GFF Q3 Earnings Beat Estimates on Pricing and Volume Growth

Griffon Corporation GFF reported third-quarter fiscal 2026 (ended June 2026) adjusted earnings of $1.51 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line increased 8.6% year over year.

Total revenues of $481.4 million beat the consensus estimate of $453 million and increased 7% year over year. The growth was attributable to favorable price and mix of 6%, along with increased volumes of 1%, driven primarily by residential.

GFF’s Operating Results

Effective from the fiscal second quarter, Griffon declared its AMES U.S., Canada, UK and Australia businesses as discontinued operations. The company currently reports the continuing operations’ financial results as a single segment.

Margin Profile

Griffon’s cost of sales increased 10.6% year over year to $255.3 million. Selling, general and administrative expenses increased 3.0% year over year to $110.6 million. The gross margin decreased to 47.0% from 48.7% in the year-ago period. 

Net income was $51.6 million against a net loss of $120.1 million in the prior-year quarter. The company’s adjusted EBITDA from continuing operations totaled $124.8 million, up 2.1% from the year-ago quarter.

GFF’s Balance Sheet & Cash Flow

At the end of the fiscal third quarter, Griffon had cash and cash equivalents of $110.4 million compared with $99.0 million at the end of fiscal 2025 (ended September 2025). Long-term debt, net of current maturities, was $1.26 billion at the end of the fiscal third quarter compared with $1.40 billion at fiscal 2025-end. 

In the first nine months of fiscal 2026, the company generated net cash of $217.9 million from operating activities from continuing operations compared with $234.5 million in the year-ago period. 

Griffon paid dividends of $30.9 million and repurchased shares worth $119.1 million in the same period. Exiting the fiscal third quarter, it had $193.8 million remaining under the share repurchase program. 

In the first nine months of fiscal 2026, free cash flow from continuing operations was $194.2 million and capital expenditures were $23.7 million.

Outlook

The company has reaffirmed its fiscal 2026 financial guidance. For fiscal 2026 (ending September 2026), management anticipates net sales from continuing operations to be $1.8 billion. 

It expects adjusted EBITDA to be approximately $458 million. For the fiscal year, Griffon now expects interest expense of $80 million, down from the prior expectation of $93 million, reflecting reduced debt and interest income from transaction-related notes receivable. Capital expenditures are expected to be $50 million.

GFF’s Zacks Rank

The company currently sports a Zacks Rank #1 (Strong Buy). 

You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Companies

Carlisle Companies Incorporated CSL reported second-quarter 2026 adjusted earnings of $7.03 per share, which beat the Zacks Consensus Estimate of $6.43 by 9.3%. The bottom line increased 12% year over year. 

Revenues rose 8% year over year to a record $1.57 billion and surpassed the consensus estimate of $1.47 billion. 

3M Company MMM reported second-quarter 2026 adjusted earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate of $2.27 by 5.7%. The bottom line increased 11% year over year.

MMM’s adjusted net revenues of $6.5 billion topped the consensus estimate of $6.4 billion and grew 5.5%. On an adjusted basis, organic revenues increased 5.4% year over year. 

Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.

The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.

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