Griffon (GFF) Q3 2026 Earnings Report

The call conveyed strong operational execution, disciplined capital allocation and meaningful strategic progress (transaction proceeds, debt paydown, share buybacks and maintained guidance). Key positives include revenue growth (+7%), adjusted EBITDA improvement, improved leverage, substantial cash proceeds from strategic transactions and continued shareholder returns. Headwinds include margin compression (gross margin down 1.7 pts), ongoing inflationary cost pressures, slight year-to-date free cash flow decline versus prior year and residential volume softness tied to housing market dynamics. Overall, the positives (growth, balance sheet repair, strategic monetizations and capital returns) meaningfully outweigh the negatives, though management notes cyclical demand risk tied to housing and commercial recovery.

Griffon reiterated fiscal 2026 guidance for continuing operations, targeting revenue of $1.8 billion and adjusted EBITDA of $458 million (ex‑GAAP comparability adjustments), and said free cash flow from continuing operations is expected to exceed net income; they also forecast capital expenditures of $50 million, depreciation of $27 million, amortization of $15 million, fiscal 2026 interest expense of about $80 million (a $13 million reduction from prior guidance) and a normalized tax rate of 28%. As of June 30, net debt was $1.2 billion with net debt/EBITDA leverage of 2.2x (pro forma ~2.0x after the Australasia JV) and a new target leverage range of 1.5x–2.5x; management reaffirmed its capital-allocation strategy—a $0.22 quarterly dividend payable Sept. 16 and continued opportunistic buybacks (Q3 repurchases $53 million; $194 million remaining authorization).