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]