Overview

* Griffon fiscal Q3 revenue falls 5%, missing analyst expectations

* Adjusted EPS for fiscal Q3 rises to $1.50, beating prior year

* Co reports net loss due to Hunter Fan goodwill impairment

Outlook

* Griffon expects fiscal year 2025 revenue to be $2.5 bln

* Company maintains adjusted EBITDA guidance of $575 mln to $600 mln

* Griffon sees HBP segment margin in excess of 31%

* Company expects CPP EBITDA margin of approximately 8%

Result Drivers

* HBP PERFORMANCE - Revenue increased due to favorable price and mix, offset by decreased volume

* CPP CHALLENGES - Revenue declined due to weak consumer demand and disrupted ordering patterns in the U.S.

* ASSET-LIGHT MODEL - CPP's EBITDA margin improved due to transition to asset-light business model and strong performance in Australia

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $613.60 $648.60

Revenue mln mln (6

Analysts

)

Q3 Capex $8.40

mln

Q3 Free $261 mln

Cash

Flow

Q3 Net $1.34

Debt bln

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

* Wall Street's median 12-month price target for Griffon Corp ( GFF ) is $95.00, about 13.3% above its August 5 closing price of $82.34

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)