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1. Company Snapshot

1.a. Company Description

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally.Its Consumer and Professional Products segment manufactures and markets long-handled tools and landscaping products for homeowners and professionals; wood and wire closet organization, general living storage, and wire garage storage products to home center retail chains, mass merchandisers, and direct-to builder professional installers; wheelbarrows and lawn carts; snow, striking, and hand tools; planters and lawn accessories; garden hoses; and pruners, loppers, shears, and other tools, as well as cleaning products for professional, home, and industrial use.The company's Home & Building Products segment manufactures and markets residential and commercial garage doors for professional dealers and various home center retail chains; and rolling steel door and grille products for commercial, industrial, institutional, and retail uses.


It sells its products under the True Temper, AMES, ClosetMaid, Clopay, Ideal, Holmes, CornellCookson, Garant, Harper, UnionTools, Westmix, Cyclone, Southern Patio, Northcote Pottery, Nylex, Hills, Kelkay, Tuscan Path, La Hacienda, Kelso, Dynamic Design, Apta, Quatro Design, Razor-Back, Jackson, Darby, Trojan, Supercraft, NeverLeak, Maximum Load, SuperSlide, ShelfTrack, MasterSuite, Suite Symphony, ExpressShelf, Style+, and SpaceCreations brand names.The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992.Griffon Corporation was founded in 1959 and is headquartered in New York, New York.

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1.b. Last Insights on GFF

Griffon Corporation's recent performance was negatively impacted by a decline in revenue in its Consumer and Professional Products segment, primarily due to tariff issues. Although the company's Home and Building Products segment showed 3% revenue growth, overall revenue decreased by 4% to $2.5 billion in fiscal 2025. Earnings per share (EPS) came in at $1.54, missing estimates of $1.56. Management expects revenue to dip further, but profitability is expected to improve marginally. The company declared a quarterly dividend of $0.22 per share, payable on December 16, 2025.

1.c. Company Highlights

2. Griffon Corporation's Q3 Earnings: Mixed Performance with Reaffirmed Guidance

In its third quarter fiscal 2025 earnings report, Griffon Corporation reported a 5% year-over-year decline in revenue to $614 million, while adjusted EBITDA increased 5% to $148 million. Gross profit margin expanded 230 basis points to 43.2%. The company's adjusted EPS came in at $1.5, in line with estimates. Despite the challenges in the Consumer and Professional Products (CPP) segment, the company reaffirmed its full-year EBITDA guidance of $575 million to $600 million.

Publication Date: Aug -09

📋 Highlights
  • HBP Segment Performance:: EBITDA margin reached 31.4%, driven by favorable pricing and product mix.
  • Revised Guidance:: Full-year EBITDA reaffirmed at $575–$600M, but revenue lowered by $100M to $2.5B.
  • Stock Repurchases:: $538M spent repurchasing 10.5M shares, reducing outstanding shares by 18.4%.
  • Impairment Charge:: $244M pretax charge recorded for goodwill and intangible asset impairment.
  • Free Cash Flow Outlook:: Expects to exceed net income, with $1B+ free cash flow generated over fiscal 2025 and next two years.

Segment Performance

The Home & Building Products (HBP) segment continued to drive the company's performance, with an EBITDA margin of 31.4% driven by favorable price and mix. However, the CPP segment was impacted by weak demand and increased tariffs, resulting in a decrease in sales volume. The company's commitment to using strong operating performance and free cash flow to drive a capital allocation strategy that delivers long-term value for shareholders was reiterated by Ron Kramer, Chairman and CEO.

Guidance and Outlook

The company expects revenue to be $2.5 billion, with HBP segment margin in excess of 31% and CPP segment margin of approximately 8%. Net interest expense is expected to be $95 million, capital expenditures $60 million, and free cash flow to exceed net income. Griffon Corporation anticipates generating over $1 billion of free cash flow during this fiscal year and the next two.

Valuation

With a P/E Ratio of 45.34 and EV/EBITDA of 41.31, the stock appears to be trading at a premium. The company's ROIC of 6.84% and ROE of 38.27% suggest that its profitability is strong, but the Net Debt / EBITDA ratio of 0.93 indicates a moderate level of leverage. The Free Cash Flow Yield of 10.32% and Dividend Yield of 0.99% may provide some comfort to investors seeking income generation.

3. NewsRoom

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Edgestream Partners L.P. Purchases Shares of 74,174 Griffon Corporation $GFF

Dec -03

Source: defenseworld.net

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Franklin Resources Inc. Cuts Stake in Griffon Corporation $GFF

Dec -02

Source: defenseworld.net

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Griffon Corporation: The Door To Upside Hasn't Shut Yet

Nov -23

Source: seekingalpha.com

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Griffon's Earnings Miss Estimates in Q4, Revenues Increase 5% Y/Y

Nov -20

Source: zacks.com

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Griffon: Decent Q4 And FY25 Results, But Tariff Impacts Still Linger

Nov -20

Source: seekingalpha.com

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Griffon Corporation (GFF) Q4 2025 Earnings Call Transcript

Nov -19

Source: seekingalpha.com

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Griffon (GFF) Q4 Earnings Lag Estimates

Nov -19

Source: zacks.com

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Griffon Corporation Announces Annual and Fourth Quarter Results

Nov -19

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.84%)

6. Segments

Home and Building Products

Expected Growth: 1.8%

Griffon Corporation's Home and Building Products segment growth of 1.8% is driven by increasing demand for renovation and remodeling projects, fueled by rising home prices and aging housing stock. Additionally, growth in the repair and remodel market, driven by extreme weather events, contributes to the segment's expansion.

Consumer and Professional Products

Expected Growth: 1.9%

Griffon Corporation's Consumer and Professional Products segment growth of 1.9% is driven by increasing demand for DIY and home improvement projects, steady sales of cleaning and maintenance products, and a moderate recovery in the construction industry. Additionally, the company's focus on product innovation, strategic pricing, and cost savings initiatives also contribute to the segment's growth.

7. Detailed Products

Consumer and Professional Products

Griffon Corporation's Consumer and Professional Products segment offers a range of products including trash bags, storage bags, and cleaning supplies under the brand names of ClosetMaid, Stanley, and HomeBrands.

Home and Building Products

Griffon Corporation's Home and Building Products segment provides a variety of products including door and window systems, roofing, and siding under the brand names of AmesburyTruth and Clopay.

Defense Electronics

Griffon Corporation's Defense Electronics segment offers a range of products including intelligence, surveillance, and reconnaissance (ISR) systems, and electronic warfare systems under the brand name of Telephonics.

8. Griffon Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Griffon Corporation is moderate due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry in the industry, making it possible for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 83.95%
Debt Cost 8.93%
Equity Weight 16.05%
Equity Cost 10.95%
WACC 9.25%
Leverage 523.21%

11. Quality Control: Griffon Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

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Griffon

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Value: 3.4

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Quality: 4.8

Yield: 5.0

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A-Score: 4.8/10

Value: 6.8

Growth: 4.4

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.54$

Current Price

73.55$

Potential

-0.00%

Expected Cash-Flows