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Griffon Q2 EPS topped estimates as revenues beat forecasts despite a 1.1% sales decline.
GFF offset lower volume with favorable pricing and mix, helping support profitability.
Company reaffirmed FY2026 outlook, targeting about $1.8 billion in continuing operations sales.
Griffon Corporation (GFF - Free Report) reported second-quarter fiscal 2026 (ended March 2026) adjusted earnings of $1.05 per share, which beat the Zacks Consensus Estimate of 99 cents. The bottom line was stable on a year-over-year basis.
Total revenues of $421.9 million beat the consensus estimate of $413 million and decreased 1.1% year over year. The decline was attributable to lower volumes of 6%, partially offset by favorable price and mix of 5%.
GFF’s Operating Results
Effective from the fiscal second quarter, Griffon declared its AMES U.S., Canada, UK and Australia businesses as discontinued operations. The company currently reports the continuing operations’ financial results as a single segment.
Griffon Corporation Price, Consensus and EPS Surprise
Griffon’s cost of sales increased 0.7% year over year to $229.9 million. Selling, general and administrative expenses were down 2.7% year over year to $104.6 million. The gross margin decreased to 45.5% from 46.5% in the year-ago period.
Net income was $19.3 million, reflecting a decline of 66% from the prior-year quarter. The company’s adjusted EBITDA from continuing operations totaled $97.8 million, down 4% from the year-ago quarter.
GFF’s Balance Sheet & Cash Flow
At the end of the fiscal second quarter, Griffon had cash and cash equivalents of $109.7 million compared with $99 million at the end of fiscal 2025 (ended September 2025). Long-term debt, net of current maturities, was $1.39 billion at the end of the fiscal second quarter compared with $1.40 billion at fiscal 2025-end.
In the first six months of fiscal 2026, the company generated net cash of $118.3 million from operating activities compared with $139.7 million in the year-ago period.
Griffon paid out dividends of $21.2 million and repurchased shares worth $51 million in the same period. Exiting the fiscal second quarter, it had $247 million remaining under the share repurchase program.
In the first six months of fiscal 2026, free cash flow from continuing operations was $100.7 million and capital expenditures (net) were $17.6 million.
Outlook
The company has reaffirmed its fiscal 2026 financial guidance. For fiscal 2026 (ending September 2026), management anticipates net sales from continuing operations to be $1.8 billion.
It expects the adjusted EBITDA to be approximately $458 million. For the fiscal year, Griffon expects interest expense of $93 million and capital expenditures to be $50 million.
GFF’s Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the same space are discussed below:
DXP Enterprises’ earnings missed the consensus estimate by 8.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.
Kennametal (KMT - Free Report) presently sports a Zacks Rank of 1. Kennametal’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 18.6%. In the past 60 days, the Zacks Consensus Estimate for Kennametal’s fiscal 2026 earnings has increased 9%.
Powell Industries (POWL - Free Report) currently carries a Zacks Rank of 2. Powell’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 7.8%. In the past 60 days, the Zacks Consensus Estimate for Powell’s fiscal 2026 earnings has increased 3.6%.
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Griffon Tops Q2 Earnings & Revenue Estimates, Reaffirms 26' View
Key Takeaways
Griffon Corporation (GFF - Free Report) reported second-quarter fiscal 2026 (ended March 2026) adjusted earnings of $1.05 per share, which beat the Zacks Consensus Estimate of 99 cents. The bottom line was stable on a year-over-year basis.
Total revenues of $421.9 million beat the consensus estimate of $413 million and decreased 1.1% year over year. The decline was attributable to lower volumes of 6%, partially offset by favorable price and mix of 5%.
GFF’s Operating Results
Effective from the fiscal second quarter, Griffon declared its AMES U.S., Canada, UK and Australia businesses as discontinued operations. The company currently reports the continuing operations’ financial results as a single segment.
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 0.7% year over year to $229.9 million. Selling, general and administrative expenses were down 2.7% year over year to $104.6 million. The gross margin decreased to 45.5% from 46.5% in the year-ago period.
Net income was $19.3 million, reflecting a decline of 66% from the prior-year quarter. The company’s adjusted EBITDA from continuing operations totaled $97.8 million, down 4% from the year-ago quarter.
GFF’s Balance Sheet & Cash Flow
At the end of the fiscal second quarter, Griffon had cash and cash equivalents of $109.7 million compared with $99 million at the end of fiscal 2025 (ended September 2025). Long-term debt, net of current maturities, was $1.39 billion at the end of the fiscal second quarter compared with $1.40 billion at fiscal 2025-end.
In the first six months of fiscal 2026, the company generated net cash of $118.3 million from operating activities compared with $139.7 million in the year-ago period.
Griffon paid out dividends of $21.2 million and repurchased shares worth $51 million in the same period. Exiting the fiscal second quarter, it had $247 million remaining under the share repurchase program.
In the first six months of fiscal 2026, free cash flow from continuing operations was $100.7 million and capital expenditures (net) were $17.6 million.
Outlook
The company has reaffirmed its fiscal 2026 financial guidance. For fiscal 2026 (ending September 2026), management anticipates net sales from continuing operations to be $1.8 billion.
It expects the adjusted EBITDA to be approximately $458 million. For the fiscal year, Griffon expects interest expense of $93 million and capital expenditures to be $50 million.
GFF’s Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the same space are discussed below:
DXP Enterprises (DXPE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises’ earnings missed the consensus estimate by 8.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.
Kennametal (KMT - Free Report) presently sports a Zacks Rank of 1. Kennametal’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 18.6%. In the past 60 days, the Zacks Consensus Estimate for Kennametal’s fiscal 2026 earnings has increased 9%.
Powell Industries (POWL - Free Report) currently carries a Zacks Rank of 2. Powell’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 7.8%. In the past 60 days, the Zacks Consensus Estimate for Powell’s fiscal 2026 earnings has increased 3.6%.