Griffon (GFF) Q1 2026 earnings summary

Executive summary

• Announced a joint venture combining AMES North America with ONCAP's global hand tool businesses, creating a global leader in hand tools and home organizational solutions, with closing expected by June 2026.

• First quarter revenue rose 3% year-over-year to $649.1 million, with net income of $64.4 million ($1.41/share) and adjusted net income of $66.3 million ($1.45/share).

• Free cash flow reached $99.3 million, and debt was reduced by $60 million during the quarter.

• Portfolio reshaping through acquisitions, divestitures, and strategic reviews, including combining Hunter Fan with Home and Building Products and reviewing AMES Australia and UK.

• Focus on core categories and leading brands in home and building products and consumer and professional products.

Financial highlights

• Revenue for the quarter was $649.1 million, up from $632.4 million year-over-year; adjusted EBITDA was $144.6 million, nearly flat year-over-year.

• Gross profit was $266.8 million (41.1% margin); GAAP net income was $64.4 million ($1.41/share), down from $70.9 million ($1.49/share) last year.

• Adjusted net income was $66.3 million ($1.45/share), up from $65.9 million ($1.39/share) in the prior year quarter.

• Net cash provided by operating activities was $107.0 million; free cash flow for the quarter was $99.3 million.

• $18 million in stock repurchases and $0.22/share dividend declared, marking the 58th consecutive quarterly dividend.

Outlook and guidance

• Fiscal 2026 continuing operations revenue expected at $1.8 billion; adjusted EBITDA at $520 million, excluding $62 million unallocated costs.

• Free cash flow from continuing operations, including $50 million in capex, expected to exceed net income.

• Depreciation and amortization forecasted at $27 million and $15 million, respectively; interest expense at $93 million; normalized tax rate at 28%.

• Guidance for Home and Building Products remains unchanged; continued pressure on residential volume, but high-end residential and commercial remain strong.

• The joint venture transaction is expected to close by June 2026, after which AMES' U.S., Canada, Australia, and U.K. operations will be reported as discontinued operations.