Griffon (GFF) Q3 2025 earnings summary

Executive summary

• Third quarter revenue was $613.6 million, down 5% year-over-year, with a net loss of $120.1 million due to a $243.6 million impairment charge in the CPP segment, mainly related to Hunter Fan.

• Adjusted net income for Q3 2025 was $69.2 million ($1.50/share), up from $60.5 million ($1.24/share) year-over-year.

• HBP segment outperformed with a nine-month EBITDA margin of 31.4%, while CPP faced demand and tariff headwinds but improved year-over-year EBITDA margin by 270 basis points due to global sourcing initiatives.

• The company completed the global sourcing expansion for CPP, reducing footprint and headcount, and acquired Pope in Australia to expand CPP's product portfolio.

• Year-to-date, $113 million in stock repurchases, $76 million debt reduction, and $32 million in dividends paid.

Financial highlights

• Q3 2025 revenue was $613.6 million (down 5% year-over-year); adjusted EBITDA before unallocated amounts rose 5% to $148 million.

• Gross profit was $265.2 million, up from $249.1 million; normalized gross margin increased 230 basis points to 43.2%.

• Net loss for the quarter was $120.1 million ($2.65/share) vs. net income of $41.1 million ($0.84/share) prior year; adjusted net income was $69.2 million ($1.50/share) vs. $61 million ($1.24/share).

• Free cash flow for the nine months ended June 30, 2025, was $260.5 million.

• Operating cash flow for nine months: $282.5 million; cash and equivalents at June 30, 2025: $107.3 million.

Outlook and guidance

• Full-year EBITDA guidance reaffirmed at $575–$600 million; revenue guidance reduced by $100 million to $2.5 billion due to CPP weakness.

• HBP margin expected in excess of 31%; CPP margin now expected at ~8%.

• Net interest expense guidance lowered to $95 million; capital expenditures now $60 million.

• Free cash flow expected to exceed net income; normalized tax rate ~28%.

• The company intends to maintain quarterly dividends and continue share repurchases, with $319.6 million remaining under the buyback authorization.