Griffon (NYSE:GFF) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Griffon (NYSE:GFF) released its quarterly earnings data on Thursday. The conglomerate reported $1.45 earnings per share for the quarter, beating the consensus estimate of $1.34 by $0.11, FiscalAI reports. Griffon had a return on equity of 181.66% and a net margin of 2.03%.The firm had revenue of $649.09 million during the quarter, compared to the consensus estimate of $618.35 million. During the same period in the previous year, the company posted $1.39 earnings per share. The firm’s quarterly revenue was up 2.6% on a year-over-year basis.

Here are the key takeaways from Griffon’s conference call:

• Griffon formed a joint venture with ONCAP combining AMES North America with ONCAP’s global tool brands and will receive $100 million cash plus $160 million of second‑lien PIK debt while retaining a 43% ownership stake, with the JV expected to close by the end of June to provide immediate liquidity and a path to unlock longer‑term value.
• Management announced a portfolio reshaping to create a pure‑play North American building products company by combining Hunter Fan into Home & Building Products and pursuing strategic alternatives for AMES Australia and the U.K.; AMES‑related operations will be reported as discontinued starting in Q2 with expected FY‑2026 EBITDA of about $60 million for the discontinued units.
• Q1 operational and capital allocation highlights include $99 million of free cash flow, HBP EBITDA margin of 30.1%, CPP EBITDA up 19%, repurchases of $18 million in the quarter (with $280 million remaining authorization), and a regular quarterly dividend of $0.22 per share.
• Balance sheet and guidance position remain constructive with net debt of $1.26 billion (2.3x leverage after a $60 million Term Loan paydown) and continuing‑operations guidance of $1.8 billion revenue and $520 million adjusted EBITDA, with free cash flow expected to exceed net income.

Griffon Stock Up 6.4%

Griffon stock traded up $5.45 during mid-day trading on Thursday, reaching $90.18. 291,318 shares of the company were exchanged, compared to its average volume of 249,319. The firm has a market cap of $4.20 billion, a P/E ratio of 90.18, a PEG ratio of 1.21 and a beta of 1.33. The company has a debt-to-equity ratio of 18.99, a quick ratio of 1.34 and a current ratio of 2.66. Griffon has a 12-month low of $63.92 and a 12-month high of $89.50. The business has a fifty day moving average of $78.30 and a 200 day moving average of $76.54.

Griffon Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 16th. Stockholders of record on Friday, November 28th were paid a dividend of $0.22 per share. This is a positive change from Griffon’s previous quarterly dividend of $0.18. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Friday, November 28th. Griffon’s payout ratio is currently 88.00%.

Institutional Investors Weigh In On Griffon

Institutional investors have recently made changes to their positions in the stock. Osterweis Capital Management Inc. acquired a new position in Griffon in the 2nd quarter worth $37,000. EverSource Wealth Advisors LLC raised its stake in shares of Griffon by 33.0% in the second quarter. EverSource Wealth Advisors LLC now owns 572 shares of the conglomerate’s stock valued at $41,000 after purchasing an additional 142 shares in the last quarter. NewEdge Advisors LLC acquired a new position in Griffon in the first quarter worth $49,000. Strs Ohio bought a new position in shares of Griffon in the 1st quarter worth $57,000. Finally, CIBC Private Wealth Group LLC raised its holdings in shares of Griffon by 457.5% during the third quarter. CIBC Private Wealth Group LLC now owns 2,046 shares of the conglomerate’s stock worth $156,000 after acquiring an additional 1,679 shares during the period. 73.22% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms recently issued reports on GFF. Zacks Research raised Griffon from a “strong sell” rating to a “hold” rating in a report on Monday, January 19th. Stephens boosted their price target on shares of Griffon from $90.00 to $92.00 and gave the company an “overweight” rating in a report on Monday, November 24th. CJS Securities upgraded Griffon to a “strong-buy” rating in a research report on Thursday, December 11th. Weiss Ratings reiterated a “hold (c)” rating on shares of Griffon in a report on Monday, December 29th. Finally, Wall Street Zen upgraded shares of Griffon from a “hold” rating to a “buy” rating in a research report on Saturday, November 22nd. Three research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Griffon presently has an average rating of “Buy” and an average target price of $95.60.

Key Stories Impacting Griffon

Here are the key news stories impacting Griffon this week:

• Positive Sentiment: Q1 beat — Griffon reported Q1 EPS of $1.45 vs. consensus $1.34 and revenue of $649.1M (up ~3% YoY), beating estimates. The results and associated slide deck/conference call gave investors near‑term confidence. Business Wire Q1 Release
• Positive Sentiment: Strategic portfolio simplification — Griffon announced a plan to streamline into a pure‑play North American residential and commercial building products company (doors, fans, etc.). Management says the actions are intended to enhance shareholder value, which can support a re‑rating or monetizations. Strategic Actions Release
• Positive Sentiment: ONCAP joint venture — Griffon agreed to combine several consumer/professional tool and lawn & garden brands into a joint venture with Onex’s ONCAP platform, which could accelerate value realization for non‑core assets and provide cash/partner capital. ONCAP JV Release
• Neutral Sentiment: Investor materials available — Management hosted a conference call and published a slide deck and press release; investors can review the call and slides for details on segment performance and timing of strategic actions. Earnings Call / Slides
• Negative Sentiment: Conservative FY‑2026 revenue guidance — Griffon updated FY‑2026 guidance that implies materially lower revenue than street expectations (the company cited roughly $1.8B vs. consensus ~ $2.5B in the entries provided) and the EPS range was not clearly provided in initial notes. A lower guidance baseline increases execution risk and can pressure valuation. (Guidance noted in company disclosures/earnings commentary.)
• Negative Sentiment: Profitability and headline metrics — Although EPS beat, reported net income fell to $64.4M ($1.41 per share) from $70.9M a year ago and net margin remains thin (~2%). Griffon also carries a high trailing P/E (~90x), so investors may be sensitive to any guidance shortfall or execution slippage.

Griffon Company Profile

Griffon Corporation (NYSE:GFF) is a diversified management and holding company whose subsidiaries design, manufacture and market products for residential, commercial and defense applications. Operating through three primary platforms—Home & Building Products, Defense Electronics and Specialty Industrial—Griffon’s portfolio spans consumer and industrial brands with a focus on long-lived products and recurring aftermarket opportunities.

In the Home & Building Products segment, Griffon’s Clopay Building Products division is a leading North American manufacturer of residential and commercial garage doors, specializing in steel, fiberglass and composite designs as well as decorative carriage-house styles.