On this page of StockholderLetter.com we present the latest annual shareholder letter from GRIFFON CORP — ticker symbol GFF. Reading current and past GFF letters to shareholders can bring important insights into the investment thesis.
Annual Report 2024
I am pleased to report that Griffon had another outstanding
year
in
fiscal
2024. We
delivered
strong
Total Shareholder Return (%)
309%
financial
performance highlighted by our free cash flow generation
239%
and operating profitability, achieved while navigating a
challenging
macroeconomic
environment.
Continued
EBITDA margin performance of greater than 30% from our
78%
56% 62%
Home and Building Products (HBP) segment was the
27% 26%
principal factor driving our results, complemented by
significantly improved profitability at our Consumer and
1-year
Professional Products (CPP) segment as we began realizing
benefits from our recently completed global sourcing
expansion initiative.
Griffon   s
2024
adjusted
EBITDA1
before
unallocated
expenses was $574 million, representing a 21.9% EBITDA
margin and a 100 basis point improvement in profitability
year-over-year. This profitability drove the generation of
$326 million of free cash flow2, which we used to return
$310 million to Griffon shareholders in the form of share
repurchases and dividends. We were able to do this while
maintaining our year-over-year leverage at 2.6 times net debt
6% 12%
3-year
GFF
Russell 2000
5-year
S&P 600
Data from Bloomberg. Total Shareholder Return assumes
reinvestment of all dividends.
We continue to invest in productivity, technology, and
innovation across our businesses, which will enhance our
operating margins in the near term and drive additional
growth opportunities in the long term. At HBP, we are
expanding Clopay   s Troy, Ohio sectional door manufacturing
capacity and adding advanced manufacturing equipment to
satisfy increased customer demand for premium products.
These investments will support the production of some of
our most exciting new products, and we plan to make
to EBITDA3, which is at the low end of our target range.
further investments in capacity expansion and technology in
Our
continued
commitment
to
returning
value
to
2025.
shareholders is reflected in Griffon   s Total Shareholder
Return, which has consistently surpassed the returns of
the Russell 2000 and S&P 600. The cumulative return chart
over the last one, three, and five fiscal years demonstrates
this outperformance.
Within CPP, the successful conclusion of our global
sourcing initiative and the deployment of our global
business
intelligence
system
are
already
positively
impacting CPP   s operating results. We expect to see
continued improvement over the next several years as the
full benefits of these investments are realized.
1
HOME AND BUILDING PRODUCTS
door maximizes overhead space and floods interiors with
natural light.
The HBP segment conducts its operations through Clopay
Corporation (Clopay), the preeminent manufacturer and
VertiStack Avante    was named the       Hottest New
marketer of sectional residential and commercial garage
Product       at the International Door Association Expo,
doors and rolling steel doors in North America. Clopay   s
recognized as a Merchandise Vice President   s Top 3
products are sold under the Clopay   , Cornell   , Cookson   ,
Product at The Home Depot   s annual product walk, and
Ideal Door    and Holmes    brands. Clopay leverages its
earned an Honorable Mention for Architecture MasterPrize   
extensive design, manufacturing and logistics capabilities,
(AMP) and an Architizer A+ Awards Special Mention.
including its 56 North American distribution centers, to
serve a diverse customer portfolio spanning a network of
over 3,000 professional dealers and retail partners.
Clopay has employed a strategy of building on its legacy
residential garage door models to meet the evolving design
preferences of consumers. This strategy has paid off, such
commercial
as with the introduction of       Canyon Ridge Elements       to
construction markets, HBP generated fiscal 2024 revenue
broaden the market appeal of the best-selling Canyon Ridge
of $1.6 billion and adjusted EBITDA1 of $501 million. These
faux wood composite residential line. Clopay also expanded
results demonstrate the resilience and strength of Clopay   s
color offerings on the Modern Steel Ultra-Grain Plank door,
business model, the dedication of its team, and the loyalty
giving homeowners more options to complement their
of its customers.
homes.
Despite
challenging
residential
and
In the commercial segment, energy efficiency remains a
Innovation
critical factor driving innovation and product development.
In line with this shift toward more precise performance
Clopay   s commitment to innovation remained a cornerstone
of its success in fiscal 2024, and Clopay   s product
development pipeline continues to expand in exciting new
ways with a focus on addressing evolving customer needs
in design, functionality, and connectivity. Clopay is
committed to providing the best products to architects,
facility
owners,
homeowners,
remodelers,
and
homebuilders alike.
standards, Clopay introduced the Thermiser Max    - Low U
door with a U-factor rating of 0.532, making it the most
energy-efficient rolling door available on the market today.
Driven by their mission to make doors that are easy to
service and maintain, Clopay introduced SmartSync   , a
real-time wireless diagnostic tool that improves speed and
efficiency when trouble-shooting electrical issues with
industrial controls.
A highlight of the year was the highly anticipated launch
of the VertiStack    Avante    aluminum and glass door at the
Infrastructure and Technology
2024 International Builders    Show in Las Vegas. This
the
Clopay also continues to invest in its manufacturing and
conventional garage door, offering a clean, modern design
distribution infrastructure. Clopay is expanding capacity at
that eliminates overhead tracks and exposed hinges. The
its Troy facility and improving operational efficiencies that
innovative
vertical
stacking
door
reimagines
will enable it to better serve its customers and respond to
increasing demand. Clopay has also invested for growth by
2
expanding its reach with new distribution centers in the
Looking Ahead
growing Austin, Texas and Phoenix, Arizona markets. As an
industry leader in technology, tools, and systems, Clopay
continues to invest in advanced technologies to support the
customer experience, manufacturing efficiency and quality,
new product development, enterprise systems, efficiency
and security.
Looking forward, Clopay is well-positioned for continued
growth and profitability. Garage doors continue to rank as
the most affordable home improvement project with nearly
a 2x return on investment at resale, according to the Zonda
2024 Cost vs. Value Report. We have plans to capitalize on
this trend with new products, growing distribution, and
Clopay uses several tools to increase brand awareness
outstanding customer service. The future is bright, and we
and bring customers into the purchase funnel. Among them
are excited about the opportunities that lie ahead for
is a national multimedia advertising campaign, named the
Clopay.
best in the industry in 2024 by the Door and Access
Systems Manufacturer   s Association (DASMA). This year
Clopay launched a new version of the clopaydoor.com
consumer website with increased functionality and will
soon be introducing a new design tool that combines AI
technology with visual design to match user preferences to
the best garage door for their home.
Giving Back to the Community
Clopay   s success goes hand-in-hand with the success of
the communities in which they operate. One of the most
visible ways Clopay gives back is through its partnership
with Habitat for Humanity. Since 2020, Clopay has provided
funding and doors for three home builds in Ohio, providing
first-time homeowners with much-needed support. Clopay
associates take great pride in seeing their work make a
tangible difference in the lives of their neighbors. This
initiative is a testament to Clopay   s commitment to build
both strong businesses and strong communities.
3
 • shareholder letter icon 1/27/2025 Letter Continued (Full PDF)
 • stockholder letter icon 1/29/2024 GFF Stockholder Letter
 • stockholder letter icon More "Consumer Goods" Category Stockholder Letters
 • Benford's Law Stocks icon GFF Benford's Law Stock Score = 97


GFF Shareholder/Stockholder Letter Transcript:

Annual Report 2024


I am pleased to report that Griffon had another outstanding
year
in
fiscal
2024. We
delivered
strong
Total Shareholder Return (%)
309%
financial
performance highlighted by our free cash flow generation
239%
and operating profitability, achieved while navigating a
challenging
macroeconomic
environment.
Continued
EBITDA margin performance of greater than 30% from our
78%
56% 62%
Home and Building Products (HBP) segment was the
27% 26%
principal factor driving our results, complemented by
significantly improved profitability at our Consumer and
1-year
Professional Products (CPP) segment as we began realizing
benefits from our recently completed global sourcing
expansion initiative.
Griffon   s
2024
adjusted
EBITDA1
before
unallocated
expenses was $574 million, representing a 21.9% EBITDA
margin and a 100 basis point improvement in profitability
year-over-year. This profitability drove the generation of
$326 million of free cash flow2, which we used to return
$310 million to Griffon shareholders in the form of share
repurchases and dividends. We were able to do this while
maintaining our year-over-year leverage at 2.6 times net debt
6% 12%
3-year
GFF
Russell 2000
5-year
S&P 600
Data from Bloomberg. Total Shareholder Return assumes
reinvestment of all dividends.
We continue to invest in productivity, technology, and
innovation across our businesses, which will enhance our
operating margins in the near term and drive additional
growth opportunities in the long term. At HBP, we are
expanding Clopay   s Troy, Ohio sectional door manufacturing
capacity and adding advanced manufacturing equipment to
satisfy increased customer demand for premium products.
These investments will support the production of some of
our most exciting new products, and we plan to make
to EBITDA3, which is at the low end of our target range.
further investments in capacity expansion and technology in
Our
continued
commitment
to
returning
value
to
2025.
shareholders is reflected in Griffon   s Total Shareholder
Return, which has consistently surpassed the returns of
the Russell 2000 and S&P 600. The cumulative return chart
over the last one, three, and five fiscal years demonstrates
this outperformance.
Within CPP, the successful conclusion of our global
sourcing initiative and the deployment of our global
business
intelligence
system
are
already
positively
impacting CPP   s operating results. We expect to see
continued improvement over the next several years as the
full benefits of these investments are realized.
1

HOME AND BUILDING PRODUCTS
door maximizes overhead space and floods interiors with
natural light.
The HBP segment conducts its operations through Clopay
Corporation (Clopay), the preeminent manufacturer and
VertiStack Avante    was named the       Hottest New
marketer of sectional residential and commercial garage
Product       at the International Door Association Expo,
doors and rolling steel doors in North America. Clopay   s
recognized as a Merchandise Vice President   s Top 3
products are sold under the Clopay   , Cornell   , Cookson   ,
Product at The Home Depot   s annual product walk, and
Ideal Door    and Holmes    brands. Clopay leverages its
earned an Honorable Mention for Architecture MasterPrize   
extensive design, manufacturing and logistics capabilities,
(AMP) and an Architizer A+ Awards Special Mention.
including its 56 North American distribution centers, to
serve a diverse customer portfolio spanning a network of
over 3,000 professional dealers and retail partners.
Clopay has employed a strategy of building on its legacy
residential garage door models to meet the evolving design
preferences of consumers. This strategy has paid off, such
commercial
as with the introduction of       Canyon Ridge Elements       to
construction markets, HBP generated fiscal 2024 revenue
broaden the market appeal of the best-selling Canyon Ridge
of $1.6 billion and adjusted EBITDA1 of $501 million. These
faux wood composite residential line. Clopay also expanded
results demonstrate the resilience and strength of Clopay   s
color offerings on the Modern Steel Ultra-Grain Plank door,
business model, the dedication of its team, and the loyalty
giving homeowners more options to complement their
of its customers.
homes.
Despite
challenging
residential
and
In the commercial segment, energy efficiency remains a
Innovation
critical factor driving innovation and product development.
In line with this shift toward more precise performance
Clopay   s commitment to innovation remained a cornerstone
of its success in fiscal 2024, and Clopay   s product
development pipeline continues to expand in exciting new
ways with a focus on addressing evolving customer needs
in design, functionality, and connectivity. Clopay is
committed to providing the best products to architects,
facility
owners,
homeowners,
remodelers,
and
homebuilders alike.
standards, Clopay introduced the Thermiser Max    - Low U
door with a U-factor rating of 0.532, making it the most
energy-efficient rolling door available on the market today.
Driven by their mission to make doors that are easy to
service and maintain, Clopay introduced SmartSync   , a
real-time wireless diagnostic tool that improves speed and
efficiency when trouble-shooting electrical issues with
industrial controls.
A highlight of the year was the highly anticipated launch
of the VertiStack    Avante    aluminum and glass door at the
Infrastructure and Technology
2024 International Builders    Show in Las Vegas. This
the
Clopay also continues to invest in its manufacturing and
conventional garage door, offering a clean, modern design
distribution infrastructure. Clopay is expanding capacity at
that eliminates overhead tracks and exposed hinges. The
its Troy facility and improving operational efficiencies that
innovative
vertical
stacking
door
reimagines
will enable it to better serve its customers and respond to
increasing demand. Clopay has also invested for growth by
2

expanding its reach with new distribution centers in the
Looking Ahead
growing Austin, Texas and Phoenix, Arizona markets. As an
industry leader in technology, tools, and systems, Clopay
continues to invest in advanced technologies to support the
customer experience, manufacturing efficiency and quality,
new product development, enterprise systems, efficiency
and security.
Looking forward, Clopay is well-positioned for continued
growth and profitability. Garage doors continue to rank as
the most affordable home improvement project with nearly
a 2x return on investment at resale, according to the Zonda
2024 Cost vs. Value Report. We have plans to capitalize on
this trend with new products, growing distribution, and
Clopay uses several tools to increase brand awareness
outstanding customer service. The future is bright, and we
and bring customers into the purchase funnel. Among them
are excited about the opportunities that lie ahead for
is a national multimedia advertising campaign, named the
Clopay.
best in the industry in 2024 by the Door and Access
Systems Manufacturer   s Association (DASMA). This year
Clopay launched a new version of the clopaydoor.com
consumer website with increased functionality and will
soon be introducing a new design tool that combines AI
technology with visual design to match user preferences to
the best garage door for their home.
Giving Back to the Community
Clopay   s success goes hand-in-hand with the success of
the communities in which they operate. One of the most
visible ways Clopay gives back is through its partnership
with Habitat for Humanity. Since 2020, Clopay has provided
funding and doors for three home builds in Ohio, providing
first-time homeowners with much-needed support. Clopay
associates take great pride in seeing their work make a
tangible difference in the lives of their neighbors. This
initiative is a testament to Clopay   s commitment to build
both strong businesses and strong communities.
3



shareholder letter icon 1/27/2025 Letter Continued (Full PDF)
 

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