Griffon(US:GFF)2026-02-05 23:37Revenue and Income - Revenue for the three months ended December 31, 2025, was $649,088, an increase of 2.3% compared to $632,371 for the same period in 2024[14] - Net income decreased to $64,387 for Q4 2025, down 9.3% from $70,851 in Q4 2024[14] - Basic earnings per share for Q4 2025 was $1.44, compared to $1.56 in Q4 2024, reflecting a decline of 7.7%[14] - Net income for the three months ended December 31, 2025, was $64,387, a decrease of 9.3% from $70,851 in 2024[18] - Adjusted net income for the quarter was $66,302 or $1.45 per share, compared to $65,873 or $1.39 per share in the prior year quarter[129] Assets and Liabilities - Total current assets as of December 31, 2025, were $873,385, a decrease from $890,594 as of September 30, 2025[9] - Total liabilities decreased to $1,945,899 as of December 31, 2025, from $1,989,665 as of September 30, 2025[9] - Total shareholders' equity increased to $108,903 as of December 31, 2025, compared to $73,972 as of September 30, 2025[9] - Total assets as of December 31, 2025, were $1.713 billion, with total liabilities of $1.859 billion[179] - Current liabilities as of December 31, 2025, were $271.911 million, while long-term debt stood at $1.346 billion[179] Cash Flow and Dividends - Net cash provided by operating activities was $106,992, down 25.1% from $142,922 in the previous year[18] - The company paid dividends of $0.22 per common share in Q4 2025, up from $0.18 in Q4 2024[14] - The Company paid a quarterly cash dividend of $0.22 per share during the three months ended December 31, 2025, totaling $1,855 in accrued dividends[60] - Cash used in financing activities was $101,554 for the three months ended December 31, 2025, including $30,308 for share repurchases and $11,196 in dividends[152] Segment Performance - Home and Building Products segment revenue was $408,004,000 for the three months ended December 31, 2025, compared to $395,401,000 in 2024, reflecting a growth of 3.9%[74] - Consumer and Professional Products segment revenue increased to $241,084,000 in the three months ended December 31, 2025, from $236,970,000 in 2024, a growth of 1.3%[74] - Segment adjusted EBITDA for Home and Building Products was $122,835,000 for the three months ended December 31, 2025, down from $127,042,000 in 2024[80] - Segment adjusted EBITDA for Consumer and Professional Products increased to $21,730,000 in the three months ended December 31, 2025, from $18,192,000 in 2024, a growth of 19.4%[80] Strategic Initiatives - Griffon announced a joint venture with ONCAP, receiving $100,000 in cash and a $161,100 second-lien loan, with a 43% equity interest in the new entity[22] - The company is conducting a comprehensive review of strategic alternatives for its AMES Australia and AMES United Kingdom operations, which will be reported as discontinued operations starting Q2 2026[22] - Griffon plans to report AMES' U.S., Canada, Australia, and U.K. operations as discontinued operations starting from Q2 2026[116] - The company has undertaken a series of transformative transactions since 2017, including the divestiture of its specialty plastics and defense electronics businesses to focus on core markets[121] Financial Ratios and Debt - As of December 31, 2025, Griffon Corporation's total long-term debt was $1,364,159, with a long-term debt balance of $1,356,040 after accounting for the current portion[51] - The net debt to EBITDA leverage ratio was 2.3x at December 31, 2025, indicating the company's borrowing capacity[171] - The Term Loan B outstanding balance as of December 31, 2025, was $389,000, with a fair value of approximately $390,459[54] - The outstanding balance of Senior Notes due 2028 was $974,775, with an interest rate of 5.75%[53] Other Comprehensive Income and Expenses - Other comprehensive income for Q4 2025 was $4,552, contrasting with a loss of $17,699 in Q4 2024[14] - The company recognized a tax provision of $25,579 on income before taxes of $89,966 for the quarter ended December 31, 2025, compared to a tax provision of $26,569 on income before taxes of $97,420 in the prior year quarter[50] - The Company recognized a net periodic benefit of $(137) for the pension plan in Q1 2025, compared to $(301) in Q1 2024[87] Risks and Market Conditions - Griffon anticipates that future operating results will depend significantly on the success of its largest customers and ongoing relationships with them[175] - The company faces risks including economic conditions, competition, and potential loss of major customers, which could materially impact operations[184]