Griffon GFF

NYSE GFF

$97.60 +0.27 (+0.28%)

As of: Sep 9, 2026 · 3:59 PM EDT

Key Stats

Market Cap4.28 Bn

P/E23.00

P/S1.56

Div. Yield0.01

Total Debt (Qtr)1.27 Bn

Revenue Growth (1y) (Qtr)7.04

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About

Griffon Corporation is a diversified management and holding company that conducts business through wholly-owned subsidiaries. The Company provides direction and assistance to its subsidiaries in connection with acquisition and growth opportunities as well as divestitures. Through operating a diverse portfolio of businesses, Griffon aims to reduce variability caused by external factors such as market cyclicality, seasonality, and weather. Griffon generates revenue through…

Griffon generates revenue through the sale of branded products across its two reportable segments. The Home and Building Products segment sells residential and commercial garage doors, rolling steel doors, and grille products. The Consumer and Professional Products segment sells branded consumer and professional tools, residential, industrial and commercial fans, home storage and organization products, and products that enhance indoor and outdoor lifestyles. Revenue is derived from sales through professional dealers, home center retail chains, and global distribution channels.

The company operates through the following segments: Home and Building Products (HBP) and Consumer and Professional Products (CPP).

Home and Building Products (HBP) conducts its operations through Clopay Corporation. Founded in 1964, Clopay is the largest manufacturer and marketer of garage doors and rolling steel doors in North America. Residential and commercial sectional garage doors are sold through professional dealers and leading home center retail chains throughout North America under the brands Clopay, Ideal, and Holmes. Rolling steel door and grille products designed for commercial, industrial, institutional, and retail use are sold under the Clopay, Cornell and Cookson brands.
Consumer and Professional Products (CPP) is a global provider of branded consumer and professional tools; residential, industrial and commercial fans; home storage and organization products; and products that enhance indoor and outdoor lifestyles. CPP sells products globally through a portfolio of leading brands including AMES, since 1774, Hunter, since 1886, True Temper, and ClosetMaid.

Griffon maintains leading positions in the markets it serves by providing innovative, branded products with superior quality and industry-leading service. The Company places emphasis on its iconic and well-respected brands, which helps to differentiate its offerings from competitors and strengthens relationships with customers and end-users. Through its diverse portfolio, Griffon reduces variability caused by external factors such as market cyclicality, seasonality, and weather.

Griffon serves a diverse customer base including professional dealers, leading home center retail chains, and consumers globally. The Home Depot represents a significant customer, accounting for 12% of Griffon’s consolidated revenue for the quarter ended December 31, 2025, with 9% of HBP’s revenue and 17% of CPP’s revenue attributed to this customer. No other single customer exceeds 10% of consolidated revenue.

Investment Thesis

▲ Bull case

Griffon's strategic pivot to a pure-play North American building products company through the AMES joint venture creates a hidden catalyst not fully reflected in current guidance, as the $161 million in second lien PIK notes at a 10% rate will generate $16.1 million in annual interest income starting in Q3 FY26, which is excluded from the $93 million interest expense guidance but will directly boost adjusted EBITDA and free cash flow, potentially increasing fiscal 2026 adjusted EBITDA by 3.5% above the $458 million guidance without requiring operational improvements, while the $100 million in cash proceeds provides immediate flexibility for accelerated deleveraging or opportunistic share repurchases at current valuations, strengthening the balance sheet beyond the current 2.4x net debt-to-EBITDA leverage ratio and supporting sustained capital returns even if residential market recovery delays. Clopay's innovation pipeline, particularly the C-Power technology enabling click-to-conceal panels with electrical functionality, represents an underappreciated structural shift in garage door demand, as it transforms the product from a commodity into a premium smart-home solution targeting the repair and remodel segment—which constitutes over 70% of Clopay's revenue—and allows for mid-single-digit price increases without volume loss, evidenced by the consecutive 'Best in Show' wins at the International Builders Show and early commercial traction in automotive showrooms and restaurants, positioning the business to capture premium pricing power and mix improvement independent of new housing starts, with the VertiStack Avante system's space-saving design further expanding addressable markets in urban infill and multi-family renovations where traditional overhead doors are impractical. The integration of Hunter Commercial fans with Clopay's commercial garage door projects creates a cross-selling opportunity that management acknowledged as "early days" but with "very good reception" from the dealer network, suggesting a nascent but scalable revenue stream in mission-critical infrastructure solutions—such as garage-type fans for commercial spaces—that leverages Hunter's low 2% CapEx model and Clopay's commercial distribution, which could generate incremental high-margin sales with minimal additional investment, especially as commercial construction remains flat but renovation activity grows, and this synergy is not yet quantified in guidance despite its potential to offset softness in residential fan sales through diversification into higher-growth commercial applications.

Griffon's strategic pivot to a pure-play North American building products company through the AMES joint venture creates a hidden catalyst not fully reflected in current guidance, as the $161 million in second lien PIK notes at a 10% rate will generate $16.1 million in annual interest income starting in Q3 FY26, which is excluded from the $93 million interest expense guidance but will directly boost adjusted EBITDA and free cash flow, potentially increasing fiscal 2026 adjusted EBITDA by 3.5% above the $458 million guidance without requiring operational improvements, while the $100 million in cash proceeds provides immediate flexibility for accelerated deleveraging or opportunistic share repurchases at current valuations, strengthening the balance sheet beyond the current 2.4x net debt-to-EBITDA leverage ratio and supporting sustained capital returns even if residential market recovery delays. Clopay's innovation pipeline, particularly the C-Power technology enabling click-to-conceal panels with electrical functionality, represents an underappreciated structural shift in garage door demand, as it transforms the product from a commodity into a premium smart-home solution targeting the repair and remodel segment—which constitutes over 70% of Clopay's revenue—and allows for mid-single-digit price increases without volume loss, evidenced by the consecutive 'Best in Show' wins at the International Builders Show and early commercial traction in automotive showrooms and restaurants, positioning the business to capture premium pricing power and mix improvement independent of new housing starts, with the VertiStack Avante system's space-saving design further expanding addressable markets in urban infill and multi-family renovations where traditional overhead doors are impractical. The integration of Hunter Commercial fans with Clopay's commercial garage door projects creates a cross-selling opportunity that management acknowledged as "early days" but with "very good reception" from the dealer network, suggesting a nascent but scalable revenue stream in mission-critical infrastructure solutions—such as garage-type fans for commercial spaces—that leverages Hunter's low 2% CapEx model and Clopay's commercial distribution, which could generate incremental high-margin sales with minimal additional investment, especially as commercial construction remains flat but renovation activity grows, and this synergy is not yet quantified in guidance despite its potential to offset softness in residential fan sales through diversification into higher-growth commercial applications.

▼ Bear case

Griffon's reliance on steel-intensive products exposes the company to persistent margin pressure through a 4- to 5-month lag between purchasing and cost realization, as highlighted by Brian Harris, which means current gross margin of 45.5%—down 100 basis points year-over-year—may deteriorate further if steel prices remain elevated or increase, and the company's ability to pass on costs through mid-single-digit price increases is constrained by weak consumer demand at the lower end of the repair and remodel market, where Clopay acknowledges weakness, forcing a strategic focus on premium segments that may not fully offset volume declines if inflationary pressures persist, potentially squeezing gross margins below 44% in the second half of FY26 despite price actions. The discontinuation of AMES businesses, while streamlining the portfolio, removes a historical cash flow buffer that contributed $18.8 million in operating cash flow from discontinued operations in the prior year period, and although management claims these were "not significant cash generators," the actual year-to-date free cash flow from continuing operations declined 11% year-over-year to $100.7 million versus $113.8 million, indicating that the core Clopay and Hunter businesses are not generating enough incremental cash to offset the loss, and the joint venture's PIK notes—while providing future interest income—do not deliver immediate cash flow, creating a near-term liquidity risk if working capital needs rise or if the residential market downturn deepens, especially with net debt at $1.3 billion and limited revolver availability of $436.8 million. Griffon's capital allocation strategy prioritizes share buybacks and dividends over reinvestment in growth, as evidenced by Ronald Kramer's statement that "M&A is not on the table because our view is the cheapest and best acquisition we can make is in the market on a daily basis," which, while supportive of shareholder returns, ignores the need for innovation investment to sustain Clopay's competitive edge; the company's net capital expenditures year-to-date decreased only $8 million year-over-year to $18 million, suggesting minimal reinvestment in innovation or capacity, and without meaningful R&D spend or acquisitions to counter potential entrants in the smart garage door space—where C-Power faces technological replication risks—the innovation advantage may erode over time, leaving the business vulnerable to margin compression if competitors introduce similar electrical functionality at lower cost.

Griffon's reliance on steel-intensive products exposes the company to persistent margin pressure through a 4- to 5-month lag between purchasing and cost realization, as highlighted by Brian Harris, which means current gross margin of 45.5%—down 100 basis points year-over-year—may deteriorate further if steel prices remain elevated or increase, and the company's ability to pass on costs through mid-single-digit price increases is constrained by weak consumer demand at the lower end of the repair and remodel market, where Clopay acknowledges weakness, forcing a strategic focus on premium segments that may not fully offset volume declines if inflationary pressures persist, potentially squeezing gross margins below 44% in the second half of FY26 despite price actions. The discontinuation of AMES businesses, while streamlining the portfolio, removes a historical cash flow buffer that contributed $18.8 million in operating cash flow from discontinued operations in the prior year period, and although management claims these were "not significant cash generators," the actual year-to-date free cash flow from continuing operations declined 11% year-over-year to $100.7 million versus $113.8 million, indicating that the core Clopay and Hunter businesses are not generating enough incremental cash to offset the loss, and the joint venture's PIK notes—while providing future interest income—do not deliver immediate cash flow, creating a near-term liquidity risk if working capital needs rise or if the residential market downturn deepens, especially with net debt at $1.3 billion and limited revolver availability of $436.8 million. Griffon's capital allocation strategy prioritizes share buybacks and dividends over reinvestment in growth, as evidenced by Ronald Kramer's statement that "M&A is not on the table because our view is the cheapest and best acquisition we can make is in the market on a daily basis," which, while supportive of shareholder returns, ignores the need for innovation investment to sustain Clopay's competitive edge; the company's net capital expenditures year-to-date decreased only $8 million year-over-year to $18 million, suggesting minimal reinvestment in innovation or capacity, and without meaningful R&D spend or acquisitions to counter potential entrants in the smart garage door space—where C-Power faces technological replication risks—the innovation advantage may erode over time, leaving the business vulnerable to margin compression if competitors introduce similar electrical functionality at lower cost.

Segments Breakdown of Revenue (2025)

Peer group

Peer Comparison

Companies in the Building Products

S.No.	Ticker	Company	match	Market Cap	P/E	P/S	Total Debt (Qtr)
1	OTIS	Otis Worldwide Corp	primary	26.54 Bn	16.82	1.78	9.62 Bn
2	JHIUF	James Hardie Industries plc	primary	17.99 Bn	122.13	3.33	4.32 Bn
3	MAS	Masco Corp /De/	primary	13.79 Bn	14.72	1.81	3.25 Bn
4	CSL	Carlisle Companies Inc	primary	13.57 Bn	18.73	2.66	2.89 Bn
5	ALLE	Allegion plc	primary	13.01 Bn	19.76	3.03	2.03 Bn
6	OC	Owens Corning	primary	10.35 Bn	-15.49	1.05	6.13 Bn
7	WMS	Advanced Drainage Systems, Inc.	primary	10.08 Bn	22.32	3.13	1.61 Bn
8	AYI	Acuity Inc. (De)	primary	9.72 Bn	20.58	2.11	0.70 Bn

Griffon GFF

About

Investment Thesis

Geographical Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

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