Griffon (GFF) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue was $2.5 billion, with a 21% adjusted EBITDA margin and $522 million in adjusted EBITDA, reflecting strong operational performance despite a challenging macroeconomic environment and a $217.2 million after-tax impairment charge in the CPP segment.

• Portfolio reshaping through acquisitions and divestitures, and a focus on core categories, positioned the business for future growth and improved profitability.

• Continued investments in innovation, including award-winning new products and recognition from major partners.

• Returned $174 million to shareholders via dividends and share repurchases; leverage improved to 2.4x from 2.6x.

Financial highlights

• Fiscal 2025 revenue was $2.5 billion, with adjusted EBITDA of $522 million and adjusted net income of $263.6 million ($5.65 per share); free cash flow reached $323 million.

• Fourth quarter revenue was $662 million and adjusted EBITDA was $138 million, both consistent with the prior year.

• Gross margin for the year was 42.0%, up from 38.9% in 2024; normalized gross margin for Q4 was 41.7%.

• Net debt at year-end was $1.3 billion; leverage ratio improved to 2.4x net debt to EBITDA.

• Share repurchases totaled 1.9 million shares for $135 million in 2025; $298 million remains authorized.

Outlook and guidance

• Fiscal 2026 revenue expected to be consistent with 2025 at $2.5 billion; adjusted EBITDA guidance is $580–$600 million, with HBP EBITDA margin expected to remain above 30% and CPP margin around 10%.

• Free cash flow for 2026 projected to exceed net income; capital expenditures planned at $60 million.

• Interest expense for 2026 expected at $93 million; normalized tax rate at 28%.

• Slight 1–2% decrease in first half of 2026 expected, with a seasonal pickup in the second half.

• Regular quarterly dividend increased by 22% to $0.22 per share.