Griffon Corporation Reports Q1 Fiscal 2025 Results with Revenue of $632.4M and Increased Net Income

Griffon Corporation reported its financial results for the first quarter of fiscal 2025, ending December 31, 2024, revealing a revenue of $632.4 million, a decrease of 2% from $643.2 million in the same period last year. The decline was primarily attributed to a 4% drop in revenue from the Consumer and Professional Products (CPP) segment, while the Home and Building Products (HBP) segment maintained consistent revenue levels. Net income for the quarter was $70.9 million, or $1.49 per share, compared to $42.2 million, or $0.82 per share, in the prior year, reflecting a significant increase in profitability.

The company experienced notable operational changes, including a gain on the sale of real estate amounting to $8.0 million, which positively impacted net income. In contrast, the previous year included restructuring charges of $12.4 million, which had a negative effect on profitability. Adjusted net income, excluding these items, was $65.9 million, or $1.39 per share, compared to $55.3 million, or $1.07 per share, in the prior year, indicating improved operational efficiency.

Strategically, Griffon expanded its operations in Australia by acquiring Pope, a provider of residential watering products, for approximately $14.5 million. This acquisition is expected to contribute approximately $25 million in revenue over the next twelve months and marks the seventh acquisition in Australia since 2013. The company continues to focus on enhancing its product portfolio and market presence through strategic acquisitions and operational improvements.

Operationally, Griffon reported a decrease in customer demand in North America and the UK, leading to an 8% decline in volume for the CPP segment. However, the segment saw growth in Australia, partially offsetting the decline. The company’s total assets decreased to $2.3 billion from $2.4 billion at the end of the previous fiscal year, with total liabilities also declining. The company’s cash and equivalents increased to $152.0 million, bolstered by strong cash flows from operations, which totaled $142.9 million for the quarter.

Looking ahead, Griffon remains optimistic about its growth trajectory, emphasizing its commitment to strategic acquisitions and operational efficiency. The company plans to continue leveraging its diverse portfolio to mitigate market cyclicality and enhance shareholder value. The Board of Directors declared a quarterly cash dividend of $0.18 per share, reflecting the company's ongoing commitment to returning value to shareholders while maintaining a strong liquidity position.