Griffon Corporation

Griffon Corporation (GFF) Market Cap

Griffon Corporation has a market capitalization of —.

No quote data available.

CEO: Ronald J. Kramer

Sector: Basic Materials

Industry: Construction Materials

IPO Date: 1973-05-03

Website: https://www.griffon.com

Griffon Corporation (GFF) - Company Information

Market Cap: -|Sector: Basic Materials

Company Profile

Griffon Corporation is a global enterprise that operates through its various subsidiaries, providing an extensive range of consumer, professional, and home & building products. Its market reach extends across the United States, Europe, Canada, Australia, and other international territories. The company's Consumer and Professional Products division develops and distributes a wide spectrum of items designed for both residential and commercial clients. This includes a comprehensive selection of landscaping equipment like long-handled tools, wheelbarrows, lawn carts, garden hoses, planters, and outdoor accessories, as well as various hand, striking, and snow tools. The segment also offers complete storage and organizational solutions, from wood and wire closet systems and general living storage to wire garage storage products. These are primarily supplied to major home improvement retailers, mass merchandisers, and directly to professional builders. Additionally, it offers cleaning products for diverse applications, including professional, domestic, and industrial uses. Concurrently, Griffon's Home & Building Products segment is dedicated to manufacturing and marketing garage doors for both residential and commercial properties, which are distributed to professional dealers and numerous home improvement retail chains. This segment also supplies rolling steel doors and grilles, catering to commercial, industrial, institutional, and retail applications. These products are sold under a wide array of established brand names, such as True Temper, AMES, ClosetMaid, Clopay, Ideal, Holmes, CornellCookson, Garant, Harper, UnionTools, Westmix, Cyclone, Southern Patio, Northcote Pottery, Nylex, Hills, Kelkay, Tuscan Path, La Hacienda, Kelso, Dynamic Design, Apta, Quatro Design, Razor-Back, Jackson, Darby, Trojan, Supercraft, NeverLeak, Maximum Load, SuperSlide, ShelfTrack, MasterSuite, Suite Symphony, ExpressShelf, Style+, and SpaceCreations. Established in 1959, the corporation was originally named Instrument Systems Corporation before officially rebranding as Griffon Corporation in June 1992. Its corporate headquarters are located in New York, New York.

Analyst Sentiment

86%
Strong Buy

From 7 Active Polls

1Y Forecast: $115.00

▲ +0.0% Potential Upside

Consensus Target Metrics

Low Bound

$115

Median

$115

High Bound

$115

Average

$115

Price & Moving Averages

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🎯 Wall Street Analyst Intelligence Report

1-Year structural target targets, chart projections, and sentiment maps.

Average 1Y Target
$115.00
▲ +33.46% Upside
Low Target
$115.00
33% Risk
Median Target
$115.00
33% Mid
High Target
$115.00
33% Max

Consensus Trend Projection

Trailing closures vs. 12-month metrics map.

Analyst Vote Distribution

Aggregate institutional coverage sentiment weights.

Sentiment volume allocation data unavailable.

valuation & financial ratiosdetailed financials

Historical valuation matrix unavailable.

📘 Full Research Report

ℹ️

AI-Generated Research: This report is for informational purposes only.

📘 GRIFFON CORP (GFF) — Investment Overview

🧩 Business Model Overview

Griffon Corp manufactures and sells engineered industrial and construction solutions—primarily sealants, adhesives, and related specialty products—into building/construction and industrial end markets. The value chain centers on (1) product formulation and manufacturing, (2) technical specification/qualification with contractors, distributors, and OEM/industrial customers, and (3) distribution and repeat procurement through established customer relationships and approved product lists.

Customer stickiness is reinforced by the need to meet performance requirements (substrate compatibility, curing characteristics, durability, and safety specifications). Once products are qualified for a particular use case or supplier-approved program, switching typically involves re-testing, process adjustments, and re-qualification—creating structural inertia.

💰 Revenue Streams & Monetisation Model

Revenue is driven by a mix of (a) transactional shipments tied to construction/industrial activity and (b) recurring repeat purchasing within qualified product categories. Monetisation is supported by:

  • Margin drivers from mix and specificity: higher-margin offerings tied to technical performance, application complexity, and specialized substrates.
  • Operational leverage: manufacturing efficiency and cost discipline, partially offset by commodity and input-cost variability typical for specialty chemicals-related products.
  • Channel and application-based selling: distributor and contractor purchasing patterns often shift more slowly than end-market demand, particularly for approved product sets.

🧠 Competitive Advantages & Market Positioning

Griffon’s primary moat is best described as switching costs and qualification-based stickiness, supported by technical know-how and application-specific formulations. Competitors can introduce alternative SKUs, but capturing share often requires overcoming qualification hurdles and demonstrating equivalent or superior performance across controlled conditions.

  • Switching costs (qualification & specification inertia): Many buyers operate with approved supplier lists and standardized application procedures. Moving away from a qualified product can require re-validation, procedural changes, and warranty/performance risk management.
  • Intangible assets (formulation and technical service): Product performance depends on chemistry, process control, and application engineering. The accumulated expertise supports differentiation in curing behavior, adhesion profiles, and durability.

Competitive benchmarking:

  • Sika — Strong global construction chemicals platform; competes heavily on system-level construction solutions and global distribution.
  • 3M — Broad portfolio of adhesives and industrial specialty products; competes on innovation depth and cross-industry reach.
  • H.B. Fuller — Focus on industrial adhesives and specialty bonding; competes through application engineering and customer qualification programs.

Compared with these rivals, Griffon’s positioning emphasizes engineered specialty products and technical qualification within targeted end markets, rather than the broadest global system approach of the largest construction chemicals leaders.

🚀 Multi-Year Growth Drivers

Over a 5–10 year horizon, Griffon’s growth profile is supported by structural demand themes that favor engineered specialty products:

  • Housing and commercial repair/remodel cycle: Replacement and maintenance demand supports a steady base because sealants and adhesives are used in building envelopes and ongoing infrastructure upkeep.
  • Energy efficiency and building performance standards: Higher performance requirements can increase demand for products that deliver superior adhesion, weathering resistance, and long-term durability.
  • Industrial maintenance and infrastructure spending: Industrial facilities require continuous repair, retrofit, and refurbishment, supporting demand resilience for specialty bonding and sealing solutions.
  • Product penetration through qualification: When buyers upgrade performance requirements, technical testing and qualification processes can shift share toward suppliers with proven application results.

⚠ Risk Factors to Monitor

  • Input-cost volatility: Specialty chemical-related cost pressures can compress margins if pricing power lags raw material movements.
  • Demand cyclicality: Construction and industrial activity can fluctuate, impacting order volumes and absorption of fixed manufacturing costs.
  • Competitive pressure in specifications: Large multi-nationals with broader portfolios may target the same approved-program accounts with bundling or price/capability offers.
  • Regulatory and environmental compliance: Changes in chemical handling, emissions, packaging, and product labeling can raise cost or restrict certain formulations.
  • Execution risk from portfolio/production changes: Restructuring, integration, or capacity adjustments can affect service levels and costs during transitions.

📊 Valuation & Market View

The market typically values specialty industrial manufacturers using EV/EBITDA and earnings-based multiples, with sentiment primarily driven by the durability of margins and the clarity of demand end markets. Key drivers that move valuation expectations include:

  • Gross margin sustainability: evidence of pricing discipline and cost pass-through for specialty products.
  • Operating leverage and cost control: conversion of revenue to operating income through manufacturing efficiency and SG&A discipline.
  • Mix shift toward higher-value products: increased contribution from technically differentiated SKUs.
  • Balance sheet strength: capital discipline and working-capital management, which materially affects free cash flow quality.

🔍 Investment Takeaway

Griffon’s long-term investment case rests on qualification-driven switching costs and technical formulation advantages that support repeat purchasing within approved product categories. While end markets remain cyclical and margins can be pressured by input costs, the company’s specialty positioning and application-based differentiation provide a pathway to steadier demand capture and margin resilience relative to commodity-prone alternatives.


⚠ AI-generated — informational only. Validate using filings before investing.

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📊 AI Financial Analysis

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Earnings Data: Q Ending 2026-03-31

"GFF reported Q2’26 (ended 2026-03-31) revenue of $421.9m and net income of $46.9m, with diluted EPS of $0.42 (vs. EPS $1.41 in Q1’26). YoY, revenue was down versus Q2’25 ($611.7m): -31.0% YoY, while net income was down from $56.8m: -17.3% YoY. QoQ, revenue declined from $649.1m in Q1’26 to $421.9m: -35.0% QoQ, and net income fell from $64.4m to $46.9m: -27.1% QoQ. Profitability improved across the quarter sequence? Margins show volatility: gross margin rose to 45.5% in Q2’26 (vs. 41.1% in Q1’26 and 41.2% in Q2’25). Net margin increased to 11.1% from 9.9% in Q1’26, but remains above the recent low from Q4’25 (6.6%). Operating cash flow was $11.3m and free cash flow was $19.0m in Q2’26, supported by working-capital movements; however, operating cash flow declined sharply QoQ (from $107.0m in Q1’26) and is still much lower than the recovery quarter levels earlier in 2025. Balance sheet resilience looks weaker than earlier quarters: total assets were $2.07b, roughly flat QoQ, but equity dropped to $94m from $109m QoQ, while total debt remains meaningfully elevated ($80.5m short-term + $55.2m long-term per provided fields do not reconcile to Q1’s $1.66b long-term debt—this suggests reporting/labeling inconsistencies). Shareholder returns were strong with 1-year price up 28.55%; dividend yield is low (~0.3%), and buybacks occurred in the quarter ($30.3m), implying total shareholder support despite softer earnings. Overall, Q2’26 shows improving gross/net margin but a sharp revenue contraction versus both prior quarter and prior year, plus weaker cash generation QoQ. Total return momentum remains the key offset."

Revenue Growth

Neutral

Revenue fell -35.0% QoQ (from $649.1m to $421.9m) and -31.0% YoY (vs. $611.7m). Trend is clearly down despite some margin improvement.

Profitability

Neutral

Net income decreased -27.1% QoQ and -17.3% YoY, but margins improved: gross margin 45.5% vs 41.1% QoQ; net margin 11.1% vs 9.9% QoQ. EPS was lower QoQ due to earnings and per-share volatility.

Cash Flow Quality

Caution

Operating cash flow was $11.3m and free cash flow $19.0m in Q2’26—both down sharply QoQ (OCF from $107.0m). Q2’26 still produced positive FCF, but cash generation quality looks less consistent.

Leverage & Balance Sheet

Fair

Total assets roughly stable at ~$2.07b QoQ, but stockholders’ equity declined to ~$94m from ~$109m. Debt/equity appears elevated; the provided debt line items suggest inconsistencies across periods, limiting precision.

Shareholder Returns

Good

Strong price momentum: +28.55% over 1 year (>20% threshold). Dividend yield is low (~0.3%), but buybacks were meaningful in Q2’26 (~$30.3m), supporting total shareholder return.

Analyst Sentiment & Valuation

Neutral

Price is $87.81 versus consensus target ~$111.5, implying upside. Multiples appear elevated (high price-to-sales and price-to-earnings in the ratio set), so valuation support likely relies on continued margin/cash normalization.

Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.

RevenueEarningsP/E RatioSharesDebtMargin %

Fundamentals Overview

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GFF’s Q2 results show stable EPS but weaker profitability versus last year: adjusted EBITDA fell 4% and EBITDA margin declined 60 bps to 23.2%, with gross margin down 100 bps to 45.5%. Revenue was slightly down (-1%) on a 6% volume decline partially offset by +5% price/mix, while steel and overhead absorption pressured earnings. Management maintained fiscal 2026 guidance (revenue $1.8B; adjusted EBITDA $458M) and expects the second half to look similar to prior quarters—residential soft, commercial roughly flat—supported by continued price/mix actions. The key offset to macro softness is product and channel execution, especially Clopay’s innovation pipeline (VertiStack Avante and C-Power click-to-conceal panels). On capital, GFF continued aggressive buybacks ($33M in Q2) alongside dividends ($0.22/share). The ONCAP AMES JV by end-June 2026 is a major balance-sheet and earnings stream inflection, with $100M cash plus $161M 10% PIK notes and 43% ownership.

AI IconGrowth Catalysts

  • Clopay product innovation momentum: VertiStack Avante (cleaner vertical stacking) and Avante door with C-Power click-to-conceal panels using patented electrical power delivered to panels
  • C-Power roadmap supports future garage-door panel electrification and product pipeline intended to maintain premium positioning and better revenue/mix

Business Development

  • Planned AMES North America/AMES U.S. and Canadian joint venture with ONCAP, expected to complete by end of June 2026
  • Joint venture economics: Griffon expected to receive $100 million cash proceeds at close; $161 million second-lien paid-in-kind (PIK) notes; expected 43% ownership and board representation
  • Exit of AMES United Kingdom business due to persistent economic challenges (expected completed by end of calendar year)

AI IconFinancial Highlights

  • Q2 revenue: $422 million; year-over-year revenue -1% driven by 6% lower volume (residential down, commercial partially offset) with +5% price/mix
  • Adjusted EBITDA: $98 million, -4% year-over-year; EBITDA margin 23.2%, down 60 basis points
  • Gross profit: $192 million; gross margin 45.5% vs 46.5% prior year quarter (down 100 basis points)
  • GAAP EPS (continuing ops): $1.03 vs $1.06 prior year quarter; adjusted EPS (continuing ops): $1.05 vs $1.05 prior year quarter (excl. comparability items)
  • Year-to-date free cash flow (continuing ops): $101 million vs $114 million prior year; YTD capex: $18 million vs $26 million
  • Material cost pressure: increased material costs including steel noted as a driver of lower EBITDA
  • Steel cost timing: purchase-to-cost realization described as 4- to 5-month lag
  • Tax guidance: normalized tax rate 28%
  • Interest expense guidance excludes interest income from anticipated AMES JV

AI IconCapital Funding

  • Q2 share repurchase: $33 million (422,000 shares) at average $78.03
  • Remaining authorization at March 31, 2026: $247 million
  • Total repurchases since April 2023 through March: $611 million, 11.5 million shares at average $53.21
  • Outstanding shares reduced ~20% vs end of Q2 fiscal 2023
  • Regular quarterly dividend authorized: $0.22 per share payable June 17; record May 29; 59th consecutive quarterly dividend
  • Balance sheet/liquidity: net debt $1.3 billion at March 31, 2026; net debt-to-EBITDA leverage 2.4x (vs 2.6x at end of prior-year Q2)

AI IconStrategy & Ops

  • Reporting structure change: beginning Q2 release, continuing operations presented as a single segment; Global AMES businesses classified as discontinued operations
  • Capital allocation framing: prioritize dividend support, opportunistic share repurchases, and debt reduction; M&A described as not on the table
  • Operating expectations for 2H: second-half quarters expected similar to recent quarters (residential soft, commercial roughly flat) with continued price/mix benefits
  • Execution leverage approach: management expects meaningful operating leverage as markets improve

AI IconMarket Outlook

  • Full fiscal 2026 guidance maintained (continuing operations): revenue $1.8 billion; adjusted EBITDA $458 million
  • Full-year free cash flow (continuing ops) expected to exceed income from continuing operations
  • Capex expected: $50 million; depreciation $27 million; amortization $15 million
  • Fiscal 2026 interest expense expected: $93 million (excluding any interest income from anticipated AMES JV)
  • Second-half end-market cadence expected: residential soft; commercial roughly flat; benefits from price/mix; second half described as strongest free cash flow period

AI IconRisks & Headwinds

  • Residential and consumer weakness: residential volume continues soft; lower-end consumer weakness acknowledged though positioned as stronger for repair/remodel
  • Commercial demand softness uncertainty: management expects commercial roughly flat rather than growth
  • Cost pressure: increased material costs (including steel) contributed to lower EBITDA and margin decline
  • Steel cost lag: 4- to 5-month lag creates timing risk on pricing vs input costs
  • Strategic execution/transition risk: JV formation and ongoing deleveraging effects from discontinued operations/strategic planning
  • UK business exit: persistent economic challenges in AMES United Kingdom led to planned exit (completion by end of calendar year)

Q&A: Analyst Interest

  • 2H end-market and HBP pricing cadence: Management said 2H quarters should resemble recent history, with residential volume soft and commercial roughly flat, offset by price/mix benefits. They highlighted Clopay mid-single-digit price increases effective at end of March and another price increase beginning thereafter.
  • Cash generation outlook vs prior targets: Management linked cash flow mainly to Clopay (and also Hunter). They acknowledged reduced cash generation versus historical periods because AMES tools were removed, and they flagged additional balance-sheet impact and continued deleveraging tied to discontinued operations and strategic planning.
  • AMES JV interest income sizing: Management specified the AMES JV financing structure: $161 million of PIK notes with a 10% interest rate. This directly explains why fiscal guidance interest expense excludes interest income from the anticipated joint venture stream.

Sentiment: MIXED

Note: This summary was synthesized by AI from the GFF Q2 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.

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© 2026 Stock Market Info — Griffon Corporation (GFF) Financial Profile