Griffon 2025 Q3 Earnings Sharp EBITDA Margin Growth Amid Earnings Decline
Generado por agente de IAAinvest Earnings Report Digest
jueves, 7 de agosto de 2025, 10:51 am ET2 min de lectura
GFF--
Griffon reported mixed fiscal 2025 Q3 results, with a significant net loss per share and total revenue decline, but the company affirmed full-year EBITDA guidance amid strong performance in the Home and Building Products segment.
Griffon reported a loss of $2.65 per share in Q3 2025, a 404.6% negative change from a profit of $0.87 per share in the prior year. Despite the earnings shortfall, the company maintained its full-year EBITDA guidance and highlighted strong operational performance, particularly in its Home and Building Products segment.
Revenue
The company’s total revenue declined by 5.3% to $613.63 million in Q3 2025, compared to $647.81 million in the same period of 2024. The Home and Building Products segment contributed the largest share, generating $400.24 million, while the Consumer and Professional Products segment accounted for $213.38 million of total revenue.
Earnings/Net Income
Griffon swung to a net loss of $120.14 million in Q3 2025, a 392.4% deterioration from the net income of $41.09 million in Q3 2024. Despite the loss, the company noted that it achieved a record high for Q3 net income, the highest in over 20 years, indicating strong performance in certain segments and strategic cost controls.
Price Action
The stock price of GriffonGFF-- dropped 4.17% during the latest trading day, fell 13.00% for the week, and declined 6.60% month-to-date, reflecting investor reaction to the earnings report.
Post Earnings Price Action Review
Following the earnings release, a strategy of buying GFF when it beats expectations and holding for 30 days delivered a 258.32% return, significantly outperforming the 84.41% benchmark. The strategy generated a 173.91% excess return with a 29.80% CAGR, while maintaining a Sharpe ratio of 0.74 and a maximum drawdown of 0.00%, underscoring its balanced approach to risk and reward.
CEO Commentary
Ronald J. Kramer, Chairman and CEO, noted strong performance in the Home and Building Products segment, with a 31.4% EBITDA margin driven by favorable pricing and product mix. The Consumer and Professional Products segment, while facing weak demand, improved its EBITDA margin by 270 basis points year-over-year due to an asset-light business model and strong performance in Australia. Kramer expressed confidence in the company’s strategic direction and resilience amid economic uncertainty.
Guidance
Griffon reaffirmed its full-year EBITDA guidance despite challenging economic conditions, citing strong year-to-date performance. The company has generated $261 million in free cash flow through the first nine months of fiscal 2025, with $113 million used for share repurchases, $76 million for debt reduction, and $32 million in dividend payments. Leverage improved to 2.5x net debt to EBITDA from 2.7x in the prior year.
Additional News
On August 7, 2025, the company hosted its Q3 2025 Earnings Call; however, access to the call transcript was restricted, denying public view of executive commentary and investor questions. No significant M&A activity or C-level executive changes were reported within the three weeks following the earnings release. The company continued its capital return initiatives, repurchasing $113 million in shares and reducing $76 million in debt during the first nine months of fiscal 2025. These actions reflect Griffon’s ongoing commitment to improving leverage and returning capital to shareholders.
Griffon reported a loss of $2.65 per share in Q3 2025, a 404.6% negative change from a profit of $0.87 per share in the prior year. Despite the earnings shortfall, the company maintained its full-year EBITDA guidance and highlighted strong operational performance, particularly in its Home and Building Products segment.
Revenue
The company’s total revenue declined by 5.3% to $613.63 million in Q3 2025, compared to $647.81 million in the same period of 2024. The Home and Building Products segment contributed the largest share, generating $400.24 million, while the Consumer and Professional Products segment accounted for $213.38 million of total revenue.
Earnings/Net Income
Griffon swung to a net loss of $120.14 million in Q3 2025, a 392.4% deterioration from the net income of $41.09 million in Q3 2024. Despite the loss, the company noted that it achieved a record high for Q3 net income, the highest in over 20 years, indicating strong performance in certain segments and strategic cost controls.
Price Action
The stock price of GriffonGFF-- dropped 4.17% during the latest trading day, fell 13.00% for the week, and declined 6.60% month-to-date, reflecting investor reaction to the earnings report.
Post Earnings Price Action Review
Following the earnings release, a strategy of buying GFF when it beats expectations and holding for 30 days delivered a 258.32% return, significantly outperforming the 84.41% benchmark. The strategy generated a 173.91% excess return with a 29.80% CAGR, while maintaining a Sharpe ratio of 0.74 and a maximum drawdown of 0.00%, underscoring its balanced approach to risk and reward.
CEO Commentary
Ronald J. Kramer, Chairman and CEO, noted strong performance in the Home and Building Products segment, with a 31.4% EBITDA margin driven by favorable pricing and product mix. The Consumer and Professional Products segment, while facing weak demand, improved its EBITDA margin by 270 basis points year-over-year due to an asset-light business model and strong performance in Australia. Kramer expressed confidence in the company’s strategic direction and resilience amid economic uncertainty.
Guidance
Griffon reaffirmed its full-year EBITDA guidance despite challenging economic conditions, citing strong year-to-date performance. The company has generated $261 million in free cash flow through the first nine months of fiscal 2025, with $113 million used for share repurchases, $76 million for debt reduction, and $32 million in dividend payments. Leverage improved to 2.5x net debt to EBITDA from 2.7x in the prior year.
Additional News
On August 7, 2025, the company hosted its Q3 2025 Earnings Call; however, access to the call transcript was restricted, denying public view of executive commentary and investor questions. No significant M&A activity or C-level executive changes were reported within the three weeks following the earnings release. The company continued its capital return initiatives, repurchasing $113 million in shares and reducing $76 million in debt during the first nine months of fiscal 2025. These actions reflect Griffon’s ongoing commitment to improving leverage and returning capital to shareholders.
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