Griffon's Fiscal 2026 Outlook Unchanged, Revenue Expected at $1.8 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy GFF?
Griffon's fiscal year 2026 outlook is unchanged from the first quarter, and is consistent with the expected contributions from the legacy HBP segment and Hunter Fan as included within Griffon's guidance provided in November 2025. Griffon expects fiscal 2026 revenue from continuing operations to be $1.8 billion. Adjusted EBITDA, presented to reflect Griffon's new reporting structure, is expected to be $458 million, excluding certain charges that affect comparability. Free cash flow from continuing operations, including capital expenditures of $50 million, is expected to exceed net income from continuing operations, with depreciation of $27 million and amortization of $15 million. Fiscal year 2026 interest expense is expected to be $93 million, excluding any interest income from the anticipated AMES joint venture. Griffon's normalized tax rate is expected to be 28%.
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Analyst Views on GFF
Wall Street analysts forecast GFF stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 86.190
Low
92.00
Averages
92.00
High
92.00
Current: 86.190
Low
92.00
Averages
92.00
High
92.00
About GFF
Griffon Corporation is a diversified management and holding company that conducts business through wholly owned subsidiaries. The Company’s segments include Home and Building Products (HBP) and Consumer and Professional Products (CPP). The HBP segment conducts its operations through Clopay Corporation (Clopay). Clopay is the manufacturer and marketer of garage doors and rolling steel doors in North America. Residential and commercial sectional garage doors are sold through professional dealers and home center retail chains throughout North America under the brands Clopay, Ideal, and Holmes. The CPP segment is a global provider of branded consumer and professional tools; residential, industrial and commercial fans; home storage and organization products; and products that enhance indoor and outdoor lifestyles. CPP sells products globally through a portfolio of brands, including AMES, Hunter, True Temper, and ClosetMaid.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Griffon Corporation Q2 Fiscal 2026 Earnings Call Insights
- Strategic Transformation Progress: Griffon is executing strategic actions to focus on becoming a pure-play North American building products company, including forming a joint venture with AMES North America, expected to close by June 2026, which will yield $100 million in cash and $161 million in second lien notes, indicating proactive market consolidation efforts.
- Product Innovation Awards: Clopay's 'VertiStack Avante' and 'Avante door' have received multiple awards, with the patented C-Power technology delivering electrical power directly to garage door panels, enhancing product competitiveness and expected to drive future sales growth and market share.
- Stable Financial Performance: The second quarter revenue was $422 million, down 1% year-over-year, but with price and mix improvements, EBITDA reached $98 million with a 23.2% margin, demonstrating effective cost control and pricing strategies.
- Shareholder Return Plan: The company repurchased $33 million in stock during the second quarter and announced a quarterly dividend of $0.22 per share, indicating a commitment to creating shareholder value while maintaining financial stability.
See More
Griffon Reports Q2 2026 Earnings with Mixed Results
- Earnings Beat: Griffon's Q2 Non-GAAP EPS of $1.05 exceeded expectations by $0.06, demonstrating resilience in profitability despite a slight decline in overall revenue.
- Slight Revenue Decline: The second quarter revenue of $421.9 million represents a 1.1% year-over-year decrease, yet it surpassed market expectations by $7.31 million, indicating the company's ability to maintain sales levels in a competitive market.
- Adjusted EBITDA Decline: Adjusted EBITDA from continuing operations was $97.8 million, a 4% decrease from the prior year, reflecting challenges in cost control and operational efficiency that may impact future profitability.
- 2026 Outlook: Griffon expects fiscal 2026 revenue from continuing operations to be $1.8 billion, below the consensus of $2.00 billion, indicating a cautious outlook for future growth, while adjusted EBITDA is projected at $458 million, highlighting the company's financial health under the new reporting structure.
See More
Griffon Corp Reports Decline in Q2 Earnings
- Earnings Decline: Griffon Corp reported Q2 earnings of $19.318 million, or $0.42 per share, a significant drop from $56.762 million and $1.21 per share last year, indicating mounting pressure on profitability.
- Slight Revenue Decrease: The company's revenue for the second quarter was $421.860 million, down 1.1% from $426.684 million last year, reflecting the impact of weakened market demand.
- Adjusted Income Stability: Despite the overall earnings decline, Griffon's adjusted income from continuing operations was $48.148 million, or $1.05 per share, remaining flat compared to the same period last year, suggesting some stability in core operations.
- Uncertain Market Outlook: The dual decline in earnings and revenue may affect investor confidence, prompting Griffon to implement effective strategies to address market challenges and restore growth.
See More
Griffon Corporation Q2 Earnings Announcement Scheduled
- Earnings Release Date: Griffon Corporation is set to announce its Q2 earnings on May 7th before market open, with consensus EPS estimated at $0.99, reflecting a 19.5% year-over-year decline, indicating potential pressure on profitability that could affect investor confidence.
- Revenue Expectations Decline: The expected revenue for Q2 is $414.59 million, down 32.2% year-over-year, highlighting challenges the company faces in market competition, which may limit future growth prospects.
- Historical Performance Review: Over the past two years, Griffon has beaten EPS estimates 88% of the time and revenue estimates 50% of the time; however, recent downward revisions of 6 for both EPS and revenue suggest a cautious outlook from the market regarding its future performance.
- Estimate Revision Situation: In the last three months, there have been no upward revisions for EPS or revenue estimates, with both experiencing 6 downward adjustments, indicating analysts' pessimism about Griffon's future earnings, which could impact its stock performance.
See More
Analyzing Risks and Opportunities in Small-Cap Stocks
- DigitalOcean Risks: DigitalOcean (DOCN), with a market cap of $10.02 billion, shows a high net revenue retention rate of 99.8%, yet its low switching costs and a gross margin of 59.9% indicate poor unit economics, posing significant investment risks.
- Griffon Sales Decline: Griffon (GFF), valued at $4.25 billion, has experienced a 2.7% annual sales decline over the past two years, with projections indicating a staggering 28.7% drop in sales over the next year, highlighting a disconnect between its products and market demand.
- Worthington Profitability Issues: Worthington (WOR), with a market cap of $2.67 billion, has seen a 13.9% annual sales decline over five years and a 26.7% annual drop in earnings per share, suggesting deteriorating returns on capital that could negatively impact stock performance.
- Small-Cap Investment Strategy: Small-cap stocks like DOCN, GFF, and WOR face higher instability and resource constraints, necessitating careful selection by investors to avoid potential significant losses.
See More
Griffon Corp. Insider Purchases Shares
- Insider Buying: On March 5, Griffon Corp.'s Director Henry A. Alpert purchased 1,000 shares at $79.99 each, totaling $79,990, indicating his confidence in the company's future performance.
- Market Reaction: On Monday, investors could buy Griffon Corp. shares at $71.31, which is 10.9% cheaper than Alpert's purchase price, potentially attracting more buyers into the market.
- Stock Performance: Griffon Corp.'s current stock price is $72.71, reflecting an increase from the 52-week low of $63.92, indicating some market recovery, while still having room to rise compared to the 52-week high of $97.58.
- Dividend Yield: Griffon Corp. currently pays an annualized dividend of $0.88 per share, with the most recent ex-dividend date on February 27, 2026, providing an annualized yield of approximately 1.2%, which offers investors a stable cash flow.
See More
Griffon Corporation Q2 Fiscal 2026 Earnings Call Insights
- Strategic Transformation Progress: Griffon is executing strategic actions to focus on becoming a pure-play North American building products company, including forming a joint venture with AMES North America, expected to close by June 2026, which will yield $100 million in cash and $161 million in second lien notes, indicating proactive market consolidation efforts.
- Product Innovation Awards: Clopay's 'VertiStack Avante' and 'Avante door' have received multiple awards, with the patented C-Power technology delivering electrical power directly to garage door panels, enhancing product competitiveness and expected to drive future sales growth and market share.
- Stable Financial Performance: The second quarter revenue was $422 million, down 1% year-over-year, but with price and mix improvements, EBITDA reached $98 million with a 23.2% margin, demonstrating effective cost control and pricing strategies.
- Shareholder Return Plan: The company repurchased $33 million in stock during the second quarter and announced a quarterly dividend of $0.22 per share, indicating a commitment to creating shareholder value while maintaining financial stability.
See More
Griffon Reports Q2 2026 Earnings with Mixed Results
- Earnings Beat: Griffon's Q2 Non-GAAP EPS of $1.05 exceeded expectations by $0.06, demonstrating resilience in profitability despite a slight decline in overall revenue.
- Slight Revenue Decline: The second quarter revenue of $421.9 million represents a 1.1% year-over-year decrease, yet it surpassed market expectations by $7.31 million, indicating the company's ability to maintain sales levels in a competitive market.
- Adjusted EBITDA Decline: Adjusted EBITDA from continuing operations was $97.8 million, a 4% decrease from the prior year, reflecting challenges in cost control and operational efficiency that may impact future profitability.
- 2026 Outlook: Griffon expects fiscal 2026 revenue from continuing operations to be $1.8 billion, below the consensus of $2.00 billion, indicating a cautious outlook for future growth, while adjusted EBITDA is projected at $458 million, highlighting the company's financial health under the new reporting structure.
See More
Griffon Corp Reports Decline in Q2 Earnings
- Earnings Decline: Griffon Corp reported Q2 earnings of $19.318 million, or $0.42 per share, a significant drop from $56.762 million and $1.21 per share last year, indicating mounting pressure on profitability.
- Slight Revenue Decrease: The company's revenue for the second quarter was $421.860 million, down 1.1% from $426.684 million last year, reflecting the impact of weakened market demand.
- Adjusted Income Stability: Despite the overall earnings decline, Griffon's adjusted income from continuing operations was $48.148 million, or $1.05 per share, remaining flat compared to the same period last year, suggesting some stability in core operations.
- Uncertain Market Outlook: The dual decline in earnings and revenue may affect investor confidence, prompting Griffon to implement effective strategies to address market challenges and restore growth.
See More
Griffon Corporation Q2 Earnings Announcement Scheduled
- Earnings Release Date: Griffon Corporation is set to announce its Q2 earnings on May 7th before market open, with consensus EPS estimated at $0.99, reflecting a 19.5% year-over-year decline, indicating potential pressure on profitability that could affect investor confidence.
- Revenue Expectations Decline: The expected revenue for Q2 is $414.59 million, down 32.2% year-over-year, highlighting challenges the company faces in market competition, which may limit future growth prospects.
- Historical Performance Review: Over the past two years, Griffon has beaten EPS estimates 88% of the time and revenue estimates 50% of the time; however, recent downward revisions of 6 for both EPS and revenue suggest a cautious outlook from the market regarding its future performance.
- Estimate Revision Situation: In the last three months, there have been no upward revisions for EPS or revenue estimates, with both experiencing 6 downward adjustments, indicating analysts' pessimism about Griffon's future earnings, which could impact its stock performance.
See More
Analyzing Risks and Opportunities in Small-Cap Stocks
- DigitalOcean Risks: DigitalOcean (DOCN), with a market cap of $10.02 billion, shows a high net revenue retention rate of 99.8%, yet its low switching costs and a gross margin of 59.9% indicate poor unit economics, posing significant investment risks.
- Griffon Sales Decline: Griffon (GFF), valued at $4.25 billion, has experienced a 2.7% annual sales decline over the past two years, with projections indicating a staggering 28.7% drop in sales over the next year, highlighting a disconnect between its products and market demand.
- Worthington Profitability Issues: Worthington (WOR), with a market cap of $2.67 billion, has seen a 13.9% annual sales decline over five years and a 26.7% annual drop in earnings per share, suggesting deteriorating returns on capital that could negatively impact stock performance.
- Small-Cap Investment Strategy: Small-cap stocks like DOCN, GFF, and WOR face higher instability and resource constraints, necessitating careful selection by investors to avoid potential significant losses.
See More
Griffon Corp. Insider Purchases Shares
- Insider Buying: On March 5, Griffon Corp.'s Director Henry A. Alpert purchased 1,000 shares at $79.99 each, totaling $79,990, indicating his confidence in the company's future performance.
- Market Reaction: On Monday, investors could buy Griffon Corp. shares at $71.31, which is 10.9% cheaper than Alpert's purchase price, potentially attracting more buyers into the market.
- Stock Performance: Griffon Corp.'s current stock price is $72.71, reflecting an increase from the 52-week low of $63.92, indicating some market recovery, while still having room to rise compared to the 52-week high of $97.58.
- Dividend Yield: Griffon Corp. currently pays an annualized dividend of $0.88 per share, with the most recent ex-dividend date on February 27, 2026, providing an annualized yield of approximately 1.2%, which offers investors a stable cash flow.
See More
