Griffon 2025 Q4 Earnings Record Q4 Net Income Despite 30.2% Decline

Griffon (GFF) reported mixed results for fiscal 2025 Q4, with revenue slightly outperforming expectations but earnings metrics showing declines. The company’s 0.4% revenue growth to $662.18 million contrasted with a 27.2% drop in EPS and a 30.2% net income decline. Guidance for 2026 maintained revenue stability at $2.5 billion, aligning with 2025 levels while targeting EBITDA margins above 30% for HBP and ~10% for CPP.

Revenue

Griffon’s total revenue increased marginally to $662.18 million in Q4 2025, up 0.4% from $659.67 million in the prior-year period. The Home and Building Products (HBP) segment drove performance, with a 3% revenue increase to $420.3 million, fueled by favorable pricing and commercial segment strength. Conversely, the Consumer and Professional Products (CPP) segment saw a 4% revenue decline to $241.9 million, attributed to weaker consumer demand in North America and the U.K.

Earnings/Net Income

Griffon’s earnings per share (EPS) fell 27.2% to $0.94 in Q4 2025, down from $1.29 in Q4 2024, while net income dropped 30.2% to $43.64 million from $62.49 million. Despite the declines, the company achieved a record Q4 net income, the highest in over two decades.

Price Action

Griffon’s stock price declined 2.34% in the latest trading day, 3.54% for the week, and 7.96% month-to-date. Post-earnings, the stock initially rose 3.19% in pre-market trading before settling at $68.99.

Post-Earnings Price Action Review

The strategy of purchasing Griffon shares following a quarterly revenue drop and holding for 30 days has historically outperformed the 3-year annualized return, suggesting market overreaction to earnings disappointments. This pattern indicates potential mean reversion opportunities for investors.

CEO Commentary

Ronald Kramer, CEO, highlighted HBP’s 31.2% EBITDA margin and CPP’s 18% EBITDA growth, despite sales declines. He emphasized HBP’s innovation, including the VertiStack Avante garage door, and CPP’s asset-light model. Kramer also noted $560 million in share repurchases since 2023, a 22% dividend increase, and $116 million in debt reduction, expressing optimism about 2026 margin expansion and capital allocation.

Guidance

Griffon projected 2026 revenue of $2.5 billion (flat vs. 2025) and adjusted EBITDA of $580–$600 million, excluding $58 million in unallocated costs. HBP EBITDA margin is expected to exceed 30%, while CPP targets ~10%. Free cash flow is anticipated to surpass net income, with $60 million in CAPEX and a 28% tax rate. Kramer reiterated a $1 billion 3-year free cash flow target for buybacks and strategic investments.

Additional News

Griffon announced a 22% quarterly dividend increase to $0.22 per share, reflecting confidence in its capital return strategy. The company also repurchased 10.8 million shares for $560 million since 2023, underscoring its commitment to shareholder value. CEO Kramer highlighted HBP’s long-term margin potential and CPP’s path to 15% EBITDA margins, while CFO Brian Harris reaffirmed 2026 guidance and emphasized operational discipline.

Griffon’s Q4 results underscored its resilience in a challenging macroeconomic environment, with HBP’s strong performance offsetting CPP’s struggles. The company’s focus on innovation, margin expansion, and capital returns positions it to navigate 2026’s uncertainties while pursuing long-term growth.