Griffon Corporation reported fiscal 2025 revenue of $2.50 billion, a 4 % decline from $2.60 billion in 2024, and net income of $51.1 million, or $1.09 per share, down from $209.9 million ($4.23 per share) in the prior year. The decline in net income was largely driven by a $217.2 million goodwill and intangible‑asset impairment charge in the Consumer and Professional Products (CPP) segment. Adjusted net income rose to $263.6 million, or $5.65 per share, up 3.5 % from $254.2 million ($5.12 per share) in 2024. Adjusted EBITDA reached $522.3 million, a 2 % increase from $513.6 million in 2023, and the fourth‑quarter adjusted EBITDA of $137.9 million was essentially flat year‑over‑year, representing a 13 % increase versus the $122.5 million reported in Q4 2024.
The 4 % revenue decline was concentrated in the CPP segment, where demand weakness in North America and the United Kingdom weighed on sales. The Home and Building Products (HBP) segment, which includes the Clopay brand, remained flat, offsetting the CPP decline and supporting overall revenue stability. The impairment charge in CPP also reduced earnings, but the company’s cost‑control program helped keep adjusted earnings close to expectations.
Net income fell sharply because of the goodwill impairment, yet the company’s EPS beat consensus estimates by $0.03 per share in Q4, driven by disciplined cost management and a favorable mix in the HBP segment. The adjusted EPS beat by $0.04 per share, reflecting the company’s ability to preserve profitability despite the one‑time charge.
Adjusted EBITDA margin expanded to 21 % from 20 % in 2024, driven by higher pricing power in HBP and the asset‑light transition in CPP, which lowered operating costs. The Q4 adjusted EBITDA of $137.9 million was 13 % higher than the $122.5 million reported in Q4 2024, indicating that the company’s margin expansion strategy is taking effect even as revenue declined.
Management highlighted the resilience of HBP, noting that its EBITDA margin of 31.4 % in the first nine months of the year was driven by strong pricing and mix. The CPP segment’s EBITDA margin improved 270 basis points year‑over‑year, thanks to the transition of U.S. operations to an asset‑light model and solid performance in Australia.
For fiscal 2026, Griffon guided revenue to $2.50 billion, unchanged from 2025, and adjusted EBITDA to $580 million–$600 million, a slight increase from the prior guidance of $570 million–$590 million. The company also projected free cash flow of $323 million, supporting a $0.22 quarterly dividend and a share‑repurchase program of 1.9 million shares, underscoring management’s confidence in the company’s cash‑flow generation.
Investors responded positively to the earnings beat and dividend increase, with the company’s guidance reflecting a cautious but optimistic outlook amid macroeconomic uncertainty. The market reaction was driven by the company’s ability to beat revenue and EPS estimates—$662.2 million versus $631.41 million and $1.54 versus $1.51, respectively—while maintaining a strong free‑cash‑flow position.
Headwinds for the company include weaker consumer demand in North America and the United Kingdom, tariff‑related disruptions in U.S. customer ordering, and rising material, labor, and distribution costs. Tailwinds include favorable pricing and mix in HBP, the successful transition of CPP to an asset‑light model, and robust free‑cash‑flow generation, which together support the company’s long‑term growth strategy.
Griffon’s fiscal 2025 results demonstrate operational resilience and margin expansion in a challenging environment. The company’s disciplined cost management, strategic investments in capacity and technology, and a clear capital‑allocation plan position it well for the coming year, while the guidance signals confidence in maintaining profitability amid ongoing macroeconomic headwinds.
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