What were the key takeaways from Griffon’s earnings call?

What does Griffon do and what are its main business segments?

What guidance did Griffon's management provide for the next earnings period?

What is the market's earnings forecast for Griffon next quarter?

Did Griffon beat or miss consensus estimates last quarter?

What is Griffon's gross profit margin?

What is the revenue and EPS growth rate for Griffon year over year?

What factors drove the changes in Griffon's revenue and profit?

- **Segment Strength**: HBP 31.2% EBITDA margin, CPP 10%+ margin growth.
- **Cash Generation**: $323M free cash flow FY25, $1B+ 3-year target.
- **Strategic Resilience**: Global sourcing, innovation, and disciplined capital allocation.

**【Management Opening Remarks】**
- Press release available at www.griffon.com. Forward-looking statements subject to risks and uncertainties. Non-GAAP reconciliations provided in earnings release.

**【CEO Commentary】**
- **HBP Segment Performance**: FY25 revenue $1.6B (flat YoY), EBITDA margin 31.2%. Innovation recognized with awards for VertiStack garage door and Home Depot partnership.
- **CPP Segment Growth**: FY25 revenue $936M (-10% YoY), EBITDA margin up 200bps driven by global sourcing and asset-light model. Australia and Pope acquisition offset U.S./U.K. weakness.
- **Capital Allocation**: $323M free cash flow FY25, $174M returned to shareholders via buybacks ($135M) and dividends (+22% Q/Q). Debt reduced to 2.4x from 2.6x.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Revenue $662M, EBITDA $138M. HBP gross margin 41.7% (+60bps YoY). Free cash flow guidance $>2026 net income.
- **2026 Outlook**: Revenue $2.5B (flat), EBITDA $580-600M. HBP >30% margin, CPP 10-15% margin target.

**【Q&A Highlights】**
- **Tariff Mitigation**: Global supply chain offsets 85% of business unaffected by tariffs. 100bps margin improvement YoY.
- **Consumer Recovery**: 15% CPP margin target contingent on economic normalization.
- **Shareholder Returns**: $1B+ free cash flow 3-year goal.

GFF

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