Group 1: Company Performance - Griffon Corporation is experiencing strong momentum in the Home and Building Products (HBP) segment, with a 2% year-over-year revenue increase in Q3 fiscal 2025, driven by solid demand in the residential market and recovery in commercial construction [2][8] - The Consumer and Professional Products (CPP) segment faced challenges, with revenues declining 16% year-over-year in Q3 fiscal 2025 due to reduced consumer demand and increased tariffs, particularly affecting the Hunter Fan business [8][9] - The company has made strategic acquisitions, including Pope in July 2024, which contributed 1% to CPP segment revenues, and Hunter in January 2022, enhancing its consumer product portfolio [3] Group 2: Shareholder Returns - Griffon is committed to rewarding shareholders, having paid $31.6 million in dividends and repurchased shares worth $113 million in the first nine months of fiscal 2025, following $35.8 million in dividends and $309.9 million in buybacks in fiscal 2024 [4][8] - In November 2024, the board approved a new $400 million share repurchase authorization and announced a 20% increase in the quarterly dividend [4] Group 3: Market Context - The company operates in diverse regions, including the U.S., Europe, Canada, and Australia, which exposes it to political, environmental, and geopolitical issues, as well as currency translation risks [10] - A stronger U.S. dollar has negatively impacted the CPP segment's revenues by 1% in the first nine months of fiscal 2025 [10] Group 4: Stock Performance - Year-to-date, Griffon's shares have gained 9%, outperforming the industry average increase of 4.3% [5]

Group 1 - The Zacks Rank system focuses on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1] - Value investing is a popular stock market trend that relies on traditional analysis of key valuation metrics to find undervalued stocks [2] - Zacks has developed the Style Scores system to highlight stocks with specific traits, particularly those with high grades in the "Value" category [3] Group 2 - Griffon (GFF) has a Zacks Rank of 2 (Buy) and an A grade for Value, with a current P/E ratio of 10.94 compared to the industry average of 16.46 [4] - GFF's PEG ratio is 0.68, significantly lower than the industry average of 1.91, indicating potential undervaluation [5] - The P/CF ratio for GFF is 11.20, which is attractive compared to the industry's average P/CF of 15.72, suggesting a solid cash outlook [6] - Overall, GFF appears to be undervalued based on various metrics and has a strong earnings outlook, making it a compelling value stock [7]

Core Insights - Griffon Corporation (GFF) reported adjusted earnings of $1.50 per share for Q3 fiscal 2025, aligning with estimates and reflecting a 21% year-over-year increase [1][9] - Total revenues were $613.6 million, missing the consensus estimate of $660 million and showing a 5% decline year over year [1][9] Segmental Performance - Home and Building Products segment, accounting for 65.2% of net revenues, generated $400.2 million, a 2% increase year over year, driven by favorable pricing and mix [2] - Consumer and Professional Products segment revenues totaled $213.4 million, down 16% year over year, primarily due to a 19% volume reduction across most regions [3][4] Financial Metrics - Adjusted EBITDA for Home and Building Products increased 9% to $128.8 million, while the Consumer and Professional Products segment saw a 14% decrease to $19.2 million [2][4] - The adjusted gross margin improved to 43.2% from 40.9% in the prior year, with cost of sales decreasing 12.6% to $348.4 million [5] Balance Sheet and Cash Flow - As of the end of Q3, cash and cash equivalents stood at $107.3 million, down from $114.4 million at the end of fiscal 2024, while long-term debt decreased to $1.44 billion [6] - In the first nine months of fiscal 2025, net cash generated from operating activities was $282.5 million, compared to $307.9 million in the previous year [7][8] Outlook - For fiscal 2025, management revised net sales expectations to $2.5 billion from a previous estimate of $2.6 billion, while maintaining segment adjusted EBITDA guidance of $575-$600 million [9][10] - The company anticipates an interest expense of $95 million and capital expenditures of $60 million for the fiscal year [10]

Core Insights - Griffon reported a mixed quarterly performance with total revenue of $613.6 million, missing the consensus estimate of $650.0 million, while adjusted EPS was $1.50, slightly exceeding the estimate of $1.49 [1][2] - The Home and Building Products segment showed growth in revenue and profitability, while the Consumer and Professional Products segment faced significant challenges, leading to an overall decline in revenue [1][5] Financial Performance - Total revenue (GAAP) was $613.6 million, down 5.3% year-over-year from $647.8 million [2] - Adjusted EBITDA was $134.7 million, up 7.3% from $125.5 million in the prior year [2] - Adjusted net income rose 14% to $69.2 million compared to the prior year quarter [7] - Gross margin improved by 470 basis points to 43.2% of revenue (GAAP) [7] Segment Analysis - Home and Building Products revenue increased by 2% to $400.2 million, benefiting from favorable pricing and product mix, despite a 1% decline in volume [5] - Consumer and Professional Products revenue fell 16% to $213.4 million due to weak demand and new tariffs impacting sales [6] Strategic Focus - The company has been optimizing operations through supply chain adjustments and an asset-light approach, particularly in the Consumer and Professional Products segment [4] - Management emphasized the importance of maintaining relationships with major retailers like Home Depot and Lowe's for long-term growth [4] Impairment and Future Guidance - A $217.2 million after-tax impairment related to the Hunter Fan acquisition significantly impacted net income [6][8] - For FY2025, Griffon reduced its revenue guidance by $100 million to $2.5 billion, primarily due to expected weakness in the Consumer and Professional Products segment [11] Capital Management - Griffon repurchased $40.3 million of stock and maintained its quarterly dividend at $0.18 per share, reflecting a 20% increase from the prior year [8][12] - The company reduced debt by $76 million in FY2025, improving its leverage ratio to 2.5 times net debt-to-adjusted EBITDA [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-06620 GRIFFON CORPORATION (Exact name of registrant as specified in its charter) 712 Fifth Ave, 18th Floor New York New York 10019 (Address of pri ...

Financial Performance - Griffon reported quarterly earnings of $1.5 per share, matching the Zacks Consensus Estimate, and an increase from $1.24 per share a year ago [1] - The company posted revenues of $613.63 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 5.61%, and down from $647.81 million year-over-year [2] - Over the last four quarters, Griffon has surpassed consensus EPS estimates three times but has topped consensus revenue estimates only once [2] Stock Performance and Outlook - Griffon shares have increased approximately 15.5% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $1.66 on revenues of $662.28 million, and for the current fiscal year, it is $5.70 on revenues of $2.56 billion [7] Industry Context - The Diversified Operations industry, to which Griffon belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Griffon's stock performance [5]

Griffon (GFF) Q3 2025 Earnings Call August 06, 2025 08:30 AM ET Company ParticipantsBrian Harris - EVP & CFORonald Kramer - Chairman & CEOLee Jagoda - Senior Managing DirectorBobby Schultz - Equity Research Senior AssociateTrey Grooms - Managing DirectorJoshua Wilson - Senior Equity Research AssociateConference Call ParticipantsNone - AnalystOperatorGreetings, and welcome to Griffin Corporation's Fiscal Third Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen o ...

Griffon (GFF) Q3 2025 Earnings Call August 06, 2025 08:30 AM ET Speaker0Greetings, and welcome to Griffin Corporation's Fiscal Third Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. The question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Griffin Corporation's CFO, Brian Harris.Please go ahead, sir.Speaker1Thank you. Good morning, and welcome to ...

[Third Quarter 2025 Financial Highlights](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Highlights) [Consolidated Performance](index=1&type=section&id=Consolidated%20Performance) Griffon's Q3 2025 revenue decreased 5% to $613.6 million, reporting a $120.1 million net loss due to impairment, yet adjusted net income grew 14.4% and adjusted EBITDA increased 7.3% Q3 2025 Consolidated Financial Results | Metric | Q3 2025 (USD) | Q3 2024 (USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $613.6 million | $647.8 million | -5% | | Net Income (Loss) | ($120.1 million) | $41.1 million | N/A | | EPS (Loss) | ($2.65) | $0.84 | N/A | | Adjusted Net Income | $69.2 million | $60.5 million | +14.4% | | Adjusted EPS | $1.50 | $1.24 | +21.0% | | Adjusted EBITDA | $134.7 million | $125.5 million | +7.3% | - The net loss was driven by a pre-tax impairment charge of **$243.6 million** (**$217.2 million** after tax) related to the Hunter Fan acquisition goodwill and intangible assets within the Consumer and Professional Products (CPP) segment[3](index=3&type=chunk)[24](index=24&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted strong HBP performance and improved CPP margins, reaffirming full-year EBITDA guidance, supported by free cash flow for capital allocation - The Home and Building Products (HBP) segment's performance exceeded expectations, driven by a **31.4% EBITDA margin** in the first nine months due to favorable price and mix[6](index=6&type=chunk) - The Consumer and Professional Products (CPP) segment's EBITDA margin improved by **270 basis points** year-over-year for the first nine months, despite weak demand, thanks to a shift to an asset-light model in the U.S[6](index=6&type=chunk) - In the first nine months of fiscal 2025, the company utilized its **$261 million** of free cash flow for significant capital return and deleveraging activities[6](index=6&type=chunk) Capital Allocation (First Nine Months of FY2025) | Activity | Amount (USD) | | :--- | :--- | | Share Repurchases | $113 million | | Debt Reduction | $76 million | | Dividends Paid | $32 million | [Segment Operating Results](index=2&type=section&id=Segment%20Operating%20Results) [Home and Building Products (HBP)](index=2&type=section&id=Home%20and%20Building%20Products%20(HBP)) HBP segment revenue increased 2% to $400.2 million in Q3, driven by favorable price and mix, with adjusted EBITDA growing 9% to $128.8 million HBP Q3 Performance | Metric | Q3 2025 (USD) | Q3 2024 (USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $400.2 million | $394.2 million | +2% | | Adjusted EBITDA | $128.8 million | $118.5 million | +9% | - Revenue growth was attributed to a **3% positive impact** from price and mix, partially offset by a **1% decline** in volume[7](index=7&type=chunk) [Consumer and Professional Products (CPP)](index=2&type=section&id=Consumer%20and%20Professional%20Products%20(CPP)) CPP segment revenue declined 16% to $213.4 million in Q3 due to weak demand and tariffs, resulting in a 14% adjusted EBITDA decrease to $19.2 million, partially mitigated by sourcing CPP Q3 Performance | Metric | Q3 2025 (USD) | Q3 2024 (USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $213.4 million | $253.6 million | -16% | | Adjusted EBITDA | $19.2 million | $22.3 million | -14% | - The revenue decrease was primarily driven by a **19% volume decline** resulting from reduced consumer demand and disrupted customer ordering patterns in the U.S. due to increased tariffs[8](index=8&type=chunk) - The negative impact of lower revenue on Adjusted EBITDA was partially offset by benefits from the U.S. global sourcing expansion, improved margins, and reduced administrative expenses[9](index=9&type=chunk) [Financial Position and Capital Allocation](index=2&type=section&id=Financial%20Position%20and%20Capital%20Allocation) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2025, Griffon maintained strong liquidity with $107.3 million cash and $449.5 million revolver availability, reducing net debt to $1.34 billion and improving its leverage ratio to 2.5x Balance Sheet Summary (as of June 30, 2025) | Metric | Value (USD) | | :--- | :--- | | Cash and Equivalents | $107.3 million | | Total Debt Outstanding | $1.45 billion | | Net Debt | $1.34 billion | | Revolver Availability | $449.5 million | - The net debt to EBITDA leverage ratio improved to **2.5x**, compared to **2.6x** at September 30, 2024, and **2.7x** at June 30, 2024[11](index=11&type=chunk)[26](index=26&type=chunk) [Cash Flow](index=2&type=section&id=Cash%20Flow) The company generated strong cash flow, with free cash flow reaching $261 million for the first nine months of fiscal 2025, and Q3 capital expenditures totaling $8.4 million - Free cash flow for the first nine months of fiscal 2025 was **$261 million**, reflecting strong operating results[12](index=12&type=chunk)[26](index=26&type=chunk) - Net capital expenditures for the third quarter ended June 30, 2025, were **$8.4 million**[12](index=12&type=chunk) [Share Repurchases](index=2&type=section&id=Share%20Repurchases) Griffon repurchased 0.6 million shares for $40.3 million in Q3, totaling 18.4% of outstanding shares since April 2023, with $319.6 million remaining in the authorization - In Q3 2025, the company repurchased **0.6 million shares** for **$40.3 million**, at an average price of **$69.28 per share**[13](index=13&type=chunk) - From April 2023 through June 30, 2025, Griffon has purchased **10.5 million shares** (**18.4%** of outstanding shares) for a total of **$538.4 million**[13](index=13&type=chunk) - As of June 30, 2025, **$319.6 million** remained available under the share repurchase authorization[13](index=13&type=chunk) [Updated 2025 Outlook](index=3&type=section&id=Updated%202025%20Outlook) [Full-Year Guidance](index=3&type=section&id=Full-Year%20Guidance) Griffon updated its FY2025 outlook, lowering revenue guidance to $2.5 billion due to weak CPP demand, but maintained adjusted EBITDA guidance of $575 million to $600 million, supported by improved HBP margins Fiscal 2025 Guidance Update | Metric | New Guidance | Prior Guidance | | :--- | :--- | :--- | | Revenue | $2.5 billion | $2.6 billion | | Adjusted EBITDA | $575 million - $600 million | Maintained | | HBP EBITDA Margin | > 31% | > 30% | | CPP EBITDA Margin | ~ 8% | > 9% | | Interest Expense | $95 million | $102 million | | Capital Expenditures | $60 million | $65 million | - The **$100 million** revenue guidance reduction is attributed to the CPP segment, reflecting ongoing weak consumer demand and the impact of increased tariffs[14](index=14&type=chunk) - The company continues to expect free cash flow to exceed net income for the full fiscal year[16](index=16&type=chunk) [Appendix: Financial Statements and Reconciliations](index=6&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) [Non-GAAP Reconciliations](index=6&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures, such as Adjusted EBITDA and free cash flow, to their most directly comparable GAAP counterparts - Reconciliation of segment adjusted EBITDA and adjusted EBITDA to income (loss) before taxes is provided, detailing adjustments for interest, depreciation, amortization, impairments, and other items[23](index=23&type=chunk)[24](index=24&type=chunk) - A reconciliation of net cash provided by operating activities to Free Cash Flow (FCF) is included[25](index=25&type=chunk)[26](index=26&type=chunk) - A reconciliation of net income (loss) to adjusted net income and the corresponding earnings per share figures is presented, excluding items like restructuring charges and goodwill impairments[35](index=35&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This appendix presents the unaudited condensed consolidated financial statements, including Statements of Operations, Balance Sheets, and Statements of Cash Flows, for periods ended June 30, 2025, and 2024 - The Condensed Consolidated Statements of Operations details revenue, costs, operating expenses, and net income (loss) for the three and nine months ended June 30, 2025 and 2024[31](index=31&type=chunk) - The Condensed Consolidated Balance Sheets present the company's assets, liabilities, and shareholders' equity as of June 30, 2025, compared to September 30, 2024[32](index=32&type=chunk)[33](index=33&type=chunk) - The Condensed Consolidated Statements of Cash Flows outline the cash inflows and outflows from operating, investing, and financing activities for the nine months ended June 30, 2025 and 2024[34](index=34&type=chunk)

Company Performance - Griffon (GFF) ended the recent trading session at $82.65, demonstrating a +1.37% change from the preceding day's closing price, outperforming the S&P 500 which registered a daily gain of 0.4% [1] - Shares of Griffon had gained 13.36% over the past month, significantly outpacing the Conglomerates sector's gain of 0.51% and the S&P 500's gain of 4.61% [1] Earnings Projections - The company's earnings per share (EPS) are projected to be $1.5, reflecting a 20.97% increase from the same quarter last year, with quarterly revenue expected to be $660.03 million, up 1.89% from the year-ago period [2] - For the full year, the Zacks Consensus Estimates project earnings of $5.7 per share and revenue of $2.57 billion, representing changes of +11.33% and -1.88%, respectively, from the prior year [3] Analyst Estimates and Valuation - Recent changes to analyst estimates for Griffon are important as they signify the changing landscape of near-term business trends, with positive estimate revisions indicating optimism about the business outlook [3] - Griffon currently features a Zacks Rank of 4 (Sell), with a Forward P/E ratio of 14.3, which is a discount compared to the average Forward P/E of 18.99 of its industry [5] - The PEG ratio for Griffon is currently 0.89, compared to the average PEG ratio of 2.01 for the Diversified Operations industry [6] Industry Context - The Diversified Operations industry, part of the Conglomerates sector, currently has a Zacks Industry Rank of 74, placing it in the top 30% of all 250+ industries [6] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]