Griffon Initiates Strategic Review for AMES Australia
Griffon announced a set of strategic actions. Griffon announced the initiation of a review of strategic alternatives for CPP's AMES Australia operations. AMES Australia is expected to generate approximately $40M of adjusted EBITDA in fiscal 2026. Griffon has also initiated a review of strategic alternatives for CPP's AMES United Kingdom operations. Griffon also announced the Hunter Fan Company, currently within the CPP segment, will be combined with the Home and Building Products segment. As a result of these actions, beginning with Griffon's second quarter 2026 reporting, AMES U.S., Canada, Australia, and UK will be reported as discontinued operations. The joint venture will be financed through committed debt financing as well as the Griffon second-lien debt. This transaction is subject to customary closing conditions, and is expected to be completed by the end of June.
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- Strong Financial Performance: Griffon Corporation reported Q1 revenue of $649 million, a 3% increase year-over-year, with adjusted EBITDA of $145 million, reflecting solid performance in Home and Building Products despite challenges from weak consumer demand in the U.S.
- Accelerated Strategic Transformation: The company announced a joint venture with AMES North America and Venanpri Tools aimed at creating a global leader in professional and consumer tools, while integrating Hunter Fan with Home and Building Products to strengthen market positioning.
- Continued Shareholder Returns: Griffon repurchased $18 million of stock in Q1, reducing outstanding shares by 19.3%, and declared a quarterly dividend of $0.22 per share, marking the 58th consecutive dividend payment, demonstrating a strong commitment to shareholder returns.
- Optimistic Future Outlook: Management expects fiscal 2026 revenue to reach $1.8 billion and adjusted EBITDA of $520 million, maintaining confidence in growth potential despite macroeconomic challenges, particularly with a recovery anticipated in the housing market.
- Quarterly Dividend Announcement: Griffon Corporation has declared a quarterly dividend of $0.22 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy.
- Dividend Yield: The forward yield of 1.04% reflects the company's attractiveness in the current market environment, potentially drawing in more income-focused investors.
- Payment Schedule: The dividend is payable on March 18, with a record date of February 27 and an ex-dividend date also on February 27, ensuring shareholders receive timely returns.
- Future Financial Targets: Griffon has outlined revenue targets of $2.5 billion and EBITDA of $580 million to $600 million for 2026, indicating the company's commitment to enhancing capital returns while pursuing sustainable growth.
- Quarterly Dividend Announcement: Griffon has declared a quarterly dividend of $0.22 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 1.04% reflects the company's attractiveness in the current market environment, potentially drawing in more income-focused investors.
- Shareholder Record Date: The dividend will be payable on March 18, with a record date of February 27 and an ex-dividend date also on February 27, ensuring shareholders receive their returns promptly.
- Future Financial Targets: Griffon has outlined ambitious targets of $2.5 billion in revenue and $580 million to $600 million in EBITDA for 2026, demonstrating the company's focus on enhancing capital returns while pursuing sustainable growth.
- Earnings Beat: Griffon's Q1 Non-GAAP EPS of $1.45 exceeded expectations by $0.12, with revenue of $649.1 million reflecting a 2.6% year-over-year increase, surpassing market expectations by $29.72 million, indicating robust performance in the market.
- Fiscal 2026 Outlook: The company anticipates fiscal 2026 revenue from continuing operations to be $1.8 billion, below the consensus of $2.53 billion, with adjusted EBITDA projected at $520 million, excluding unallocated costs of $62 million, reflecting a cautious outlook on future revenues.
- Cash Flow Expectations: Free cash flow from continuing operations is expected to exceed net income, despite capital expenditures of $50 million and depreciation and amortization of $27 million and $15 million respectively, indicating a balance between investment and returns.
- Interest Expense and Tax Rate: Fiscal year 2026 interest expense is projected at $93 million, with Griffon's normalized tax rate expected to be 28%, factors that will influence the company's overall profitability and cash flow management.
- Revenue Growth: Griffon Corporation reported Q1 2026 revenue of $649.1 million, a 3% increase from $632.4 million in the prior year, indicating stable performance despite rising cost pressures.
- Net Income Decline: The company posted net income of $64.4 million, or $1.41 per share, down from $70.9 million and $1.49 per share in the previous year, reflecting the impact of cost pressures on profitability.
- Strong Free Cash Flow: Free cash flow for the quarter was $99 million, demonstrating the company's robust ability to invest and repay debt, thereby enhancing financial flexibility for future growth.
- Strategic Partnership: Griffon announced a joint venture with ONCAP to consolidate its AMES businesses in the U.S. and Canada, which is expected to optimize resource allocation and enhance market competitiveness.
- Joint Venture Formation: ONCAP and Griffon have entered into a definitive agreement to create a joint venture that integrates brands like Bellota Tools, Corona, and Burgon & Ball, establishing a leading global provider of hand tools and home organization solutions, which is expected to significantly enhance market competitiveness.
- Market Coverage Expansion: The new joint venture will serve markets in North America, South America, and Europe, leveraging the strengths of Venanpri and AMES to reduce operational costs through economies of scale, thereby improving overall profitability.
- Clear Equity Structure: The joint venture will be owned 57% by Venanpri and 43% by Griffon, ensuring effective collaboration in governance and operations, which will drive synergistic business development.
- Positive Future Outlook: The joint venture is expected to close by the end of June 2026, with both parties planning to utilize their brand strengths and market expertise to expand product lines and enhance customer service quality to meet the growing market demand.







