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Why Fortune Brands Stock Crashed After Earnings

Source The Motley Fool

Key Points

Fortune Brands missed on sales and missed on earnings.
Then it lost its CEO.
10 stocks we like better than Fortune Brands Innovations ›

Fortune Brands (NYSE: FBIN) stock imploded on Friday, falling 18% through noon ET after missing on both top and bottom lines in its Q4 report last night.

Heading into the report, analysts forecast Fortune Brands would earn $1 a share on sales above $1.1 billion. Fortune actually earned $0.86 per share on sales just under $1.1 billion.

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1 dotted red arrow glowing and going down.

Image source: Getty Images.

Fortune Brands Q4 earnings

Fortune Brands' sales slipped 2% in Q4, and that's not the worst part -- earnings plummeted 25% year over year. (Non-GAAP earnings fell only 12% to $0.86 per share, but earnings as calculated according to generally accepted accounting principles (GAAP) were only $0.66.)

For the full year, Fortune's sales declined 3% to $4.5 billion, and GAAP profits crashed 34% to $2.47 per share.

Why such ill-fortune at Fortune? The company, which manufactures kitchen and bath fixtures under brands such as Moen, Larson screen doors, and Yale door locks, wasn't exactly clear on that point, instead complaining about a "challenging external environment" and promising to "refine" its costs and "optimize" its operations to improve profitability.

Fortune Brands stock may be a sell

Fulfilling this mission will fall to new CEO Amit Banati, who will replace current Fortune Brands CEO Nicholas Fink effective May 13, 2026. Fortune Brands says Fink is leaving in April "to pursue a professional opportunity outside the Company." Still, one can't help but wonder if Fortune Brands' weak profit performance has something to do with his decision to leave (or the board's desire for him to leave).

At least Banati is being given reasonable targets to hit. Fortune Brands is guiding investors to expect only flat to 2% sales growth this year, and non-GAAP earnings of about $3.50 -- 3% lower than last year.

Should you buy stock in Fortune Brands Innovations right now?

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*Stock Advisor returns as of February 13, 2026.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

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