NYSE$GFF

Griffon Corporation · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Griffon's Q4 2024 earnings report showed revenue growth and improved profitability, driven by strong performance in the Home and Building Products segment and gains in the Consumer and Professional Products segment.

Griffon Corporation reported a 3% increase in revenue for the fourth quarter, reaching $659.7 million. Net income for the quarter was $62.5 million, or $1.29 per share, compared to $42.0 million, or $0.79 per share, in the prior year quarter. Adjusted EBITDA increased by 13% to $137.5 million. The company's free cash flow generation supported share repurchases and dividends, returning $310 million to shareholders during the year.

  • Fourth quarter revenue increased by 3% year-over-year to $659.7 million.
  • Net income for the quarter rose to $62.5 million, or $1.29 per share, up from $42.0 million, or $0.79 per share, in the prior year quarter.
  • Adjusted EBITDA for the quarter increased by 13% to $137.5 million.
  • The company generated $326 million of free cash flow during the year, supporting share repurchases and dividends.

Headline financials

Total Revenue

$660M

Previous: $641M+2.9%
EPS (adj)

$1.47

Previous: $1.19+23.5%
Adjusted EBITDA

$138M

Previous: $121M+13.4%
HBP Adjusted EBITDA

$129M

No prior period
CPP Adjusted EBITDA

$24.7M

No prior period
Capital Expenditures

-$20.6M

Previous: -$43.4M+52.7%
Net Income

$62.5M

Previous: $42M+48.9%
Operating Income

$112M

Previous: $79.4M+40.6%
Gross Profit

$263M

Previous: $246M+7.2%
Stock-Based Comp

$7.11M

Previous: $12.5M-43.2%

Revenue & EPS history

Griffon · Revenue · Quarterly

$660M

Q4 2024+2.9%vs Q4 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Griffon · $780M total across 2 segments · Q2 2022

  • Consumer & Pro Products
    $411M
  • Home & Bldg Products
    $369M

Forward guidance

Griffon expects fiscal year 2025 revenue to be consistent with 2024 at $2.6 billion and adjusted EBITDA in a range of $575 million to $600 million, excluding unallocated costs of $55 million and charges related to strategic review retention costs of approximately $5 million. Free cash flow, including capital expenditures of $65 million, is expected to exceed net income, with depreciation of $42 million and amortization of $23 million. Fiscal year 2025 interest expense is expected to be $102 million, and Griffon's normalized tax rate is expected to be 28%. From a segment perspective, we anticipate 2025 HBP and CPP revenue will both be in line with 2024. We anticipate 2025 EBITDA margin at HBP to continue to be in excess of 30% and at CPP to be in excess of 9%.

Tailwinds

  • Revenue expected to be consistent with 2024 at $2.6 billion.
  • Adjusted EBITDA projected in the range of $575 million to $600 million, excluding certain costs.
  • Free cash flow expected to exceed net income.
  • HBP EBITDA margin anticipated to be in excess of 30%.
  • CPP EBITDA margin anticipated to be in excess of 9%.

Headwinds

  • Includes capital expenditures of $65 million.
  • Interest expense is expected to be $102 million.
  • Normalized tax rate is expected to be 28%.
  • Excludes unallocated costs of $55 million.
  • Excludes charges related to strategic review retention costs of approximately $5 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+1.3%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+3.3%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+22.7%

Q4 2011

Best reaction

-18.7%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-1.6%-10.5%-8.2%
Q1 2026+5.7%+10.5%-8.6%
Q4 2025+3.9%+7.4%+14.7%
Q2 2025+4.4%+8.3%+3.7%
Q1 2025+8.9%+5.8%-5.1%
Q4 2024+13.6%+8.7%+15.2%
Q3 2024-16.2%-13.9%-10.3%
Q2 2024+9.6%+2.3%-3.2%
Q1 2024+12.2%+12.9%+15.0%
Q4 2023-4.7%-1.6%+19.8%
Q3 2023-7.3%-1.9%-1.0%
Q2 2023+7.5%+5.5%+20.4%
Q1 2023+4.1%+9.2%-4.5%
Q4 2022+7.6%+7.3%+4.0%
Q3 2022+8.4%+2.5%+17.2%
Q2 2022+6.0%+30.0%+78.9%
Q1 2022+0.0%-4.2%+5.2%
Q4 2021-10.2%-9.3%-11.4%
Q3 2021-5.1%-6.3%-0.2%
Q2 2021+0.2%+3.5%-2.9%
Q1 2021+2.9%+7.5%+12.7%
Q4 2020-18.7%-16.4%-19.7%
Q3 2020+9.1%+5.0%+8.5%
Q2 2020+3.6%-6.7%+5.5%
Q1 2020-5.1%-14.2%-20.5%
Q4 2019+15.0%+3.6%-7.4%
Q3 2019+15.1%+14.0%+6.7%
Q2 2019-12.7%-13.8%-26.3%
Q1 2019+14.5%+20.4%+26.6%
Q4 2018-6.9%-2.6%-13.0%
Q3 2018+2.2%-1.1%+2.0%
Q2 2018+8.0%+14.0%+15.0%
Q1 2018-11.2%-14.1%-10.5%
Q4 2017+9.0%+10.9%-2.4%
Q3 2017-8.5%-8.0%-9.9%
Q2 2017-6.9%-4.7%-7.7%
Q1 2017+1.8%-0.2%+0.0%
Q4 2016+3.5%+10.2%+25.1%
Q3 2016+3.1%+1.1%+3.6%
Q2 2016+0.4%
Q1 2016-3.2%
Q4 2015-2.0%
Q3 2015+8.2%
Q2 2015-4.2%
Q1 2015+8.8%
Q4 2014+0.9%
Q3 2014-0.2%
Q2 2014+8.4%
Q1 2014-8.8%
Q4 2013+4.3%
Q3 2013-4.8%
Q2 2013+2.4%
Q1 2013-1.7%
Q4 2012-11.8%
Q4 2011+22.7%
Q3 2012+18.0%
Q2 2012-4.5%
Q1 2011+5.5%
Q1 2012+0.0%
Q4 2009+3.3%
Q2 2011+3.3%
Q3 2010-6.3%
Q3 2011-6.3%
Q4 2010-6.3%
Q2 2010-6.8%

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