Griffon Corporation ("Griffon" or the "Company") (NYSE:GFF) reported its financial results for the fiscal 2025 third quarter ended June 30, 2025. The company's revenue for the third quarter totaled $613.6 million, representing a 5% decrease compared to $647.8 million in the prior year quarter.
During the fiscal 2025 third quarter, Griffon recorded a net loss of $120.1 million, or $2.65 per share, which included a charge of $217.2 million, net of tax, related to the impairment of Hunter Fan acquisition related goodwill and intangible assets in the Consumer and Professional Products ("CPP") segment. In comparison, the prior year's third quarter net income was $41.1 million, or $0.84 per share.
Adjusted net income, which excludes all items that affect comparability from both periods, was $69.2 million, or $1.50 per share, in the current year quarter compared to $60.5 million, or $1.24 per share, in the prior year quarter.
Adjusted EBITDA for the third quarter was $134.7 million, marking a 7% increase from the prior year quarter of $125.5 million. Excluding unallocated amounts, adjusted EBITDA increased 5% from the prior year to $148.0 million, compared to $140.8 million.
The company's Home and Building Products ("HBP") segment saw a 2% increase in third-quarter revenue to $400.2 million, driven by favorable price and mix, while the Consumer and Professional Products ("CPP") segment experienced a 16% decrease in revenue to $213.4 million. The CPP segment's adjusted EBITDA was $19.2 million, down 14% from $22.3 million in the prior year quarter.
Griffon Corporation generated $261 million of free cash flow during the first nine months of fiscal 2025. The company repurchased $113 million of its stock, reduced debt by $76 million, and paid $32 million in dividends while reducing leverage 0.1x to 2.5x.
The company's updated 2025 outlook includes a reduction in expected revenue to $2.5 billion from the prior guidance of $2.6 billion, mainly attributable to the CPP segment. However, the segment adjusted EBITDA guidance of $575 million to $600 million is being maintained, with the upper end of the range reflecting potential incremental volume.
Griffon Corporation expects the HBP segment margin to exceed 31% and the CPP EBITDA margin to be approximately 8%. Additionally, the company now anticipates interest expense to be $95 million versus the prior guidance of $102 million, and capital expenditures of $60 million versus the previous guidance of $65 million.
The company's conference call to discuss these results will be held on August 6, 2025, at 8:30 am ET.
As of June 30, 2025, Griffon had cash and equivalents of $107.3 million and total debt outstanding of $1.45 billion, resulting in net debt of $1.34 billion. Leverage, as calculated in accordance with the company's credit agreement, was 2.5x net debt to EBITDA compared to 2.7x at June 30, 2024, and 2.6x at September 30, 2024. Borrowing availability under the revolving credit facility was $449.5 million, subject to certain loan covenants.
The company's share repurchases during the quarter ended June 30, 2025, totaled 0.6 million shares for a total of $40.3 million, with $319.6 million remaining under the board authorized share repurchase program as of June 30, 2025. As a result of these announcements, the company's shares have moved -11.67% on the market, and are now trading at a price of $72.73. If you want to know more, read the company's complete 8-K report here.
