Fortune Brands Innovations, Inc.

Greetings and welcome to the Fortune Brands Innovations second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Kurt Worthington, Vice President, Finance and Investor Relations. Thank you. You may begin.

Good afternoon, everyone, and welcome to the Fortune Brands Innovations second quarter 2026 earnings call. Hopefully, everyone has had a chance to review our earnings release. The earnings release, earnings presentation, and audio replay of this call can be found on the investor section of our fbin.com website. I want to remind everyone that the forward-looking statements we make on the call today either in our prepared remarks or in the associated question and answer session are based on current expectations and market outlook and are subject to certain risks and uncertainties that may cause actual results to differ materially from those currently anticipated. These risks are detailed in our various filings with the SEC. The company does not undertake any obligation to update or revise any forward-looking statements except as required by law. Any references to operating profit or margin, earnings per share, or free cash flow on today's call will focus on our results on a before charges and gains basis, unless otherwise specified. Please visit our website for our reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. With me on the call today are Jesse Singh, our new Chief Executive Officer, Dave Barry, our Chief Operating Officer, and Ashley George, our Interim Chief Financial Officer. Following our prepared remarks, we have allowed time to address questions. With that, I will turn the call over to Jesse. Jesse?

Thank you, Kurt, and good afternoon, everyone. I'm honored and energized to join Fortune Brands Innovations as Chief Executive Officer. Many thanks to the Board for its confidence and to Dave and the leadership team for the decisive actions they've taken over the past two quarters. I'd also like to thank the Fortune Brands team for their hard work through a period of change. I have been here a month and what I've seen so far has made me even more excited about the long-term opportunity to accelerate growth and expand margins. We have truly exceptional brands, talented people, and decades of strong customer relationships and Our results over the last few years have lagged our potential. We have great core businesses, including Moen, ThermaTru, and Master Lock. We also have two relevant adjacencies that have become core to the company in our Moen Flow and our Yale Connected Locks business. We believe we have clear opportunities to expand our position and grow the market in each of these opportunities. We must continue to invest and expand in our core while nurturing our adjacencies. We also have very good people who want to do the right thing, but we as management have created conflicting priorities for our team members. Too much of our focus went to internal and corporate distractions and not enough to our customers. Our customers should be the center of everything we do. Our intent is to get back to basics, better service, better products, and a simpler, more customer-focused organization. Ultimately, this should lead to a more efficient organization with better execution. As part of this, we must address underperformance in parts of our core. Our water business, for example, has a strong position in the market but has lagged recently. This is driven by several factors, including service and supply chain challenges. We see opportunities in each of our businesses to improve the customer experience and to drive more focused innovation. Our doors business has an opportunity to drive incremental material conversion to our more resilient products. Our security business has an opportunity to expand into additional categories, and we see opportunity for secular growth in our connected businesses. We are developing plans to address our gaps and realize these opportunities. These plans may require incremental investments and resources to improve our service levels and to accelerate our new product development. We believe these actions will yield better long-term opportunity, growth and profitability. As part of our increased focus on the business, we intend to streamline our corporate cost structure and shift more resources to our customer-facing businesses. There is real work underway, starting with the previously announced $70 million cost program and a detailed review of the portfolio to better align our resources with our core brands. We will continue to evaluate additional actions as needed to create a higher performing business. By the end of the year, we intend to have the business realigned against these priorities. We will lay out more specifics on our plans over the next quarter or two, and you should expect to see progress against them during 2027. For the third quarter and the balance of the year, we are assuming a similar operating environment and commercial performance to what Dave and Ashley outlined last quarter. Our updated 2026 guidance is an acknowledgement that we may need to make investments in the company to enhance execution and drive long term value creation and growth. While it will take time, I am confident that we can build a stronger company that will deliver improved results and shareholder value. We are taking the steps to ensure long term growth and margin expansion. With that, let me turn it over to Dave.