Core Insights - Griffon Corporation (GFF) reported adjusted earnings of $1.39 per share for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.28, marking a year-over-year increase of 29.9% [1] - Total revenues were $632.4 million, falling short of the consensus estimate of $640 million and reflecting a 2% decrease year over year [1] Segmental Performance - **Home and Building Products**: This segment accounted for 62.5% of net revenues, generating $395.4 million, stable year over year. Adjusted EBITDA rose 2% to $127 million, aided by lower material costs despite increased labor and distribution costs [2] - **Consumer and Professional Products**: Representing 37.5% of revenues, this segment's sales totaled $237 million, down 4.2% year over year due to an 8% volume reduction in North America and the UK, partially offset by growth in Australia. The Pope acquisition contributed 4% to revenues [3][4] Margin Profile - Cost of sales decreased by 9.5% year over year to $368.1 million, while selling, general, and administrative expenses remained stable at $152.2 million. Gross margin improved to 41.8% from 36.8% in the previous year [5] - Net income surged 68% year over year to $70.9 million [5] Balance Sheet & Cash Flow - At the end of Q1 fiscal 2025, cash and cash equivalents stood at $152 million, up from $114.4 million at the end of fiscal 2024. Long-term debt decreased to $1.47 billion from $1.52 billion [6] - The company generated net cash of $142.9 million from operating activities, slightly down from $146.1 million in the prior year. It paid $9 million in dividends and repurchased shares worth $42.3 million, with $390.3 million remaining under the share repurchase program [7] - Free cash flow was reported at $142.7 million, an increase from $132.5 million in the previous year [8]

Financial Performance - Total revenue for the three months ended December 31, 2024, was $632,371,000, a decrease of 1.2% compared to $643,153,000 in the same period of 2023[16] - Gross profit increased to $264,276,000, representing a gross margin of 41.8%, up from $236,641,000 in the prior year[16] - Net income for the quarter was $70,851,000, a significant increase of 67.6% compared to $42,177,000 in the same quarter of 2023[16] - Basic earnings per share rose to $1.56, compared to $0.86 in the previous year, reflecting a 81.4% increase[16] - Revenue for the quarter ended December 31, 2024 was $632,371, a decrease of $10,782 or 2% compared to the prior year quarter[145] - Net income for the quarter was $70,851, or $1.49 per share, compared to $42,177, or $0.82 per share in the prior year quarter[145] Assets and Liabilities - Total current assets decreased to $895,126,000 from $929,476,000, a decline of 3.7%[10] - Total liabilities decreased to $2,097,376,000 from $2,146,066,000, a reduction of 2.3%[10] - Total shareholders' equity increased to $227,776,000, up from $224,888,000, reflecting a growth of 1.3%[10] - As of December 31, 2024, Griffon's total assets were $1.915 billion, while total liabilities amounted to $1.568 billion[202] Cash Flow and Investments - Net cash provided by operating activities was $142,922 for the three months ended December 31, 2024, slightly down from $146,058 in 2023[19] - Cash flows used in investing activities were $236 for the three months ended December 31, 2024, significantly lower than $13,543 in the prior year, primarily due to capital expenditures of $17,456 offset by proceeds from the sale of real estate totaling $17,220[172] - Cash used in financing activities totaled $108,121, down from $123,947 in the prior year, with significant expenditures including $49,083 for share repurchases and $9,037 in dividends[173] - The company had cash and cash equivalents of $151,952 as of December 31, 2024, an increase from $114,438 on September 30, 2024[180] Dividends and Shareholder Returns - The company reported a dividend of $0.18 per share, an increase from $0.15 per share in the same quarter last year[16] - Griffon paid a quarterly cash dividend of $0.18 per share during the three months ended December 31, 2024, up from $0.15 per share in fiscal year 2024[64] - The Board of Directors declared a quarterly cash dividend of $0.18 per share, payable on March 18, 2025[67] - During the three months ended December 31, 2024, Griffon repurchased 610,172 shares of common stock for a total of $42,344, averaging $69.40 per share[178] Segment Performance - Home and Building Products segment revenue was $395,401, slightly down from $395,791 in the prior year, while Consumer and Professional Products segment revenue decreased from $247,362 to $236,970[81] - Segment adjusted EBITDA for Home and Building Products was $127,042, an increase from $124,719, while Consumer and Professional Products saw a significant rise from $5,539 to $18,192[89] - Adjusted EBITDA for the Home and Building Products (HBP) segment was $127,042, representing a 2% increase compared to the prior year quarter[153] - Adjusted EBITDA for the CPP segment increased to $18,192, up from $5,539 in the prior year quarter, primarily due to benefits from the global sourcing expansion initiative[155] Debt and Financing - As of December 31, 2024, Griffon Corporation's long-term debt totaled $1,475,032, a decrease from $1,524,052 as of September 30, 2024, reflecting a reduction of approximately 3.2%[55] - The outstanding balance of the Senior Notes due 2028 was $974,775, with an interest rate of 5.75%[57] - The Term Loan B outstanding balance was $455,000, with a variable interest rate of 6.58% as of December 31, 2024[58] - Griffon's Senior Notes total $974.775 million, with annual interest payments of approximately $56.050 million, maturing in 2028[195] Operational Efficiency - The company recognized revenue when performance obligations are satisfied, with a focus on timely transfer of goods to customers, enhancing operational efficiency[36] - The company completed its global sourcing strategy expansion ahead of schedule, resulting in a facility footprint reduction of approximately 1.2 million square feet, or 15%[104] Market Strategy and Risks - The company aims to maintain leading positions in its markets through innovative, branded products and superior quality[135] - Griffon plans to diversify further through investments and acquisitions to strengthen its existing businesses[137] - Griffon is subject to various risks, including economic conditions, customer demand fluctuations, and potential impacts from tariffs on raw materials[207]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $632 million, a decrease of 2% compared to the prior year quarter, while adjusted EBITDA increased by 11% to $145 million, resulting in an EBITDA margin of 23%, up 270 basis points [13][15] - Free cash flow for the quarter was robust at $143 million, reflecting solid operating performance [7] - GAAP net income was $71 million or $1.49 per share, compared to $42 million or $0.82 per share in the prior year quarter [15] Business Line Data and Key Metrics Changes - Home & Building Products (HBP) revenue was consistent with the prior year, with EBITDA increasing by 2% due to reduced material costs, offset by increased labor and distribution costs [7][17] - Consumer and Professional Products (CPP) revenue decreased by 4% to $237 million, primarily due to decreased volume in North America and the UK, although Australia saw growth from increased product offerings and the Pope acquisition [8][18] - CPP EBITDA increased by $13 million to $18 million, reflecting the positive effects of global sourcing expansion [9][18] Market Data and Key Metrics Changes - The company noted that residential volume in HBP increased, while commercial volume decreased, indicating a shift in market demand [7][20] - In CPP, the company experienced reduced consumer demand in North America and the UK, but organic growth in Australia was noted [8][18] Company Strategy and Development Direction - The company is focused on a capital allocation strategy that includes investing in businesses, opportunistically repurchasing shares, and reducing debt [23] - The management expressed confidence in maintaining long-term EBITDA margin targets despite potential tariff impacts, emphasizing a diversified global supply chain [28][29] Management Comments on Operating Environment and Future Outlook - Management indicated that fiscal 2025 is off to a strong start, with expectations for continued solid performance in HBP and improved profitability in CPP [22] - The company anticipates that HBP and CPP revenues will align with 2024 levels, with HBP benefiting from increased residential volume and CPP reflecting growth in Australia [20][21] Other Important Information - The company repurchased $42 million of its stock during the first quarter, with $390 million remaining under repurchase authorization [10] - A quarterly dividend of $0.18 per share was authorized, marking the 54th consecutive quarterly dividend [11] Q&A Session Summary Question: Geographical mix of imported products in CPP - Management acknowledged significant imports from China related to specific businesses and discussed strategies to mitigate tariff impacts [26][28] Question: Update on capital allocation strategy - Management indicated a preference for stock buybacks over debt paydown at current levels, while maintaining the ability to do both [30][31] Question: Key steps for CPP margin expansion - Management outlined a transition from manufactured to sourced inventory and emphasized leveraging global supply chains for margin improvement [34][35] Question: Performance in residential and commercial door markets - Management noted strong performance in high-end residential doors, while commercial volumes have been affected by soft market indicators [38][40] Question: Impact of tariffs on CPP guidance - Management confirmed that they are factoring in tariff navigation strategies into their guidance for the year [42][44] Question: Status of spring product inventory - A significant portion of the spring product has already landed, reducing exposure to tariffs [53][54] Question: Future CPP margins with demand recovery - Management indicated that current margins are around 15%, with expectations for improvement as demand recovers [56][57] Question: Additional proceeds from real estate sales - Management expects at least $5 million from held-for-sale assets on the balance sheet [58][59]

Griffon (GFF) came out with quarterly earnings of $1.39 per share, beating the Zacks Consensus Estimate of $1.28 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.59%. A quarter ago, it was expected that this garage door and building products maker would post earnings of $1.21 per share when it actually produced earnings of $1.47, delivering a surprise of 21.49%.Over the last four ...

Revenue and Income - Revenue for Q1 2025 totaled $632.4 million, a 2% decrease from $643.2 million in Q1 2024[2] - Net income for Q1 2025 was $70.9 million, or $1.49 per share, compared to $42.2 million, or $0.82 per share, in Q1 2024[3] - Revenue for the three months ended December 31, 2024, was $632,371, down from $643,153 in 2023, a decrease of 1.2%[26] - Net income for the three months ended December 31, 2024, was $70,851, compared to $42,177 in 2023, an increase of 67.6%[26] - For the three months ended December 31, 2024, net income increased to $70.851 million from $42.177 million in the same period of 2023, representing a growth of 67.8%[33] - Earnings per common share rose to $1.49, up from $0.82 in the prior year, marking an increase of 81.7%[33] Adjusted Metrics - Adjusted EBITDA for Q1 2025 was $131.2 million, a 13% increase from $116.4 million in Q1 2024[4] - The adjusted EBITDA for the twelve months ended December 31, 2024, was $554,241, compared to $538,416 in 2023, an increase of 2.9%[21] - Adjusted net income for the same period was $65.873 million, compared to $55.267 million in 2023, reflecting an increase of 19.2%[33] - Adjusted earnings per common share increased to $1.39 from $1.07, a growth of 29.9%[33] Cash Flow and Debt - Free cash flow for Q1 2025 was $143 million, reflecting strong operating performance[5] - Free cash flow (FCF) for the three months ended December 31, 2024, was $142,686, compared to $132,515 in 2023, representing an increase of 7.7%[21] - As of December 31, 2024, total debt outstanding was $1.48 billion, resulting in net debt of $1.32 billion[10] - The net debt to EBITDA leverage ratio improved to 2.4x as of December 31, 2024, down from 2.5x in 2023[21] Segment Performance - Home and Building Products (HBP) revenue for Q1 2025 was $395.4 million, consistent with the prior year quarter[6] - Consumer and Professional Products (CPP) revenue for Q1 2025 was $237.0 million, a 4% decrease compared to Q1 2024, primarily due to an 8% decrease in volume[7] - The Pope acquisition contributed 4% to CPP revenue despite overall volume decline[7] Expenses and Tax - Selling, general and administrative expenses for the three months ended December 31, 2024, were $152,181, slightly down from $152,803 in 2023[24] - The effective tax rate for Q1 2025 was 27.3%, down from 29.9% in Q1 2024[9] - The tax impact of reconciling adjustments from GAAP to non-GAAP net income and EPS was calculated based on the company's tax provision[35] - Discrete and certain other tax provisions primarily relate to the impact of a rate differential between statutory and annual effective tax rates[35] Shareholder Returns - Share repurchases in Q1 2025 totaled 0.6 million shares for $42.3 million, averaging $69.40 per share[11] - The company paid dividends of $0.18 per share in the three months ended December 31, 2024, compared to $0.15 per share in 2023[26] Assets and Cash Position - Cash and equivalents increased to $151,952 as of December 31, 2024, from $110,546 in 2023, an increase of 37.5%[31] - Total assets decreased to $2,325,152 as of December 31, 2024, from $2,370,954 as of September 30, 2024[29] Restructuring Charges - Restructuring charges related to the CPP global sourcing expansion totaled $12.4 million, with $11.6 million included in Cost of goods and services and $0.8 million in SG&A[34]

Core Viewpoint - Griffon (GFF) has shown strong performance in recent trading sessions, with a notable increase in share price and positive expectations for upcoming earnings [1][2]. Company Performance - Griffon's share price closed at $77.70, reflecting a +1.44% change from the previous trading day, outperforming the S&P 500's gain of 0.53% [1]. - Over the past month, Griffon's shares have gained 7.48%, significantly higher than the Conglomerates sector's gain of 2.26% and the S&P 500's gain of 1.24% [2]. Upcoming Financial Results - Griffon is set to announce its earnings on February 5, 2025, with an expected EPS of $1.28, representing a 19.63% increase from the same quarter last year [3]. - The consensus estimate for revenue is $640 million, indicating a slight decrease of 0.49% compared to the previous year [3]. Annual Estimates - For the annual period, the Zacks Consensus Estimates project earnings of $5.51 per share and revenue of $2.62 billion, reflecting increases of +7.62% and a slight decrease of -0.1% respectively from the last year [4]. Analyst Sentiment - Recent changes in analyst estimates for Griffon indicate a positive outlook, suggesting optimism regarding the company's business and profitability [4]. - The Zacks Rank for Griffon is currently 3 (Hold), with the consensus EPS projection remaining stable over the past 30 days [6]. Valuation Metrics - Griffon's Forward P/E ratio is 13.9, which is lower than the industry average of 15.33, indicating that Griffon is trading at a discount compared to its peers [7]. - The Diversified Operations industry, which includes Griffon, is ranked 177 in the Zacks Industry Rank, placing it in the bottom 30% of over 250 industries [7].

Griffon Corporation (GFF) is well-poised for growth in the coming quarters, courtesy of strength across the Home and Building Products (HBP) segment. The company's efforts to reward its shareholders handsomely add to its appeal.Based in New York, Griffon Corporation is a diversified holding company with exposure in several industries. The company engages in the manufacture and sale of a wide range of consumer and professional, and home and building products, including garage doors, shutters, materials for d ...

As Griffon Corporation (NYSE: GFF ) exited the year, it saw growth across both of its segments due to volume recovery in certain parts of the business, primarily in the residential business of the HBP segment. DespiteAs a finance enthusiast with years of experience in research, I am deeply engaged in studying diverse businesses, especially in the technology, industrial, and conglomerate sectors. I really like companies that have strong foundations and see them doing well in the long run. I enjoy writing abo ...

Griffon (GFF) ended the recent trading session at $72, demonstrating a -0.25% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.09%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.1%.The the stock of garage door and building products maker has fallen by 9.06% in the past month, lagging the Conglomerates sector's loss of 5.11% and the S&P 500's loss of 0.29%.The investment community will be paying close atte ...

It has been about a month since the last earnings report for Griffon (GFF) . Shares have added about 2.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Griffon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Griffon’s Q4 Earnings Top Estimates, Revenues Rise Y/YGr ...