Griffon (GFF) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $421.9 million, down 1% year-over-year due to a 6% volume decline, partially offset by a 5% favorable price/mix shift.

• Adjusted EBITDA was $97.8 million (23.2% margin), down 4% year-over-year; gross margin declined to 45.5% from 46.5%.

• Income from continuing operations was $46.9 million ($1.03/share), with adjusted net income at $48.1 million ($1.05/share), nearly flat year-over-year.

• Strategic actions included a joint venture for AMES U.S./Canada, discontinuation of AMES Australia/U.K., and reporting AMES as discontinued operations.

• Operations are now reported as a single segment focused on residential and commercial building products.

Financial highlights

• Q2 2026 revenue was $421.9 million, down 1% year-over-year, with a 6% volume decline partially offset by a 5% improvement in price and mix.

• Adjusted EBITDA was $97.8 million, down 4% year-over-year; EBITDA margin was 23.2%.

• Gross profit was $192 million (45.5% margin), compared to $198 million (46.5%) last year.

• Net income for the quarter was $19.3 million, down from $56.8 million year-over-year, impacted by discontinued operations losses.

• Free cash flow from continuing operations for the six months ended March 31, 2026, was $100.7 million.

Outlook and guidance

• Fiscal 2026 guidance maintained: revenue of $1.8 billion and adjusted EBITDA of $458 million.

• Free cash flow from continuing operations expected to exceed income from continuing operations.

• CapEx expected at $50 million, depreciation $27 million, amortization $15 million, and interest expense $93 million.

• Normalized tax rate projected at 28%.

• Management expects to complete the AMES Australia review by year-end and close the AMES U.S./Canada JV by June 2026.