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1. Company Snapshot

1.a. Company Description

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally.Its Consumer and Professional Products segment manufactures and markets long-handled tools and landscaping products for homeowners and professionals; wood and wire closet organization, general living storage, and wire garage storage products to home center retail chains, mass merchandisers, and direct-to builder professional installers; wheelbarrows and lawn carts; snow, striking, and hand tools; planters and lawn accessories; garden hoses; and pruners, loppers, shears, and other tools, as well as cleaning products for professional, home, and industrial use.The company's Home & Building Products segment manufactures and markets residential and commercial garage doors for professional dealers and various home center retail chains; and rolling steel door and grille products for commercial, industrial, institutional, and retail uses.


It sells its products under the True Temper, AMES, ClosetMaid, Clopay, Ideal, Holmes, CornellCookson, Garant, Harper, UnionTools, Westmix, Cyclone, Southern Patio, Northcote Pottery, Nylex, Hills, Kelkay, Tuscan Path, La Hacienda, Kelso, Dynamic Design, Apta, Quatro Design, Razor-Back, Jackson, Darby, Trojan, Supercraft, NeverLeak, Maximum Load, SuperSlide, ShelfTrack, MasterSuite, Suite Symphony, ExpressShelf, Style+, and SpaceCreations brand names.The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992.Griffon Corporation was founded in 1959 and is headquartered in New York, New York.

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1.b. Last Insights on GFF

Griffon Corporation's recent performance was driven by strong Q1 earnings and revenue growth. The company's revenue increased 3% to $649.1 million, with both segments posting year-over-year growth despite cost pressures. Earnings per share came in at $1.45, beating estimates. Institutional investors, such as SG Americas Securities LLC and Universal Beteiligungs und Servicegesellschaft mbH, have been increasing their stakes in the company. Analysts have a consensus "Buy" rating on Griffon Corporation, with three strong buy recommendations.

1.c. Company Highlights

2. Griffon Corporation's Q1 FY2026 Earnings: A Strong Start to the Year

Griffon Corporation reported revenue of $649 million for the first quarter of fiscal year 2026, a 3% increase compared to the prior year quarter. Adjusted EBITDA before unallocated amounts was $145 million, in line with the prior year, and EBITDA margin before unallocated amounts was 22.3%. Earnings per share (EPS) came in at $1.45, beating analyst estimates of $1.34. The company's free cash flow was $99 million, a significant improvement from the previous year. "2026 is off to a good start with strong free cash flow and continued solid operating performance," said Ronald Kramer, Chairman and CEO.

Publication Date: Feb -08

📋 Highlights
  • Joint Venture Formation:: Griffon and ONCAP created a joint venture combining AMES North America and Venanpri Tools, aiming to become a leading global hand tools and home organizational solutions provider.
  • Free Cash Flow:: Q1 free cash flow reached $99 million, reflecting strong liquidity and operational efficiency amid strategic shifts.
  • Home & Building Products (HBP) Performance:: Revenue grew 3% YoY, with EBITDA margin at 30.1%, driven by solid operating performance and market resilience.
  • Consumer & Professional Products Growth:: Revenue increased 2% (price/mix and volume in Australia/Canada), with EBITDA up 19% to $22 million despite U.S. volume declines.
  • Stock Repurchase Activity:: $18 million spent repurchasing 247,000 shares at $73.21 average price, with $280 million remaining under the authorization.

Segment Performance

The Home and Building Products segment reported a 3% revenue increase and an EBITDA margin of 30.1%. The Consumer and Professional Products segment saw a 2% revenue increase, driven by price and mix, and a 19% increase in EBITDA to $22 million. The company's results demonstrate the strength of its businesses, with solid operating performance and improved profitability.

Strategic Actions

Griffon announced the formation of a joint venture with ONCAP, combining its AMES businesses in the United States and Canada with ONCAP's global portfolio of hand tool businesses. The company also announced plans to transform into a pure-play building products company through the divestiture of its AMES Australia business and the combination of Hunter Fan with its Home and Building Products segment.

Valuation and Outlook

With a current P/E Ratio of 94.86 and EV/EBITDA of 17.28, the company's valuation appears to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at -7.1%, which may indicate a challenging year ahead. However, Griffon's strong free cash flow yield of 6.46% and dividend yield of 0.8% provide a relatively stable return for investors. The company's guidance for fiscal year 2026 revenue and adjusted EBITDA suggests a continued strong performance.

Conclusion on Financial Health

The company's financial health is robust, with a leverage ratio of 2.3x and significant liquidity. The ROIC of 4.4% and ROE of 38.69% indicate a relatively efficient use of capital. With a Net Debt / EBITDA ratio of 0.41, Griffon's debt burden is manageable, and its ability to generate free cash flow is a positive indicator of its financial stability.

3. NewsRoom

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Aberdeen Group plc Has $15.76 Million Position in Griffon Corporation $GFF

Feb -19

Source: defenseworld.net

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

Feb -06

Source: zacks.com

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Griffon (NYSE:GFF) Reaches New 52-Week High on Strong Earnings

Feb -06

Source: defenseworld.net

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Griffon Corporation (GFF) Q1 2026 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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Griffon (GFF) Beats Q1 Earnings and Revenue Estimates

Feb -05

Source: zacks.com

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Griffon Corporation Announces First Quarter Results

Feb -05

Source: businesswire.com

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Griffon Corporation Taking Strategic Actions to Maximize Shareholder Value

Feb -05

Source: businesswire.com

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ONCAP and Griffon Corporation to Form Professional and Consumer Products Joint Venture

Feb -05

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.84%)

6. Segments

Home and Building Products

Expected Growth: 1.8%

Griffon Corporation's Home and Building Products segment growth of 1.8% is driven by increasing demand for renovation and remodeling projects, fueled by rising home prices and aging housing stock. Additionally, growth in the repair and remodel market, driven by extreme weather events, contributes to the segment's expansion.

Consumer and Professional Products

Expected Growth: 1.9%

Griffon Corporation's Consumer and Professional Products segment growth of 1.9% is driven by increasing demand for DIY and home improvement projects, steady sales of cleaning and maintenance products, and a moderate recovery in the construction industry. Additionally, the company's focus on product innovation, strategic pricing, and cost savings initiatives also contribute to the segment's growth.

7. Detailed Products

Consumer and Professional Products

Griffon Corporation's Consumer and Professional Products segment offers a range of products including trash bags, storage bags, and cleaning supplies under the brand names of ClosetMaid, Stanley, and HomeBrands.

Home and Building Products

Griffon Corporation's Home and Building Products segment provides a variety of products including door and window systems, roofing, and siding under the brand names of AmesburyTruth and Clopay.

Defense Electronics

Griffon Corporation's Defense Electronics segment offers a range of products including intelligence, surveillance, and reconnaissance (ISR) systems, and electronic warfare systems under the brand name of Telephonics.

8. Griffon Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Griffon Corporation is moderate due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry in the industry, making it possible for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 83.95%
Debt Cost 8.93%
Equity Weight 16.05%
Equity Cost 10.95%
WACC 9.25%
Leverage 523.21%

11. Quality Control: Griffon Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mueller Industries

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Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 9.0

Volatility: 8.0

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Quality: 2.9

Yield: 10.0

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Griffon

A-Score: 4.7/10

Value: 3.1

Growth: 5.9

Quality: 4.3

Yield: 5.0

Momentum: 4.0

Volatility: 5.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

86.31$

Current Price

86.31$

Potential

-0.00%

Expected Cash-Flows