GFF Q3 2026 - Preliminary Earnings Alert

Event: Quartr Q3 2026 event Retrieved: 2026-08-05T13:50:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available | financials=earnings release only | transcript=available (call held 2026-08-05 12:30Z)

Consensus scorecard

Reported results and guidance

Fiscal 2026 outlook, from continuing operations:

• Scorecard recap: revenue of $481.4m beat consensus by 5.2% and adjusted diluted EPS from continuing operations of $1.51 beat the $1.34 estimate by 12.7%.
• Revenue growth of 7% was 6 points price and mix (residential and commercial) and 1 point volume (primarily residential).
• Chairman and CEO Ronald J. Kramer said the strategic actions announced 5 February 2026 are "substantially complete" and that "Griffon is now a pure play building products company."
• Debt was reduced by approximately $137.0m during the quarter; borrowing availability under the revolver was $472.3m at 30 June 2026.
• Share repurchases in the quarter totaled 626 thousand shares for $53.2m at an average of $85.00; $193.8m remains under the Board authorization. Since April 2023 the company has bought 12.1m shares, 21.2% of the outstanding count, for $664.1m at an average of $54.86.
• On 31 July 2026 Griffon completed the AMES Australasia joint venture, receiving $181m cash, a $49m PIK note receivable, and a 49% equity interest. On 9 June 2026 it completed the AMES North America joint venture, receiving $100m cash, a $161m second-lien PIK debt receivable, and a 43% equity interest.

Key bullish aspects

• Revenue of $481.4m beat consensus by 5.2% and adjusted diluted EPS of $1.51 beat by 12.7%; both metrics also grew year over year (+7.0% and +8.6%).
• Revenue growth was six-sevenths price and mix rather than volume, which in a building-products cycle indicates pricing power rather than a demand surge, and management attributes the mix gain to both residential and commercial.
• The prior-year quarter carried a $243.6m goodwill and intangible asset impairment; its absence swings operating income from $(132.1)m to $115.5m and diluted EPS from continuing operations from $(2.40) to $1.47.
• SG&A grew 3.0% against 7.0% revenue growth, so SG&A fell to 23.0% of revenue from 23.9%; on a nine-month basis the ratio improved to 23.9% from 24.4%.
• Debt fell approximately $137.0m in the quarter and long-term debt is down 10.3% since fiscal year end to $1,259.6m; credit-agreement leverage improved to 2.2x from 2.5x a year ago and 2.4x at 30 September 2025.
• Interest expense fell 12.2% to $21.1m and the full-year interest guide was reduced to $80m, which the release attributes to both lower debt and interest income on the transaction-related notes receivable.
• Total shareholders' equity rose 74.6% since fiscal year end to $129.2m as the impairment year annualized out of the balance.
• The AMES separations converted an operating business into $281m of cash across the two closings plus $210m of PIK receivables and two minority equity stakes, and the release states the strategic program is substantially complete.
• Capital return continued at scale: $135m returned in the first nine months through dividends and buybacks, the quarterly dividend is up 22.2% year over year to $0.22, and the cumulative repurchase program has retired 21.2% of shares since April 2023.
• Nine-month capital expenditures fell 27.0% to $23.7m while revenue grew, and the full-year capex guide of $50m is modest against the $458m adjusted EBITDA guide.
• Cash rose to $110.4m from $99.0m at fiscal year end despite $199.0m of debt repayment and $119.1m of buybacks in the nine months.

Key bearish aspects

• Gross margin contracted 1.7 percentage points to 47.0% because cost of goods rose 10.6% against 7.0% revenue growth; gross profit grew only 3.3% on 7.0% more revenue.
• Adjusted EBITDA grew just 2.1% to $124.8m, materially slower than the 7.0% revenue growth, and adjusted EBITDA margin fell 1.3 percentage points to 25.9%. The release attributes this to increased material and SG&A costs.
• On a nine-month basis adjusted EBITDA from continuing operations fell 2.1% to $331.8m despite 2.9% revenue growth, so the margin compression is not confined to this quarter.
• Discontinued operations produced a $(14.679)m loss in the quarter, wider than the $(11.484)m prior-year loss, and a $(33.483)m nine-month loss against $7.188m of prior-year income; total diluted EPS of $1.14 is well below the $1.47 continuing-operations figure.
• Nine-month free cash flow from continuing operations fell 3.9% to $194.2m and operating cash flow fell 7.1% to $217.9m, even with capital expenditures cut 27%.
• Total assets fell 11.6% to $1,836.1m and total shareholders' equity of $129.2m remains a thin 7.0% of assets against $1,706.9m of total liabilities.
• Accounts payable rose 57.8% since fiscal year end to $91.0m and inventories rose 8.0% to $185.5m, both faster than the 2.9% nine-month revenue growth.
• The company recorded a $0.833m loss from debt extinguishment in the quarter ($1.389m for the nine months) and a $1.6m non-cash retiree medical plan charge ($4.8m for the nine months, with $5.4m to be recognized ratably over the first ten months of fiscal 2026).
• Other, net swung to a $(2.576)m expense from $0.272m of income in the prior-year quarter and to $(5.192)m from $0.858m for the nine months.
• $210m of the AMES consideration is in paid-in-kind receivables from the joint ventures rather than cash, so a material part of the separation proceeds accrues rather than settles.
• The FY2026 revenue guide of $1.8bn against $1,357.5m of nine-month revenue implies roughly $443m in the fourth quarter, below the $481.4m just reported.

Key uncertainties

• The release does not state prior guidance for any fiscal 2026 line, so only interest expense is identifiable as revised (marked "now expected"); whether the $1.8bn revenue and $458m adjusted EBITDA figures were raised, cut, or maintained cannot be determined from this document.
• No segment detail is provided in this release now that AMES is in discontinued operations, so the split between garage doors and rolling steel products versus ceiling fans is not disclosed here.
• The $243.6m prior-year impairment makes every year-over-year GAAP comparison in the quarter non-comparable; the underlying operating comparison rests on the adjusted figures.
• Cost of goods rose 10.6% and the release attributes margin compression to "increased material and selling, general and administrative costs" without quantifying the material component or naming the inputs.
• The forward-looking statements cite tariffs as a potential driver of raw material cost and availability, but the release does not quantify any tariff impact in the reported quarter or in the outlook.
• The $49m AMES Australasia PIK note and $161m AMES North America second-lien PIK debt receivable carry no stated interest rate, maturity, or seniority terms in this release.
• The 49% and 43% retained equity interests will be accounted for as equity-method investments ($118.6m on the balance sheet at 30 June, before the 31 July Australasia closing), and the release does not indicate expected earnings contribution.
• The reconciliation table shows 46,270 thousand diluted weighted-average shares for the prior-year quarter while the income statement shows 45,320 thousand; the release footnote attributes this to the anti-dilutive share impact in a loss period, but the two tables are not reconciled to each other.
• Discontinued-operations losses widened while the assets held for sale fell 76.7%, and the release does not break out what remains in that $171.5m balance or when it is expected to close.
• The $472.3m of revolver availability is stated as "subject to certain loan covenants," which are not specified here.
• The fourth quarter implied by the full-year revenue guide is below the quarter just reported; the release gives no bridge explaining seasonality or the continuing-operations perimeter change.
• A transcript for the 8:30 a.m. ET call exists but is covered separately; management's account of material cost, the fourth-quarter step-down, and the AMES receivables is not assessed at this stage.

Market context

• API Ninjas snapshot: GFF $99.58 on NYSE, volume 50,377, quote timestamped 2026-08-05T13:44:05Z, retrieved 2026-08-05T13:47:00Z. The release was published before the U.S. open on 2026-08-05 and this quote sits in the pre-open window with only 50 thousand shares of volume behind it. It is a single quote of unstated session basis, not a measured reaction to the release.

Source limitations

• Every actual above comes from the Quartr Q3 fiscal 2026 earnings release document. Quartr standardized financials for this event are not yet populated.
• API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter, so the exact ticker-and-event-date match path was used.
• Year-over-year percentage changes, margin percentages, and the implied fourth-quarter revenue figure not printed in the release are calculated from the release's own columns.
• Griffon reports on a fiscal year ending 30 September; Q3 fiscal 2026 is the quarter ended 30 June 2026. Balance-sheet comparatives are to 30 September 2025, not to the prior-year quarter.
• AMES North America and AMES Australasia are presented as discontinued operations; all revenue, EBITDA, EPS, and cash-flow figures above are continuing-operations figures unless the row says otherwise.
• The AMES Australasia joint venture closed on 31 July 2026, after the 30 June balance-sheet date, so its $181m cash and $49m PIK note are not in the balance sheet shown.
• The condensed consolidated statements in this release are unaudited.
• The nine-page release contains no segment revenue or segment EBITDA table.

Source links

• Quartr Q3 FY2026 earnings release
• Quartr release headline results page
• Quartr release 2026 outlook page
• Quartr release statements of operations page
• Quartr release balance sheet page
• Quartr release adjusted EPS reconciliation page
• Quartr release free cash flow and leverage page