Griffon Corporation Reports Significant Decline in Q3 Financial Performance

Griffon Corporation reported a significant decline in financial performance for the third quarter and nine months ended June 30, 2025, as detailed in its latest 10-Q filing. The company recorded revenues of $613.6 million for the quarter, down 5% from $647.8 million in the same period last year. For the nine-month period, revenues also decreased by 5% to $1.86 billion from $1.96 billion. The net loss for the quarter was $120.1 million, or $2.65 per share, compared to a net income of $41.1 million, or $0.84 per share, in the prior year. The results were adversely affected by goodwill and intangible asset impairments totaling $243.6 million, which significantly impacted profitability.

In terms of operational changes, Griffon has been actively restructuring its operations, particularly within its Consumer and Professional Products (CPP) segment, which saw a 16% revenue decline in the latest quarter. This drop was attributed to decreased consumer demand and disruptions in ordering patterns due to increased tariffs. Conversely, the Home and Building Products (HBP) segment experienced a slight revenue increase of 2%, driven by favorable pricing and product mix. The company also completed the acquisition of Pope, an Australian provider of residential watering products, which is expected to enhance its product portfolio in that market.

Griffon's total assets decreased to $2.09 billion as of June 30, 2025, down from $2.37 billion at the end of the previous fiscal year. The decline in assets was primarily due to the impairment of goodwill and intangible assets, which reduced the carrying value of these items significantly. The company’s total liabilities also decreased to $2.02 billion from $2.15 billion, reflecting a reduction in long-term debt and other liabilities. The company’s shareholders' equity fell sharply to $63.9 million from $224.9 million, indicating a substantial impact from the reported losses.

Looking ahead, Griffon remains focused on its strategic objectives, including maintaining market leadership through innovation and brand strength. The company plans to continue evaluating acquisition opportunities to further diversify its portfolio. Despite the current challenges, management expressed confidence in the long-term growth potential of its segments and the effectiveness of its restructuring initiatives. The company also maintains a robust liquidity position, with $107.3 million in cash and equivalents and access to a $500 million revolving credit facility, which it believes will support its operational and strategic needs moving forward.