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

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

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 Trading Up 4.5%

GFF stock traded up $3.85 during mid-day trading on Thursday, hitting $88.58. 234,583 shares of the company were exchanged, compared to its average volume of 246,712. Griffon has a 12-month low of $63.92 and a 12-month high of $89.13. The firm has a market capitalization of $4.13 billion, a P/E ratio of 88.58, a PEG ratio of 1.21 and a beta of 1.33. The business has a fifty day simple moving average of $78.30 and a 200-day simple moving average of $76.54. The company has a quick ratio of 1.34, a current ratio of 2.66 and a debt-to-equity ratio of 18.99.

Griffon Increases Dividend

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

Analyst Upgrades and Downgrades

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

Institutional Trading of Griffon

Several institutional investors have recently added to or reduced their stakes in the stock. Osterweis Capital Management Inc. purchased a new position in shares of Griffon during the second quarter worth $37,000. EverSource Wealth Advisors LLC lifted its stake in Griffon by 33.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 572 shares of the conglomerate’s stock worth $41,000 after acquiring an additional 142 shares in the last quarter. NewEdge Advisors LLC purchased a new position in Griffon during the 1st quarter valued at about $49,000. Strs Ohio purchased a new position in Griffon during the 1st quarter valued at about $57,000. Finally, CIBC Private Wealth Group LLC increased its stake in 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 purchasing an additional 1,679 shares during the period. Institutional investors and hedge funds own 73.22% of the company’s stock.

Griffon News Summary

Here are the key news stories impacting Griffon this week:

• Positive Sentiment: Earnings beat — Griffon reported Q1 EPS of $1.45, above the consensus $1.34, and revenue of $649.1M (vs. consensus ~$618M); revenue rose ~3% year‑over‑year. This beat is the main catalyst supporting the stock. Zacks: Griffon Beats Q1
• Positive Sentiment: Corporate restructuring — Griffon announced strategic actions to streamline its portfolio into a pure‑play North American residential & commercial building products business (garage doors, commercial doors, ceiling fans), signaling management is prioritizing higher‑margin, core operations. That long‑term focus supports investor expectations for improved returns. BusinessWire: Strategic Actions
• Positive Sentiment: JV with ONCAP — Griffon and Onex’s ONCAP will form a joint venture combining hand‑tool, home organization and lawn & garden brands (Bellota Tools, Corona, Burgon & Ball), which could unlock value via scale, a focused owner for non‑core brands, or proceeds from the transaction. BusinessWire: ONCAP JV
• Neutral Sentiment: Company materials — Management released the quarter’s press release, slide deck and hosted a conference call (useful for detail but not an immediate directional driver). Q1 Press Release / Deck
• Negative Sentiment: Weaker FY‑2026 guidance — the company updated FY‑2026 guidance and the revenue handle cited (~$1.8B) appears markedly below the consensus near $2.5B, which risks tempering the upside from the beat and strategic news; investors will watch for clarity on EPS guidance and timing of portfolio actions.

About Griffon

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.