Core Viewpoint - Griffon (GFF) reported quarterly earnings of $1.54 per share, slightly missing the Zacks Consensus Estimate of $1.56 per share, but showing an increase from $1.47 per share a year ago, indicating a mixed performance in earnings despite a revenue beat [1][2]. Financial Performance - The company posted revenues of $662.18 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.16% and showing a year-over-year increase from $659.67 million [2]. - Over the last four quarters, Griffon has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2]. Stock Performance - Griffon shares have declined approximately 6.2% since the beginning of the year, contrasting with the S&P 500's gain of 12.5%, indicating underperformance relative to the broader market [3]. Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at $1.61 for the coming quarter and $6.33 for the current fiscal year [4][7]. - The estimate revisions trend for Griffon was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]. Industry Context - The Diversified Operations industry, to which Griffon belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable industry outlook that could positively impact stock performance [8].

Financial Data and Key Metrics Changes - For fiscal year 2025, Griffon Corporation reported HBP revenue of $1.6 billion, consistent with the prior year, and an EBITDA margin of 31.2% [3] - Fourth quarter revenue was $662 million, with adjusted EBITDA of $138 million, both consistent with the prior year [9] - Fourth quarter GAAP net income was $44.95 million, compared to $62 million in the prior year, while adjusted net income was $71 million, or $1.54 per share, compared to $71 million, or $1.47 per share, in the prior year [10] Business Line Data and Key Metrics Changes - HBP segment revenue increased by 3% year-over-year, driven by a favorable price index, while volume remained consistent [11] - CPP segment revenue decreased by 10% to $936 million due to weak consumer demand in North America and the U.K., but profitability improved with an 18% increase in EBITDA [4][6] - CPP adjusted EBITDA was $24 million, a decrease of 1% from the prior year, primarily due to decreased volume offset by global sourcing benefits [12] Market Data and Key Metrics Changes - The U.S. and U.K. markets experienced reduced consumer demand, impacting CPP revenue, while Australia showed increased organic volume [5][11] - The company noted that 85% of its business is unaffected by tariffs, indicating resilience in its operations despite external pressures [31] Company Strategy and Development Direction - The company plans to leverage improving market conditions and a pipeline of product innovations to increase long-term volume and profit margins [17] - Capital allocation strategies include share repurchases, debt reduction, and dividend increases, reflecting confidence in the business's strength [8][17] - The company aims to maintain EBITDA margins above 30% for HBP and approximately 10% for CPP in fiscal 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong financial performance despite a challenging macroeconomic environment [16] - The outlook for fiscal 2026 includes expectations for revenue consistency with 2025 at $2.5 billion and adjusted EBITDA in the range of $580 million to $600 million [14][15] - Management anticipates a gradual recovery in consumer demand and housing market conditions, which could enhance future performance [16][39] Other Important Information - The company repurchased 1.9 million shares at an average price of $70.99, totaling $135 million for the year [14] - A quarterly dividend of $0.22 per share was announced, marking a 22% increase over the prior quarter [8] Q&A Session Summary Question: Can you discuss the drivers of the sequential EBITDA margin decline in HBP? - Management indicated that the margin decline was due to product mix variations and expected favorable price trends moving forward [20][21] Question: What is the outlook for CPP in terms of pricing and consumer acceptance? - Management noted that while pricing has been passed through, consumer acceptance remains weak, and they expect 2026 to mirror 2025 [39] Question: How do you see the competitive landscape in the garage door market? - Management highlighted their strong market position and innovation capabilities, indicating confidence in future growth despite current market challenges [37][38] Question: What is the status of retailer inventories in the CPP category? - Management stated that excess inventory levels are present due to weak consumer demand, with no immediate repurchasing expected [44] Question: How does the company reconcile the increase in dividends with share repurchase activity? - Management clarified that there is no conflict, as they intend to continue share repurchases while also increasing dividends and reducing debt [46]

Financial Data and Key Metrics Changes - For fiscal year 2025, Griffon Corporation reported HBP revenue of $1.6 billion, consistent with the prior year, and an EBITDA margin of 31.2% [3][4] - Fourth quarter revenue was $662 million, with adjusted EBITDA of $138 million, both consistent with the prior year [9] - Gross profit on a GAAP basis for the fourth quarter was $276 million, compared to $263 million in the prior year quarter, with a normalized gross margin increase of 60 basis points to 41.7% [9][10] - Fourth quarter GAAP net income was $44.95 million, or $1.54 per share, compared to $62 million, or $1.29 per share in the prior year [10] Business Line Data and Key Metrics Changes - Home and Building Products (HBP) revenue increased 3% year-over-year, driven by a favorable price index, while volume remained consistent [11] - Consumer and Professional Products (CPP) revenue decreased 10% to $936 million due to weak consumer demand in North America and the U.K., partially offset by increased organic volume in Australia [4][6] - CPP adjusted EBITDA increased 18%, with an EBITDA margin improvement of over 200 basis points despite lower sales volume [6] Market Data and Key Metrics Changes - The U.S. and U.K. markets experienced reduced consumer demand, impacting CPP revenue, while Australia showed increased organic volume [5][11] - The company noted that 85% of its business is unaffected by tariffs, indicating a strong position in the market despite external pressures [32] Company Strategy and Development Direction - The company plans to leverage improving market conditions and a pipeline of product innovations to increase long-term volume and profit margins [16][17] - Capital allocation strategies include share repurchases, paying down debt, and increasing dividends, reflecting confidence in the business outlook [7][8][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong financial performance despite a challenging macroeconomic environment [16] - The outlook for fiscal year 2026 includes expectations for revenue consistency with 2025 at $2.5 billion and adjusted EBITDA in the range of $580 million to $600 million [14][15] Other Important Information - The company repurchased 1.9 million shares at an average price of $70.99, totaling $560 million since April 2023 [7][14] - A quarterly dividend of $0.22 per share was announced, marking a 22% increase over the prior quarter [8] Q&A Session Summary Question: HBP margin performance in the quarter - Management indicated that the sequential EBITDA margin decline was due to product mix rather than headwinds, with expectations for favorable price mix in the upcoming year [20][21] Question: CPP performance versus expectations - Management noted better-than-expected volume and favorable price index contributing to CPP's performance [28] Question: Tariffs and sourcing choices - Management confirmed that current tariff policies are reflected in guidance, with ongoing efforts to mitigate impacts through global sourcing and cost management [29][31] Question: Competitive changes in the market - Management highlighted the company's strong position in the market, emphasizing innovation and diversified channels as key competitive advantages [37][39] Question: Retailer inventory levels and purchasing patterns - Management stated that weak consumer demand has led to higher inventory levels, with no immediate repurchasing expected [44] Question: Dividend increase and share repurchase strategy - Management clarified that increasing dividends while continuing share repurchases and debt reduction reflects a strong financial position and commitment to shareholder value [45]

Financial Data and Key Metrics Changes - For fiscal year 2025, Griffon Corporation reported HBP revenue of $1.6 billion, consistent with the prior year, and an EBITDA margin of 31.2% [3] - Fourth quarter revenue was $662 million, with adjusted EBITDA of $138 million, both consistent with the prior year [9] - Gross profit on a GAAP basis for the fourth quarter was $276 million, compared to $263 million in the prior year quarter, with normalized gross margin increasing by 60 basis points to 41.7% [9][10] - Fourth quarter GAAP net income was $44.95 million, or $1.54 per share, compared to $62 million, or $1.29 per share in the prior year [10] Business Line Data and Key Metrics Changes - Home and Building Products (HBP) revenue increased by 3% over the prior year quarter, driven by a favorable price index, while volume remained consistent [11] - Consumer and Professional Products (CPP) revenue decreased by 4% from the prior year quarter, primarily due to an 8% decrease in volume, partially offset by a 4% benefit from price index [11] - CPP adjusted EBITDA of $24 million decreased by 1% from the prior year period, primarily due to decreased volume, offset by benefits from global sourcing initiatives [12] Market Data and Key Metrics Changes - The U.S. and U.K. markets experienced persistently weak consumer demand, impacting CPP revenue, while Australia showed increased organic volume [5][12] - The company noted that 85% of its business is unaffected by tariffs, indicating a strong position despite external pressures [29] Company Strategy and Development Direction - The company plans to leverage improving market conditions and a pipeline of product innovations to increase long-term volume and profit margins [15] - Capital allocation strategy includes share repurchases, debt reduction, and dividend increases, reflecting confidence in the business outlook [8][16] - The company aims to generate over $1 billion of free cash flow over the next three years to support its strategic initiatives [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong financial performance despite challenging macroeconomic conditions [15] - The outlook for fiscal 2026 includes expectations for revenue to be consistent with 2025 at $2.5 billion and adjusted EBITDA in the range of $580 million to $600 million [13][14] - Management anticipates a gradual recovery in consumer demand and housing market conditions, which could enhance performance in the coming years [15][39] Other Important Information - The company repurchased 1.9 million shares at an average price of $70.99 during fiscal 2025, totaling $135 million [6][13] - A quarterly dividend of $0.22 per share was announced, marking a 22% increase over the prior quarter [7][8] Q&A Session Summary Question: What were the drivers of the sequential EBITDA margin decline in HBP? - Management indicated that the margin decline was due to product mix variations and expected favorable price index trends moving forward [19] Question: How does the guidance weight toward the back half of the year? - Management expects a slight decrease in the first half of the year, with a pickup in the second half, consistent with normal seasonality [22] Question: What was better than expected in the CPP segment? - Favorable price index and slightly better volume than anticipated contributed to better performance in the CPP segment [26] Question: What are the specific drivers for EBITDA growth in CPP despite flat sales? - Management highlighted the benefits of global sourcing and cost management as key drivers for EBITDA growth [28] Question: How does the company view competitive changes in the market? - Management noted that despite macroeconomic challenges, the company has maintained strong performance and market share, particularly in the garage door segment [36] Question: What is the status of retailer inventories in the CPP category? - Management indicated that weak consumer demand has led to higher inventory levels, with no immediate repurchasing expected [42] Question: How does the company reconcile the increase in dividends with share repurchases? - Management clarified that there is no conflict, as the company intends to continue share repurchases, debt reduction, and dividend increases simultaneously [44]

Copyright © 2025 Griffon Corporation. All rights reserved. Q4 FY25 INVESTOR PRESENTATION November 2025 GRIFFON OVERVIEW B R E A K D O W N B Y O P E R A T I N G S E G M E N T $2.5B $522M $3.2B 21% $1.3B 5,111 Revenue Adj. EBITDA Market Cap1 Adj. EBITDA Net debt2 CPP 37% 1. Closing price of $69.7/share on 11/14/2025 and 46,231,089 shares outstanding as of 10/31/25. 2. Net debt is defined as long-term debt less cash per Griffon's balance sheet Adjusted EBITDA (excl. unallocated) $millions) Revenue U.S. 81% Int ...

Financial Performance - Fiscal 2025 revenue totaled $2.5 billion, a 4% decrease from $2.6 billion in the prior year[2] - Fiscal 2025 net income was $51.1 million, or $1.09 per share, down from $209.9 million, or $4.23 per share, in the prior year[2] - Adjusted net income for fiscal 2025 was $263.6 million, or $5.65 per share, compared to $254.2 million, or $5.12 per share, in the prior year[3] - Fiscal 2025 adjusted EBITDA was $522.3 million, a 2% increase from $513.6 million in the prior year[4] - Fourth quarter revenue was $662.2 million, slightly up from $659.7 million in the prior year quarter[5] - Fourth quarter adjusted EBITDA totaled $137.9 million, compared to $137.5 million in the prior year quarter[7] - Net income for Q4 2025 was $43,636 thousand, a decrease from $62,491 thousand in Q4 2024, while net income for the year was $51,110 thousand, down from $209,897 thousand in 2024[34] - Total revenue for Q4 2025 was $662,182 thousand, a slight increase from $659,673 thousand in Q4 2024, while total revenue for the year ended September 30, 2025, was $2,519,926 thousand, down from $2,623,520 thousand in 2024[28] - Adjusted EBITDA for Q4 2025 was $137,863 thousand, compared to $137,526 thousand in Q4 2024, with total adjusted EBITDA for the year at $522,293 thousand, up from $513,602 thousand in 2024[28] Cash Flow and Dividends - Free cash flow for fiscal 2025 was $323 million, supporting $174 million returned to shareholders through dividends and share repurchases[9] - Free cash flow (FCF) for the year ended September 30, 2025, was $323,011 thousand, slightly down from $326,122 thousand in 2024[30] - The company paid dividends of $39,692 million in 2025, compared to $35,806 million in 2024, an increase of 10.5%[38] - A 22% increase in the regular quarterly dividend to $0.22 per share was announced, reflecting confidence in the business outlook[9] Assets and Liabilities - Cash and equivalents as of September 30, 2025, were $99,045 thousand, down from $114,438 thousand in 2024[30] - Total current assets decreased from $929,476 million in 2024 to $890,594 million in 2025, a decline of approximately 4.2%[36] - Total liabilities decreased from $2,146,066 million in 2024 to $1,989,665 million in 2025, a reduction of approximately 7.3%[36] - Cash and equivalents at the end of the period decreased to $99,045 million from $114,438 million, a decline of 13.4%[40] - Total shareholders' equity decreased significantly from $224,888 million in 2024 to $73,972 million in 2025, a decline of approximately 67.1%[36] Operational Efficiency and Strategic Focus - The company plans to continue focusing on operational efficiency and strategic reviews to enhance profitability and cash flow generation[28] - The net debt to EBITDA leverage ratio improved to 2.4x in 2025 from 2.6x in 2024, indicating a stronger borrowing capacity[30] Impairments and Expenses - The company reported goodwill and intangible asset impairments of $243,612 thousand for the year ended September 30, 2025[34] - Selling, general and administrative expenses for Q4 2025 were $157,251 thousand, or 23.7% of revenue, compared to $151,808 thousand or 23.0% in Q4 2024[32] - The company reported a goodwill impairment of $243,612 million for the year ended September 30, 2025, with no such impairment recorded in 2024[41] Future Projections - In fiscal 2026, revenue is expected to remain at $2.5 billion, with adjusted EBITDA projected between $580 million and $600 million[19] - Home and Building Products segment revenue for 2025 was $1.6 billion, consistent with the prior year, while Consumer and Professional Products segment revenue was $0.9 billion, a 10% decline[10][12]

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Core Insights - Griffon Corporation reported a fiscal 2025 revenue of $2.5 billion, a 4% decrease from $2.6 billion in the previous year [1] - The company experienced a significant decline in net income, totaling $51.1 million or $1.09 per share, compared to $209.9 million or $4.23 per share in the prior year [2] - Adjusted net income for fiscal 2025 was $263.6 million, or $5.65 per share, an increase from $254.2 million, or $5.12 per share, in the previous year [3] Financial Performance - Fiscal 2025 adjusted EBITDA was $522.3 million, a 2% increase from $513.6 million in the prior year [4] - Fourth quarter revenue was $662.2 million, slightly up from $659.7 million in the same quarter of the previous year [5] - Fourth quarter net income was $43.6 million, or $0.95 per share, down from $62.5 million, or $1.29 per share, in the prior year quarter [6] Segment Performance - Home and Building Products (HBP) revenue for 2025 was $1.6 billion, consistent with the prior year, with a 2% favorable price and mix offset by a 2% decrease in volume [10] - Consumer and Professional Products (CPP) revenue in 2025 was $0.9 billion, a decline of 10% compared to 2024, primarily due to a 12% decrease in volume driven by reduced consumer demand [12] - HBP adjusted EBITDA for 2025 was $494.6 million, a 1% decrease from the previous year, while CPP adjusted EBITDA increased by 18% to $85.5 million [13][10] Cash Flow and Shareholder Returns - The company generated $323 million in free cash flow during the year, which supported the repurchase of 1.9 million shares and regular quarterly dividends [8] - Griffon returned a total of $174 million to shareholders in 2025 through dividends and share repurchases [8] - A 22% increase in the regular quarterly dividend to $0.22 per share was announced, reflecting confidence in the company's strategic plan [9] Balance Sheet and Capital Expenditures - As of September 30, 2025, Griffon had cash and equivalents of $99 million and total debt outstanding of $1.41 billion, resulting in net debt of $1.31 billion [17] - The company reduced its debt by approximately $116 million during the year, improving leverage to 2.4x from 2.6x in the prior year [17] - Capital expenditures for the year were $34.4 million, including $18 million from asset sales [17] 2026 Outlook - For fiscal year 2026, Griffon expects revenue to remain at $2.5 billion and adjusted EBITDA in the range of $580 million to $600 million [20] - The company anticipates HBP and CPP revenue to be in line with 2025, with HBP EBITDA margin exceeding 30% and CPP around 10% [21]

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