Griffon Corporation Reports 9% Revenue Decline in Q2 Fiscal 2025

Griffon Corporation reported a decline in financial performance for the second quarter of fiscal 2025, with revenues of $611.7 million, down 9% from $672.9 million in the same quarter last year. The decrease was attributed to a 6% drop in the Home and Building Products (HBP) segment and a 13% decline in the Consumer and Professional Products (CPP) segment. Net income for the quarter was $56.8 million, or $1.21 per share, compared to $64.1 million, or $1.28 per share, in the prior year. For the six months ended March 31, 2025, total revenue was $1.24 billion, a 5% decrease from $1.32 billion, while net income increased to $127.6 million from $106.3 million.

The company experienced significant changes in its operational metrics, with HBP revenues falling to $368.2 million from $392.1 million, and CPP revenues decreasing to $243.5 million from $280.8 million. The decline in CPP was primarily driven by reduced consumer demand in North America and the UK, although the recent acquisition of Pope, an Australian provider of residential watering products, is expected to contribute approximately $25 million in revenue over the next year. The acquisition, completed on July 1, 2024, marks Griffon's seventh acquisition in Australia since 2013, further expanding its product portfolio in that market.

Griffon’s operational developments included a strategic review that resulted in $1.2 million in retention and other costs during the quarter. The company also reported a gain of $183,000 from the sale of real estate. The total cash flow from operating activities for the six months ended March 31, 2025, was $159.4 million, a decrease from $185.9 million in the prior year, primarily due to increased working capital needs. The company’s total assets decreased to $2.34 billion from $2.37 billion, while total liabilities also saw a reduction to $2.13 billion from $2.15 billion.

Looking ahead, Griffon remains focused on its strategic objectives, including maintaining market leadership through innovative products and expanding its global footprint. The company has emphasized its commitment to diversifying its operations and enhancing shareholder value through acquisitions and operational efficiencies. Despite the challenges posed by market conditions and reduced consumer demand, Griffon is optimistic about its growth prospects, particularly with the integration of recent acquisitions and ongoing efforts to optimize its supply chain. The company plans to continue evaluating potential acquisitions that align with its strategic goals while managing its capital structure effectively.