Description

Griffon’s $181 Million Australasia Deal Supercharges Its Capital Allocation Strategy; A Well Deserved ‘BUY’ Rating?

Griffon Corporation reported solid operational and financial results for its third quarter of fiscal year 2026, reflecting execution amidst challenging U.S. residential housing and commercial construction environments. Revenues increased 7% year-over-year to $481 million, driven by a roughly equal split of 6% from favorable price and mix alongside a 1% volume increase. Adjusted EBITDA rose 2% to $125 million, resulting in an EBITDA margin of 25.9%. Gross profit of $226 million showed a slight margin contraction to 47% from 48.7% a year prior, partly due to increased material and selling, general, and administrative (SG&A) costs, which grew to $111 million, or 23% of revenue, from $106 million (23.7% of revenue) in the previous year. Adjusted net income from continuing operations improved to $68 million ($1.51 per share) versus $64 million ($1.39 per share).