Griffon’s second quarter was met with a significant negative market reaction, as revenue fell short of Wall Street’s expectations amid a 5.3% year-over-year decline. Management attributed underperformance primarily to weak demand in the Consumer and Professional Products segment, where increased tariffs disrupted customer ordering patterns, particularly at Hunter Fan. CEO Ronald Kramer noted that these pressures led to a sharp sales drop, while CFO Brian Harris cited reduced retail point-of-sale activity and cautious consumer behavior, especially in the Northeast, as key headwinds. The Home & Building Products segment continued to show resilience, driven by favorable pricing and mix, but this was not enough to offset the challenges in consumer-facing categories.

Is now the time to buy GFF? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Griffon’s Q2 Earnings Call

• Lee Jagoda (CJS Securities) asked about CPP pricing strategy in response to tariffs. CFO Brian Harris confirmed selective price increases but declined to share details, citing ongoing retailer negotiations.
• Robert Schultz (Baird) questioned price realization in Home & Building Products. Harris replied price increases were generally accepted by the market, with favorable results in the high-end residential segment.
• Trey Grooms (Stephens Inc.) sought clarity on timing for a Consumer and Professional Products rebound. Harris admitted, “It’s hard to really project when the consumer will come back,” citing ongoing uncertainty around tariffs.
• Collin Verron (Unknown) inquired about material cost tailwinds in Home & Building Products. Harris stated steel prices are expected to remain stable, supporting margins above 31% in the near term.
• Alex Hantman (Sidoti & Company) asked about confidence in full-year EBITDA guidance given lower revenue outlook. Harris cited strong year-to-date performance in Home & Building Products and ongoing cost optimization as key supports.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will monitor (1) signs of demand stabilization or recovery in Consumer and Professional Products, especially as tariff impacts become clearer, (2) continued execution and margin support from automation and efficiency initiatives in Home & Building Products, and (3) Griffon’s ability to balance capital returns with further debt reduction. Progress in these areas will be critical for restoring investor confidence.

Griffon currently trades at $72.83, down from $82.37 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

Our Favorite Stocks Right Now

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.