Griffon Corp (GFF)

Business Summary

Griffon Corporation is a diversified management and holding company that conducts business through wholly-owned subsidiaries, operating in the home and building products and consumer and professional products industries. The company oversees the operations of its subsidiaries, allocates resources among them, and manages their capital structures, providing direction and assistance with acquisition and growth opportunities as well as divestitures. As long-term investors, Griffon intends to continue to grow and strengthen its existing businesses and to diversify further through investments in its businesses and acquisitions.

The Home and Building Products segment, operating through Clopay Corporation, is the largest manufacturer and marketer of garage doors and rolling steel doors in North America, competing on the basis of service, quality, brand awareness, product design and price. The Consumer and Professional Products segment is a global provider of branded consumer and professional tools, fans, home storage and organization products, and products that enhance indoor and outdoor lifestyles, competing in highly fragmented industries. Griffon differentiates itself through its successful history of innovation, dependable supply chain, high on-time delivery rates, quality, product performance, and highly recognized product brands, with its size, depth and breadth of product offering, category knowledge, research and development investment, service and its ability to react to sudden changes in demand from seasonal weather patterns being competitive advantages.

Griffon generates revenue through the manufacture and sale of a broad range of products and components, with revenue recognized when title and risk and rewards of ownership have transferred to the customer, generally upon shipment. The company's performance obligations are recognized at a point in time, and a majority of its revenue is short cycle in nature with shipments occurring within one year from order. Payment terms generally range between 15 to 90 days, and the company offers assurance-type warranties in connection with the sale of products, which do not represent a separate performance obligation.

The Home and Building Products segment, operating through Clopay Corporation, manufactures a broad line of residential sectional garage doors with a variety of options at varying prices, made primarily from steel, aluminum, plastic composite and wood, and also sells related products such as garage door openers. Commercial door products include rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers, as well as commercial sectional doors. Clopay supports over 3,000 independent professional installing dealers and major home center retail chains including Home Depot and Menards, and is currently the exclusive supplier of residential and commercial garage doors to Home Depot and Menards locations throughout North America, having maintained long-standing relationships with Home Depot for 40 years and with Menards for over 30 years. HBP revenue was 63% ¹ of Griffon's consolidated revenue in 2025.

The Consumer and Professional Products segment markets a broad portfolio of long-handled tools, landscaping products, home organization products and residential, industrial and commercial fans, anchored by six core product categories: seasonal outdoor tools, project tools, outdoor décor and watering, home organization, fans and cleaning products. CPP sells products throughout North America, Australia, New Zealand, the U.K. and Ireland through home centers such as Home Depot, Lowe’s, and Bunnings, mass market and hardware retailers, industrial distributors, homebuilders, and e-commerce platforms. CPP revenue was 37% ² of Griffon’s consolidated revenue in 2025.

On July 1, 2024, Griffon announced that its subsidiary, The AMES Companies, Inc., expanded the scope of its Australian operations by acquiring substantially all the assets of Pope, a leading Australian provider of residential watering products, from The Toro Company for a purchase price of approximately AUD 21,800 ³ (approximately $14,500 ⁴) in cash. Griffon announced in May 2023 that CPP was expanding its global sourcing strategy to include long handled tools, material handling, and wood storage and organization product lines for the U.S. market, which was successfully completed as of September 30, 2024, resulting in a total facility footprint reduction of approximately 1.2 million square feet ⁵, or approximately 15% ⁶ of CPP's square footage, and a headcount reduction of approximately 600 ⁷. During the year ended September 30, 2025, cash proceeds related to the sale of remaining real estate and equipment held for sale totaled $17,729 ⁸. During 2025, Griffon purchased 1,897,182 ⁹ shares of common stock under these repurchase programs, for a total of $134,680 ¹⁰, or an average of $70.99 ¹¹ per share, excluding excise taxes. As of September 30, 2025, $298,013 ¹² remained under these Board authorized repurchase programs. On November 18, 2025, the Board of Directors declared a cash dividend of $0.22 ¹³ per share.

Revenue for the year ended September 30, 2025 of $2,519,926 ¹⁴ decreased 4% ¹⁵ compared to $2,623,520 ¹⁶ for the year ended September 30, 2024. Net income for 2025 was $51,110 ¹⁷, or $1.09 ¹⁸ per share, compared to $209,897 ¹⁹, or $4.23 ²⁰ per share in 2024. Excluding certain items, 2025 net income would have been $263,589 ²¹, or $5.65 ²² per share, compared to $254,247 ²³, or $5.12 ²⁴ per share, in 2024.

Business Outlook & Financial Sufficiency

Griffon intends to continue to grow and strengthen its existing businesses and to diversify further through investments in its businesses and acquisitions. The adoption of an asset-light business model for certain U.S. products through the CPP global sourcing strategy expansion has positioned CPP to better serve customers with a more flexible and cost-effective sourcing model that leverages supplier relationships around the world, and improved its competitive positioning. These actions will be essential for CPP to achieve its target of 15% ²⁵ EBITDA margin while enhancing free cash flow through improved working capital and significantly reduced capital expenditures.

The filing does not contain a second distinct growth vector paragraph with specific opportunity size or expected revenue contribution.

The adoption of an asset-light business model for these U.S. products has positioned CPP to better serve customers with a more flexible and cost-effective sourcing model that leverages supplier relationships around the world, and improved its competitive positioning. These actions will be essential for CPP to achieve its target of 15% ²⁶ EBITDA margin while enhancing free cash flow through improved working capital and significantly reduced capital expenditures.

The filing does not contain a specific operational outlook section with supply chain posture, manufacturing capacity, technology infrastructure investments, or headcount strategy details.

During 2025, the Board of Directors approved four quarterly cash dividends each for $0.18 ²⁷ per share, totaling $0.72 ²⁸ per share for the year. On November 18, 2025, the Board of Directors declared a cash dividend of $0.22 ²⁹ per share. As of September 30, 2025, $298,013 ³⁰ remained under these Board authorized repurchase programs. The filing does not provide specific R&D spending levels or capital expenditure plans for the upcoming period.

The current worldwide economic uncertainty and market volatility could continue to have an adverse effect on Griffon during 2026, within both the HBP and CPP segments, which are linked to the U.S. housing and the commercial property markets, and the U.S. economy in general. Adverse trends and general economic conditions, especially those that relate to construction and renovation, will impact Griffon’s business, as approximately 63% ³¹ and 37% ³² of Griffon’s consolidated revenue was derived from the HBP and CPP segments, respectively, which were dependent on renovation of existing homes, new home construction, and commercial non-residential construction, repair and replacement.

The volatile nature of tariff actions creates significant uncertainty about the financial and operational impact on CPP’s operating and financial performance and may hinder the ability of CPP to develop and implement sustainable tariff mitigation strategies. U.S. imports from China are projected to reach $439 billion ³³ in 2025, and the majority of these imports were already subject to the tariffs imposed on Chinese imports since March 2018 under Section 301 of the Trade Act of 1974.

Management Sentiments & Priorities

Management’s strategic objective is to maintain leading positions in the markets served by providing innovative, branded products with superior quality and industry-leading service, with emphasis on iconic and well-respected brands to differentiate from competitors and strengthen relationships with customers. Through operating a diverse portfolio of businesses, management expects to reduce variability caused by external factors such as market cyclicality, seasonality, and weather. As long-term investors, management intends to continue to grow and strengthen existing businesses, and to diversify further through investments in businesses and acquisitions, with the CPP global sourcing strategy expansion being essential for CPP to achieve its target of 15% ⁴⁰ EBITDA margin while enhancing free cash flow through improved working capital and significantly reduced capital expenditures.

Financial Details

Revenue for the year ended September 30, 2025 was $2,519,926 ⁴¹ compared to $2,623,520 ⁴² for the year ended September 30, 2024. Net income for 2025 was $51,110 ⁴³ compared to $209,897 ⁴⁴ in 2024. Diluted earnings per share for 2025 was $1.09 ⁴⁵ compared to $4.23 ⁴⁶ in 2024. Gross profit for 2025 was $1,058,005 ⁴⁷ compared to $1,019,935 ⁴⁸ in 2024, with gross margin of 42.0% ⁴⁹ and 38.9% ⁵⁰, respectively. Income from operations for 2025 was $206,277 ⁵¹ compared to $398,297 ⁵² in 2024. Cash and equivalents at September 30, 2025 were $99,045 ⁵³ compared to $114,438 ⁵⁴ at September 30, 2024. Total debt at September 30, 2025 was $1,424,026 ⁵⁵ compared to $1,539,685 ⁵⁶ at September 30, 2024. During the third quarter of fiscal 2025, the company recorded pre-tax, non-cash impairment charges of $136,612 ⁵⁷ and $107,000 ⁵⁸ related to Hunter Fan's goodwill and indefinite-lived intangible assets, respectively, which resulted in an aggregate decrease of $4.65 ⁵⁹ in earnings per share for the year ended September 30, 2025. For the HBP segment, adjusted EBITDA in 2025 was $494,576 ⁶⁰ compared to $501,001 ⁶¹ in 2024. For the CPP segment, adjusted EBITDA in 2025 was $85,545 ⁶² compared to $72,632 ⁶³ in 2024.

Risk Factors

A small number of customers account for a substantial portion of consolidated revenue, with Home Depot representing 10% ³⁴ of consolidated revenue, 9% ³⁵ of HBP's revenue and 12% ³⁶ of CPP's revenue for the year ended September 30, 2025, and the loss of all or a portion of volume from any one of these customers could have a material adverse impact. The company recorded pre-tax, non-cash impairment charges of $136,612 ³⁷ and $107,000 ³⁸ related to Hunter Fan's goodwill and indefinite-lived intangible assets during the third quarter of fiscal 2025, driven by a decrease in year-to-date and forecasted sales and operating results primarily due to ongoing weak consumer demand coupled with the impact of increased tariffs disrupting historical customer ordering patterns. CPP's business is global with products and raw materials sourced from and manufactured and sold in multiple countries, and certain products sold in the United States are currently sourced from suppliers in China, with some sourced exclusively from suppliers in China, and the expanded sourcing strategy has increased CPP's reliance on suppliers in China, which could exacerbate the impact of tariffs. The company is exposed to fluctuations in inflation, as U.S. annual inflation rose to approximately 9.1% ³⁹ in 2022, its highest level in about 40 years, and future increases in inflation may result in decreased demand and increased operating costs.

View Source Annual Report on SEC.gov ↗

References

[1] Item 7, MD&A — Overview
[2] Item 7, MD&A — Overview
[3] Item 1, Business — Overview
[4] Item 1, Business — Overview
[5] Item 1, Business — CPP Global Sourcing Strategy Expansion and Restructuring Charges
[6] Item 1, Business — CPP Global Sourcing Strategy Expansion and Restructuring Charges
[7] Item 1, Business — CPP Global Sourcing Strategy Expansion and Restructuring Charges
[8] Item 1, Business — CPP Global Sourcing Strategy Expansion and Restructuring Charges
[9] Item 7, MD&A — Liquidity and Capital Resources
[10] Item 7, MD&A — Liquidity and Capital Resources
[11] Item 7, MD&A — Liquidity and Capital Resources
[12] Item 7, MD&A — Liquidity and Capital Resources
[13] Item 5, Market for Registrant's Common Equity — Dividends
[14] Item 8, Consolidated Statements of Operations
[15] Item 7, MD&A — Consolidated Results of Operations
[16] Item 8, Consolidated Statements of Operations
[17] Item 8, Consolidated Statements of Operations
[18] Item 8, Consolidated Statements of Operations
[19] Item 8, Consolidated Statements of Operations
[20] Item 8, Consolidated Statements of Operations
[21] Item 7, MD&A — Consolidated Results of Operations
[22] Item 7, MD&A — Consolidated Results of Operations
[23] Item 7, MD&A — Consolidated Results of Operations
[24] Item 7, MD&A — Consolidated Results of Operations
[25] Item 1, Business — CPP Global Sourcing Strategy Expansion and Restructuring Charges
[26] Item 1, Business — CPP Global Sourcing Strategy Expansion and Restructuring Charges
[27] Item 5, Market for Registrant's Common Equity — Dividends
[28] Item 5, Market for Registrant's Common Equity — Dividends
[29] Item 5, Market for Registrant's Common Equity — Dividends
[30] Item 7, MD&A — Liquidity and Capital Resources
[31] Item 1A, Risk Factors
[32] Item 1A, Risk Factors
[33] Item 1A, Risk Factors
[34] Item 1, Business — Customers
[35] Item 1, Business — Customers
[36] Item 1, Business — Customers
[37] Item 7, MD&A — Goodwill and intangible asset impairments
[38] Item 7, MD&A — Goodwill and intangible asset impairments
[39] Item 1A, Risk Factors
[40] Item 1, Business — CPP Global Sourcing Strategy Expansion and Restructuring Charges
[41] Item 8, Consolidated Statements of Operations
[42] Item 8, Consolidated Statements of Operations
[43] Item 8, Consolidated Statements of Operations
[44] Item 8, Consolidated Statements of Operations
[45] Item 8, Consolidated Statements of Operations
[46] Item 8, Consolidated Statements of Operations
[47] Item 8, Consolidated Statements of Operations
[48] Item 8, Consolidated Statements of Operations
[49] Item 7, MD&A — Consolidated Results of Operations
[50] Item 7, MD&A — Consolidated Results of Operations
[51] Item 8, Consolidated Statements of Operations
[52] Item 8, Consolidated Statements of Operations
[53] Item 8, Consolidated Balance Sheets
[54] Item 8, Consolidated Balance Sheets
[55] Item 7, MD&A — Liquidity and Capital Resources
[56] Item 7, MD&A — Liquidity and Capital Resources
[57] Item 7, MD&A — Goodwill and intangible asset impairments
[58] Item 7, MD&A — Goodwill and intangible asset impairments
[59] Item 7, MD&A — Consolidated Results of Operations
[60] Item 7, MD&A — Reportable Segments
[61] Item 7, MD&A — Reportable Segments
[62] Item 7, MD&A — Reportable Segments
[63] Item 7, MD&A — Reportable Segments

Analysis on 11/3/2026

Recent Material Events

Aug 19, 2026
Griffon Corporation completed a $800 million private placement of 6.25% senior notes due October 1, 2034, generating approximately $792 million in net proceeds. Concurrently, the company entered into an amendment to its credit agreement that refinances existing revolving commitments with a new $500 million revolving credit facility maturing on August 18, 2031. The amended facility includes a $125 million letter of credit sub-facility and a $200 million multicurrency sub-facility, while eliminating the previous annual capital expenditures financial covenant. Griffon Corporation operates in the home improvement products industry.
Aug 11, 2026
On August 10, 2026, Griffon Corporation entered into a Purchase Agreement to issue and sell $800 million aggregate principal amount of its 6.25% senior notes due 2034. The company intends to use the net proceeds from this offering to redeem all outstanding 5.750% Senior Notes due 2028 and pay related fees, expenses, premiums, and accrued interest. The closing date for the transaction is scheduled for August 18, 2026. Griffon Corporation operates in the industrial manufacturing sector, producing building products such as garage doors, entry doors, windows, and hardware.
Aug 10, 2026
Griffon Corporation announced on August 10, 2026, the commencement of a private placement offering $800 million in aggregate principal amount of senior unsecured notes due 2034. The company intends to use the proceeds, combined with cash on hand and revolver borrowings, to redeem all outstanding 5.75% Senior Notes due 2028 at the applicable redemption price plus accrued interest, and to pay related fees and expenses. The notes are guaranteed by certain domestic subsidiaries and will be offered solely to qualified institutional buyers under Rule 144A or outside the U.S. under Regulation S. Griffon Corporation operates in the building products industry, manufacturing hardware, home improvement products, and construction materials.
Aug 5, 2026
Griffon Corporation reported fiscal third quarter results for the period ended June 30, 2026. Revenue increased 7% to $481.4 million from $449.7 million in the prior year, driven by favorable price and mix and increased volume. Income from continuing operations turned positive at $66.3 million ($1.47 diluted EPS), compared to a loss of $108.7 million ($2.40 diluted EPS) previously. Adjusted income from continuing operations was $68.0 million ($1.51 adjusted EPS). The company completed joint ventures for its AMES Australasia and North America businesses, receiving $281 million in cash and notes receivable. Griffon provided full-year 2026 guidance of $1.8 billion revenue and $458 million adjusted EBITDA. Griffon Corporation is a leading provider of residential and commercial building products.
Aug 4, 2026
Griffon Corporation closed the sale of its AMES Australasia business to a joint venture on July 31, 2026. Griffon received AUD $258 million (USD $181 million) in cash and issued an AUD 69.3 million (USD $48.6 million) paid-in-kind note receivable maturing in six years with 10% interest. Griffon retains a 49% equity interest, while the remaining 51% is held by an investment group led by Simon Hupfeld. Concurrently, Griffon repaid the remaining $285 million balance of its Term Loan B using proceeds from the transaction and revolver borrowings. The filing includes unaudited pro forma financial statements reflecting the disposition of AMES Australasia alongside prior dispositions of AMES North America and the wind-down of AMES U.K. Griffon Corporation is a leading provider of residential and commercial building products, including garage doors and ceiling fans.