Griffon (NYSE:GFF) Q1 2026 Earnings call February 05, 2026 08:30 AM ET Speaker4Greetings, and welcome to the Griffon Corporation Fiscal First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to you ...

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Lands’ End and WHP Global announced an agreement to form a new joint venture to unlock the value of Lands’ End’s intellectual property while strengthening the Company’s balance sheet. The transaction delivers $300 million of gross cash proceeds to Lands’ End. To create the JV, Lands’ End will contribute all of its intellectual property and related assets associated with the “Lands’ End” brand, including all of the license agreements entered into in connection with Lands’ End’s licensing business, and WHP G ...

Quick Read Lands’ End (LE) received $300M from WHP Global for 50% of a joint venture. Most proceeds repay its $234M term loan. Lands’ End will pay minimum $50M annual royalties to the joint venture. This expense could pressure margins if growth disappoints. The stock jumped 33% from around $14 before the deal. The surge reduces margin of safety for new investors. Investors rethink ‘hands off’ investing and decide to start making real money Lands' End (NASDAQ:LE) stock jumped over 33% in early tra ...

Core Insights - Alcoa Corporation (AA) shares have increased by 93.5% over the past six months, outperforming the industry and S&P 500 growth rates of 81.8% and 13.1%, respectively [1] - The stock closed at $61.09, below its 52-week high of $65.01 but significantly above its low of $21.53, indicating strong upward momentum and market confidence [3] - Alcoa's performance is driven by strong demand for aluminum and alumina, higher aluminum prices, and tariffs that benefit domestic producers [7][9] Stock Performance - Alcoa's stock has shown solid performance, trading above both its 50-day and 200-day moving averages, reflecting positive market sentiment [3] - The company has outperformed peers such as Constellium SE (CSTM) and Ryerson Holding Corporation (RYI), which gained 40.1% and 14.7%, respectively, in the same period [1] Demand Drivers - The demand for aluminum has surged due to the rise in electric vehicles, recycled aluminum, and increased air travel, prompting aircraft manufacturers to increase production [8] - The U.S. administration's decision to raise tariffs on imported aluminum to 50% has further boosted domestic aluminum prices, benefiting Alcoa [9] Segment Performance - Alcoa's Aluminum segment reported a 1% increase in production to 579,000 metric tons in Q3 2025, with expectations of producing 2.3-2.5 million tonnes for the year [10][11] - The Alumina segment also saw a 4% production increase to 2,453 kilometric tons in Q3 2025, with anticipated production of 9.5-9.7 million tonnes for the year [12] Strategic Actions - Alcoa has made strategic acquisitions, including the purchase of Alumina Limited, enhancing its position in the bauxite and alumina market [13] - A joint venture with IGNIS EQT aims to improve production capacity at the San Ciprian site, with a restart expected by mid-2026 [14] Valuation and Earnings Estimates - Alcoa's forward 12-month price-to-earnings ratio stands at 13.28X, below the industry average of 13.53X, indicating an attractive valuation for investors [15] - Earnings estimates for 2025 have increased by 3.5% to $3.55 per share, while 2026 estimates surged by 51.6% to $4.61 per share [18] Investment Outlook - The strong momentum in Alcoa's segments, strategic growth initiatives, and favorable market conditions position the company for impressive growth [20] - Positive analyst sentiment and attractive valuation suggest it may be a good time for potential investors to consider Alcoa stock [20]

US-China Trade Relations & Geopolitics - The Chinese government's reaction to the TikTok deal has been muted, with state media quoting a professor stating the deal aligns with Chinese law, suggesting tacit approval [1][2] - The proposed TikTok deal, structured as a joint venture, may not include the algorithm, which is considered the most valuable asset, raising questions about its strategic significance [3][4] - China may be using the TikTok deal and soybean purchases as concessions to maintain a relationship with President Trump, potentially aiming to divide him from the broader US national security community [4][5][11][12][13] - The tariffs imposed by the US on China are expected to remain permanent, influencing the dynamics of trade negotiations and potentially prompting China to offer "gifts" to the US president [10] Technology Sector Impact - The Oracle shares are surging on the news [6] - The TikTok deal is viewed as a positive development for the technology sector, reinforcing the ongoing upgrade cycle and the importance of technology in modern life [7][8] - The agreement revives a trade that had soured for the last 10 days or so and it looks like we're back on track [8]

Core Viewpoint - TikTok's Chinese owner, ByteDance, has signed binding agreements with three major investors to form a joint venture for operating TikTok's U.S. app, aiming to avoid a government ban and resolve ongoing uncertainties [1][2]. Group 1: Joint Venture Details - The joint venture will be led by American and global investors, with ByteDance retaining a 19.9% stake while investors will hold an 80.1% stake [4]. - The new entity, named TikTok USDS Joint Venture LLC, will be managed by Oracle, Silver Lake, and Abu Dhabi-based MGX, who will collectively own 45% of the new venture [5][6]. - The joint venture is designed to operate independently, overseeing U.S. data protection, algorithm security, content moderation, and software assurance [5]. Group 2: Historical Context - This agreement marks a significant milestone for TikTok, which has over 170 million users in the U.S., following years of regulatory battles that began in August 2020 [2]. - The deal aligns with previous discussions regarding divestiture requirements set forth by U.S. law, which aimed to separate TikTok's U.S. operations from its Chinese ownership [3].

Core Insights - Kering and Ardian have finalized a joint venture agreement for a prominent property located at 715-717 Fifth Avenue, New York City, encompassing approximately 115,000 sq. ft (10,700 sq. m) of luxury retail space [2][3] - Kering will hold a 40% stake in the joint venture, while Ardian will hold 60%, with the transaction valued at USD 900 million (EUR 766 million) and net proceeds for Kering amounting to USD 690 million (EUR 587 million) [3][4] - This partnership enhances Kering's real estate portfolio management strategy and provides financial flexibility, while Ardian views this investment as a strategic expansion into the U.S. market [4][5] Company Overview - Kering is a global luxury group with a diverse portfolio of brands including Gucci, Saint Laurent, and Bottega Veneta, generating revenue of €17.2 billion in 2024 and employing 47,000 people [6] - Ardian is a diversified private markets firm managing or advising $196 billion for over 1,890 clients globally, focusing on providing investment solutions that adapt to new economic dynamics [9]

Core Insights - The establishment of xCelle Asia, a joint venture between AAR and AFI KLM E&M, aims to enhance service offerings for next-generation aircraft nacelles in the Asia-Pacific region [1][2][3] - xCelle Asia is positioned to provide maintenance, repair, and overhaul (MRO) services, including on-wing inspections and rotable support for various engine types [1][2] - The joint venture reflects a commitment to innovation, sustainability, and operational excellence, aiming to replicate the success achieved in the Americas [2] Company Overview - AAR is a global aerospace and defense aftermarket solutions provider with operations in over 20 countries, supporting both commercial and government customers through various segments [4] - AFI KLM E&M is a major multi-product MRO provider with a workforce of over 12,800, offering comprehensive technical support for nearly 3,000 aircraft operated by 200 airlines [5]

Financial Data and Key Metrics Changes - In Q3, the company reported a TCE income of $247 million, with an adjusted EBITDA of $150.5 million, leading to a net profit of $91.5 million or $18 per share [16][17] - The company has a dividend payout ratio of 80% of net profit, resulting in a distribution of $73.2 million or $14.7 per share [17][18] - The company has paid dividends consistently over the last 15 quarters, with a projected dividend of $1.16 per share for 2024 [9][17] Business Line Data and Key Metrics Changes - The company operates a fleet of 126 vessels, including 117 owned and nine long-term time chartered vessels, with a focus on product and chemical tankers [6][7] - The company has seen a strong market in Q3, contrary to typical seasonal trends, due to increased ton miles and tighter supply from sanctioned vessels [16] Market Data and Key Metrics Changes - As of mid-November, the company had booked 71% of its bookings for Q4, indicating an improvement in rates, with current bookings around $26,040-$25,600 [30][31] - The company experienced 230 extra dry docking days in Q3, impacting operations, but this is expected to taper off in the current quarter [31] Company Strategy and Development Direction - The company is focused on strategic growth through acquisitions, joint ventures, and fleet modernization, including a recent acquisition of 14.1 million shares in TORM [11][23] - The company aims to maintain a low-cost operation while ensuring strong shareholder distributions, with a clear dividend policy linked to the loan-to-value ratio [9][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the geopolitical environment, including the reopening of the Red Sea, could impact market dynamics, but the overall sentiment may not significantly affect trading volumes [37][40] - The company anticipates a strong winter market, driven by refinery closures in Europe and increased demand from the US, leading to a tight tonnage situation [50][51] Other Important Information - The company has a strong focus on innovation and has established a joint venture in the bunkering space with Cargill [8] - The company is actively managing its fleet, with a strategy to extend the life of vessels rather than ordering new builds in a high-price environment [55][56] Q&A Session Summary Question: Why has the order book fallen in Q3? Is scrapping increasing? - Management indicated that the order book has fallen due to a shift in vessels going into dirty trades, rather than an increase in scrapping [52][54] Question: Can you share thoughts on fleet renewal schemes? - The company is focusing on life extension of existing vessels and is open to various opportunities, including resales and M&A, rather than committing to new builds at high prices [55][56]