Griffon Corporation (GFF): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Griffon Corporation's business portfolio as of late 2025, and honestly, the picture is one of a strong cash engine funding a turnaround effort, which is defintely a classic setup. The Home and Building Products (HBP) segment is the undisputed Cash Cow, delivering $1.6 billion in revenue in fiscal 2025 and generating $323 million in free cash flow, with margins expected to stay robustly above 30% into 2026-these are the Stars driving growth within that segment. Meanwhile, this reliable cash flow is propping up the Consumer and Professional Products (CPP) unit, which is currently riddled with Dogs, evidenced by a 10% revenue decline in fiscal 2025 and a major goodwill impairment charge tied to the Hunter Fan business. We need to see if the CPP segment's global sourcing expansion and turnaround efforts can elevate its Question Marks into sustainable performers; dive in below to see the precise breakdown of where Griffon must invest, hold, or divest.

Background of Griffon Corporation (GFF)

You're looking at Griffon Corporation (GFF) as of late 2025, and honestly, it's a holding company with a clear, albeit complex, structure. Griffon Corporation is a diversified management and holding company that runs its show through wholly-owned subsidiaries. They oversee operations, figure out resource allocation, and manage the capital structures for these businesses. As long-term investors, their stated intent is to grow and strengthen what they have while also looking to diversify further through acquisitions.

Griffon conducts its business through two main reportable segments. First, you have Home and Building Products, or HBP, which operates through Clopay Corporation. Clopay is a major player, being the largest manufacturer and marketer of garage doors and rolling steel doors across North America, selling under brands like Clopay, Ideal, and Holmes. The second piece is the Consumer and Professional Products, or CPP, segment, which is a global provider of branded consumer and professional tools, fans, and home storage and organization products.

Looking at the numbers for the fiscal year ended September 30, 2025, the story is mixed. Total revenue came in at $2.5 billion, which was actually a 4% dip compared to the prior year's $2.6 billion. However, adjusted EBITDA showed some resilience, ticking up 2% to $522.3 million. What really skewed the bottom line was a significant charge in the CPP segment-a goodwill and intangible asset impairment totaling $217.2 million, net of tax, which drove reported net income down to just $51.1 million for the year.

Despite the revenue softness, management is clearly signaling confidence in cash flow generation. Fiscal 2025 saw $323 million in free cash flow, which they used to return $174 million to shareholders via dividends and buybacks, while also paying down $116 million of debt. This helped leverage drop to 2.4x net debt-to-EBITDA. For the near term, they project fiscal 2026 revenue will be flat at $2.5 billion, but they expect segment profitability to improve, guiding adjusted EBITDA between $580 million and $600 million (before unallocated costs). Plus, they just hiked the quarterly dividend to $0.22 per share, marking a 22% increase.

Griffon Corporation (GFF) - BCG Matrix: Stars

The Home and Building Products (HBP) segment, which includes Clopay Corporation, represents the area within Griffon Corporation that aligns with the Star quadrant characteristics, driven by its leadership in the garage and rolling steel door markets.

HBP's commercial and specialty door lines are cited as the drivers of growth, even as the overall market environment remains flat. For the fourth quarter ended September 30, 2025, HBP revenue increased by 3% to $420.3 million, primarily due to favorable pricing and mix, which suggests success in the premium and specialty areas. For the full fiscal year 2025, HBP revenue was $1.6 billion, consistent with the prior year. The segment maintains a high level of profitability, with the expected EBITDA margin for fiscal 2025 continuing to be in excess of 30%.

The company is actively supporting this segment's future performance through capital deployment. Ongoing investments in automation and modernization projects within HBP are specifically noted as expected to bolster future earnings and cash generation. These modernization efforts, which include ongoing work on sectional doors, aim to improve operating efficiency.

The segment's focus on resilient, energy-efficient, and customizable premium doors is a key strategy to increase the average selling price. Griffon Corporation, as a whole, holds an estimated 7.8% market share in U.S. Garage Door Manufacturing. The HBP segment, operating under brands like Clopay, Ideal, and Holmes, is North America's largest manufacturer and marketer of garage doors.

Here is a look at the key financial metrics for the HBP segment as of the fiscal year 2025 results:

This focus on premium offerings is validated by industry recognition for product innovation. For example, the VertiStack Avante garage door, a product of Clopay, won the prestigious Best of IBS 'Best in Show' award at the NAHB International Builders' Show® in February 2025.

The characteristics supporting the Star classification for this business unit include:

• HBP revenue in the most recent quarter grew by 3%.
• Expected HBP EBITDA margin for fiscal 2025 remains above 30%.
• Investment in automation is ongoing to bolster future cash generation.
• Product innovation recognized with a major industry award in 2025.
• HBP is the largest manufacturer of garage doors in North America.

Griffon Corporation (GFF) - BCG Matrix: Cash Cows

You're looking at the engine room of Griffon Corporation (GFF), which is definitely the Home and Building Products (HBP) segment. This unit holds the top spot as the largest manufacturer of garage doors in North America, a classic indicator of a high market share in a mature industry.

Here's a quick look at the hard numbers from fiscal 2025 for this segment, which acts as the corporation's primary source of stable earnings:

That 31.2% adjusted EBITDA margin in fiscal 2025 shows you the high-profitability you expect from a market leader that doesn't need heavy investment just to maintain its position. Looking ahead, management projects this segment's adjusted EBITDA margin will remain robustly above 30% in fiscal 2026, signaling continued, reliable cash generation.

This segment is the one that generates the necessary cash to keep the whole operation running smoothly. For the full fiscal year 2025, Griffon Corporation generated $323.0 million in free cash flow, and it's the HBP segment's consistent, high-margin performance that funds the entire corporation, covering debt service and shareholder returns.

Cash Cows, like HBP, are the business units you want to maintain because they provide the financial foundation. They fit the profile because they have:

• High market share in a mature market.
• High profit margins, like HBP's 31.2%.
• Generate more cash than they consume.
• Provide the cash required to fund the corporation.
• Require low promotion and placement investments.

The goal here is to 'milk' these gains passively while making targeted investments into supporting infrastructure to improve efficiency even further, which helps boost that cash flow number, like the $323 million seen in FY2025.

Griffon Corporation (GFF) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Consumer and Professional Products (CPP) segment overall experienced a 10% revenue decline in fiscal 2025, falling to $935.7 million in revenue for the year. This decline reflects weak consumer demand across the segment's portfolio. The segment's adjusted EBITDA for fiscal 2025 was $85.5 million, which translates to an approximate adjusted EBITDA margin of 9.14% based on full-year revenue, though recent performance indicates a margin of 10.1%.

The Hunter Fan business stands out as a significant drag, being the primary driver for a substantial one-time financial hit. Griffon Corporation recorded a charge of $217.2 million, net of tax, in the third quarter of fiscal 2025 related to the impairment of goodwill and intangible assets associated with the Hunter Fan acquisition. The total non-cash goodwill and intangible asset impairment charge recognized in fiscal 2025 amounted to $243.6 million.

Core North American and U.K. consumer tools and fan businesses within CPP are directly contending with external trade pressures. These operations faced disrupted ordering patterns due to increased tariffs. This tariff impact contributed to a volume decrease of close to 12% year-over-year for the CPP segment, with the fourth quarter specifically seeing an 8% drop in volume driven by these trade actions.

The financial profile of the CPP segment in fiscal 2025 is characterized by its low profitability within a low-growth consumer market. The segment's adjusted EBITDA margin was reported at approximately 10.1% in a recent period, which is low compared to the Home and Building Products segment. The segment's performance metrics for the full fiscal year 2025 are detailed below:

The challenges facing this part of Griffon Corporation's business can be summarized by the headwinds impacting its core operations:

• CPP segment revenue decline: 10% year-over-year for fiscal 2025.
• Hunter Fan goodwill/intangible asset impairment (net of tax): $217.2 million.
• Volume decrease in U.S. and U.K. due to tariffs: close to 12% year-over-year.
• CPP adjusted EBITDA margin (recent): 10.1%.

Griffon Corporation (GFF) - BCG Matrix: Question Marks

The Question Marks quadrant for Griffon Corporation centers heavily within the Consumer and Professional Products (CPP) segment, representing business units with high growth potential but currently low relative market share, thus consuming cash while awaiting a decisive investment strategy.

The CPP segment's global sourcing expansion initiative, aimed at improving profitability, is a key area consuming capital with unproven scalability across all product lines. This initiative, which transitioned most U.S. manufacturing to an asset-light model, was completed by September 30, 2024. The implementation incurred total charges of $133,777 (in thousands, likely), which included $51,082 in cash costs and $82,695 in non-cash write-downs. The success of this strategy is evident in the segment's profitability improvement despite revenue challenges.

The overall turnaround effort for the entire CPP segment saw segment Adjusted EBITDA rise by 18% to $85.5 million for fiscal year 2025, even as segment revenue declined by 10% to $935.7 million compared to 2024. This 18% rise in EBITDA on lower revenue signals efficiency gains that require sustained execution. For the first quarter of fiscal 2025, the segment's Adjusted EBITDA increased by 2.2x on a 4% revenue decrease year-over-year. However, in the third quarter of fiscal 2025, the segment's Adjusted EBITDA decreased 14% to $19.2 million from $22.3 million in the prior year quarter.

The Pope acquisition in Australia, completed in July 2024, represents a targeted investment in a new geographic market showing positive momentum. This acquisition is expected to contribute approximately $25 million in annualized revenue. In the fiscal third quarter of 2025, the Pope acquisition contributed 1% to the CPP segment's revenues, supported by increased organic volume in Australia that partially offset weakness elsewhere.

Home storage and organization products, including the ClosetMaid brand, operate within this CPP structure, facing the headwinds of a competitive, discretionary consumer market. The broader CPP segment experienced a 16% year-over-year revenue decline in the third quarter of fiscal 2025 due to weak consumer demand in North America and the U.K.. These products are part of the unit where the company needs to quickly gain market share or risk them becoming Dogs.

Key financial metrics related to the CPP segment's Question Mark status for fiscal year 2025 include:

The strategy for these Question Marks involves heavy investment, as demonstrated by the global sourcing initiative, to drive market share. The segment's ability to generate an 18% EBITDA increase on falling revenue shows the potential for these investments to convert these units into Stars, provided the weak consumer demand in North America and the U.K. stabilizes.

• The CPP segment's profitability benefited from the asset-light transition.
• The segment saw a 13% Adjusted EBITDA increase in Q4 2025 over the prior year quarter.
• The segment's Q1 FY2025 Adjusted EBITDA increased by 2.2x.
• The company is focused on sustaining efficiency gains from the sourcing strategy.