A diversified American holding company built around two businesses: garage doors and rolling steel doors under the Clopay brand (North America's largest maker, sold through dealers plus Home Depot and Menards), and household goods under brands like AMES tools, Hunter fans, and ClosetMaid storage. It traces its roots to a Cincinnati paper wholesaler from 1859, whose "Clopay" name is an acronym for "cloth and paper," and it adopted the Griffon name in 1995.
Griffon closes AMES joint venture, pivots to pure-play building products as Q3 revenue rises 7%.
Griffon completed the AMES North America joint venture, transforming into a pure-play building products company. from continuing operations rose 7% to $481.4 million on favorable pricing and mix, but contracted 1.7 points to 47.0% as higher material costs took hold. The company now carries a 2.2x and a cleaner balance sheet, but must prove its remaining business can hold margins without the AMES contribution.
Key takeaways
The AMES North America joint venture (Veritage) closed on June 9, 2026, with Griffon receiving $100 million in cash and a $161.1 million , and AMES operations are now classified as discontinued.
from continuing operations rose 7% to $481.4 million, driven by 6% favorable price/mix across both residential and commercial segments and a 1% increase in residential volume.
contracted 170 to 47.0% from 48.7% a year ago, as higher material costs more than offset the gain.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 revenue rose 7% to $481M on favorable price/mix, while gross margin contracted 170 bps to 47.0% due to higher material costs.
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Total increased 7% to $481M in Q3, driven by 6% favorable price/mix across both residential and commercial segments and a 1% volume increase in residential.
rose 32.2% sequentially to $115.5 million, with widening 3.3 points to 24.0%, while more than doubled from the prior quarter to $51.6 million.
fell 16% to $20.1 million, benefiting from lower outstanding borrowings and reduced variable rates on the Term Loan B and .
Liquidity remained strong with $110.4 million in cash, $472.3 million available on the $500 million , and a to of 2.2x, down from 2.4x in the prior quarter.
What changed
The AMES joint venture, flagged in Q1 FY2026 with an expected June 2026 close, was completed on June 9, removing a material portion of HBP from continuing operations and delivering $100 million in cash plus a $161.1 million .
The Q2 FY2026 watch item on residential volume trajectory: residential volume turned positive in Q3, rising 1% after a 6% decline in Q2, suggesting the building products market may be finding a floor.
durability post-AMES separation: the 47.0% margin in Q3, down from 48.7% a year ago, reflects higher material costs in the continuing operations and establishes a baseline for the pure-play entity.
The Q2 FY2026 watch item on capital allocation after the AMES transaction: the company received $100 million in cash and reduced by 9.7% sequentially to $1.26 billion, signaling a priority on debt reduction alongside the existing $400 million authorization.
What to watch
Pro-forma financials for the pure-play building products company: with AMES now in , the first full quarter of pure-play results in Q4 will establish the baseline , margin, and earnings power of the remaining business.
trajectory in Q4: the 47.0% margin in Q3 was pressured by higher material costs; whether this stabilizes or compresses further will indicate if pricing power can offset cost inflation in the pure-play entity.
Capital allocation with $100 million in AMES proceeds: how management balances further debt reduction against share repurchases under the $400 million authorization will signal post-separation financial priorities.
Residential volume sustainability: the 1% volume increase in Q3 reversed a 6% decline in Q2; whether this holds or strengthens in Q4 will indicate if the building products market recovery is durable.
declined to 47.0% from 48.7% a year ago as higher material costs more than offset the gain; nine-month gross margin fell to 46.2% from 47.6%.
expenses rose 3% to $110.6M (23.0% of ), primarily from higher distribution and stock compensation costs, partially offset by lower administrative expenses.
, net fell 16% to $20.1M due to lower outstanding borrowings and reduced variable rates on the Term Loan B and .
The company completed the AMES North America joint venture (Veritage) on June 9, 2026, receiving $100M cash and a $161.1M PIK note, and classified AMES operations as discontinued.
Liquidity remained strong with $110.4M in cash, $472.3M available under the $500M , and a to of 2.2x as of June 30, 2026.
Quantitative and Qualitative Disclosures About Market Risk
Griffon’s business activities necessitate the management of various financial and market risks, including those related to changes in interest rates, foreign currency rates and commodity prices. Interest Rates Griffon’s exposure to market risk for changes in interest rates relat…
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Griffon’s business activities necessitate the management of various financial and market risks, including those related to changes in interest rates, foreign currency rates and commodity prices.
Interest Rates
Griffon’s exposure to market risk for changes in interest rates relates primarily to variable interest rate debt and investments in cash and equivalents.
Griffon’s amended and restated Credit Agreement references a benchmark rate with SONIA or SOFR. In addition, certain other of Griffon’s credit facilities have BBSY (Bank Bill Swap Rate) and CORRA (Canadian Overnight Repo Rate Average) (based variable interest rate). Due to the current and expected level of borrowings under these facilities, a 100 basis point change in SONIA, SOFR, BBSY, or CORRA would not have a material impact on Griffon’s results of operations or liquidity.
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Foreign Exchange
Griffon conducts business in various non-US countries, therefore, changes in the value of the currencies of these countries affect Griffon's financial position and cash flows when translated into US Dollars. Griffon has generally accepted the exposure to exchange rate movements relative to its non-US operations. Griffon may, from time to time, hedge its currency risk exposures. A change of 10% or less in the value of all applicable foreign currencies would not have a material effect on Griffon’s financial position and cash flows.
In addition to the other information set forth in this report, carefully consider the factors in Item 1A to Part I in Griffon’s Annual Report on Form 10-K for the year ended September 30, 2025, which could materially affect Griffon’s business, financial condition or future resul…
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In addition to the other information set forth in this report, carefully consider the factors in Item 1A to Part I in Griffon’s Annual Report on Form 10-K for the year ended September 30, 2025, which could materially affect Griffon’s business, financial condition or future results. The risks described in Griffon’s Annual Report on Form 10-K are not the only risks facing Griffon. Additional risks and uncertainties not currently known to Griffon or that Griffon currently deems to be immaterial also may materially adversely affect Griffon’s business, financial condition and/or operating results.
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