Griffon Earnings Surpass Estimates in Q2, Revenues Decrease 9% Y/Y

Griffon Corporation GFF reported second-quarter fiscal 2025 (ended March 2025) adjusted earnings of $1.23 per share, which surpassed the Zacks Consensus Estimate of $1.13. The bottom line decreased 8.9% year over year.Total revenues of $611.7 million missed the consensus estimate of $616 million and decreased 9% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)GFF’s Segmental DetailsHome and Building Products: Revenues from the Home and Building Products segment (representing 60.2% of net revenues) were $368.2 million, reflecting a decrease of 6% year over year. The segment’s results reflected lower residential volume, offset by favorable product mix.Adjusted EBITDA was $109.4 million, reflecting a decrease of 15% year over year. The results were affected by lower revenues and increased labor and distribution costs, partially offset by lower material costs.Consumer and Professional Products: The segment’s revenues (39.8%) summed $243.5 million, down 13% year over year. The results were hurt by a 13% volume reduction due to market weakness in North America and the United Kingdom, partially offset by strength in Australia. The Pope acquisition contributed 2%, while forex woes had an adverse impact of 2% on revenues.Adjusted EBITDA increased 18% to $23.7 million from the prior-year quarter. The increase was primarily attributable to the benefits from the global sourcing expansion initiative and higher revenues in Australia.Griffon Corporation Price, Consensus and EPS Surprise Griffon Corporation price-consensus-eps-surprise-chart | Griffon Corporation QuoteMargin ProfileGriffon’s cost of sales decreased 10.6% year over year to $359.5 million. Selling, general and administrative expenses were down 3.9% year over year to $151 million. The adjusted gross margin increased to 41.2% from 40.4% in the year-ago period.Net income decreased 11% year over year to $56.8 million.GFF’s Balance Sheet & Cash FlowAt the end of the fiscal second quarter, Griffon had cash and cash equivalents of $127.8 million compared with $114.4 million at the end of fiscal 2024 (ended September 2024). Long-term debt, net of current maturities, was $1.53 billion at the end of the fiscal second quarter compared with $1.52 billion at fiscal 2024-end.In the first six months of fiscal 2025, the company generated net cash of $159.4 million from operating activities compared with $185.9 million in the year-ago period.Griffon paid out dividends of $23.4 million and repurchased shares worth $72.9 million in the same period. Exiting the fiscal second quarter, it had $359.8 million remaining under the share repurchase program.Free cash flow was $145.8 million in the first six months of fiscal 2025 compared with $153.8 million cash flow in the prior-year period.Zacks Rank & Key PicksGFF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some better-ranked stocks from the same space:Enerpac Tool Group EPAC currently carries a Zacks Rank #2 (Buy). In the past 60 days, the Zacks Consensus Estimate for Enerpac Tool’s 2025 earnings has been stable.Unifirst Corporation UNF currently carries a Zacks Rank of 2. UNF delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the consensus estimate for Unifirst’s fiscal 2025 (ending August 2025) earnings has increased 4.1%.AptarGroup, Inc. ATR presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 2.5%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Unifirst Corporation (UNF): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Griffon Corporation (GFF): Free Stock Analysis Report Enerpac Tool Group Corp. (EPAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks