Griffon Q3 revenue beats on residential, commercial segment growth
GFF•Revenue growth drivers
- Price and mix - Co said favorable price and mix, driven by both residential and commercial segments, contributed 6% to Q3 revenue growth
- Volume increase - Co said increased volume, primarily in residential, contributed 1% to Q3 revenue growth
- Higher costs - Increased material and selling, general and administrative costs partially offset revenue gains
Outlook for fiscal 2026
- Griffon expects fiscal 2026 revenue from continuing operations of $1.8 bln
- Company sees fiscal 2026 adjusted EBITDA at $458 mln
- Fiscal 2026 interest expense now expected to be $80 mln, reflecting reduced debt
Analyst coverage and valuation
- 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 Corporation is $115.00, about 22.9% above its August 4 closing price of $93.58
- The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago
