Griffon Corporation

Greetings and welcome to the Griffin Corporation Fiscal Fourth Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Mr. Brian Harris, Chief Financial Officer. Thank you. You may begin.

Thank you, Melissa. Good morning and welcome to Griffin Corporation's fourth 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 replay instructions are included in our earnings release. Our comments will include forward-looking statements about Griffin's 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 filings. Finally, some of today's remarks will adjust for items that affect comparability between periods. These items are explained in our non-GAAP reconciliations included in our press release. With that, I'll turn the call over to Ron.

Thanks, Brian. Good morning, everyone, and thank you for joining us. We're very pleased with our results for the fourth quarter and fiscal year, particularly in light of the challenging macroeconomic environment. The continued strong performance from our home and building products, or HPP segment, combined with the meaningful profitability improvements in our consumer and professional product segment, CPP, underscores the strength of our portfolio and the operational discipline. It was a very good year. For the year, HBP revenue of $1.6 billion was consistent with the prior year, and profitability was strong with an EBITDA margin of 31.2%. The continued investments in innovation and productivity at HBP have resulted in notable recognition from our peers and customers. At the International Builders Show earlier this year, Clopay won the Best in Show Award for its groundbreaking Vertistack Avante garage door. VertiStack revolutionizes how doors are incorporated into commercial and residential projects thanks to its unique patented design, which features glass panels that stack compactly above the door opening, eliminating the need for overhead tracks. This is the first of what we expect to be many new product innovations in the coming years. In addition, earlier this month, Clopay received the 2025 Partner of the Year Award from the Home Depot in the Millwork category. Clopay was recognized for its commitment to delivering high-quality products, innovative solutions, exceptional value, and outstanding service to Home Depot customers. We're honored to receive this award, which recognizes our successful 40-year partnership. Turning to consumer and professional product segments, CPP's results for the year continue to reflect challenging market conditions, with revenues decreasing 10% to $936 million. Revenues declined year over year due to persistently weak consumer demand in North America and the United Kingdom, along with disrupted U.S. customer ordering patterns due to increased tariffs. This volume reduction was partially offset by increased organic volume in Australia and the contribution from the Pope acquisition there. For the second year in a row, profitability improved significantly at CPP with segment EBITDA increasing 18% and the EBITDA margin increasing over 200 basis points despite the lower sales volume in North America and in the U.K., This profit improvement was principally driven by the benefits of our global sourcing expansion, which transitioned most of our U.S. manufacturing to an asset-light business model leveraging our global supply chain. Turning to our capital allocation, in fiscal 2025, we continued to take significant actions to deliver shareholder value through stock buybacks and cash dividends, while also paying down debt, maintaining a strong balance sheet. During the year, we repurchased 1.9 million shares at an average price of $70.99. Since April 2023 and through September 30, 2025, our share repurchases totaled 10.8 million shares of common stock, or 18.9% of the April 2023 outstanding shares for a total of $560 million, or an average of $51.79 per share. Also this morning, we announced that the Griffin Board authorized a regular quarterly dividend of 22 cents per share, payable on December 16th to shareholders of record on November 28th, marking the 57th consecutive quarterly dividend to our shareholders, This dividend represents a 22% increase over the prior quarter dividend, and since we began paying dividends in 2012, reflects growth and an annualized compound rate of 19%. Utilizing our $323 million of fiscal 2025 free cash flow, Griffin returned a total of $174 million to shareholders through dividends and share repurchases, and reduce debt by $116 million, while also reducing our leverage to 2.4 times from 2.6 times while making substantial investments in all of our businesses. These actions reflect the ongoing strength of our business, as well as our confidence in our strategic plan and bright outlook. I'll now turn it back to Brian for a little more information on the financials and provide details about our 2026 guidance. Brian?