Griffon Surges Ahead: Strong Q4 Earnings Beat, Dividend Hike, Buyback & More (UPDATED)

Editor’s note: The story has been updated to correct the adjusted EPS figure

Griffon Corporation GFF shares are trading higher after the company reported better-than-expected fourth-quarter earnings.

The company reported quarterly revenue growth of 3% year-over-year to $659.67 million, beating the consensus of $641.24 million.

Adjusted EBITDA rose 13.4% YoY to $137.53 million, and the margin expanded 194 bps YoY to 20.9%. Adjusted EPS for the quarter rose to $1.47 from $1.19 YoY, beating the consensus of $1.18.

Fiscal 2024 revenue reached $2.6 billion, marking a 2% decline from the $2.7 billion reported last year. Adjusted EBITDA rose 2% to $513.6 million from $505.3 million.

Leverage remained at 2.6x net debt to EBITDA. Free cash flow was $326.1 million in fiscal 2024, with $379.3 million available under the credit facility.

The company returned $310 million to shareholders through dividends and share repurchases during 2024.

As of September 30, 2024, the company had $114.4 million in cash and $1.52 billion in total debt, resulting in net debt of $1.41 billion.

Buyback and Dividend: Griffon’s board approved an additional $400 million share buyback and raised the quarterly dividend by 20% to $0.18 per share. The dividend is payable on December 18 to shareholders of record as of the close of business on November 25.

“In fiscal 2025, we will continue to use our operating cash flow to support our capital allocation strategy with a focus on opportunistically repurchasing shares, reducing debt, supporting our regular quarterly dividend and investing in our businesses,” commented Ronald J. Kramer, Chairman and Chief Executive Officer.

During the quarter, GFF repurchased 1.1 million shares for $68.4 million at $65.09 per share. Fiscal 2024 repurchases totaled 4.8 million shares for $274.5 million at $57.52 per share.

2025 Outlook: Griffon expects revenue to match 2024 at $2.6 billion versus the consensus of $2.605 billion; adjusted EBITDA is forecasted to be between $575 million and $600 million.

The company expects free cash flow, including capital expenditures of $65 million, to exceed net income, with depreciation of $42 million and amortization of $23 million.

Price Action: GFF shares traded higher by 10.1% at $75.00 at the last check Wednesday.

Photo via Pete Linforth from Pixabay