Griffon Corporation Reports $2.52 Billion Revenue, 4% Decline, and Strategic Acquisition of Pope

Griffon Corporation reported a revenue of $2.52 billion for the fiscal year ending September 30, 2025, a decrease of 4% from $2.62 billion in the previous year. The decline was primarily attributed to a 10% drop in revenue from its Consumer and Professional Products (CPP) segment, while the Home and Building Products (HBP) segment maintained consistent revenue levels. Gross profit increased to $1.06 billion, resulting in a gross margin of 42%, up from 38.9% in 2024. This improvement was achieved despite the revenue decline, as the company did not incur nonrecurring charges in 2025, contrasting with the previous year, which included restructuring charges.

In terms of strategic developments, Griffon announced the acquisition of Pope, an Australian provider of residential watering products, for approximately $14.5 million. This acquisition, completed on July 1, 2024, marks the seventh acquisition in Australia since 2013 and is expected to enhance the product portfolio of its AMES subsidiary. Additionally, Griffon expanded its global sourcing strategy in May 2023, which led to the closure of four manufacturing sites and a reduction of approximately 600 employees, aiming to create a more flexible and cost-effective sourcing model.

Operationally, Griffon employed around 5,100 individuals as of September 30, 2025, with significant reductions in the CPP segment due to the restructuring initiative. The company reported a notable reliance on a few key customers, with Home Depot accounting for 10% of consolidated revenue. The CPP segment experienced a 12% revenue decline, primarily due to decreased consumer demand and disrupted ordering patterns linked to increased tariffs. Despite these challenges, the segment's adjusted EBITDA improved by 18% to $85.5 million, driven by cost-saving measures from the global sourcing strategy.

The company faced significant impairment charges in 2025, totaling $243.6 million, primarily related to the Hunter Fan reporting unit, which was impacted by weak consumer demand and tariff disruptions. This resulted in a net income of $51.1 million, or $1.09 per share, compared to $209.9 million, or $4.23 per share, in the previous year. Looking ahead, Griffon anticipates continued challenges in the housing and commercial markets, which could affect its financial performance. The company remains focused on enhancing operational efficiencies and pursuing strategic acquisitions to bolster its market position.