Griffon (GFF) Q3 2026 earnings summary

Executive summary

• Delivered strong operational and financial results, with organic revenue up 7% and EBITDA up 2% year-over-year for the third quarter, driven by favorable price/mix and higher residential volume.

• Successfully completed strategic actions, transforming into a pure-play building products company focused on North America, following divestitures and joint ventures for AMES North America, Australasia, and U.K. operations.

• Now operates as a single reportable segment centered on residential and commercial building products.

• Maintained guidance for fiscal 2026, reflecting confidence in business resilience amid soft U.S. housing and commercial construction markets.

• Well-positioned to benefit from long-term trends in repair/remodel, commercial construction, and favorable housing demographics.

Financial highlights

• Third quarter 2026 revenue reached $481.4 million, up 7% year-over-year, with favorable price/mix and volume; trailing twelve months revenue was $1.8 billion.

• Adjusted EBITDA for Q3 2026 was $124.8 million (25.9% margin), up 2% year-over-year; TTM adjusted EBITDA was $455 million (25% margin).

• Gross profit for Q3 2026 was $226.1 million (47% margin), compared to $219 million (48.7% margin) last year.

• Adjusted net income from continuing operations for Q3 2026 was $68 million ($1.51/share), up from $64 million ($1.39/share) last year.

• Year-to-date free cash flow from continuing operations was $194.2 million.

Outlook and guidance

• Fiscal 2026 revenue guidance maintained at $1.8 billion and adjusted EBITDA at $458 million, with margin above 25%.

• Free cash flow from continuing operations expected to exceed net income; capital expenditures projected at $50 million.

• Interest expense for fiscal 2026 expected at $80 million, reflecting reduced debt; normalized tax rate anticipated at 28%.

• Board declared a quarterly dividend of $0.22 per share, with a 19% CAGR since 2012.

• Management expects sufficient liquidity to invest in existing businesses and strategic acquisitions.