Griffon (GFF) Q1 2025 earnings summary

Executive summary

• Fiscal Q1 2025 revenue was $632.4M, down 2% year-over-year, with HBP flat and CPP down 4% due to lower North American and UK demand, partially offset by growth in Australia and the Pope acquisition.

• Net income rose to $70.9M ($1.49/share) from $42.2M ($0.82/share) in the prior year, driven by higher operating income and real estate sale gains.

• Adjusted net income was $65.9M ($1.39/share), up from $55.3M ($1.07/share) year-over-year.

• Free cash flow reached $142.7M, reflecting strong operating results and real estate sale proceeds.

• Portfolio reshaping through acquisitions and divestitures has positioned the company for growth and improved profitability.

Financial highlights

• Gross profit (GAAP) was $264.3M, up from $236.6M; gross margin improved to 41.8% from 36.8%.

• Adjusted EBITDA was $131.2M, up from $116.4M; segment adjusted EBITDA margin for HBP was 32.1% and for CPP 7.7%.

• GAAP net income was $71M ($1.49/share), up from $42M ($0.82/share); adjusted net income was $66M ($1.39/share), up from $55M ($1.07/share).

• Free cash flow exceeded net income for the quarter.

• Net debt at quarter-end was $1.32B; leverage ratio improved to 2.4x from 2.5x year-over-year.

Outlook and guidance

• Fiscal 2025 guidance remains unchanged: $2.6B in revenue, $575–$600M in segment-adjusted EBITDA, and free cash flow exceeding net income.

• Management expects continued benefits from the CPP asset-light model and global sourcing, with ongoing focus on cost control and margin improvement.

• HBP and CPP revenues are expected to be in line with 2024; HBP to benefit from residential volume, offset by weaker commercial demand.

• CPP sales to grow in Australia but remain weak in North America through the first half of 2025.

• Tariff mitigation strategies are expected to keep results within guidance.