.6 $ 128.0 Depreciation*** $ 25.6 $ 68.3 $ 93.9 Amortization of intangible assets 18.8 52.8 71.6 Restructuring charges 3.1 28.9 32.0 Other charges/(gains) 12.0 13.7 25.7 Interest expense 26.8 78.3 105.1 Asset impairment charge (h) 3.5 303.1 306.6 Manufacturing facility fire (i) 18.1 1.9 20.0 Governance advisory services and leadership transitions (k) - 44.2 44.2 Income taxes 16.8 (14.3) 2.5 EBITDA before charges/(gains) (c) $ 201.1 $ 628.5 $ 829.6
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Reconciliation Of Diluted EPS Before Charges/(Gains) 23 For the thirteen weeks ended September 26, 2026 diluted EPS before charges/(gains) is calculated as net income on a diluted per-share basis, excluding $16.4 million ($15.5 million after tax or $0.13 per diluted share) of restructuring charges, $9.1 million ($8.7 million after tax or $0.07 per diluted share) of other charges/gains, $73.8 million ($55.2 million after tax or $0.47 per diluted share) of asset impairment charges, ($4.7) million (($3.5) million after tax or ($0.03) per diluted share) of net costs relating to a manufacturing facility fire and a discrete tax impact of China commercial exit of $9.2 million ($0.08 per diluted share). For the thirty-nine weeks ended September 26, 2026, diluted EPS before charges/(gains) is calculated as net income on a diluted per-share basis, excluding $28.9 million ($24.9 million after tax or $0.21 per diluted share) of restructuring charges, $13.7 million ($12.1 million after tax or $0.10 per diluted share) of other charges/gains, $303.1 million ($227.3 million after tax or $1.90 per diluted share) of asset impairment charges, $1.9 million ($1.3 million after tax or $0.01 per diluted share) of net costs relating to a manufacturing facility fire, $44.2 million ($33.8 million after tax or $0.28 per diluted share) of costs associated with governance advisory services and leadership changes and a discrete tax impact of China commercial exit of $9.2 million ($0.08 per diluted share). For the thirteen weeks ended September 27, 2025, the diluted EPS before charges/(gains) is calculated as net income from on a diluted per-share basis, excluding $50.1 million ($37.6 million after tax or $0.31 per diluted share) of asset impairment charges, $10.8 million ($8.2 million after tax or $0.07 per diluted share) of restructuring charges, $15.7 million ($11.8 million after tax or $0.10 per diluted share) of other charges/(gains), and $3.0 million ($2.3 million after tax or $0.02 per diluted share) of costs due to manufacturing facility fire. For the thirty-nine weeks ended September 27, 2025, the diluted EPS before charges/(gains) is calculated as net income on a diluted per-share basis, excluding $50.1 million ($37.6 million after tax or $0.31 per diluted share) of asset impairment charges, $49.3 million ($37.9 million after tax or $0.32 per diluted share) of restructuring charges, $41.2 million ($30.8 million after tax or $0.25 per diluted share) or other charges/(gains), $3.0 million ($2.3 million after tax or $0.02 per diluted share) of costs due to manufacturing facility fire and $3.0 million ($2.3 million after tax or $0.02 per diluted share) of transformation costs. (h) (i) (j) (k) (f) (n) For definitions of Non-GAAP financial measures, see Definitions of Terms: Non-GAAP Financial Measures page NM = Not meaningful Thirteen Weeks Ended Thirty-Nine Weeks Ended September 26, 2026 September 27, 2025 % Change September 26, 2026 September 27, 2025 % Change Earnings per common share (EPS) - Diluted Diluted EPS (GAAP) $ 0.42 $ 0.59 (28.8) $ 0.43 $ 1.83 (76.4) Restructuring charges 0.13 0.07 85.7 0.21 0.32 (34.4) Other charges/(gains) 0.07 0.10 (30.0) 0.10 0.25 (60.0) Asset impairment charge (h) 0.47 0.31 51.6 1.90 0.31 512.9 Manufacturing facility fire (i) (0.03) 0.02 (250.0) 0.01 0.02 (50.0) Transformation costs (j) - - - - 0.02 (100.0) Governance advisory services and leadership transitions (k) - - - 0.28 - NM Discrete tax impact of China commercial exit (n) 0.08 - NM 0.08 - NM Diluted EPS before charges/(gains) (f) $ 1.14 $ 1.09 4.6 $ 3.01 $ 2.75 9.5
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24 Fortune Brands Innovations, Inc. Operating Margin To Operating Margin Before Charges/(Gains) (Unaudited) (g) (h) (i) (j) (k) For definitions of Non-GAAP financial measures, see Definitions of Terms: Non-GAAP Financial Measures page Thirteen Weeks Ended Thirty-Nine Weeks Ended September 26, 2026 September 27, 2025 Change September 26, 2026 September 27, 2025 Change WATER Operating margin (g) 2.3% 23.6% (2130) bps 16.7% 22.1% (540) bps Restructuring charges 2.2% 0.7% 1.0% 1.2% Other charges/(gains) Selling, general and administrative expenses 1.2% 0.1% 0.4% 0.2% Asset impairment charge (h) 11.9% - 4.0% - Before charges/(gains) operating margin (g) 17.6% 24.4% (680) bps 22.1% 23.5% (140) bps OUTDOORS Operating margin (g) 15.1% (1.5%) 1660 bps (10.7%) 5.8% (1650) bps Restructuring charges 0.3% 0.1% 0.2% 0.5% Other charges/(gains) Cost of products sold 0.1% 0.9% 0.2% 0.9% Selling, general and administrative expenses - 0.6% - 0.7% Asset impairment charge (h) 1.2% 14.5% 23.1% 4.8% Manufacturing facility fire (i) (1.4%) 0.9% 0.2% 0.3% Before charges/(gains) operating margin (g) 15.3% 15.5% (20) bps 13.0% 13.0% 0 bps SECURITY Operating margin (g) 21.1% 14.9% 620 bps 21.0% 12.6% 840 bps Restructuring charges 0.2% 0.8% 0.2% 1.4% Other charges/(gains) Cost of products sold - 0.1% - 0.7% Selling, general and administrative expenses - 2.0% - 1.0% Before charges/(gains) operating margin (g) 21.3% 17.8% 350 bps 21.2% 15.7% 550 bps TOTAL COMPANY Operating margin (g) 5.4% 11.0% (560) bps 3.4% 11.6% (820) bps Restructuring charges 1.5% 0.9% 0.9% 1.5% Other charges/(gains) Cost of products sold - 0.3% - 0.4% Selling, general and administrative expenses 0.9% 1.0% 0.4% 0.8% Asset impairment charge (h) 6.6% 4.3% 9.3% 1.5% Manufacturing facility fire (i) (0.4%) 0.3% 0.1% 0.1% Transformation costs (j) - 0.1% - 0.1% Governance advisory services and leadership transitions (k) - - 1.3% - Before charges/(gains) operating margin (g) 14.0% 17.9% (390) bps 15.4% 16.0% (60) 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) (l) For definitions of Non-GAAP financial measures, see Definitions of Terms: Non-GAAP Financial Measures page Thirteen Weeks Ended September 26, 2026 vs Thirteen Weeks Ended September 27, 2025 % Change Water Percentage change in net sales (GAAP) (5.5%) Excluding China sales 1.2% Net sales excluding impact of China (l) (4.3%) Thirteen Weeks Ended September 26, 2026 vs Thirteen Weeks Ended September 27, 2025 % Change Total Company Percentage change in net sales (GAAP) (3.1%) Excluding China sales 0.7% Net sales excluding impact of China (l) (2.4%) Thirty-Nine Weeks Ended September 26, 2026 vs Thirty-Nine Weeks Ended September 27, 2025 % Change Water Percentage change in net sales (GAAP) (4.2%) Excluding China sales 1.3% Net sales excluding impact of China (l) (2.9%) Thirty-Nine Weeks Ended September 26, 2026 vs Thirty-Nine Weeks Ended September 27, 2025 % Change Total Company Percentage change in net sales (GAAP) (3.2%) Excluding China sales 0.8% Net sales excluding impact of China (l) (2.4%)
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26 Fortune Brands Innovations, Inc. Reconciliation Of Outdoors GAAP Net Sales To Outdoors Net Sales Excluding Impact Of Fiberon (Unaudited) (m) For definitions of Non-GAAP financial measures, see Definitions of Terms: Non-GAAP Financial Measures page Thirteen Weeks Ended September 26, 2026 vs Thirteen Weeks Ended September 27, 2025 % Change Outdoors Percentage change in net sales (GAAP) 0.8% Excluding Fiberon Sales (GAAP) 2.6% Net sales excluding impact of Fiberon (m) 3.4% Thirty-Nine Weeks Ended September 26, 2026 vs Thirty- Nine Weeks Ended September 27, 2025 % Change Outdoors Percentage change in net sales (GAAP) (2.1%) Excluding Fiberon Sales (GAAP) 2.1% Net sales excluding impact of Fiberon (m) 0%
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27 Fortune Brands Innovations, Inc. Calculation Of Working Capital As Percentage Of LTM Net Sales (In millions) (Unaudited) As of September 26, 2026 ** Accounts receivable, net $ 551.2 Inventories 1,013.8 Other current assets 164.0 Accounts payable (540.9) Other current liabilities (527.9) Working capital (1) $ 660.2 For the fifty-two weeks ended September 26, 2026 Net sales (2) $ 4,356.4 Working capital as percentage of LTM net sales (1/2) 15.2% ** Amounts are per the Unaudited Condensed Consolidated Balance Sheet as of September 26, 2026 Thirteen Weeks Ended Thirty-Nine Weeks Ended Fifty-Two Weeks Ended December 27, 2025 September 26, 2026 September 26, 2026 Net sales $ 1,077.5 $ 3,278.9 $ 4,356.4
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Definition of Terms: Non-GAAP Financial 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, other charges/gains, asset impairment charges, manufacturing facility fire, transformation costs and governance advisory services and leadership transitions. 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, asset impairment charge, manufacturing facility fire, transformation costs, governance advisory services and leadership transitions, 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) Net debt is calculated as long-term debt less cash and cash equivalents. Net debt is a measure not derived in accordance with 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. (e) 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 helpful 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. (f) Diluted earnings (loss) per share before charges/gains is calculated as net income on a diluted per-share basis, excluding restructuring, other charges/gains, asset impairment charges, manufacturing facility fire, transformation costs, governance advisory services and leadership transitions and a discrete tax impact of the China commercial exit. 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. (g) Operating margin is calculated as operating income in accordance with GAAP, divided by the GAAP net sales. The operating margin before charges/gains is calculated as operating income, excluding restructuring, other charges/gains, asset impairment charges, manufacturing facility fire, transformation costs, governance advisory services and leadership transitions, divided by 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. (h) For the thirteen and thirty-nine weeks ended September 26, 2026, impairment charges of $4.3 million and $233.0 million, respectively, 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 thirty-nine weeks ended September 26, 2026, impairment charges of $69.5 million and $70.1 million, respectively, were recorded for certain identifiable intangible assets and property and equipment related to rationalizing the EMEA operating footprint, impacting asset groups within the Water segment. For the thirteen and thirty-nine weeks ended September 27, 2025, an impairment charge of $50.1 million was recorded related to the classification of certain assets within the Outdoor segment as held-for-sale. For the thirteen weeks ended December 27, 2025, an impairment charge of $3.5 million was recorded related to the classification of certain assets to equal their fair value, less estimated costs to sell.
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Additional Information: 29 For certain forward-looking non-GAAP financial measures (as used in this press release, EPS before 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 occurred, including the high variability and low visibility with respect to gains and losses associated with our defined benefit plans, and restructuring and other charges, each of which are excluded from EPS before charges / gains, other than with respect to the Company’s previously-announced estimated additional non-cash impairment charge for the Fiberon asset group of approximately $175 million to $205 million. As a result, the Company is not otherwise able to reasonably estimate the probable significance of such items. 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 periods and cannot be accomplished without unreasonable effort. Forward-looking non-GAAP financial 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”. (i) For the thirteen and thirty-nine weeks ended September 26, 2026, we recognized ($4.7) million and $1.9 million, respectively, and for the thirteen and thirty-nine weeks ended September 27, 2025 we recognized $3.0 million, related to a fire at one of our manufacturing facilities within the Outdoors segment. For the thirteen weeks ended December 27, 2025, we recognized $18.1 million related to a fire at one of our manufacturing facilities within the Outdoors segment. (j) For the thirteen and thirty-nine weeks ended September 27, 2025, professional fees incurred related to ongoing transformation initiatives were $0.7 million and $3.0 million, respectively, at Corporate. (k) For the thirteen and thirty-nine weeks ended September 26, 2026, the Company incurred charges of $0.5 million and $44.2 million, respectively, associated with governance advisory services and leadership transitions. (l) 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. (m) Outdoors net sales excluding the impact of Fiberon sales is net sales for the Outdoors segment derived in accordance with GAAP excluding the impact of Fiberon sales. On October 15, 2026, the Company entered into a definitive agreement to sell its Fiberon composite decking business to a subsidiary of Inteplast Group Corporation for $160 million, subject to the terms and conditions of the agreement. Management uses this measure to evaluate the overall performance of the Outdoors segment and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the segment from period to period. This measure may be inconsistent with similar measures presented by other companies. (n) On September 25, 2026, the Board of Directors approved a plan to exit its Moen commercial business serving domestic markets in Asia. The Company will continue to conduct supply chain operations in China. For the thirteen and thirty-nine weeks ended September 26, 2026, the Company incurred discrete tax charges of $9.2 million ($0.08 per diluted share) related to certain China tax attributes that are no longer expected to be realized as a result of the commercial operations exit. Definition of Terms: Non-GAAP Measures (cont.)