Griffon Corp (NYSE:GFF) Reports Mixed Quarterly Results and Conservative 2026 Outlook

Griffon Corp Reports Mixed Quarterly Results as Market Shows Cautious Optimism

GRIFFON CORP (NYSE:GFF) has released its fiscal fourth quarter and full-year 2025 earnings, delivering a performance that surpassed analyst expectations on key profitability metrics while providing a conservative outlook for the coming year. The diversified manufacturer reported quarterly revenue of $662.2 million, representing a slight increase from the prior year period and exceeding analyst estimates of $639.2 million. The company's adjusted earnings per share of $1.54 also topped the consensus estimate of $1.53.

Quarterly Performance Highlights

The company's fourth quarter results demonstrated resilience in a challenging macroeconomic environment. Revenue growth of 0.4% year-over-year was driven by strength in the Home and Building Products segment, which saw a 3% increase to $420.3 million. This growth was partially offset by a 4% decline in the Consumer and Professional Products segment, which faced headwinds from reduced consumer demand in North America and the United Kingdom.

Key quarterly financial metrics include:

• Revenue: $662.2 million (estimated $639.2 million)
• Adjusted EPS: $1.54 (estimated $1.53)
• Adjusted EBITDA: $137.9 million, consistent with the prior year quarter
• Net income: $43.6 million, or $0.95 per share

The company's ability to maintain adjusted EBITDA margins despite revenue pressures reflects effective cost management and the benefits of ongoing operational improvements.

Full-Year 2025 Performance and Segment Analysis

For the full fiscal year 2025, Griffon reported total revenue of $2.5 billion, a 4% decrease compared to the prior year. This decline was primarily attributed to challenges in the Consumer and Professional Products segment, which saw revenue drop 10% to $935.7 million due to reduced consumer demand and disrupted customer ordering patterns.

The company's full-year results were significantly impacted by a $217.2 million charge related to goodwill and intangible asset impairments in the CPP segment. Despite this, Griffon delivered strong operational performance with adjusted net income of $263.6 million, or $5.65 per share, representing an improvement over the prior year's adjusted earnings of $5.12 per share.

Segment performance for fiscal 2025:

• Home and Building Products: Revenue of $1.6 billion remained consistent with the prior year, with adjusted EBITDA of $494.6 million
• Consumer and Professional Products: Revenue declined to $935.7 million, though adjusted EBITDA improved 18% to $85.5 million due to benefits from global sourcing initiatives

Capital Allocation and Balance Sheet Strength

Griffon demonstrated robust cash flow generation during the year, with free cash flow of $323 million supporting the company's capital allocation strategy. Management highlighted several key achievements:

• Share repurchases totaling 1.9 million shares for $134.7 million
• Total shareholder returns of $174 million through dividends and buybacks
• Debt reduction of approximately $116 million
• Improved leverage ratio to 2.4x from 2.6x in the prior year
• Quarterly dividend increase of 22% to $0.22 per share

The company ended the quarter with $99 million in cash and equivalents and total debt outstanding of $1.41 billion.

2026 Outlook and Market Reaction

Looking ahead to fiscal 2026, Griffon provided guidance that appears conservative relative to analyst expectations. The company expects revenue of approximately $2.5 billion, which aligns with 2025 performance but falls below the analyst consensus estimate of $2.57 billion. For adjusted EBITDA, management projected a range of $580 million to $600 million, excluding unallocated corporate costs.

The market reaction to the earnings release has been cautiously positive, with the stock showing strength in pre-market trading. This suggests investors are focusing on the earnings beat and strong cash generation rather than the conservative revenue guidance. The company's increased dividend and ongoing share repurchase program appear to be supporting investor confidence despite the tempered growth expectations.

Conclusion

Griffon's fourth quarter results reflect a company navigating macroeconomic challenges while maintaining operational discipline. The earnings beat, combined with strong cash flow generation and shareholder returns, provides a solid foundation for fiscal 2026. While the company's revenue guidance suggests continued headwinds in certain markets, its focus on profitability improvement and capital returns appears to be resonating with investors.

For more detailed earnings analysis and future estimates, visit the Griffon Corp earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.