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Multi-industry consumer and professional products manufacturer Griffon Corporation (NYSE:GFF) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 9.1% year on year to $611.7 million. Its non-GAAP profit of $1.23 per share was 12.5% above analysts’ consensus estimates.
Is now the time to buy GFF? Find out in our full research report (it’s free).
Griffon's first quarter results were shaped by a return to pre-pandemic seasonality in its Home and Building Products (HBP) segment and ongoing adjustments in Consumer and Professional Products (CPP). CEO Ron Kramer cited the normalization of garage door demand and the segment’s ability to maintain EBITDA margins above 30% as evidence of HBP’s resilience, emphasizing the impact of steady residential performance and product mix. Management pointed to the launch of new products like the VertiStack Avante garage door as a differentiator, while CPP’s profitability improved due to the transition toward an asset-light model and global sourcing. CFO Brian Harris noted that CPP’s increased EBITDA was driven by sourcing initiatives and stronger results in Australia, despite persistent softness in North America and the UK. Management acknowledged that volume declines were expected and largely attributed to cyclical trends in both segments.
Looking ahead, management remains focused on mitigating the impact of U.S.-China tariffs, especially within the CPP segment. While maintaining full-year guidance, CEO Ron Kramer asserted that tariff exposure is manageable due to HBP’s domestic manufacturing base and ongoing supply chain diversification efforts in CPP. He said, “We expect CPP to mitigate the inflationary effects of trade policy and other headwinds during the remainder of the fiscal year through supplier negotiations, cost management, leveraging existing inventory and, when necessary, taking price actions.” CFO Brian Harris added that supply chain shifts away from China for lawn and garden tools are on track, with similar strategies planned for the fan business by year-end. Overall, management’s outlook depends on balancing price realization, cost controls, and maintaining flexibility within a dynamic operating environment.
Management identified HBP’s stable domestic business and CPP’s asset-light transition as key factors influencing results, while highlighting tariff risk management as a top priority for the remainder of the year.
Management’s outlook for the year centers on navigating tariff impacts, optimizing the CPP supply chain, and leveraging product innovation to support margins and growth.
In upcoming quarters, the StockStory team will watch for (1) execution on supply chain diversification away from China in the CPP segment, (2) margin stability in HBP as seasonal demand returns, and (3) the company’s ability to offset tariff-related cost pressures through pricing and cost management. The trajectory of North American consumer demand and the pace of new product adoption will also be key signals for future results.
Griffon currently trades at a forward P/E ratio of 11.7×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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