Griffon Corporation GFF reported first-quarter fiscal 2025 (ended December 2024) adjusted earnings of $1.39 per share, which surpassed the Zacks Consensus Estimate of $1.28. The bottom line increased 29.9% year over year.

Total revenues of $632.4 million missed the consensus estimate of $640 million and decreased 2% year over year.

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GFF’s Segmental Details

Home and Building Products: Sales from the Home and Building Products segment (representing 62.5% of net revenues) were $395.4 million, relatively stable year over year. The segment’s results reflected increased residential volume, offset by reduced commercial volume.

Adjusted EBITDA was $127 million, reflecting an increase of 2% year over year. The results benefited from lower material costs, partially offset by increased labor and distribution costs.

Consumer and Professional Products: The segment’s revenues (37.5%) summed $237 million, down 4.2% year over year. The results were hurt by an 8% volume reduction due to market weakness in North America and the United Kingdom, partially offset by strength in Australia. The Pope acquisition contributed 4%.

Adjusted EBITDA increased 231% to $18.2 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.

Margin Profile

Griffon’s cost of sales decreased 9.5% year over year to $368.1 million. Selling, general and administrative expenses were relatively stable year over year at $152.2 million. The gross margin increased to 41.8% from 36.8% in the year-ago period.

Net income increased 68% year over year to $70.9 million.

GFF’s Balance Sheet & Cash Flow

At the end of the fiscal first quarter, Griffon had cash and cash equivalents of $152 million compared with $114.4 million at the end of fiscal 2024 (ended September 2024). Long-term debt, net of current maturities, was $1.47 billion at the end of the fiscal first quarter compared with $1.52 billion at fiscal 2024-end.

In the first three months of fiscal 2025, the company generated net cash of $142.9 million from operating activities compared with $146.1 million in the year-ago period.

Griffon paid out dividends of $9 million and repurchased shares worth $42.3 million in the same period. Exiting the fiscal first quarter, it had $390.3 million remaining under the share repurchase program.

Free cash flow was $142.7 million in the first three months of fiscal 2025 compared with $132.5 million cash flow in the prior-year period.

Zacks Rank & Key Picks

GFF currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the same space:

Enersys ENS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ENS delivered a trailing four-quarter average earnings surprise of 1.6%. In the past 60 days, the consensus estimate for Enersys’ fiscal 2025 (ending March 2025) earnings has increased 10.4%.

Markel Group Inc. MKL presently carries a Zacks Rank #2 (Buy). MKL delivered a trailing four-quarter average earnings surprise of 35.4%.

In the past 60 days, the consensus estimate for MKL’s 2025 earnings has inched up 0.1%.

Lsb Industries LXU presently carries a Zacks Rank of 2. In the past 60 days, the consensus estimate for LXU’s 2025 earnings has increased 31.6%.

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