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NEW YORK - On Wednesday, Griffon Corporation (NYSE:GFF) reported third-quarter adjusted earnings that met Wall Street expectations while revenue fell short of estimates, as the company continues to face weak consumer demand in its Consumer and Professional Products segment.
The company’s stock edged up 0.46% in pre-market trading following the results.
For the quarter ended June 30, Griffon posted adjusted earnings of $1.50 per share, matching analyst expectations. Revenue came in at $613.6 million, below the consensus estimate of $651.91 million and down 5% from $647.8 million in the same quarter last year. The company recorded a net loss of $120.1 million, or $2.65 per share, which included a $217.2 million impairment charge related to Hunter Fan acquisition goodwill and intangible assets.
Despite revenue challenges, adjusted EBITDA increased 7% to $134.7 million compared to $125.5 million in the prior year quarter, showing improved operational efficiency.
"Our Home and Building Products’ segment continued its strong performance this quarter," said Ronald J. Kramer, Chairman and CEO of Griffon. "For the first nine-months of the year, HBP exceeded our expectations led by an EBITDA margin of 31.4% driven by favorable price and mix."
The Home and Building Products segment saw a 2% revenue increase to $400.2 million, while the Consumer and Professional Products segment experienced a 16% decline to $213.4 million due to reduced consumer demand and disrupted customer ordering patterns related to increased tariffs.
Griffon lowered its fiscal year 2025 revenue guidance to $2.5 billion from the previous $2.6 billion, below the analyst consensus of $2.56 billion. However, the company maintained its segment adjusted EBITDA guidance of $575 million to $600 million, with improved margin expectations for the Home and Building Products segment.
During the first nine months of fiscal 2025, Griffon generated $261 million in free cash flow and reduced its debt by $76 million while repurchasing $113 million of its stock.
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