Griffon Tops Q2 Earnings & Revenue Estimates, Reaffirms 26' View

Griffon Corporation GFF reported second-quarter fiscal 2026 (ended March 2026) adjusted earnings of $1.05 per share, which beat the Zacks Consensus Estimate of 99 cents. The bottom line was stable on a year-over-year basis.Total revenues of $421.9 million beat the consensus estimate of $413 million and decreased 1.1% year over year. The decline was attributable to lower volumes of 6%, partially offset by favorable price and mix of 5%.GFF’s Operating ResultsEffective 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.Griffon Corporation Price, Consensus and EPS Surprise Griffon Corporation price-consensus-eps-surprise-chart | Griffon Corporation QuoteMargin ProfileGriffon’s cost of sales increased 0.7% year over year to $229.9 million. Selling, general and administrative expenses were down 2.7% year over year to $104.6 million. The gross margin decreased to 45.5% from 46.5% in the year-ago period.Net income was $19.3 million, reflecting a decline of 66% from the prior-year quarter. The company’s adjusted EBITDA from continuing operations totaled $97.8 million, down 4% from the year-ago quarter.GFF’s Balance Sheet & Cash FlowAt the end of the fiscal second quarter, Griffon had cash and cash equivalents of $109.7 million compared with $99 million at the end of fiscal 2025 (ended September 2025). Long-term debt, net of current maturities, was $1.39 billion at the end of the fiscal second quarter compared with $1.40 billion at fiscal 2025-end.In the first six months of fiscal 2026, the company generated net cash of $118.3 million from operating activities compared with $139.7 million in the year-ago period.Griffon paid out dividends of $21.2 million and repurchased shares worth $51 million in the same period. Exiting the fiscal second quarter, it had $247 million remaining under the share repurchase program.In the first six months of fiscal 2026, free cash flow from continuing operations was $100.7 million and capital expenditures (net) were $17.6 million.OutlookThe 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 the adjusted EBITDA to be approximately $458 million. For the fiscal year, Griffon expects interest expense of $93 million and capital expenditures to be $50 million.GFF’s Zacks Rank & Stocks to ConsiderThe company currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the same space are discussed below:DXP Enterprises DXPE presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.DXP Enterprises’ earnings missed the consensus estimate by 8.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.Kennametal KMT presently sports a Zacks Rank of 1. Kennametal’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 18.6%. In the past 60 days, the Zacks Consensus Estimate for Kennametal’s fiscal 2026 earnings has increased 9%.Powell Industries POWL currently carries a Zacks Rank of 2. Powell’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 7.8%. In the past 60 days, the Zacks Consensus Estimate for Powell’s fiscal 2026 earnings has increased 3.6%.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks