Griffon (GFF) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue was $2.6 billion, with adjusted EBITDA of $514 million and a 20% margin, reflecting strong operational performance, value creation initiatives, and portfolio reshaping.

• HBP and CPP segments leveraged leading brands and robust distribution networks to capitalize on favorable market trends, with HBP performance and improved CPP profitability driving results.

• Net income for 2024 was $209.9 million, up from $77.6 million in 2023; adjusted net income rose to $254.2 million.

• Portfolio reshaping through acquisitions and divestitures, including ClosetMaid and Hunter Fan, has positioned the company for growth and efficiency.

• Free cash flow for 2024 was $326.1 million, supporting $310 million in shareholder returns via dividends and share repurchases.

Financial highlights

• FY24 revenue was $2.6 billion, up from $2.1 billion in FY20, representing a 6.1% CAGR over five years.

• Adjusted EBITDA for 2024 was $513.6 million, up 2% year-over-year; Q4 adjusted EBITDA was $137.5 million, up 13%.

• Adjusted EPS for 2024 was $5.12, up from $4.54 in 2023; Q4 adjusted EPS was $1.47, up from $1.19.

• Net debt at year-end was $1.41 billion, with a leverage ratio of 2.6x, improved from 3.4x in FY20.

• Gross margin for 2024 was 38.9%, with adjusted gross margin at 40.3%.

Outlook and guidance

• Fiscal 2025 revenue expected to be flat at $2.6 billion; adjusted EBITDA guidance is $575–$600 million.

• HBP and CPP segment revenues expected to be in line with 2024; HBP EBITDA margin to remain above 30%, CPP above 9%.

• Free cash flow in 2025 projected to exceed net income, with $65 million in capex planned.

• Interest expense for 2025 projected at $102 million; normalized tax rate expected at 28%.

• Over the next three years, free cash flow generation is expected to surpass $1 billion.