Griffon Corp's Q1 Revenue Down 2%, Net Income Up 68%

By Bobby Samwell • Wednesday, February 05 15:22 • Permanent Link

Griffon Corporation ("Griffon" or the "Company") has reported its fiscal 2025 first-quarter results ended December 31, 2024. The company's revenue for the first quarter was $632.4 million, representing a 2% decrease from the prior year quarter's revenue of $643.2 million.

The net income for the first quarter showed significant improvement, totaling $70.9 million or $1.49 per share, compared to $42.2 million or $0.82 per share in the prior year quarter. Adjusted net income, excluding items affecting comparability, was $65.9 million or $1.39 per share, compared to $55.3 million or $1.07 per share in the prior year quarter.

Adjusted EBITDA for the first quarter increased by 13% to $131.2 million from the prior year quarter's $116.4 million. Excluding unallocated amounts, adjusted EBITDA totaled $145.2 million, an 11% increase from the prior year's $130.3 million.

The Home and Building Products ("HBP") segment reported consistent revenue of $395.4 million, with adjusted EBITDA increasing by 2% to $127.0 million from the prior year quarter's $124.7 million.

The Consumer and Professional Products ("CPP") segment saw a 4% decrease in revenue to $237.0 million. However, adjusted EBITDA increased significantly to $18.2 million from $5.5 million in the prior year quarter, primarily due to the benefits from the global sourcing expansion initiative and increased revenue in Australia.

The effective tax rates for the quarters ended December 31, 2024, and 2023, were 27.3% and 29.9%, respectively. Excluding items affecting comparability, the effective tax rates were 27.7% and 27.9%, respectively.

As of December 31, 2024, Griffon had cash and equivalents of $152.0 million and total debt outstanding of $1.48 billion, resulting in net debt of $1.32 billion. The company's leverage, calculated in accordance with its credit agreement, improved to 2.4x net debt to EBITDA from 2.5x at December 31, 2023, and 2.6x at September 30, 2024. Free cash flow for the three-month period ended December 31, 2024, was $142.7 million.

During the quarter, the company repurchased 0.6 million shares for a total of $42.3 million, with $390.3 million remaining under the board authorized share repurchase program as of December 31, 2024.

As a result of these announcements, the company's shares have moved 9.5% on the market, and are now trading at a price of $81.38. For more information, read the company's full 8-K submission here.

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