The manufacturer topped revenue, EPS and adjusted EBITDA forecasts, but its $1.8 billion revenue target sits about 0.7% below analyst expectations amid weak housing-related demand.
Griffon Corporation reported a mixed fiscal second quarter, beating Wall Street forecasts on revenue, profit and adjusted EBITDA even as sales fell sharply from a year earlier. The company posted revenue of $481.4 million, above the $457.8 million consensus estimate, while adjusted earnings per share of $1.51 came in 12.6% ahead of expectations. Adjusted EBITDA reached $124.8 million, topping the $119.6 million analyst view, and operating margin widened to 24% from 19.2% a year earlier, pointing to stronger cost control. Free cash flow margin was unchanged at 19.4%. The stronger profitability came alongside continued pressure on demand. Revenue declined 21.6% year over year, extending a longer downturn that has produced annual revenue declines of 12% over the past two years and a compound annual drop of 4.4% over the past five. Griffon reaffirmed full-year revenue guidance of $1.8 billion at the midpoint, roughly 0.7% below analyst projections, while adjusted EBITDA guidance of $458 million was in line with Wall Street models. Chairman and Chief Executive Officer Ronald J. Kramer said the quarter reflected the benefits of operating discipline and capital allocation, even as some end markets remain challenged. Analysts still expect revenue to fall 7.9% over the next 12 months, suggesting conditions may improve from the recent two-year trend but remain soft. The results highlight the central issue for investors: Griffon is preserving margins and cash generation, but a sustained recovery may depend on stabilization in housing-linked demand before the company next reports.