Griffon | 8-K: FY2025 Revenue Beats Estimate at USD 2.52 T

Revenue: As of FY2025, the actual value is USD 2.52 T, beating the estimate of USD 2.489 B.

EPS: As of FY2025, the actual value is USD 1.09, missing the estimate of USD 1.635.

EBIT: As of FY2025, the actual value is USD 300.13 B.

Segment Revenue

• 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. Fourth quarter revenue was $420.3 million, a 3% increase from the prior year, driven by favorable price and mix, with increased commercial volume offset by decreased residential volume.
• Consumer and Professional Products (CPP): Revenue for 2025 was $0.9 billion, a 10% decline from 2024, primarily due to a 12% decrease in volume from reduced consumer demand in North America and the U.K., and disrupted U.S. customer ordering patterns due to increased tariffs. Fourth quarter revenue was $241.9 million, a 4% decrease from the prior year, driven by an 8% decrease in volume, partially offset by a 4% favorable price and mix.

Operational Metrics

• Net Income: Fiscal 2025 net income was $51.1 million, compared to $209.9 million in the prior year, impacted by a $217.2 million charge related to goodwill and intangible asset impairments in the CPP segment.
• Adjusted EBITDA: Fiscal 2025 adjusted EBITDA was $522.3 million, a 2% increase from the prior year. Fourth quarter adjusted EBITDA was $137.9 million, slightly up from $137.5 million in the prior year quarter.

Cash Flow

• Free Cash Flow: Free cash flow for fiscal 2025 was $323.0 million, supporting share repurchases and dividends.

Unique Metrics

• Leverage Ratio: Improved to 2.4x from 2.6x in the prior year.

Outlook / Guidance

• For fiscal 2026, Griffon expects revenue to be $2.5 billion and adjusted EBITDA to range between $580 million and $600 million, excluding unallocated costs of $58 million. Free cash flow is expected to exceed net income, with capital expenditures of $60 million. The company anticipates HBP and CPP revenue to be in line with 2025, with HBP EBITDA margin exceeding 30% and CPP approximately 10%.