Griffon Corporation

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Griffin Corporation Fiscal Tech Incorporated 2025 earnings conference call. At this time, all participants are in a recent only mode. A question and answer session will follow the formal presentation. Should you require operator assistance during the conference, please press star zero to signal an operator. Please note, this conference is being recorded. I will now turn the conference over to your host, Brian Harris, CFO for Griffin Corporation. Thank you. You may begin.

Thank you. Good morning, and welcome to Griffin Corporation's second quarter fiscal 2025 earnings call. Joining me for this morning's call is Ron Kramer, Griffin's Chairman and Chief Executive Officer. Our press release was issued earlier this morning and is available on our website at www.griffin.com. Today's call is being recorded, and the replay instructions are included in our earnings release. Our comments will include forward-looking statements about Perkins' performance. These statements are subject to risks and uncertainties that can change as the world changes. Please see the cautionary statements in today's press release and in our SEC filing. Finally, some of today's remarks will address items that affect comparability between periods. These items are explained in our non-JAPA conciliations included in our press release. With that, I'll turn the call over to Ron.

Thanks, Brian. Good morning, everyone, and thanks for joining us. We're at the halfway point of our fiscal year, and I am pleased to report that both of our segments have performed within our expectations. Our home and building products segment, HPP, has maintained a better than 30% EBITDA margin through the first half, driven by steady residential performance and favorable mix. As we expected, we saw a year-over-year reduction in revenue in the quarter as our doors business returned to a seasonal cycle that is more aligned with historical pre-pandemic norms. HVP continues to assert itself as the leading garage door provider with a differentiated set of innovative product offerings that separate us from the competition. Clopay was recognized as the best of IBS across the entire building products industry, at the February 2025 NAHV International Builders Show for its groundbreaking VertiStack Avanti garage door. The VertiStack door utilizes a unique patented design featuring glass panels that stack compactly above the door opening. This design eliminates the need for overhead tracks, creating a sleek aesthetic which maximizes available space and light. We've received strong interest in VertiStack, and we expect this product will revolutionize how doors are incorporated into both commercial and residential projects. This is the first in what we believe is a long pipeline of future innovations that will continue to keep Clopay as the leader in both residential and commercial doors. Let's shift to the consumer and professional product segment, CPP. It continues to improve its EBITDA performance on a year-over-year basis. This is driven in large part by the transition of our U.S. operations to an asset-like business model, which has increased our flexibility and reduced our operating costs through leveraging our global sourcing capabilities. We also have solid performance in Australia, including from the contribution of the Pope acquisition, which has performed well as a part of our AIMS portfolio. I know that all of you on the call are focused on the potential effects of changes in the U.S. trade policy, especially given the uncertain economic operating conditions, and would like you to know how we see these factors affecting Griffin through the rest of the year. Given that our performance is on track, we're maintaining our financial guidance for fiscal 2025. It's important to keep in mind that approximately 85% of Griffin's total segment EBITDA is generated by our home and building products business. HVP manufactures its products domestically and sells over 95% of those products within the United States. Despite HCP's U.S. concentration, in today's world, no business is completely insulated from changes in trade policy. However, we're confident that we're able to manage any increased costs through pricing actions and cost reduction efforts. CCP currently represents approximately 15% of Griffin's total segment EBITDA. It's important to note that only a portion of CPP is impacted by the recent changes in U.S.-China-related tariff policies. We have substantial operations outside of the United States in Australia, Canada, and the United Kingdom. Even within the U.S., not all of our products will be materially affected by tariffs because of where those products are sourced. We expect CTP to mitigate the inflationary effects of trade policy and other headwinds during the remainder of the fiscal year through supplier negotiations, cost management, leveraging existing inventory, and when necessary, taking price actions. Turning now to capital allocation. During the second quarter, we repurchased $31 billion of stock, or 420,000 shares, and an average of $72.64 per share. At March 31, $360 million remained under the repurchase authorization. We continue to believe our stock is of compelling value. Since April 2023 and through March, we've repurchased $498 million of stock, or 9.9 million shares, at an average price of $50.09. These repurchases have reduced Griffin's outstanding shares by 17.4% relative to the total shares outstanding at the end of the second quarter of fiscal 2023. Yesterday, the Griffin Board authorized a regular quarterly dividend of 18 cents per share payable on June 18th to shareholders of record on May 30th, marking the 55th consecutive quarterly dividend to shareholders Our dividend has grown at an annualized compounded rate of more than 18% since we initiated dividends in 2012. These actions reflect the strength and resiliency of our businesses, as well as our continued confidence in our strategic plan and outlook. I'll turn it over to Brian to go through some of the financial details. Thank you, Ron.