Griffon Posts Q1 EPS Beat at $1.45, Cuts FY26 Sales Guidance to $1.8 B
Griffon reported Q1 fiscal 2026 adjusted EPS of $1.45, beating estimates by $0.11 and growing 4.3% year over year on revenues of $649.1 million, up 3% and ahead of the $621 million consensus. Home & Building Products revenue rose 3% to $408 million while Consumer & Professional Products revenue climbed 2% to $241.1 million; management cut full-year sales guidance to $1.8 billion from $2.5 billion.
1. Q1 Financial Results
Griffon’s adjusted earnings for Q1 fiscal 2026 were $1.45 per share, surpassing the consensus by $0.11 and marking a 4.3% year-over-year increase. Total revenues reached $649.1 million, up 3% versus last year and above the $621 million estimate.
2. Segment Performance
Home and Building Products segment generated $408 million in revenue, a 3% rise driven by a 7% price/mix improvement but offset by a 4% drop in residential volume; adjusted EBITDA fell 3% to $122.8 million due to higher material and labor costs. Consumer and Professional Products posted $241.1 million in revenue, up 2% on stronger pricing and higher volume in Australia and Canada, and EBITDA surged 19% to $21.7 million.
3. Balance Sheet and Cash Flow
At quarter-end, cash and equivalents stood at $95.3 million, down slightly from $99 million year-ago, while net long-term debt declined to $1.35 billion from $1.40 billion. Operating activities generated $107 million in cash, with free cash flow of $99.3 million after $11.2 million in dividends and $18.1 million in share repurchases.
4. Updated FY26 Outlook
Griffon lowered full-year net sales guidance to $1.8 billion from $2.5 billion and projects segment adjusted EBITDA near $520 million. Management expects Home and Building Products EBITDA margin above 30%, Consumer and Professional Products around 10%, interest expense of $93 million and capital expenditures of $50 million.