Griffon Stock Earnings Reports

Griffon reported a solid start to fiscal 2026 with Q1 revenue of $649 million (up 3%), adjusted EBITDA (before unallocated amounts) of $145 million, GAAP net income of $64 million ($1.41/sh), and free cash flow of $99 million. Home & Building Products (HBP) revenue grew 3% with a 30.1% EBITDA margin driven by price/mix (+7%) offset by lower residential volumes. Consumer & Professional Products (CPP) revenue rose 2% and CPP EBITDA increased 19% to $22 million, helped by price/mix and stronger volumes in Australia and Canada but weak U.S. consumer demand. Griffon repurchased $18 million of stock in the quarter (247k shares) and declared a quarterly dividend of $0.22 (58th consecutive quarterly dividend). Net debt was $1.26 billion with net debt/EBITDA of 2.3x; $60 million of Term Loan B was repaid in the quarter. Strategic actions announced transform the company: formation of a joint venture (JV) with ONCAP combining AMES North America and Venanpri/ONCAP tool businesses (Griffon to receive $100 million cash at close, $160 million of second-lien JV debt, and retain a 43% stake; ONCAP 57% and will operate the JV); AMES U.S., Canada, Australia and U.K. will be reported as discontinued operations starting Q2; Hunter Fan will be moved from CPP into HBP. Expected FY26 continuing-operations guidance: revenue ~$1.8 billion and adjusted EBITDA ~$520 million (excluding $62 million unallocated costs); free cash flow expected to exceed net income; capex ~$50 million; interest ~$93 million; normalized tax rate ~28%. The JV is expected to close by end of June; cash proceeds imply roughly a 4x cash multiple. Management emphasized share repurchases, dividend growth and deleveraging as capital allocation priorities and positioned the moves as unlocking value and refocusing Griffon as a pure-play North American building products company.