Griffon's Earnings Meet Estimates in Q3, Revenues Decrease 5% Y/Y

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]