Griffon Corporation Reports Annual and Fourth Quarter Financial Results
Fiscal Year 2025 Financial Performance: Griffon Corporation reported a revenue of $2.5 billion for fiscal 2025, a 4% decrease from the previous year, with a net income of $51.1 million, significantly down from $209.9 million in the prior year, largely due to a $217.2 million impairment charge.
Adjusted Earnings and EBITDA: The adjusted net income for fiscal 2025 was $263.6 million, or $5.65 per share, reflecting a slight increase from the previous year. Adjusted EBITDA rose by 2% to $522.3 million, indicating operational resilience despite revenue declines.
Segment Performance: The Home and Building Products segment maintained stable revenue at $1.6 billion, while the Consumer and Professional Products segment saw a 10% revenue decline to $0.9 billion, primarily due to decreased consumer demand and tariff impacts.
Shareholder Returns and Future Outlook: Griffon generated $323 million in free cash flow, returning $174 million to shareholders through dividends and share repurchases. For fiscal 2026, the company anticipates revenue to remain stable at $2.5 billion and adjusted EBITDA to increase to between $580 million and $600 million.
Trade with 70% Backtested Accuracy
Analyst Views on GFF
About GFF
About the author
Low-Cap Industrial Stocks Face Weak EPS Revisions
- EPS Revision Analysis: As the earnings season approaches, several mid to low-cap industrial stocks have received an 'F' grade for earnings momentum, indicating significant downward pressure on analyst expectations for future earnings.
- Affected Companies: Companies such as Alight (ALIT), Alaska Air Group (ALK), and Apogee Enterprises (APOG) have all received an 'F' grade, highlighting severe challenges to their earnings outlook.
- Market Reaction Expectations: These companies may face cautious investor sentiment due to factors like heavy debt and high customer churn rates, which could negatively impact their stock performance.
- Industry Outlook: Despite the current poor EPS revision grades, the market remains optimistic about the industrial sector's prospects for 2026, potentially providing support for future investment opportunities.
Reasons to Steer Clear of Griffon Stock at This Time
Operational Performance: Griffon Corporation (GFF) has underperformed due to weakness in its Consumer and Professional Products (CPP) segment, rising operational costs, and high debt levels, leading to a Zacks Rank of #5 (Strong Sell).
CPP Segment Challenges: The CPP segment has seen an 8% revenue decline year-over-year, primarily due to reduced consumer demand and increased tariffs affecting customer orders.
Rising Expenses and Debt: The company faces increasing selling, general, and administrative expenses, which rose 3.6% in the last fiscal quarter, alongside a long-term debt of $1.40 billion, raising concerns about its financial stability.
Foreign Currency Risks: Griffon is exposed to currency translation risks due to its international operations, with a stronger U.S. dollar potentially impacting its overseas business results in the near future.
