Griffon Corporation (GFF) Reports Second Quarter Earnings Results

Griffon Corporation (GFF) today announced its financial results for the fourth quarter, revealing a diluted earnings per share of $1.21, surpassing analysts’ expectations of $1.09. However, the company reported quarterly revenue of $611.7 million, falling short of the estimated $618.2 million. Despite the revenue miss, Griffon’s earnings performance reflects a solid quarter, showcasing its ability to exceed profit forecasts.

Key Highlights:

• Griffon Corporation reported a revenue of $611.7 million for Q2 FY2025, a 9% decrease from $672.9 million in the prior year.
• Net income for the quarter was $56.8 million, or $1.21 per share, down from $64.1 million, or $1.28 per share, year-over-year.
• Adjusted EBITDA for Q2 was $118.5 million, a 12% decrease from $134.2 million in the previous year.
• Home and Building Products (HBP) segment maintained a strong 30% EBITDA margin, while Consumer and Professional Products (CPP) showed improving margins.
• CEO Ronald J. Kramer expressed confidence in maintaining financial guidance despite economic uncertainties, highlighting HBP’s resilience against tariffs.

Summary: Griffon Corporation’s earnings release for the second quarter of fiscal 2025 indicated a revenue decline to $611.7 million, representing a 9% decrease from the previous year. The net income also decreased to $56.8 million, or $1.21 per share, alongside a 12% drop in adjusted EBITDA to $118.5 million. The Home and Building Products segment demonstrated strong performance with a 30% EBITDA margin, while the Consumer and Professional Products segment improved its margins, attributed to a transition to an asset-light business model and robust performance in Australia.

CEO Ronald J. Kramer expressed optimism regarding the company’s financial guidance despite prevailing economic uncertainties, stating, “I am pleased to report that the performance of both of our segments for the first half was in-line with our expectations.” He noted that the Home and Building Products segment is expected to generate approximately 85% of the segment EBITDA for the year and emphasized the company’s strategies to mitigate tariff impacts in the Consumer and Professional Products segment through supplier negotiations and cost management.

Griffon Corporation (GFF) has experienced a rollercoaster of price changes recently, with a notable decline of 13.88% over the past three months, reflecting some investor uncertainty. However, the stock has shown resilience with a slight recovery of 1.37% over the past month, suggesting a potential stabilization in market sentiment. The company’s price-to-earnings ratio stands at a reasonable 14.12, indicating that it may be undervalued compared to its earnings potential. Despite a negative revenue growth rate of -5.18% over the last two years, Griffon has managed to achieve an impressive free cash flow growth of 29.12%, highlighting its ability to generate cash even in challenging times. The return on invested capital at 19.34% and a net profit margin of 9.14% further underscore the company’s operational efficiency and profitability. As investors weigh these fundamental metrics against the stock’s recent volatility, Griffon Corporation remains a compelling case study in navigating market fluctuations while maintaining solid financial health.

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. Its Consumer and Professional Products segment manufactures and markets long-handled tools and landscaping products for homeowners and professionals; wood and wire closet organization, general living storage, and wire garage storage products to home center retail chains, mass merchandisers, and direct-to builder professional installers; wheelbarrows and lawn carts; snow, striking, and hand tools; planters and lawn accessories; garden hoses; and pruners, loppers, shears, and other tools, as well as cleaning products for professional, home, and industrial use. The company’s Home & Building Products segment manufactures and markets residential and commercial garage doors for professional dealers and various home center retail chains; and rolling steel door and grille products for commercial, industrial, institutional, and retail uses. It sells its products under the True Temper, AMES, ClosetMaid, Clopay, Ideal, Holmes, CornellCookson, Garant, Harper, UnionTools, Westmix, Cyclone, Southern Patio, Northcote Pottery, Nylex, Hills, Kelkay, Tuscan Path, La Hacienda, Kelso, Dynamic Design, Apta, Quatro Design, Razor-Back, Jackson, Darby, Trojan, Supercraft, NeverLeak, Maximum Load, SuperSlide, ShelfTrack, MasterSuite, Suite Symphony, ExpressShelf, Style+, and SpaceCreations brand names. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1959 and is headquartered in New York, New York.