Fortune Brands Innovations is pursuing $70 million in annualized savings and portfolio changes as weaker construction demand and lower channel inventories add pressure to near-term results.
The company has set the first quarter of 2027 as its target for reaching $70 million in annualized savings from selling, general and administrative (SG&A) expenses. It also aims for underlying EBITDA margins of at least 20%.
The company plans to sell Fiberon for $160 million in cash, exit commercial operations in China and streamline its Europe, Middle East and Africa (EMEA) footprint. The company expects to complete its China commercial exit by the third quarter of 2027 and its EMEA footprint rationalization by the fourth quarter of 2027.
Near-term results face pressure from three fronts, the company said: a slower pace of single-family homebuilding, leaner channel inventories and portfolio changes. Fortune Brands linked its plans to a move away from recent centralization, with improving speed and innovation as the aim.
The SG&A savings target is set for the first quarter of 2027; the broader annual benefits goal is for year-end 2027.
