Overview

• Diversified management firm reported fiscal Q1 revenue up 3%, beating analyst expectations

• Adjusted net income for fiscal Q1 rose slightly compared to prior year

• Company announced joint venture with ONCAP and strategic alternatives for CPP businesses

Outlook

• Griffon expects fiscal 2026 revenue from continuing operations to be $1.8 bln

• Griffon projects fiscal 2026 adjusted EBITDA at $520 mln, excluding unallocated costs

• Free cash flow from continuing operations expected to exceed net income in fiscal 2026

Result Drivers

• HBP REVENUE GROWTH - Home and Building Products (HBP) revenue increased by 3% due to favorable pricing and mix, despite a 4% decline in volume

• CPP PROFITABILITY - Home and Building Products (CPP) adjusted EBITDA increased by 19% due to improved revenue from price and mix, with volume gains in Australia and Canada

• FREE CASH FLOW - Company reported $99 mln in free cash flow, highlighting solid operational performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Griffon Corp is $100.00, about 18% above its February 4 closing price of $84.73

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw7qrWMra

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)