GFF GRIFFON CORP

Overview and Growth

GRIFFON CORP generated $2.52B of revenue in fiscal 2025, with net income of $51.11M and an operating cash inflow of $357.44M. Revenue of $2.52B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 3.9% below fiscal 2024 revenue of $2.62B, marking a top-line contraction. The company reported diluted EPS of $1.09, adding a shareholder-level measure to the absolute income figures considered below. Diluted EPS decreased by 74.2% from $4.23 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 1.22x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $1.06B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 42.0% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $206.28M of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 8.2% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $51.11M, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 2.0%, meaning that this portion of revenue remained as net income after all recognized expenses. Before income taxes, the company reported $127.37M of earnings, providing a bridge between the operating result and final net income. The pretax margin was 5.1%, relating income before taxes directly to revenue. Income tax expense totaled $76.26M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 59.9%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

At period end, the $2.06B asset base was financed through $1.99B of liabilities and $73.97M of equity. Current assets were $890.59M against $334.56M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 2.66x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $99.05M in cash and equivalents, a narrower liquidity measure than total current assets. Cash and equivalents represented 29.6% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $1.41B of total debt at period end, which frames its leverage and debt-service burden. Debt equaled 19.09x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 68.4%, showing how much of the asset base was matched by borrowing. Relative to total assets, liabilities measured 96.4%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 4.8%, a balance-sheet composition measure rather than a liquidity forecast.

Cash Flow and Earnings Quality

The company reported $357.44M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 6.99x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $52.44M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 14.7% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $305.00M of positive free cash flow for the period. Free cash flow represented 12.1% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 14.8%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Sep 30, 2025. Analysis generated Sep 24, 2026.