Griffon Corporation is a global enterprise that operates through its various subsidiaries, providing an extensive range of consumer, professional, and home & ...
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Operator: Good day, and welcome to the Griffon Corporation Fiscal Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brian Harris, CFO. Please go ahead. Brian Harris: Thank you. Good morning, and welcome to Griffon Corporation's Third Quarter Fiscal 2026 Earnings Call. Joining me for this morning's call is Ron Kramer, Griffon's Chairman and Chief Executive Officer. Our press release was issued earlier this morning and is available on our website at www.griffon.com. Today's call is being recorded, and the replay instructions are included in our earnings release. Our comments will include forward-looking statements about Griffon's performance. These statements are subject to risks and uncertainties that can change as the world changes. Please see the cautionary statements in today's press release and in our SEC filings. Finally, some of today's remarks will adjust for items that affect comparability between periods. These items are explained in our non-GAAP reconciliations included in our press release. With that, I'll turn the call over to Ron. Ronald Kramer: Thanks, Brian. Good morning, everyone, and thanks for joining us. Griffon has executed particularly well this quarter, which is reflected in today's solid operational and financial results. In the quarter, revenue increased organically by 7% and EBITDA by 2%, while generating strong year-to-date free cash flow of $194 million. Given our performance for the first 9 months of the fiscal year, we're maintaining our revenue and EBITDA guidance for the year of $1.8 billion and $458 million, respectively. Our team's performance remains outstanding, showing resiliency, managing through dynamic global economic conditions, including soft U.S. housing and commercial construction markets. Regarding our strategic actions, earlier this week, we were very pleased to announce the closing of the joint venture for our Australasia business. At closing, we received $181 million in cash, a $49 million note receivable and a 49% equity interest. The closing of the Australasia transaction concludes a series of strategic actions that have transformed Griffon into a pure-play building products company. From these transactions, we received a total of $281 million in cash, $210 million in 10% PIK notes while retaining minority interest with a book value of $139 million and an opportunity for further value creation. Turning to capital allocation. During the third quarter, we repurchased $53 million of our stock or 626,000 shares at an average price of $85 per share. At June 30, $194 million remained under the repurchase authorization. We continue to believe our stock is a compelling value. Since April 2023 and through June, we've repurchased $664 million of stock or 12.1 million shares at an average price of $54.86. These repurchases have reduced Griffon's outstanding shares by 21% relative to the total shares …
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| The total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). |
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Ronald J. Kramer | Chairman of the Board & Chief Executive Officer | USD 9,536,836 | Male | 1958 | Active |
Robert F. Mehmel | President & Chief Operating Officer |
| USD 3,321,444 |
| Male |
| 1962 |
| Active |
Brian G. Harris | Executive Vice President & Chief Financial Officer | USD 1,601,501 | Male | 1969 | Active |
Seth L. Kaplan | Executive VP, General Counsel & Secretary | USD 1,430,101 | Male | 1969 | Active |
Michael A. Sarrica | Senior Vice President of Griffon | — | Male | — | Active |
David Sweet | Vice President of Sustainability | — | Male | — | Active |
Victor L. Weldon | President of Clopay Corporation | — | Male | — | Active |
W. Christopher Durborow | Vice President & Chief Accounting Officer | — | Male | — | Active |
Est. EPS $5.40 · Revenue $1.84B · 5 analysts
Est. EPS $1.46 · Revenue $472.39M · 5 analysts
Est. EPS $1.25 · Revenue $438.57M · 3 analysts
$0.84 per share
| $2.5B |
| -3.9% |
| +14.1% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $51.1M | -75.6% | +23.0% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +42.0% | +8.0% | +3.2% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +8.2% | -46.1% | +15.9% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +2.0% | -74.6% | +7.8% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $303.6M | -1.7% | +834.4% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +12.0% | +2.3% | +718.9% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 2152.2% | +183.6% | -33.7% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 2.66x | -0.0% | -15.8% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $2.1B | -13.0% | -11.1% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 1.09 vs 5.62 | -80.6% | 1.14 vs 1.34 | -15.0% |
| Revenue Surprise | $2.5B vs $2.5B | +1.2% | $481.4M vs $457.7M | +5.2% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Aug 13, 2026 | TURNBULL CHERYL L | director | Common Stock | D | 3,000 | $106.12 |
| Aug 13, 2026 | Sullivan Kevin F | director | Common Stock | D | 3,500 | $105.59 |
| Aug 11, 2026 | MEHMEL ROBERT F | officer: President and COO | Common Stock | D | 3,240 | $107.16 |
| Aug 10, 2026 | MEHMEL ROBERT F | officer: President and COO | Common Stock | D | 3,638 | $104.08 |
| Aug 10, 2026 | MEHMEL ROBERT F | officer: President and COO | Common Stock | D | 2,913 | $104.64 |
