Fortune Brands Innovations Inc: FBIN initiates Fiberon review amid weak performance and share loss

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Fortune Brands Innovations Inc: FBIN initiates Fiberon review amid weak performance and share loss

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Fortune Brands Innovations Inc

FBIN initiates Fiberon review amid weak

performance and share loss

Maintain Rating: UNDERPERFORM | PO: 37.00 USD | Price: 39.45 USD

FBIN initiates review of Fiberon to sharpen portfolio focus 28 May 2026

Fortune Brands announced a formal strategic review of its Fiberon composite decking Equity

business, as part of ongoing efforts to focus capital on higher-return core platforms. The

Rafe Jadrosich

company will evaluate a range of alternatives but has not committed to a sale or Research Analyst

timeline. We view the announcement as consistent with broader portfolio simplification BofAS rafe.jadrosich@bofa.com

and Fiberon’s underperformance relative to the rest of the portfolio. We reiterate our

Shaun Calnan, CFA

Underperform rating given soft end-market demand, execution risk around a turnaround, Research Analyst

and potential for a material earnings reset (see FBIN lowers ’26 guide on weaker sales BofAS shaun.calnan@bofa.com

and margins; Investors focused on CEO search 07 May 2026)

Fiberon: subscale, lower-margin with recent channel loss

Based on our estimates and management commentary, we estimate Fiberon generates Stock Data

roughly $200mm of revenue and operates at margins below the Outdoors segment (13% Price 39.45 USD

in 2025), implying around 3% of total company EBIT. Importantly, we expect Fiberon’s Price Objective 37.00 USD

run-rate revenue to decline in 2026 vs. 2025, driven in part by lost shelf space at Home Date Established 7-May-2026

Depot. We believe Fiberon is the fourth largest composite decking brand following Trex, Investment Opinion B-3-7

Azek (James Hardie) and Deckorators (UFPI).