Griffon Stock Earnings Reports

Griffon reported a mixed but fundamentally steady Q2 FY2025: consolidated revenue declined 9% to $612M and adjusted EBITDA before unallocated amounts fell 11% to $133M, but margins remain healthy (HBP >30% EBITDA margin year-to-date). Home & Building Products (HBP) remains the engine of the company, generating roughly 85% of segment EBITDA, selling predominantly U.S.-made products and returning to pre-pandemic seasonality (Q2 typically the weakest; Q3/Q4 expected stronger). Clopay product innovation (notably the VertiStack Avante door) is driving product differentiation and demand. Consumer & Professional Products (CPP) showed improved adjusted EBITDA (+18% YoY) driven by global sourcing, Australia strength (including the Pope acquisition) and an asset-light U.S. model, despite softer North American and U.K. consumer demand. Management reiterated full-year guidance: $2.6B revenue and $575M–$600M segment adjusted EBITDA, and expects free cash flow to exceed net income for the year. Tariff risk: management estimates approximately $325M (annualized) of CPP revenue is exposed to China-related tariffs but believes impacts are manageable via supplier negotiations, sourcing diversification, inventory leverage and selective pricing. Capital allocation remains active: $31M repurchased in the quarter (420k shares), ~$360M remaining authorization, $498M repurchased since April 2023 (reducing share count ~17.4% from FY2023 Q2), and a regular quarterly dividend of $0.18 (55th consecutive quarter) — underscoring confidence in cash generation. Balance sheet: net debt $1.4B, net debt/EBITDA ~2.6x. Management emphasizes ability to mitigate tariff impacts and to execute on long-term targets (including a 15% adjusted EBITDA margin target for CPP) while preserving HBP’s high-margin profile.