The following is a summary of the Griffon Corporation (GFF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Q3 2024 revenue declined by 5% to $648 million compared to the previous year.

• Adjusted EBITDA decreased by 8% from the previous year to $141 million.

• Gross profit declined, with GAAP gross profit at $249 million compared to $275 million in the prior period.

• Q3 GAAP net income was $41 million, down from $49 million in the prior year.

• Q3 2024 earnings per share were $0.84, down from $0.90 a year ago.

Business Progress:

• The acquisition of Pope, an Australian provider of residential watering products, is expected to contribute $25M in annual sales.

• Continued focus on global sourcing expansion, improving margins.

• Q3 included a strong free cash flow of $120 million, supporting robust capital allocation for shareholder returns including debt reduction, share repurchases, and paying dividends.

Opportunities:

• Expectation for strong future performance, driven by strategic initiatives like the global sourcing expansion and acquisition of Pope, expected to enhance product portfolio and market presence.

• Adjusted EBITDA guidance for 2024 reconfirmed at $555 million, emphasizing steady business expectations and operational efficiency.

Risks:

• Revenue and profit declines this quarter reflect a challenging macroeconomic environment and weakened consumer demand, particularly impacting the Consumer and Professional Products segment.

• The commercial sector experienced a lumpy business cycle with reduced volume, potentially impacting future earnings if the trend continues.

More details: Griffon IR

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