UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-35166 FORTUNE BRANDS HOME & SECURITY, INC. (Exact name of Registrant as specified in its charter) Delaware 62-1411546 (State or other jurisdic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-35166 FORTUNE BRANDS HOME & SECURITY, INC. (Exact name of Registrant as specified in its charter) Delaware 62-1411546 (State or other jurisdi ...

Fortune Brands Home & Security, Inc. (FBHS) Q1 2022 Earnings Conference Call April 28, 2022 4:30 PM ET Company Participants Dave Barry – Senior Vice President of Finance and Investor Relations Nick Fink – Chief Executive Officer Pat Hallinan – Chief Financial Officer Conference Call Participants Adam Baumgarten – Zelman Susan Maklari – Goldman Sachs Stephen Kim – Evercore ISI Phil Ng – Jefferies Truman Patterson – Wolfe Research Operator Good morning. My name is [indiscernible] I’ll be your operator for tod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to_______ Commission file number 1-35166 Fortune Brands Home & Security, Inc. (Exact name of registrant as specified in its charter) Delaware 62-1411546 (State or Other J ...

Financial Data and Key Metrics Changes - In Q4 2021, total sales increased by over 18%, with consolidated operating income rising by 7% and EPS growing by 6% [51][8][28] - For the full year 2021, sales reached $7.7 billion, up 26%, with operating income increasing by 30% to $1.1 billion [51][52] - The total company operating margin improved by 50 basis points to 14.6%, and EPS grew by 37% to $5.73 [52][51] Business Line Data and Key Metrics Changes - **Plumbing**: Q4 sales were $704 million, up 10%, with a full year growth of over 25%. Operating margin was 20.8% for Q4 and 22.9% for the full year [55][56][30] - **Outdoors & Security**: Q4 sales increased by 40% to $514 million, with full year sales at $2 billion, up 44%. Operating margin was 15.9% for Q4 and 14.9% for the full year [57][62][35] - **Cabinets**: Q4 sales rose by 14% to $745 million, with full year sales up 16% to $2.9 billion. Operating margin was 8.9% for Q4 and 10.1% for the full year [63][64] Market Data and Key Metrics Changes - Demand for home products remains strong, driven by demographic trends favoring new construction and repair and remodel activities [22][27] - The existing housing inventory in the U.S. is at an all-time low, contributing to rapid turnover and increased demand for home products [23][26] - The company expects continued strength in new construction and repair and remodel spending, supported by low interest rates and significant home equity wealth [26][27] Company Strategy and Development Direction - The company is focused on expanding its Fortune Brands Advantage capabilities, investing in innovation, and enhancing capacity to serve customers [7][10][17] - A digital transformation initiative is underway, with plans to develop a digital center of excellence to improve brand innovation and operational efficiency [17][19] - The acquisition of Solar Innovations aims to enhance the company's outdoor segment and integrate advanced door systems into its product offerings [37][112] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges such as supply chain disruptions and inflation, while maintaining strong demand for products [10][16] - The outlook for 2022 includes expected sales growth of 5.5% to 7.5% and EPS in the range of $6.35 to $6.55, reflecting confidence in market strength [70][71] - Management anticipates that inflation will be offset by pricing actions, with margin improvements expected in the second half of 2022 [88][77] Other Important Information - The company has made significant investments in capacity expansions and returned over $590 million to shareholders in 2021 [9][51] - The company is committed to advancing its environmental, social, and governance (ESG) initiatives, including carbon emission reduction goals [12][15] Q&A Session Summary Question: Can you provide insights on the shape of the year and customer orders? - Management noted robust demand continuing into 2022, with POS dollars showing strength at or slightly above 21% [83][84] Question: How should we think about pricing and cost impacts on margins? - Management indicated that over 90% of pricing actions are in place, with expectations for margin improvement from Q2 onwards [86][88] Question: What is driving the increase in CapEx for 2022? - The increase in CapEx is driven by the need to accommodate immediate growth and long-term objectives, including investments in decking and plumbing facilities [90][91]

Financial Data and Key Metrics Changes - Company sales increased by 20% in total and 14% organically, reaching nearly $2 billion, marking an all-time record in quarterly sales [10][63] - Operating income rose by 20%, and earnings per share increased by 25%, reflecting strong performance despite external challenges [10][63] - The company expects full-year EPS in the range of $5.63 to $5.73, indicating a growth of 36% over the previous record year [80] Business Line Data and Key Metrics Changes - **Plumbing**: Sales grew by 26% to $741 million, with operating income increasing by 36% to $168 million and an operating margin of 22.6% [64] - **Outdoors & Security**: Sales increased by 30% to $528 million, with operating income of $82 million, up 24%, and an operating margin of 15.6% [65][68] - **Cabinets**: Sales grew over 9% to $717 million, but operating income decreased by 13% to $69 million, with an operating margin of 9.7% [69][70] Market Data and Key Metrics Changes - Demand for products remains strong, with expectations for U.S. housing market growth of 12% to 13% and new construction growth of 11% to 12% [78] - The company anticipates a cash conversion rate of 80% to 85% for the year, with free cash flow expected to be approximately $625 million to $675 million [82] Company Strategy and Development Direction - The company is focused on long-term growth and margin improvement, with significant investments in digital initiatives, brand innovation, and capacity expansion [14][15] - The strategic agenda includes leveraging Fortune Brands advantage capabilities to enhance operational efficiency and reduce complexity [34][35] - The company is committed to returning capital to shareholders, having repurchased over $380 million in shares year-to-date [18][77] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong demand for products and a favorable long-term outlook for the housing market, despite ongoing supply chain challenges [25][26] - The company is addressing labor shortages and material availability issues through strategic investments and operational improvements [33][72] - Management remains optimistic about achieving exceptional growth and margin improvement in 2021, despite external pressures [14][80] Other Important Information - The company celebrated its 10-year anniversary since its spin-off and public listing, with cumulative capital returned to shareholders surpassing $2.5 billion [19] - Recent advancements in ESG initiatives were noted, including partnerships with affordable housing organizations [21][20] Q&A Session Summary Question: Operating margin improvement in fiscal '22 - Management confirmed that the 75 basis points of operating margin improvement would come from a combination of cost mix improvements, volume incrementals, and structural cost changes [88][91] Question: Demand categories with sustained momentum - Management indicated that demand remains solid across all categories, with particular strength in pro-oriented projects and premium offerings [93][94] Question: Price cost timing and inflation offset - Management clarified that they expect to fully offset inflation in the first quarter of 2022 through cost improvement and pricing actions, with a focus on maintaining margins [100][102] Question: Inflation dynamics and impact on Cabinets - Management noted that inflation has significantly impacted costs, particularly in materials and freight, affecting margins in the Cabinets segment [118][120]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-35166 FORTUNE BRANDS HOME & SECURITY, INC. (Exact name of Registrant as specified in its charter) Delaware 62-1411546 (State or other jur ...

Financial Data and Key Metrics Changes - Company sales increased by 41% in total and 32% organically, with operating margin rising by 110 basis points to 15.4% and earnings per share increasing by 66% [7][27][34] - Consolidated operating income for the quarter was $298 million, up 51% compared to the same quarter last year [27] Business Line Data and Key Metrics Changes - Plumbing sales for the second quarter were $695 million, up 38%, with an operating margin of 24.3% [28] - Outdoors and security sales increased by over 60%, with an operating margin of 14.7% [20][29] - Cabinet sales for the second quarter were $706 million, an increase of 31%, with an operating margin of 10.9% [31] Market Data and Key Metrics Changes - The U.S. housing market is expected to grow by 11% to 13%, with new construction growth projected at 11% to 14% [34] - Full-year organic sales growth is expected to be in the high teens as favorable demand trends persist [8][34] Company Strategy and Development Direction - The company is focused on accelerating margin improvement and growth initiatives through its Fortune Brands Advantage capabilities while investing for future growth [8][15] - The company aims to outperform the market, leveraging its strong positioning across all channels, including wholesale and dealer channels [10][12] Management's Comments on Operating Environment and Future Outlook - Management noted that current demand for products remains robust despite headwinds from inflation and supply chain constraints [7][15] - The long-term fundamentals for U.S. housing and home products remain favorable, with significant needs for housing and home products driven by demographic trends [10][12] Other Important Information - The company has a strong balance sheet with cash of $460 million and net debt of $2.1 billion, allowing for continued investment in growth [33] - The company has announced an additional authorization to repurchase up to $400 million of common stock [33] Q&A Session Questions and Answers Question: Can you provide more color on the back half margin outlook? - Management indicated that they are pursuing incremental actions to offset inflation, balancing cost savings with price increases, and expect to offset all inflationary headwinds this year [40][41][45] Question: What is the opportunity set for M&A across different segments? - Management stated that the pipeline for M&A is robust, focusing on areas like doors and security, and they are looking for opportunities that can create brand value and structural advantages [47][49][50] Question: Can you discuss the sustainability of plumbing margins? - Management noted that the plumbing segment had a strong second quarter, driven by FX benefits and increased brand investment, but expects margins to normalize in the back half of the year [54][55]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-35166 FORTUNE BRANDS HOME & SECURITY, INC. (Exact name of Registrant as specified in its charter) Delaware 62-1411546 (State or other jurisdic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-35166 FORTUNE BRANDS HOME & SECURITY, INC. (Exact name of Registrant as specified in its charter) Delaware 62-1411546 (State or other jurisdi ...