Griffon(GFF) ZACKS·2025-05-09 16:30Core Insights - Griffon Corporation (GFF) reported adjusted earnings of $1.23 per share for Q2 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.13, but reflecting an 8.9% year-over-year decline [1] - Total revenues were $611.7 million, missing the consensus estimate of $616 million and decreasing by 9% year over year [1] Segmental Performance - Home and Building Products segment generated revenues of $368.2 million, accounting for 60.2% of net revenues, down 6% year over year due to lower residential volume, although a favorable product mix helped mitigate the decline [1] - Consumer and Professional Products segment revenues totaled $243.5 million, representing 39.8% of total revenues, down 13% year over year, impacted by a 13% volume reduction in North America and the UK, partially offset by strength in Australia [3] Financial Metrics - Adjusted EBITDA was $109.4 million, a decrease of 15% year over year, influenced by lower revenues and increased labor and distribution costs, though partially offset by lower material costs [2] - The adjusted gross margin improved to 41.2% from 40.4% in the prior year, while net income decreased by 11% year over year to $56.8 million [5] Balance Sheet and Cash Flow - At the end of Q2 fiscal 2025, cash and cash equivalents stood at $127.8 million, up from $114.4 million at the end of fiscal 2024, while long-term debt was $1.53 billion [6] - The company generated net cash of $159.4 million from operating activities in the first half of fiscal 2025, down from $185.9 million in the same period last year [7] - Free cash flow for the first six months of fiscal 2025 was $145.8 million, compared to $153.8 million in the prior-year period [8]