GFF · Griffon Corporation

Griffon Corporation reported fiscal second quarter 2026 results that showed a slight revenue decline and flat adjusted EPS year-over-year. Revenue decreased 1% to $421.9 million, driven by a 6% volume decline primarily in residential markets, partially offset by favorable price and mix of 5% across both residential and commercial segments. Gross profit fell to $192.0 million from $198.3 million, reflecting the impact of lower volume on overhead absorption and increased material costs. GAAP income from continuing operations was $46.9 million ($1.03 per diluted share) compared to $49.8 million ($1.06) in the prior year quarter. On an adjusted basis, income from continuing operations was $48.1 million ($1.05 per share), flat with the prior year's adjusted $1.05 per share. Adjusted EBITDA from continuing operations decreased 4% to $97.8 million from $101.7 million. Management commentary highlighted solid performance and progress on strategic actions to streamline the business into a pure-play building products company. The company maintained its fiscal 2026 guidance, expecting revenue of approximately $1.8 billion and adjusted EBITDA of $458 million. During the first half, Griffon returned $72 million to shareholders through dividends and share repurchases, and maintained net debt to EBITDA leverage of 2.4x. The company also provided updates on strategic initiatives: the joint venture with ONCAP for AMES U.S. and Canada is expected to close by June 2026, and the exploration of strategic alternatives for AMES Australia and UK is ongoing. Overall, the results reflect a stable core business with headwinds from residential volume, offset by pricing actions and cost management, while the company executes its portfolio transformation.