Griffon Corporation's Q2 2025: Navigating Stormy Seas with a Steady Hand

Griffon Corporation (NYSE: GFF) just reported its Q2 2025 earnings, and the results are a mixed bag of challenges and resilience. Let’s dive into the numbers, because while revenue took a hit, this company isn’t just surviving—it’s showing some serious margin magic.

The Numbers: Revenue Down, But Margins Hold Steady

Griffon’s total revenue dropped 9% year-over-year to $611.7 million, missing Wall Street’s $616 million estimate. But here’s the kicker: adjusted EBITDA fell just 12% to $118.5 million, and diluted EPS came in at $1.23—beating estimates by a dime. The company isn’t just fighting the economic headwinds; it’s using them to its advantage.

Segment Breakdown: HBP Holds Fort, CPP Surprises

Griffon’s two segments are telling different stories:
- Home & Building Products (HBP): Revenue fell 6% to $368.2 million, but its EBITDA margin stayed above 30%, thanks to a focus on high-margin products and cost discipline. CEO Ron Kramer called this segment a “rock” in a stormy market.
- Consumer & Professional Products (CPP): Revenue plunged 13% to $243.5 million, but adjusted EBITDA jumped 18% to $23.7 million. How? Global sourcing in Australia and cost-cutting initiatives turned the tide.

The takeaway? Griffon isn’t just a one-trick pony. Even as revenue stumbles, its operational excellence is paying off.

Balance Sheet: Cash Up, Debt Stable, and Buying Back Shares

• Cash: Increased to $127.8 million, up from $114.4 million at the end of 2024.
• Debt: Flat at $1.53 billion, showing no reckless borrowing.
• Share Repurchases: $72.9 million spent so far in 2025, with $359.8 million remaining in its buyback program.

This is a company that’s protecting its cash flow and rewarding shareholders.

Analysts Are Split, but the Upside Looks Strong

• Zacks Rank #3 (Hold): Analysts are cautious on revenue trends, but…
• Price Targets: A $98.14 12-month target (40% upside from $69.66) vs. a conservative $43.63 estimate. The disconnect? Bulls see margin resilience and buybacks as a long-term win.

Risks to Watch

• Economic Uncertainty: Griffon’s exposure to housing and consumer markets means it’s not immune to broader slowdowns.
• Revenue Declines: The 9% drop isn’t trivial. Management must prove it can reverse course.

Conclusion: A Buy for the Brave?

Griffon’s Q2 results are a reminder that margin strength trumps revenue weakness. With a $98 price target on the table, this stock could be a diamond in the rough—if investors are willing to bet on management’s ability to execute.

The Numbers Back the Bull Case:
- The HBP segment’s 30%+ margins are a rare find in today’s market.
- CPP’s turnaround shows operational agility.
- The company’s $359 million buyback program is a clear sign of confidence.

The Risks Are Real, But Manageable:
- If the housing market tanks further, HBP could struggle.
- Global supply chain issues might eat into margins again.

For now, Griffon is a “Hold” with Buy potential. If the stock dips below $65, it’s a screaming buy—especially with that $98 target lurking. Stay tuned!

This isn’t just about Q2—it’s about Griffon’s long game. And right now, the margins are winning.