On November 13, 2024, Griffon Corp (GFF, Financial) released its 8-K filing detailing the financial results for the fiscal year and fourth quarter ended September 30, 2024. Griffon Corp, a manufacturer and marketer of residential, commercial, and industrial garage doors, as well as non-powered landscaping products, operates through its Consumer and Professional Products and Home and Building Products segments. The company generates a majority of its revenue from the Home and Building Products segment.
Performance Overview
Griffon Corp reported a fiscal 2024 revenue of $2.6 billion, a slight 2% decrease from the previous year's $2.7 billion. However, the company achieved a significant increase in net income, totaling $209.9 million, or $4.23 per share, compared to $77.6 million, or $1.42 per share, in the prior year. Adjusted net income for the year was $254.2 million, or $5.12 per share, surpassing the previous year's $247.7 million, or $4.54 per share.
For the fourth quarter, Griffon Corp reported revenue of $659.7 million, a 3% increase from the prior year's $641.4 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. The adjusted net income for the fourth quarter was $70.9 million, or $1.47 per share, exceeding the previous year's $63.1 million, or $1.19 per share.
Financial Achievements and Challenges
Griffon Corp's adjusted EBITDA for fiscal 2024 was $513.6 million, a 2% increase from the prior year's $505.3 million. The fourth quarter adjusted EBITDA was $137.5 million, marking a 13% increase from the previous year's $121.3 million. These achievements highlight the company's ability to maintain profitability despite a slight decline in annual revenue.
“We are very pleased with Griffon’s results for the fourth quarter and fiscal year. The consistent strong performance from the Home and Building Products segment and improved profitability from the Consumer and Professional Products segment positions us for further growth in the years ahead,” said Ronald J. Kramer, Chairman and Chief Executive Officer.
Despite these positive results, Griffon Corp faces challenges such as increased labor and distribution costs in its Home and Building Products segment, which saw a 2% decrease in adjusted EBITDA for 2024. Additionally, the Consumer and Professional Products segment experienced a 6% decline in revenue due to reduced consumer demand in North America, although this was partially offset by increased volume in Australia.
Key Financial Metrics
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $2.6 billion | $2.7 billion |
| Net Income | $209.9 million | $77.6 million |
| Adjusted EBITDA | $513.6 million | $505.3 million |
| Free Cash Flow | $326.1 million | $389.1 million |
Griffon Corp's free cash flow for fiscal 2024 was $326.1 million, which supported the repurchase of 4.8 million shares and regular quarterly dividends, returning a total of $310 million to shareholders. The company's leverage ratio remained stable at 2.6x, consistent with the previous year.
Analysis and Outlook
Griffon Corp's performance in fiscal 2024 demonstrates resilience in the face of economic challenges, with strong profitability and cash flow generation. The company's strategic focus on its Home and Building Products segment and the successful expansion of its global sourcing strategy in the Consumer and Professional Products segment are expected to support future growth.
Looking ahead, Griffon Corp anticipates fiscal 2025 revenue to remain consistent with 2024 at $2.6 billion, with adjusted EBITDA projected to range between $575 million and $600 million. The company plans to continue its capital allocation strategy, including share repurchases and debt reduction, while investing in business growth and modernization.
Explore the complete 8-K earnings release (here) from Griffon Corp for further details.
