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Fortune Brands Home & Security, Q3 2026 Earnings Call Transcript

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Fortune Brands lowered its 2026 outlook as single-family new construction weakened, customers turned more cautious and the company plans to reduce channel inventories. Fourth-quarter sales are now forecast at $925 million–$995 million and EPS at $0.19–$0.29; full-year sales are expected at $4.205 billion–$4.275 billion, with EPS of $3.20–$3.30. Water remains under pressure from softer demand, service costs and missed price realization, while aluminum and freight costs have compressed Larson’s margins. Management expects Water’s recovery to take longer than improvements in Doors and Security.

The company is realigning teams around business units, selling Fiberon, exiting China’s domestic commercial operations and rationalizing Water’s EMEA footprint. These moves and other initiatives are expected to deliver more than $120 million in annual benefits as the company exits 2027; the full improvement is expected to become visible in Q4 2027, after near-term headwinds. Management targets EBITDA margins above 20% and above-market growth, while emphasizing that the turnaround will take time.

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