Griffon (NYSE:GFF) Issues Quarterly Earnings Results

Griffon (NYSE:GFF) announced its earnings results on Wednesday. The conglomerate reported $1.51 EPS for the quarter, topping analysts’ consensus estimates of $1.34 by $0.17, FiscalAI reports. The business had revenue of $481.37 million during the quarter, compared to the consensus estimate of $457.70 million. Griffon had a net margin of 8.08% and a return on equity of 249.31%. The firm’s revenue was down 21.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.50 earnings per share.

Here are the key takeaways from Griffon’s conference call:

• Third-quarter revenue rose 7% organically to $481 million, while adjusted EBITDA increased 2% to $125 million; adjusted EPS was $1.51 versus $1.39 a year ago.
• Griffon maintained fiscal 2026 guidance of $1.8 billion in revenue and $458 million in adjusted EBITDA, with full-year free cash flow expected to exceed net income.
• The Australasia joint venture closed with $181 million in cash, a $49 million note receivable and a 49% equity stake; proceeds helped repay the remaining $285 million term loan, reducing pro forma net leverage to approximately 2.0 times.
• Residential door volume declined slightly amid soft U.S. housing conditions, although commercial volume was flat and fan volume more than offset the residential weakness; management expects seasonal improvement in the fourth quarter.
• Management expects the recent price increase to offset higher raw-material, labor, energy and logistics costs, supporting EBITDA margins of at least 25%, while longer-term housing recovery and commercial applications such as data centers and pharmaceutical facilities could provide operating leverage.

Griffon Stock Performance

Shares of NYSE GFF traded up $0.85 during midday trading on Friday, reaching $107.16. The company had a trading volume of 274,479 shares, compared to its average volume of 351,750. Griffon has a 1 year low of $65.01 and a 1 year high of $108.57. The business’s 50-day simple moving average is $91.55 and its 200 day simple moving average is $85.93. The company has a current ratio of 2.41, a quick ratio of 2.43 and a debt-to-equity ratio of 9.75. The stock has a market cap of $4.92 billion, a P/E ratio of 27.34 and a beta of 1.44.

Griffon Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Monday, August 31st will be issued a $0.22 dividend. The ex-dividend date of this dividend is Monday, August 31st. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.8%. Griffon’s dividend payout ratio (DPR) is currently 676.92%.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of Griffon from a “buy” rating to a “hold” rating in a research report on Saturday, May 16th. Stephens lifted their price target on shares of Griffon from $115.00 to $120.00 and gave the stock an “overweight” rating in a report on Thursday. Weiss Ratings lowered Griffon from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, May 11th. Zacks Research upgraded Griffon from a “strong sell” rating to a “hold” rating in a research note on Friday, May 8th. Finally, Robert W. Baird set a $125.00 target price on Griffon in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $122.50.

Insiders Place Their Bets

In other Griffon news, COO Robert F. Mehmel sold 4,166 shares of Griffon stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $97.76, for a total transaction of $407,268.16. Following the completion of the sale, the chief operating officer owned 785,900 shares of the company’s stock, valued at approximately $76,829,584. The trade was a 0.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ronald J. Kramer sold 100,000 shares of Griffon stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $94.92, for a total value of $9,492,000.00. Following the sale, the chief executive officer directly owned 1,784,297 shares of the company’s stock, valued at approximately $169,365,471.24. This represents a 5.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 129,389 shares of company stock worth $12,309,525 over the last three months. Corporate insiders own 10.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. CIBC Private Wealth Group LLC boosted its holdings in shares of Griffon by 457.5% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,046 shares of the conglomerate’s stock valued at $156,000 after acquiring an additional 1,679 shares during the last quarter. Equitable Holdings Inc. boosted its holdings in Griffon by 4.0% in the third quarter. Equitable Holdings Inc. now owns 3,811 shares of the conglomerate’s stock valued at $290,000 after purchasing an additional 148 shares during the last quarter. Osaic Holdings Inc. grew its position in Griffon by 11.2% during the 2nd quarter. Osaic Holdings Inc. now owns 2,329 shares of the conglomerate’s stock worth $169,000 after purchasing an additional 234 shares during the period. Caxton Associates LLP purchased a new position in shares of Griffon during the 2nd quarter valued at about $248,000. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of Griffon by 96.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,916 shares of the conglomerate’s stock valued at $283,000 after buying an additional 1,927 shares during the period. 73.22% of the stock is currently owned by hedge funds and other institutional investors.

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.