Core Insights - Grifon Company (GFF) reported total revenue of $2.5 billion for the fiscal year 2025, a decrease of 4% year-over-year [1] - Adjusted EBITDA for the same period was $522.3 million, reflecting a 2% increase compared to the previous year [1] - The company forecasts revenue for fiscal year 2026 to remain at $2.5 billion, with adjusted EBITDA expected to be between $580 million and $600 million [1] - Free cash flow is anticipated to exceed net income, with capital expenditures projected at approximately $60 million [1] - The board announced a 22% increase in the regular quarterly dividend to $0.22 per share and continued stock buybacks, returning $174 million to shareholders in fiscal year 2025 [1] Business Progress - The home and building products segment reported flat revenue, while the consumer and professional products segment experienced a decline in revenue but improved profitability [2] - The company emphasized optimizing operations through an asset-light model [2]

Core Insights - Griffon Corporation (GFF) reported adjusted earnings of $1.45 per share for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of $1.34, marking a 4.3% year-over-year increase [1][8] - Total revenues reached $649.1 million, surpassing the consensus estimate of $621 million, and increased by 3% year over year [1][8] Segmental Details - **Home and Building Products**: This segment accounted for 63.5% of net revenues, generating $408 million, a 3% year-over-year increase. The growth was driven by a favorable price and mix of 7%, despite a 4% decline in residential volume. Adjusted EBITDA for this segment was $122.8 million, down 3% year over year due to higher material and labor costs [2] - **Consumer and Professional Products**: Representing 36.5% of revenues, this segment reported $241.1 million, up 2% year over year. The increase was attributed to favorable pricing and higher volumes in Australia and Canada, although offset by reduced consumer demand in the US. Adjusted EBITDA rose 19% to $21.7 million, primarily due to higher revenues [3] Margin Profile - The cost of sales increased by 3.9% year over year to $382.3 million, while selling, general, and administrative expenses rose by 0.8% to $153.4 million. The gross margin slightly decreased to 41.1% from 41.8% in the previous year. Adjusted net income was $66.3 million, reflecting a 0.6% increase from the prior-year quarter [4] Balance Sheet & Cash Flow - At the end of Q1 fiscal 2026, Griffon had cash and cash equivalents of $95.3 million, down from $99 million at the end of fiscal 2025. Long-term debt decreased to $1.35 billion from $1.40 billion [5] - The company generated net cash of $107 million from operating activities, compared to $142.9 million in the same period last year. It paid out $11.2 million in dividends and repurchased shares worth $18.1 million, with $280 million remaining under the share repurchase program. Free cash flow was $99.3 million, down from $142.7 million in the prior-year period [6] Outlook - For fiscal 2026, management anticipates net sales to be $1.8 billion, a reduction from the previously projected $2.5 billion [7] - The company expects segment adjusted EBITDA to be approximately $520 million, with the Home and Building Products segment's EBITDA margin projected to exceed 30%, while the Consumer and Professional Products segment is expected to be around 10%. Interest expense is anticipated to be $93 million, with capital expenditures of $50 million [9]

Revenue and Income - Revenue for the three months ended December 31, 2025, was $649,088, an increase of 2.3% compared to $632,371 for the same period in 2024[14] - Net income decreased to $64,387 for Q4 2025, down 9.3% from $70,851 in Q4 2024[14] - Basic earnings per share for Q4 2025 was $1.44, compared to $1.56 in Q4 2024, reflecting a decline of 7.7%[14] - Net income for the three months ended December 31, 2025, was $64,387, a decrease of 9.3% from $70,851 in 2024[18] - Adjusted net income for the quarter was $66,302 or $1.45 per share, compared to $65,873 or $1.39 per share in the prior year quarter[129] Assets and Liabilities - Total current assets as of December 31, 2025, were $873,385, a decrease from $890,594 as of September 30, 2025[9] - Total liabilities decreased to $1,945,899 as of December 31, 2025, from $1,989,665 as of September 30, 2025[9] - Total shareholders' equity increased to $108,903 as of December 31, 2025, compared to $73,972 as of September 30, 2025[9] - Total assets as of December 31, 2025, were $1.713 billion, with total liabilities of $1.859 billion[179] - Current liabilities as of December 31, 2025, were $271.911 million, while long-term debt stood at $1.346 billion[179] Cash Flow and Dividends - Net cash provided by operating activities was $106,992, down 25.1% from $142,922 in the previous year[18] - The company paid dividends of $0.22 per common share in Q4 2025, up from $0.18 in Q4 2024[14] - The Company paid a quarterly cash dividend of $0.22 per share during the three months ended December 31, 2025, totaling $1,855 in accrued dividends[60] - Cash used in financing activities was $101,554 for the three months ended December 31, 2025, including $30,308 for share repurchases and $11,196 in dividends[152] Segment Performance - Home and Building Products segment revenue was $408,004,000 for the three months ended December 31, 2025, compared to $395,401,000 in 2024, reflecting a growth of 3.9%[74] - Consumer and Professional Products segment revenue increased to $241,084,000 in the three months ended December 31, 2025, from $236,970,000 in 2024, a growth of 1.3%[74] - Segment adjusted EBITDA for Home and Building Products was $122,835,000 for the three months ended December 31, 2025, down from $127,042,000 in 2024[80] - Segment adjusted EBITDA for Consumer and Professional Products increased to $21,730,000 in the three months ended December 31, 2025, from $18,192,000 in 2024, a growth of 19.4%[80] Strategic Initiatives - Griffon announced a joint venture with ONCAP, receiving $100,000 in cash and a $161,100 second-lien loan, with a 43% equity interest in the new entity[22] - The company is conducting a comprehensive review of strategic alternatives for its AMES Australia and AMES United Kingdom operations, which will be reported as discontinued operations starting Q2 2026[22] - Griffon plans to report AMES' U.S., Canada, Australia, and U.K. operations as discontinued operations starting from Q2 2026[116] - The company has undertaken a series of transformative transactions since 2017, including the divestiture of its specialty plastics and defense electronics businesses to focus on core markets[121] Financial Ratios and Debt - As of December 31, 2025, Griffon Corporation's total long-term debt was $1,364,159, with a long-term debt balance of $1,356,040 after accounting for the current portion[51] - The net debt to EBITDA leverage ratio was 2.3x at December 31, 2025, indicating the company's borrowing capacity[171] - The Term Loan B outstanding balance as of December 31, 2025, was $389,000, with a fair value of approximately $390,459[54] - The outstanding balance of Senior Notes due 2028 was $974,775, with an interest rate of 5.75%[53] Other Comprehensive Income and Expenses - Other comprehensive income for Q4 2025 was $4,552, contrasting with a loss of $17,699 in Q4 2024[14] - The company recognized a tax provision of $25,579 on income before taxes of $89,966 for the quarter ended December 31, 2025, compared to a tax provision of $26,569 on income before taxes of $97,420 in the prior year quarter[50] - The Company recognized a net periodic benefit of $(137) for the pension plan in Q1 2025, compared to $(301) in Q1 2024[87] Risks and Market Conditions - Griffon anticipates that future operating results will depend significantly on the success of its largest customers and ongoing relationships with them[175] - The company faces risks including economic conditions, competition, and potential loss of major customers, which could materially impact operations[184]

Core Viewpoint - Griffon (GFF) reported quarterly earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.34 per share, and showing an increase from $1.39 per share a year ago, resulting in an earnings surprise of +8.48% [1] Financial Performance - The company achieved revenues of $649.09 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.55%, and up from $632.37 million year-over-year [2] - Over the last four quarters, Griffon has exceeded consensus EPS estimates two times and topped consensus revenue estimates twice [2] Stock Performance - Griffon shares have increased approximately 15% since the beginning of the year, significantly outperforming the S&P 500, which gained only 0.5% [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $1.25 on revenues of $606.03 million, and for the current fiscal year, it is $5.92 on revenues of $2.53 billion [7] Industry Context - The Diversified Operations industry, to which Griffon belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - First quarter revenue of Griffon Corporation was $649 million, reflecting a 3% increase compared to the prior year quarter [11] - Adjusted EBITDA before unallocated amounts was $145 million, consistent with the prior year, resulting in an EBITDA margin of 22.3% [11] - GAAP net income for the first quarter was $64 million, or $1.41 per share, compared to $71 million, or $1.49 per share in the prior year [12] Business Line Data and Key Metrics Changes - Home and Building Products (HBP) revenue increased by 3% year-over-year, with an EBITDA margin of 30.1% [3][14] - Consumer and Professional Products (CPP) revenue rose by 2% to $241 million, with a 19% increase in EBITDA to $22 million [4][15] Market Data and Key Metrics Changes - HBP revenue growth was driven by a 7% increase in price and mix, partially offset by a 4% reduction in residential volumes [14] - CPP experienced increased volume in Australia and Canada, but was offset by reduced volume in the U.S. due to soft consumer demand [4] Company Strategy and Development Direction - The company announced a joint venture with ONCAP to create a leading global provider of hand tools and home organizational solutions, enhancing its competitive position [7][8] - Strategic actions include a comprehensive review of alternatives for AMES Australia and the U.K., and the combination of Hunter Fan with the HBP segment, aiming to streamline operations and enhance shareholder value [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a recovery in the residential and commercial markets, anticipating substantial leverage as activity improves [19] - The company remains committed to a capital allocation strategy focused on organic growth, share repurchases, dividends, and debt reduction [19] Other Important Information - The company repurchased $18 million of its stock during the first quarter, with a total of $578 million repurchased since April 2023 [5] - A quarterly dividend of $0.22 per share was authorized, marking the 58th consecutive quarterly dividend [6] Q&A Session Summary Question: What was the thought process behind the timing of the joint venture? - Management noted a disconnect between market value and intrinsic value, believing the joint venture would unlock value and strengthen consumer businesses [26][27] Question: What is the expected contribution from the joint venture? - The second lien debt from the joint venture is at a 10% PIK rate, but net income from the joint venture is not expected to be material due to its private company status [29] Question: What is the revenue contribution from Hunter Fan? - Hunter Fan had $211 million in revenue for fiscal 2025, and margins are expected to remain above 30% after combining with HBP [35] Question: What is the outlook for the HBP business? - Management expects continued pressure on residential volume but remains optimistic about the recovery in the housing market, particularly in the premium segment [49][50]

Financial Data and Key Metrics Changes - First quarter revenue of Griffon Corporation was $649 million, reflecting a 3% increase compared to the prior year quarter [11] - Adjusted EBITDA before unallocated amounts was $145 million, consistent with the prior year, resulting in an EBITDA margin of 22.3% [11] - GAAP net income for the first quarter was $64 million, or $1.41 per share, compared to $71 million, or $1.49 per share in the prior year [12] Business Line Data and Key Metrics Changes - Home and Building Products (HBP) revenue increased by 3% year-over-year, with an EBITDA margin of 30.1% [3][14] - Consumer and Professional Products (CPP) revenue rose by 2% to $241 million, with adjusted EBITDA increasing by 19% to $22 million [4][15] Market Data and Key Metrics Changes - HBP revenue benefited from a 7% increase in price and mix, although this was partially offset by a 4% reduction in residential volumes [14] - CPP experienced increased volume in Australia and Canada, but this was offset by reduced volume in the US due to soft consumer demand [4] Company Strategy and Development Direction - The company announced a joint venture with ONCAP to create a leading global provider of hand tools and home organizational solutions, enhancing its competitive position [7][8] - Strategic actions include a comprehensive review of alternatives for Ames Australia and the UK, and the combination of Hunter Fan with the HBP segment, aiming to transform Griffon into a pure-play building products company [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a recovery in the residential and commercial markets, anticipating substantial leverage as activity improves [19] - The company remains committed to a capital allocation strategy focused on organic growth, share repurchases, dividends, and debt reduction [19] Other Important Information - The company repurchased $18 million of its stock during the first quarter, with a total of $578 million repurchased since April 2023 [5] - A quarterly dividend of $0.22 per share was authorized, marking the 58th consecutive quarterly dividend [6] Q&A Session Summary Question: What was the thought process behind the timing of the joint venture? - Management noted a disconnect between market value and intrinsic value, believing the JV would unlock value and strengthen consumer businesses [26][27] Question: What is the expected contribution from the joint venture? - The second lien debt from the JV is at a 10% PIK rate, but net income from the JV is not expected to be material due to its private company status [30] Question: Why not an outright sale instead of a joint venture? - A joint venture allows for unlocking substantial value now and in the future while maintaining a minority interest [59] Question: What is the revenue contribution from Hunter Fan? - Hunter Fan had $211 million in revenue in fiscal 2025, and margins are expected to remain above 30% after combining with HBP [36] Question: What is the outlook for the HBP business? - Management expects continued pressure on residential volume but remains optimistic about recovery in the housing market and growth in the commercial sector [50][51]

Financial Data and Key Metrics Changes - First quarter revenue of Griffon Corporation was $649 million, reflecting a 3% increase compared to the prior year quarter [11] - Adjusted EBITDA before unallocated amounts was $145 million, consistent with the prior year, resulting in an EBITDA margin of 22.3% [11] - GAAP net income for the first quarter was $64 million, or $1.41 per share, down from $71 million, or $1.49 per share, in the prior year [12] - Free cash flow for the quarter was $99 million, indicating strong operational performance [3] Business Line Data and Key Metrics Changes - Home and Building Products (HBP) revenue increased by 3% year-over-year, with an EBITDA margin of 30.1% [3][13] - Consumer and Professional Products (CPP) revenue rose by 2%, with adjusted EBITDA increasing by 19% to $22 million, driven by price and mix improvements [4][14] Market Data and Key Metrics Changes - HBP revenue growth was supported by a 7% increase in price and mix, although offset by a 4% decline in residential volumes [13] - CPP experienced increased volumes in Australia and Canada, but faced reduced volumes in the US due to soft consumer demand [4] Company Strategy and Development Direction - The company announced a joint venture with ONCAP to create a leading global provider of hand tools and home organizational solutions, enhancing competitive positioning [6][8] - Strategic actions include a comprehensive review of alternatives for Ames Australia and the UK, and the combination of Hunter Fan with the HBP segment, aiming to streamline operations and enhance shareholder value [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a recovery in residential and commercial markets, anticipating substantial leverage as activity improves [19] - The company remains committed to a capital allocation strategy focused on organic growth, share repurchases, dividends, and debt reduction [19] Other Important Information - The board authorized a quarterly dividend of $0.22 per share, marking the 58th consecutive quarterly dividend [5] - The company repurchased $18 million of stock during the quarter, with a total of $578 million repurchased since April 2023 [5][16] Q&A Session Summary Question: What was the thought process behind the timing of the joint venture? - Management noted a disconnect between market value and intrinsic value, believing the joint venture would unlock value and strengthen consumer businesses [25][26] Question: What is the expected contribution from the joint venture? - The second lien debt from the joint venture is at a 10% PIK rate, but net income from the joint venture is not expected to be material due to its private company status [29] Question: What is the revenue contribution from Hunter Fan? - Hunter Fan had $211 million in revenue in fiscal 2025, and margins are expected to remain above 30% after its integration into the HBP segment [35] Question: Why choose a joint venture instead of an outright sale? - A joint venture allows for unlocking substantial value now and in the future while maintaining a minority interest, which is seen as a better strategic fit [57] Question: What are the cash flow expectations for the remaining company? - The remaining company is expected to continue generating strong cash flow, with the first half of the year being more positive than in the past [64]

Q1 FY26 INVESTOR PRESENTATION February 2026 GRIFFON OVERVIEW $2.5B $579M $3.8B 23% $1.3B 5,173 Revenue Adj. EBITDA Market Cap 1 Adj. EBITDA Margin Net debt 2 Employees BREAKDOWN BY OPERATING SEGMENT CPP 37% Adjusted EBITDA (excl. unallocated) ($millions) Revenue U.S. 81% Int'l 19% $490 $89 CPP HBP HBP 63% Attractive portfolio of iconic, well -respected, and industry leading brands Copyright © 2025 Griffon Corporation. All rights reserved. Well - positioned to capitalize on long -term growth trends in repair ...

Revenue and Income - Revenue for Q1 2026 totaled $649.1 million, a 3% increase from $632.4 million in Q1 2025[2] - Net income for Q1 2026 was $64.4 million, or $1.41 per share, compared to $70.9 million, or $1.49 per share in Q1 2025[3] - Revenue for the three months ended December 31, 2025, was $649,088,000, an increase from $632,371,000 in 2024, representing a growth of 2.3%[27] - Net income for Q4 2025 was $64,387,000, compared to $70,851,000 in Q4 2024, reflecting a decline of 9.1%[27] - Basic earnings per share for Q4 2025 was $1.44, a decrease from $1.56 in Q4 2024, representing a decline of 7.7%[27] Adjusted Metrics - Adjusted EBITDA for Q1 2026 was $129.6 million, a 1% decrease from $131.2 million in Q1 2025[4] - Adjusted net income for Q4 2025 was $66,302,000, compared to $65,873,000 in Q4 2024, indicating a slight increase of 0.7%[32] Segment Performance - Home and Building Products segment revenue increased 3% to $408.0 million, driven by favorable pricing and mix[5] - Consumer and Professional Products segment revenue increased 2% to $241.1 million, primarily due to price and mix[7] Cash Flow and Expenditures - Free cash flow for Q1 2026 was $99 million, with capital expenditures of $7.7 million[5][9] - Free cash flow (FCF) for Q4 2025 was $99,330,000, down from $142,686,000 in Q4 2024, a decrease of 30.4%[24] Debt and Leverage - Total debt outstanding as of December 31, 2025, was $1.35 billion, with net debt of $1.26 billion[9] - The leverage ratio (net debt to EBITDA) improved to 2.3x as of December 31, 2025, down from 2.4x in both September 30, 2025, and December 31, 2024[24] Shareholder Returns - Share repurchases in Q1 2026 totaled 0.2 million shares for $18.1 million, with $280.0 million remaining under the repurchase program[10] - The company paid dividends of $0.22 per share in Q4 2025, up from $0.18 per share in Q4 2024[27] Assets and Cash Position - Total assets as of December 31, 2025, were $2,054,802,000, a slight decrease from $2,063,637,000 as of September 30, 2025[29] - Cash and equivalents at the end of Q4 2025 were $95,280,000, down from $151,952,000 at the end of Q4 2024[31] Future Outlook - Griffon expects fiscal 2026 revenue from continuing operations to be $1.8 billion and Adjusted EBITDA to be $520 million[13] - The company announced a joint venture with ONCAP for CPP's AMES U.S. and Canada businesses[11] Non-Cash Charges and Tax Provisions - For the three months ended December 31, 2025, the company recognized a non-cash charge of $1,609 related to the establishment of a retiree medical plan[33] - The company will recognize an additional non-cash charge of $5,362 ratably over the first 10 months of fiscal 2026[33] - The tax impact for reconciling adjustments from GAAP net income to non-GAAP adjusted net income is determined by comparing the company's tax provision including adjustments to the tax provision excluding such adjustments[34] - Discrete tax provisions primarily relate to the impact of a rate differential between statutory and annual effective tax rates on items impacting the quarter[34]

Core Viewpoint - Griffon Corporation reported a revenue increase of 3% in the first quarter of fiscal 2026 compared to the same period last year, indicating a positive growth trend despite a decline in net income [1] Financial Performance - Revenue for the first quarter reached $649.1 million, up from $632.4 million in the prior year quarter, reflecting a 3% increase [1] - Net income for the quarter was $64.4 million, or $1.41 per share, down from $70.9 million, or $1.49 per share, in the same quarter last year [1] - Adjusted net income figures were not provided in the excerpt, but it is noted that they exclude items affecting comparability [1]