GFF - Griffon Corporation

Griffon Corporation operates through two primary segments: Home and Building Products, which manufactures Clopay garage doors and AMES branded long-handled tools and storage products sold through home improvement retailers like Home Depot and Lowe's, and Defense Electronics, which produces CIRCOR Aerospace and Telephonics radar and surveillance systems for U.S. government and military customers. The business model is a mix of B2C/B2B retail distribution for consumer products and government defense contracts for the electronics segment. Annual revenue is approximately $2.3B, with operations primarily concentrated in North America. The garage door segment is the largest revenue contributor, serving residential and commercial construction markets through a dealer and retail distribution network.

Past Year Trends

• Griffon recorded a $217.2 million goodwill and intangible asset impairment charge (net of tax, or $4.65/share) in Q3 FY2025 tied specifically to the Hunter Fan acquisition within its Consumer and Professional Products segment, collapsing GAAP net income from $209.9M to $51.1M year-over-year despite adjusted EPS actually growing 10% to $5.65. (Bearish)
• FY2025 revenue fell 4% to approximately $2.5 billion from $2.6 billion, driven by persistent weak demand in the Consumer and Professional Products segment, while the Home and Building Products segment (Clopay garage doors) maintained roughly 31.4% EBITDA margins through the first nine months of the year. (Bearish)
• Griffon raised its quarterly dividend 22% to $0.22 per share and repurchased 1.9 million shares for $134.7 million during FY2025, returning substantial capital to shareholders even as operating conditions in the CPP segment weakened. (Bullish)

Next Year Trends

• The AMES North America joint venture with ONCAP (Onex's mid-market PE platform) is expected to close by end of June 2026, delivering $100 million in cash and $160 million in second lien debt to Griffon while it retains a 43% equity stake; execution risk and the $60 million EBITDA guidance for discontinued AMES operations in FY2026 represent a key near-term swing factor. (Neutral)
• Following the AMES divestiture, Griffon's FY2026 continuing-operations revenue guidance of $1.8 billion will be concentrated almost entirely in the Clopay Home and Building Products segment (garage doors), making future earnings nearly fully dependent on U.S. residential construction starts and repair-and-remodel activity with little segment diversification. (Bearish)
• Griffon decided to exit the AMES United Kingdom business entirely due to 'persistent economic challenges,' with wind-down actions expected to be largely completed by end of calendar year 2026, likely generating additional restructuring charges and potential asset write-downs beyond the $217.2 million already taken in FY2025. (Bearish)

Red Flags

No severe red flags identified as of August 2025.