How did Griffon's revenue and expenses trend in Q1 2025?

Griffon Corporation's revenue and expenses in Q1 2025 are best understood through several key points:

1. **Revenue Trend**: Griffon's revenue decreased by 2% year-over-year, amounting to $632 million in Q1 2025, slightly below the consensus estimate of $638.05 million. This decline was primarily due to a 4% revenue decrease in the Consumer and Professional Products segment, resulting from reduced consumer demand in North America and the UK. However, the Home and Building Products segment maintained steady revenue.
2. **Expense Trend**: The company's gross margin improved significantly, increasing by 3.2 percentage points to 41.8%. This improvement was driven by strategic cost management and market share gains, particularly in the garage door category. Despite this, selling, general, and administrative expenses remained relatively stable year-over-year at $152.2 million.
3. **Net Income Impact**: Despite the slight revenue decline, Griffon reported a significant increase in net income, rising to $70.9 million in Q1 2025, up from $42.2 million in the same quarter last year. This was primarily due to improved margins and effective cost management.
4. **EBITDA and Free Cash Flow**: The company's adjusted EBITDA increased by 13% year-over-year to $131.2 million, indicating improved operational efficiency and profitability. Additionally, Griffon delivered robust free cash flow of $143 million in Q1 2025, up from $42 million in the previous year.

In conclusion, while Griffon experienced a slight revenue decline, the company's strategic cost management, improved margins, and strong free cash flow contributed to a significant increase in net income in Q1 2025.