Griffon Reports 3% Q1 Revenue Growth and $1.45 Adjusted EPS; Plans $100M AMES JV
Griffon reported Q1 fiscal 2026 revenue of $649.1M, up 3% y/y, adjusted EPS of $1.45, and free cash flow of $99.3M. It will spin off AMES U.S. & Canada into a joint venture with ONCAP for $100M cash plus $161M debt and treat AMES as discontinued operations.
1. Q1 2026 Financial Performance
Griffon reported first quarter revenue of $649.1 million, up 3% from $632.4 million in the prior year. Net income was $64.4 million, or $1.41 per share, down from $70.9 million, or $1.49 per share, a year earlier. On an adjusted non-GAAP basis, net income rose to $66.3 million, or $1.45 per share, compared with $65.9 million, or $1.39 per share, in the prior year period. Adjusted EBITDA was $129.6 million, a slight decline from $131.2 million, reflecting higher material, labor and operating costs and the impact of lower volumes on absorption rates.
2. Segment Operating Results
The Home and Building Products segment generated $408.0 million in revenue, a 3% increase driven by favorable pricing and mix, partially offset by a 4% volume decline in residential. Adjusted EBITDA for the segment was $122.8 million, down 3% year-over-year. Consumer and Professional Products delivered $241.1 million in revenue, up 2%, supported by volume growth in Australia and Canada, and achieved a 19% jump in adjusted EBITDA to $21.7 million on improved margins and higher selling prices.
3. Balance Sheet, Cash Flow and Capital Allocation
At December 31, 2025, Griffon held $95.3 million of cash and equivalents against $1.35 billion of debt, resulting in net debt of $1.26 billion and leverage of 2.3x net debt to EBITDA. During the quarter, debt was reduced by $60.0 million. Free cash flow reached $99.3 million, and capital expenditures were $7.7 million. The company repurchased 0.2 million shares for $18.1 million, leaving $280.0 million available under its buyback authorization.
4. Strategic Transactions and 2026 Outlook
Griffon entered into a definitive agreement with ONCAP to form a joint venture combining its AMES U.S. and Canada businesses with ONCAP’s Venanpri Tools platform. Under the agreement, Griffon will receive $100 million in cash proceeds and $161 million of second-lien debt and retain a 43% equity interest. AMES operations in Australia and the U.K. will undergo strategic reviews, and Hunter Fan will be integrated with the Home and Building Products segment. As a result, AMES operations will be reported as discontinued operations beginning Q2. For fiscal 2026, continuing operations revenue is expected to be $1.8 billion, with adjusted EBITDA of $520 million (excluding $62 million of unallocated costs), free cash flow above net income, and a normalized tax rate of 28%.