Loading...
•
Sep 30, 2024
Griffon Q4 2024 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
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%.
Positive Outlook
- 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%.
Challenges Ahead
- Includes capital expenditures of $65 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...