Griffon Corp Revenue Down 2%; Net Income Soars

By Bobby Samwell • Wednesday, November 13 10:25 • Permanent Link

Griffon Corporation ("Griffon") has released its annual and fourth quarter results for the fiscal year ending September 30, 2024. The company reported total revenue for fiscal 2024 of $2.6 billion, marking a 2% decrease from the prior year. However, net income for fiscal 2024 saw a significant increase, totaling $209.9 million, or $4.23 per share, compared to $77.6 million, or $1.42 per share, in the prior year.

Excluding items affecting comparability, the adjusted net income for fiscal 2024 was $254.2 million, or $5.12 per share, compared to $247.7 million, or $4.54 per share, in the prior year. Adjusted EBITDA for fiscal 2024 was $513.6 million, representing a 2% increase from the prior year's $505.3 million.

In the fourth quarter, Griffon saw a 3% increase in revenue, which totaled $659.7 million compared to $641.4 million in the prior year quarter. Net income for the fourth quarter was $62.5 million, or $1.29 per share, compared to $42.0 million, or $0.79 per share, in the prior year quarter.

Adjusted EBITDA for the fourth quarter also showed significant growth, totaling $137.5 million, marking a 13% increase from the prior year quarter's $121.3 million.

The Home and Building Products ("HBP") segment's revenue in 2024 remained consistent with the prior year, while the Consumer and Professional Products ("CPP") segment's revenue declined by 6% compared to 2023. However, the CPP segment's adjusted EBITDA for 2024 increased by 44% compared to 2023, indicating improved profitability.

Griffon's board has approved a $400 million share buyback authorization and a 20% increase in the regular quarterly dividend to $0.18 per share, reflecting confidence in the company's strategic plan and outlook.

Looking ahead to fiscal year 2025, Griffon expects revenue to remain consistent with 2024 at $2.6 billion and anticipates adjusted EBITDA in a range of $575 million to $600 million, excluding certain costs. The company also expects free cash flow to exceed net income, with interest expense projected to be $102 million and a normalized tax rate of 28%.

Griffon's share repurchase activities have been significant, with 9.4 million shares of common stock repurchased since April 2023, totaling $458.0 million.

As a result of these announcements, the company's shares have moved 9.4% on the market, and are now trading at a price of $74.51. For the full picture, make sure to review Griffon's 8-K report.

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