Latest news with #Griffon
Yahoo
06-08-2025
- Business
- Yahoo
Griffon (NYSE:GFF) Reports Sales Below Analyst Estimates In Q2 Earnings, Stock Drops
Multi-industry consumer and professional products manufacturer Griffon Corporation (NYSE:GFF) fell short of the market's revenue expectations in Q2 CY2025, with sales falling 5.3% year on year to $613.6 million. The company's full-year revenue guidance of $2.5 billion at the midpoint came in 2.3% below analysts' estimates. Its non-GAAP profit of $1.50 per share was in line with analysts' consensus estimates. Is now the time to buy Griffon? Find out in our full research report. Griffon (GFF) Q2 CY2025 Highlights: Revenue: $613.6 million vs analyst estimates of $650 million (5.3% year-on-year decline, 5.6% miss) Adjusted EPS: $1.50 vs analyst estimates of $1.50 (in line) Adjusted EBITDA: $134.7 million vs analyst estimates of $137.6 million (22% margin, 2.1% miss) EBITDA guidance for the full year is $587.5 million at the midpoint, above analyst estimates of $532 million Operating Margin: -20.5%, down from 16.7% in the same quarter last year Free Cash Flow Margin: 18.6%, up from 16.5% in the same quarter last year Market Capitalization: $3.87 billion Company Overview Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Griffon grew its sales at a sluggish 1.6% compounded annual growth rate. This wasn't a great result, but there are still things to like about Griffon. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Griffon's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 4.4% annually. This quarter, Griffon missed Wall Street's estimates and reported a rather uninspiring 5.3% year-on-year revenue decline, generating $613.6 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 3.9% over the next 12 months. While this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average. At least the company is tracking well in other measures of financial health. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Griffon has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 12.1%. This result isn't surprising as its high gross margin gives it a favorable starting point. Analyzing the trend in its profitability, Griffon's operating margin decreased by 4.3 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Griffon generated an operating margin profit margin of negative 20.5%, down 37.2 percentage points year on year. Conversely, its gross margin actually rose, so we can assume its recent inefficiencies were driven by increased operating expenses like marketing, R&D, and administrative overhead. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Griffon's EPS grew at an astounding 28.8% compounded annual growth rate over the last five years, higher than its 1.6% annualized revenue growth. However, we take this with a grain of salt because its operating margin didn't improve and it didn't repurchase its shares, meaning the delta came from reduced interest expenses or taxes. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. Griffon's two-year annual EPS growth of 12.1% was great and topped its two-year revenue performance. Diving into the nuances of Griffon's earnings can give us a better understanding of its performance. A two-year view shows that Griffon has repurchased its stock, shrinking its share count by 17%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. In Q2, Griffon reported adjusted EPS at $1.50, up from $1.24 in the same quarter last year. This print was close to analysts' estimates. Over the next 12 months, Wall Street expects Griffon's full-year EPS of $5.59 to grow 9.7%. Key Takeaways from Griffon's Q2 Results We were impressed by Griffon's optimistic full-year EBITDA guidance, which blew past analysts' expectations. On the other hand, its revenue missed and its full-year revenue guidance fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock traded down 8.4% to $75.49 immediately following the results. Griffon's earnings report left more to be desired. Let's look forward to see if this quarter has created an opportunity to buy the stock. If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Business Wire
06-08-2025
- Business
- Business Wire
Griffon Corporation Announces Third Quarter Results
NEW YORK--(BUSINESS WIRE)--Griffon Corporation ('Griffon' or the 'Company') (NYSE:GFF) today reported results for the fiscal 2025 third quarter ended June 30, 2025. Revenue for the third quarter totaled $613.6 million, a 5% decrease compared to $647.8 million in the prior year quarter. During the fiscal 2025 third quarter, Griffon recorded a net loss of $120.1 million, or $2.65 per share, which included a charge of $217.2 million, net of tax, or $4.69 per share, related to the impairment of Hunter Fan acquisition related goodwill and intangible assets in the Consumer and Professional Products ("CPP") segment. Prior year third quarter net income was $41.1 million, or $0.84 per share. Adjusted net income, which excludes all items that affect comparability from both periods, was $69.2 million, or $1.50 per share, in the current year quarter compared to $60.5 million, or $1.24 per share, in the prior year quarter. For a reconciliation of net income (loss) to adjusted net income (a non-GAAP measure), and earnings (loss) per share to adjusted earnings per share (a non-GAAP measure), see the attached table. Adjusted EBITDA for the third quarter was $134.7 million, a 7% increase from the prior year quarter of $125.5 million. Adjusted EBITDA, excluding unallocated amounts (primarily corporate overhead) of $13.3 million in the current quarter and $15.3 million in the prior year quarter, totaled $148.0 million, increasing 5% from the prior year of $140.8 million. For a reconciliation of adjusted EBITDA, a non-GAAP measure, to income (loss) before taxes, and the definition of adjusted EBITDA, see the attached table. 'Our Home and Building Products' ("HBP") segment continued its strong performance this quarter. For the first nine-months of the year, HBP exceeded our expectations led by an EBITDA margin of 31.4% driven by favorable price and mix,' said Ronald J. Kramer, Chairman and CEO of Griffon. 'Our Consumer and Professional Products segment has continued to be impacted by weak demand. However, through the first nine months, its EBITDA margin improved 270 basis points year-over-year driven by the transition of our U.S. operations to an asset-light business model and solid performance from our team in Australia. Given our overall year-to-date performance, and despite uncertain economic operating conditions, we are reaffirming our full-year EBITDA guidance.' 'During the first nine months of fiscal 2025, the company generated $261 million of free cash flow,' continued Mr. Kramer. 'So far this year, Griffon repurchased $113 million of its stock, reduced debt by $76 million, and paid $32 million in dividends while reducing leverage 0.1x to 2.5x. These actions underscore our confidence in the strategic direction of the company and the resiliency of our business.' Segment Operating Results Home and Building Products ("HBP") HBP's third quarter revenue of $400.2 million increased 2% from the prior year quarter due to favorable price and mix of 3%, partially offset by decreased volume of 1%. Adjusted EBITDA of $128.8 million increased 9% from $118.5 million in the prior year quarter resulting from increased revenue noted above and reduced material costs, partially offset by increased labor costs. Consumer and Professional Products ("CPP") CPP's third quarter revenue of $213.4 million decreased 16% compared to the prior year quarter, primarily driven by decreased volume of 19% due to reduced consumer demand across all geographic regions, except Australia, and disrupted historical customer ordering patterns in the U.S. due to increased tariffs. CPP benefited from price and mix of 2% and incremental revenue from the Pope acquisition contributed 1%. Adjusted EBITDA of $19.2 million decreased 14% from $22.3 million in the prior year quarter, primarily due to decreased revenue noted above, partially offset by the benefits from the U.S. global sourcing expansion initiative, improved margins across all geographic regions, and reduced administrative expenses. Foreign currency had a 1% unfavorable impact on the current quarter adjusted EBITDA. Taxes The Company reported a pretax loss from operations for the quarter ended June 30, 2025 compared to pretax income from operations for the quarter ended June 30, 2024, and recognized effective tax rates of 19.5% and 32.7%, respectively. Excluding all items that affect comparability, the effective tax rates for the quarters ended June 30, 2025 and 2024 were 27.4% and 27.9%, respectively. Balance Sheet and Capital Expenditures As of June 30, 2025, the Company had cash and equivalents of $107.3 million and total debt outstanding of $1.45 billion, resulting in net debt of $1.34 billion. During the quarter, debt was reduced by $87 million. Leverage, as calculated in accordance with our credit agreement (see the attached table), was 2.5x net debt to EBITDA compared to 2.7x at June 30, 2024 and 2.6x at September 30, 2024. At June 30, 2025, borrowing availability under the revolving credit facility was $449.5 million, subject to certain loan covenants. Free cash flow of $261 million for the nine month period ended June 30, 2025 reflects the Company's strong operating results through the third quarter of 2025. Capital expenditures, net, were $8.4 million for the quarter ended June 30, 2025. For a reconciliation of free cash flow, a non-GAAP measure, to net cash provided by operating activities, and the definition of free cash flow, see the attached table. Share Repurchases Share repurchases during the quarter ended June 30, 2025 totaled 0.6 million shares for a total of $40.3 million, or an average of $69.28 per share. Since April 2023 and through June 30, 2025, the Company purchased 10.5 million shares of common stock or 18.4% of the outstanding shares, for a total of $538.4 million or an average of $51.15 per share. As of June 30, 2025, $319.6 million remained under the Board authorized share repurchase program. Updated 2025 Outlook We now expect fiscal year 2025 revenue to be $2.5 billion versus prior guidance of $2.6 billion. The $100 million reduction is attributable to the CPP segment, reflecting ongoing weak consumer demand coupled with the impact of increased tariffs disrupting historical customer ordering patterns. We are maintaining segment adjusted EBITDA guidance of $575 million to $600 million, with the upper end of the range reflecting potential incremental volume. We expect HBP segment margin in excess of 31%, versus prior guidance of in excess of 30%, and CPP EBITDA margin of approximately 8%, versus our prior guidance of in excess of 9%. We now expect interest expense to be $95 million versus our prior guidance of $102 million, and capital expenditures of $60 million versus prior guidance of $65 million. We continue to expect free cash flow to exceed net income, depreciation of $42 million, amortization of $23 million, and a normalized tax rate of approximately 28%. Conference Call Information The Company will hold a conference call today, August 6, 2025, at 8:30 AM ET. The call can be accessed by dialing 1-877-407-0792 (U.S. participants) or 1-201-689-8263 (International participants). Callers should ask to be connected to the Griffon Corporation teleconference or provide conference ID number 13754576. Participants are encouraged to dial-in at least 10 minutes before the scheduled start time. A replay of the call will be available starting on Wednesday, August 6, 2025, at 11:30 AM ET by dialing 1-844-512-2921 (U.S.) or 1-412-317-6671 (International), and entering the conference ID number: 13754576. The replay will be available through Wednesday, August 20, 2025, at 11:59 PM ET. Forward-looking Statements 'Safe Harbor' Statements under the Private Securities Litigation Reform Act of 1995: All statements related to, among other things, income (loss), earnings, cash flows, revenue, changes in operations, operating improvements, industries in which Griffon Corporation (the 'Company' or 'Griffon') operates and the United States and global economies that are not historical are hereby identified as 'forward-looking statements,' and may be indicated by words or phrases such as 'anticipates,' 'supports,' 'plans,' 'projects,' 'expects,' 'believes,' "achieves", 'should,' 'would,' 'could,' 'hope,' 'forecast,' 'management is of the opinion,' 'may,' 'will,' 'estimates,' 'intends,' 'explores,' 'opportunities,' the negative of these expressions, use of the future tense and similar words or phrases. Such forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include, among others: current economic conditions and uncertainties in the housing, credit and capital markets; Griffon's ability to achieve expected savings and improved operational results from cost control, restructuring, integration and disposal initiatives (including the expanded CPP global outsourcing strategy announced in May 2023); the ability to identify and successfully consummate, and integrate, value-adding acquisition opportunities; increasing competition and pricing pressures in the markets served by Griffon's operating companies; the ability of Griffon's operating companies to expand into new geographic and product markets, and to anticipate and meet customer demands for new products and product enhancements and innovations; increases in the cost or lack of availability of raw materials such as steel, resin and wood, components or purchased finished goods, including any potential impact on costs or availability resulting from tariffs; changes in customer demand or loss of a material customer at one of Griffon's operating companies; the potential impact of seasonal variations and uncertain weather patterns on certain of Griffon's businesses; political events or military conflicts that could impact the worldwide economy; a downgrade in Griffon's credit ratings; changes in international economic conditions including inflation, interest rate and currency exchange fluctuations; the reliance by certain of Griffon's businesses on particular third party suppliers and manufacturers to meet customer demands; the relative mix of products and services offered by Griffon's businesses, which impacts margins and operating efficiencies; short-term capacity constraints or prolonged excess capacity; unforeseen developments in contingencies, such as litigation, regulatory and environmental matters; Griffon's ability to adequately protect and maintain the validity of patent and other intellectual property rights; the cyclical nature of the businesses of certain of Griffon's operating companies; possible terrorist threats and actions and their impact on the global economy; effects of possible IT system failures, data breaches or cyber-attacks; the impact of pandemics, such as COVID-19, on the U.S. and the global economy, including business disruptions, reductions in employment and an increase in business and operating facility failures, specifically among our customers and suppliers; Griffon's ability to service and refinance its debt; and the impact of recent and future legislative and regulatory changes, including, without limitation, changes in tax laws. Such statements reflect the views of the Company with respect to future events and are subject to these and other risks, as previously disclosed in the Company's Securities and Exchange Commission filings. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date made. Griffon undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. About Griffon Corporation Griffon Corporation is a diversified management and holding company that conducts business through wholly-owned subsidiaries. Griffon oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. Griffon provides direction and assistance to its subsidiaries in connection with acquisition and growth opportunities as well as divestitures. As long-term investors, we intend to continue to grow and strengthen our existing businesses, and to diversify further through investments in our businesses and acquisitions. Griffon conducts its operations through two reportable segments: Home and Building Products ("HBP") conducts its operations through Clopay Corporation. Founded in 1964, Clopay is the largest manufacturer and marketer of garage doors and rolling steel doors in North America. Residential and commercial sectional garage doors are sold through professional dealers and leading home center retail chains throughout North America under the brands Clopay, Ideal, and Holmes. Rolling steel door and grille products designed for commercial, industrial, institutional, and retail use are sold under the Cornell and Cookson brands. Consumer and Professional Products ('CPP') is a global provider of branded consumer and professional tools; residential, industrial and commercial fans; home storage and organization products; and products that enhance indoor and outdoor lifestyles. CPP sells products globally through a portfolio of leading brands including AMES, since 1774, Hunter, since 1886, True Temper, and ClosetMaid. For more information on Griffon and its operating subsidiaries, please see the Company's website at Griffon evaluates performance and allocates resources based on segment adjusted EBITDA and adjusted EBITDA, non-GAAP measures, which are defined as income (loss) before taxes, excluding interest income and expense, depreciation and amortization, strategic review charges, non-cash impairment charges, restructuring charges, gain/loss from debt extinguishment and acquisition related expenses, as well as other items that may affect comparability, as applicable. Segment adjusted EBITDA also excludes unallocated amounts, mainly corporate overhead. Griffon believes this information is useful to investors. The following tables provide operating highlights and a reconciliation of segment adjusted EBITDA and adjusted EBITDA to income (loss) before taxes: For the Three Months Ended June 30, For the Nine Months Ended June 30, (in thousands) 2025 2024 2025 2024 ADJUSTED EBITDA Home and Building Products $ 128,755 $ 118,516 $ 365,231 $ 372,159 Consumer and Professional Products 19,222 22,263 61,140 47,923 Segment adjusted EBITDA 147,977 140,779 426,371 420,082 Unallocated amounts, excluding depreciation* (13,264 ) (15,285 ) (41,941 ) (44,006 ) Adjusted EBITDA 134,713 125,494 384,430 376,076 Net interest expense (23,568 ) (26,255 ) (71,271 ) (76,642 ) Depreciation and amortization (15,822 ) (15,247 ) (47,086 ) (45,150 ) Loss from debt extinguishment — (1,700 ) — (1,700 ) Restructuring charges — (18,688 ) — (33,489 ) Gain (loss) on sale of real estate 122 (725 ) 8,279 (167 ) Strategic review - retention and other (1,033 ) (1,870 ) (3,883 ) (9,204 ) Goodwill and intangible asset impairments (243,612 ) — (243,612 ) — Income (loss) before taxes $ (149,200 ) $ 61,009 $ 26,857 $ 209,724 * Primarily Corporate Overhead Expand Griffon believes free cash flow ("FCF", a non-GAAP measure) is a useful measure for investors because it demonstrates the Company's ability to generate cash from operations for purposes such as repaying debt, funding acquisitions and paying dividends. FCF is defined as net cash provided by operating activities less capital expenditures, net of proceeds. The following table provides a reconciliation of net cash provided by operating activities to FCF: For the Nine Months Ended June 30, (in thousands) 2025 2024 Net cash provided by operating activities $ 282,481 $ 307,938 Acquisition of property, plant and equipment (39,867 ) (47,849 ) Proceeds from the sale of property, plant and equipment 17,895 13,572 FCF $ 260,509 $ 273,661 Expand Net debt to EBITDA (Leverage ratio), a non-GAAP measure, is a key financial measure that is used by management to assess the borrowing capacity of the Company. The Company has defined its net debt to EBITDA leverage ratio as net debt (total principal debt outstanding net of cash and equivalents) divided by the sum of trailing twelve-month ('TTM') adjusted EBITDA (as defined above) and TTM stock-based compensation expense. The following table provides a calculation of our net debt to EBITDA leverage ratio as calculated per our credit agreement: The following tables provide a reconciliation of gross profit and selling, general and administrative expenses for items that affect comparability for the three and nine months ended June 30, 2025, and 2024: (in thousands) For the Three Months Ended June 30, For the Nine Months Ended June 30, 2025 2024 2025 2024 Gross profit, as reported $ 265,248 $ 249,149 $ 781,735 $ 756,455 % of revenue 43.2 % 38.5 % 42.1 % 38.5 % Adjusting items: Restructuring charges (1) — 15,744 — 28,724 Gross profit, as adjusted $ 265,248 $ 264,893 $ 781,735 $ 785,179 % of revenue 43.2 % 40.9 % 42.1 % 40.0 % (1) For the quarter and nine months ended June 30, 2024, restructuring charges relate to the CPP global sourcing expansion. Expand (in thousands) For the Three Months Ended June 30, For the Nine Months Ended June 30, 2025 2024 2025 2024 Selling, general and administrative expenses, including goodwill and intangible asset impairments as reported $ 391,249 $ 159,810 $ 694,477 $ 469,830 % of revenue 63.8 % 24.7 % 37.4 % 23.9 % Adjusting items: Restructuring charges (1) — (2,944 ) — (4,765 ) Goodwill and intangible asset impairments (243,612 ) — (243,612 ) — Strategic review - retention and other (1,033 ) (1,870 ) (3,883 ) (9,204 ) Selling, general and administrative expenses, as adjusted $ 146,604 $ 154,996 $ 446,982 $ 455,861 % of revenue 23.9 % 23.9 % 24.1 % 23.2 % (1) For the quarter and nine months ended June 30, 2024, restructuring charges relate to the CPP global sourcing expansion. Expand GRIFFON CORPORATION AND SUBSIDIARIES (in thousands, except per share data) (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 Revenue $ 613,627 $ 647,814 $ 1,857,744 $ 1,963,847 Cost of goods and services 348,379 398,665 1,076,009 1,207,392 Gross profit 265,248 249,149 781,735 756,455 Selling, general and administrative expenses 147,637 159,810 450,865 469,830 Goodwill and intangible asset impairments 243,612 — 243,612 — Total operating expenses 391,249 159,810 694,477 469,830 Income (loss) from operations (126,001 ) 89,339 87,258 286,625 Other income (expense) Interest expense (24,137 ) (27,024 ) (72,954 ) (78,472 ) Interest income 569 769 1,683 1,830 Gain (loss) on sale of real estate 122 (725 ) 8,279 (167 ) Loss from debt extinguishment — (1,700 ) — (1,700 ) Other, net 247 350 2,591 1,608 Total other expense, net (23,199 ) (28,330 ) (60,401 ) (76,901 ) Income (loss) before taxes (149,200 ) 61,009 26,857 209,724 Provision (benefit) for income taxes (29,061 ) 19,923 19,383 62,318 Net income (loss) $ (120,139 ) $ 41,086 $ 7,474 $ 147,406 Basic earnings (loss) per common share: $ (2.65 ) $ 0.87 $ 0.16 $ 3.08 Basic weighted-average shares outstanding 45,320 47,034 45,505 47,921 Diluted earnings (loss) per common share: $ (2.65 ) $ 0.84 $ 0.16 $ 2.94 Diluted weighted-average shares outstanding 45,320 48,851 46,911 50,085 Dividends paid per common share $ 0.18 $ 0.15 $ 0.54 $ 0.45 Net income (loss) $ (120,139 ) $ 41,086 $ 7,474 $ 147,406 Other comprehensive income (loss), net of taxes: Foreign currency translation adjustments 12,244 (827 ) (4,804 ) 2,212 Pension and other post retirement plans 897 532 1,493 1,595 Change in cash flow hedges (695 ) (927 ) 475 550 Total other comprehensive income (loss), net of taxes 12,446 (1,222 ) (2,836 ) 4,357 Comprehensive income (loss), net $ (107,693 ) $ 39,864 $ 4,638 $ 151,763 Expand GRIFFON CORPORATION AND SUBSIDIARIES (in thousands) (Unaudited) June 30, 2025 September 30, 2024 CURRENT ASSETS Cash and equivalents $ 107,279 $ 114,438 Accounts receivable, net of allowances of $11,485 and $10,986 271,632 312,765 Inventories 445,913 425,489 Prepaid and other current assets 80,876 61,604 Assets held for sale 5,289 14,532 Assets of discontinued operations 1,303 648 Total Current Assets 912,292 929,476 PROPERTY, PLANT AND EQUIPMENT, net 292,385 288,297 OPERATING LEASE RIGHT-OF-USE ASSETS 162,819 171,211 GOODWILL 192,917 329,393 INTANGIBLE ASSETS, net 493,843 618,782 OTHER ASSETS 28,352 30,378 ASSETS OF DISCONTINUED OPERATIONS 4,712 3,417 Total Assets $ 2,087,320 $ 2,370,954 CURRENT LIABILITIES Notes payable and current portion of long-term debt $ 8,123 $ 8,155 Accounts payable 130,773 119,354 Accrued liabilities 162,523 181,918 Current portion of operating lease liabilities 31,997 35,065 Liabilities of discontinued operations 4,545 4,498 Total Current Liabilities 337,961 348,990 LONG-TERM DEBT, net 1,442,855 1,515,897 LONG-TERM OPERATING LEASE LIABILITIES 142,213 147,369 OTHER LIABILITIES 95,901 130,540 LIABILITIES OF DISCONTINUED OPERATIONS 4,490 3,270 Total Liabilities 2,023,420 2,146,066 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Total Shareholders' Equity 63,900 224,888 Total Liabilities and Shareholders' Equity $ 2,087,320 $ 2,370,954 Expand GRIFFON CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 7,474 $ 147,406 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 47,086 45,150 Stock-based compensation 17,861 19,726 Goodwill and intangible asset impairments 243,612 — Asset impairment charges - restructuring — 22,979 Provision for losses on accounts receivable 731 874 Amortization of debt discounts and issuance costs 3,124 3,169 Loss from debt extinguishment — 1,700 Deferred income tax benefit (25,000 ) — Loss (gain) on sale of assets and investments 16 (1,448 ) Gain on sale of real estate (8,279 ) — Change in assets and liabilities: (Increase) decrease in accounts receivable 38,311 (6,051 ) (Increase) decrease in inventories (22,606 ) 55,939 (Increase) decrease in prepaid and other assets 2,230 (3,351 ) Increase (decrease) in accounts payable, accrued liabilities, income taxes payable and operating lease liabilities (23,342 ) 19,454 Other changes, net 1,263 2,391 Net cash provided by operating activities 282,481 307,938 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property, plant and equipment (39,867 ) (47,849 ) Proceeds from the sale of property, plant and equipment 17,895 13,572 Net cash used in investing activities (21,972 ) (34,277 ) CASH FLOWS FROM FINANCING ACTIVITIES: Dividends paid (31,622 ) (28,770 ) Purchase of shares for treasury (161,709 ) (241,501 ) Proceeds from long-term debt 63,000 179,500 Payments of long-term debt (139,117 ) (146,727 ) Financing costs — (907 ) Other, net (90 ) (307 ) Net cash used in financing activities (269,538 ) (238,712 ) CASH FLOWS FROM DISCONTINUED OPERATIONS: Net cash used in operating activities (820 ) (3,707 ) Net cash provided by investing activities 137 — Net cash used in discontinued operations (683 ) (3,707 ) Effect of exchange rate changes on cash and equivalents 2,553 (679 ) NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS (7,159 ) 30,563 CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 114,438 102,889 CASH AND EQUIVALENTS AT END OF PERIOD $ 107,279 $ 133,452 Supplemental Disclosure of Non-Cash Flow Information: Capital expenditures in accounts payable $ 5,329 $ 268 Expand Griffon evaluates performance based on adjusted net income and the related adjusted earnings per share, which excludes restructuring charges, gain/loss from debt extinguishment, acquisition related expenses, discrete and certain other tax items, as well other items that may affect comparability, as applicable, non-GAAP measures. Griffon believes this information is useful to investors. The following table provides a reconciliation of net income (loss) to adjusted net income and earnings (loss) per common share to adjusted earnings per common share: For the Three Months Ended June 30, For the Nine Months Ended June 30, 2025 2024 2025 2024 (in thousands, except per share data) (Unaudited) Net income (loss) $ (120,139 ) $ 41,086 $ 7,474 $ 147,406 Adjusting items: Restructuring charges (1) — 18,688 — 33,489 Goodwill and intangible asset impairments 243,612 — 243,612 — (Gain) loss on sale of real estate (122 ) 725 (8,279 ) 167 Loss from debt extinguishment — 1,700 — 1,700 Strategic review - retention and other 1,033 1,870 3,883 9,204 Tax impact of above items (2) (26,686 ) (5,790 ) (25,345 ) (11,303 ) Discrete and certain other tax provisions (benefits), net (3) (28,451 ) 2,247 (28,626 ) 2,640 Adjusted net income $ 69,247 $ 60,526 $ 192,719 $ 183,303 Earnings (loss) per common share $ (2.65 ) $ 0.84 $ 0.16 $ 2.94 Adjusting items, net of tax: Anti-dilutive share impact (4) 0.05 — — — Restructuring charges (1) — 0.29 — 0.50 Goodwill and intangible asset impairments 4.69 — 4.63 — (Gain) loss on sale of real estate — 0.01 (0.13 ) — Loss from debt extinguishment — 0.03 — 0.03 Strategic review - retention and other 0.02 0.03 0.06 0.14 Discrete and certain other tax provisions (benefits), net (3) (0.61 ) 0.05 (0.61 ) 0.05 Adjusted earnings per common share $ 1.50 $ 1.24 $ 4.11 $ 3.66 Weighted-average shares outstanding (in thousands) 45,320 47,034 45,505 47,921 Diluted weighted-average shares outstanding 46,270 48,851 46,911 50,085 Note: Due to rounding, the sum of earnings per common share and adjusting items, net of tax, may not equal adjusted earnings per common share. (1) For the three and nine months ended June 30, 2024, restructuring charges relate to the CPP global sourcing expansion, of which $15.7 million and $28.7 million, respectively, are included in Cost of goods and services and $2.9 million and $4.8 million, respectively, are included in SG&A in the Company's Condensed Consolidated Statements of Operations. (2) The tax impact for the above reconciling adjustments from GAAP to non-GAAP net income and EPS is determined by comparing the Company's tax provision, including the reconciling adjustments, to the tax provision excluding such adjustments. (3) Discrete and certain other tax provisions (benefits), net primarily relate to the impact of a rate differential between statutory and annual effective tax rate on items impacting the quarter. (4) For the quarter ended June 30, 2025, earnings (loss) per common share was calculated using basic weighted-average shares outstanding, as presented on the face of the Statement of Operations. The anti-dilutive share impact of using diluted shares represents the impact of converting from basic shares used in calculating earnings (loss) per common share to the diluted shares used in calculating earnings (loss) per common share from a net loss. Expand
Yahoo
26-07-2025
- Business
- Yahoo
Griffon (GFF) Beats Stock Market Upswing: What Investors Need to Know
Griffon (GFF) ended the recent trading session at $82.65, demonstrating a +1.37% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.24%. Heading into today, shares of the garage door and building products maker had gained 13.36% over the past month, outpacing the Conglomerates sector's gain of 0.51% and the S&P 500's gain of 4.61%. Investors will be eagerly watching for the performance of Griffon in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.5, reflecting a 20.97% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $660.03 million, up 1.89% from the year-ago period. For the full year, the Zacks Consensus Estimates are projecting earnings of $5.7 per share and revenue of $2.57 billion, which would represent changes of +11.33% and -1.88%, respectively, from the prior year. Investors should also note any recent changes to analyst estimates for Griffon. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Griffon presently features a Zacks Rank of #4 (Sell). Digging into valuation, Griffon currently has a Forward P/E ratio of 14.3. This expresses a discount compared to the average Forward P/E of 18.99 of its industry. Meanwhile, GFF's PEG ratio is currently 0.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 2.01. The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow GFF in the coming trading sessions, be sure to utilize Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Griffon Corporation (GFF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
18-07-2025
- Business
- Yahoo
Griffon (GFF) Outpaces Stock Market Gains: What You Should Know
Griffon (GFF) ended the recent trading session at $77.53, demonstrating a +1.36% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.74%. The garage door and building products maker's shares have seen an increase of 13.02% over the last month, surpassing the Conglomerates sector's gain of 5.39% and the S&P 500's gain of 4.2%. The investment community will be closely monitoring the performance of Griffon in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.5, marking a 20.97% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $660.03 million, up 1.89% from the year-ago period. For the full year, the Zacks Consensus Estimates are projecting earnings of $5.7 per share and revenue of $2.57 billion, which would represent changes of +11.33% and -1.88%, respectively, from the prior year. Investors should also note any recent changes to analyst estimates for Griffon. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Griffon is holding a Zacks Rank of #4 (Sell) right now. Digging into valuation, Griffon currently has a Forward P/E ratio of 13.42. This signifies a discount in comparison to the average Forward P/E of 17.74 for its industry. It is also worth noting that GFF currently has a PEG ratio of 0.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Diversified Operations stocks are, on average, holding a PEG ratio of 2 based on yesterday's closing prices. The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Griffon Corporation (GFF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Montreal Gazette
10-07-2025
- General
- Montreal Gazette
Lt.-Gen. Jamie Speiser-Blanchet of Chicoutimi becomes first woman to lead RCAF
OTTAWA — Lt.-Gen. Jamie Speiser-Blanchet has become the first woman to lead the Royal Canadian Air Force. She took the reins from Lt.-Gen. Eric Kenny at a change-of-command ceremony, presided over by the Chief of the Defence Staff Gen. Jennie Carignan, in Ottawa on Thursday. Kenny is retiring after three-and-a-half decades of service in the air force. Speiser-Blanchet, a Chicoutimi native, has served as a Griffon helicopter pilot and in various command roles, most recently as deputy commander of the air force. Her operational deployments included UN and NATO peacekeeping tours in Haiti and Bosnia, along with domestic deployments in response to emergencies such as forest fires and floods.
