Griffon's Earnings & Revenues Top Estimates in Q1, Increase Y/Y

Griffon Corporation GFF reported first-quarter fiscal 2026 (ended December 2025) adjusted earnings of $1.45 per share, which beat the Zacks Consensus Estimate of $1.34. The bottom line increased 4.3% year over year.

Total revenues of $649.1 million beat the consensus estimate of $621 million and increased 3% year over year.

GFF’s Segmental Details

Home and Building Products: Revenues from the Home and Building Products segment (representing 63.5% of net revenues) were $408 million, reflecting an increase of 3% year over year. The segment’s results reflected favorable price and mix of 7%, partially offset by lower residential volume of 4%.

Adjusted EBITDA was $122.8 million, reflecting a decrease of 3% year over year. The results were affected by higher material and labor costs, partially offset by an increase in revenues.

Consumer and Professional Products: The segment’s revenues (36.5%) totaled $241.1 million, up 2% year over year. The results were driven by favorable impact of price and mix and higher volume in Australia and Canada, partially offset by reduced consumer demand in the US.

Adjusted EBITDA increased 19% to $21.7 million from the prior-year quarter. The increase was primarily attributable to higher revenues.

Griffon Corporation Price, Consensus and EPS Surprise

Griffon Corporation price-consensus-eps-surprise-chart | Griffon Corporation Quote

Margin Profile

Griffon’s cost of sales increased 3.9% year over year to $382.3 million. Selling, general and administrative expenses were up 0.8% year over year to $153.4 million. The gross margin increased to 41.1% from 41.8% in the year-ago period.

Adjusted net income was $66.3 million, up 0.6% from the prior-year quarter.

GFF’s Balance Sheet & Cash Flow

At the end of the fiscal first quarter, Griffon had cash and cash equivalents of $95.3 million compared with $99 million at the end of fiscal 2025 (ended September 2025). Long-term debt, net of current maturities, was $1.35 billion at the end of the fiscal first quarter compared with $1.40 billion at fiscal 2025-end.

In the first three months of fiscal 2026, the company generated net cash of $107 million from operating activities compared with $142.9 million in the year-ago period.

Griffon paid out dividends of $11.2 million and repurchased shares worth $18.1 million in the same period. Exiting the fiscal first quarter, it had $280 million remaining under the share repurchase program.

Free cash flow was $99.3 million in the first three months of fiscal 2026 compared with $142.7 million in the prior-year period.

Outlook

For fiscal 2026 (ending September 2026), management anticipates net sales to be $1.8 billion compared with $2.5 billion projected earlier.

It expects the segment adjusted EBITDA to be in the band of approximately $520. While it anticipates the Home and Building Products segment’s EBITDA margin in excess of 30%, the same for the Consumer and Professional Products segment is projected to be about 10%.

For the fiscal year, Griffon expects interest expense of $93 million and capital expenditures to be $50 million.

GFF’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the same space are discussed below:

Nordson Corporation NDSN currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 2.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2.3%.

Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 1.9%.

RBC Bearings Incorporated RBC presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.2%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has increased 0.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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