There are three separate corporate entities that could be considered successors to the company, none of which is a complete and direct descendant of the original company. All claim the heritage of Fairbanks Morse and Company:

• Fairbanks Scales is a privately owned company in Kansas City, Missouri, that manufactures scales
• Fairbanks Morse Defense, a subsidiary company of Arcline Investment Management, is a company based in Beloit, Wisconsin, that manufactures and services engines
• Fairbanks Nijhuis is a part of Pentair Water in Kansas City, Kansas, and manufactures pumps

Fairbanks Morse and Company began in 1823 when inventor Thaddeus Fairbanks opened an ironworks in St. Johnsbury, Vermont, to manufacture two of his patented inventions: a cast iron plow and a heating stove. In 1829 he started a hemp dressing business for which he built the machinery. Though unsuccessful in fabricating for fiber factories, another of Morse's inventions, the platform scale, formed the basis for the later company. It was patented in June 1832, and a generation later, with his brother Erastus Fairbanks, the E. & T. Fairbanks & Company was selling thousands of scales, first in the United States, later in Europe, South America, and Imperial China. Fairbanks scales won 63 medals over the years in international competition.

In Wisconsin, former missionary Leonard Wheeler designed a durable windmill for pumping water, the Eclipse windmill. Wheeler set up shop in Beloit just after the Civil War. Soon half a million windmills dotted the landscape throughout the West and as far away as Australia. At about the same time, a Fairbanks & Company employee, Charles Hosmer Morse, opened a Fairbanks office in Chicago, from which he expanded the company's territory of operation and widened its product line. As part of this expansion, Morse brought Wheeler and his Eclipse Windmill pumps into business with the Fairbanks company. Morse later became a partner in the Fairbanks Company and by the end of the nineteenth century, it was known as Fairbanks Morse & Company and was headquartered in Chicago. Canadian and American cities had branch dealerships, with Fairbanks first coming to Montreal, Quebec, Canada, in 1876 and later opening a factory there.

In the late nineteenth century, business expanded in the Western United States, as did the company's catalog. It grew to include typewriters, hand trucks, railway velocipedes, pumps, tractors, and a variety of warehouse and bulk shipping tools. The company became an industrial supplier distributing complete "turn-key" systems: tools, plumbing, gauges, gaskets, parts, valves, and pipe. Its 1910 catalog contained over 800 pages.

The Fairbanks Morse Company began producing oil and naptha engines in the 1890s with the purchase of the Charter line of engines (the first commercially available gas engine). They had the idea that an engine could be used as backup power for when one of their Eclipse windmills wasn't getting wind. The Fairbanks Morse gas engine became a success with farmers. Electricity generation and oilfield work also used these engines. Small lighting plants built by the company were also popular. Fairbanks Morse power plants evolved by burning kerosene in 1893, coal gas in 1905, then to semi-diesel engines in 1913 and to full diesel engines in 1924. The Model N was popular in stationary industrial applications. 

In 1934, Fairbanks-Morse entered the radio business by acquiring the Audiola Radio Co. After a 1939 factory fire FM decided to exit the radio business. Fairbanks-Morse radios are well known for their colorfulness. The company also had brief forays into building automobiles, tractors, corn shellers, hammermills, cranes, televisions, and refrigerators, but output was small in these fields.

After the expiration of Rudolf Diesel's American license in 1912, Fairbanks Morse (FM) entered the large engine business. The company's larger Model Y semi-diesel became a standard workhorse, and sugar, rice, timber, and mine mills used the engine. The model Y was available in sizes from one through six cylinders, or 10 to 200 horsepower (150 kW). The Y-VA engine was the first high-compression, cold-start, full diesel developed by Fairbanks Morse without the acquisition of any foreign patent. This machine was developed in Beloit and introduced in 1924. The company expanded its line to the marine CO engine (Many 100 H.P. CO marine engines were used in the Philippine Islands to power ferry boats) as well as the mill model E, a modernized Y diesel. From this, Fairbanks-Morse became a major engine manufacturer and developed plants for railway and marine applications. The development of the diesel locomotive, tug, and ship in the 1930s fostered the expansion of the company.