Question · Q4 2025
Bob Laback asked about any competitive changes or outlook shifts in the commercial or residential door markets, and how Griffon expects these markets to evolve over the next three to five years. He also inquired about the dynamics of CPP pricing, consumer acceptance, and the outlook for these factors in the U.S. for the upcoming year.
Answer
Ron Kramer, Chairman and Chief Executive Officer, highlighted Griffon's exceptional performance despite a weak consumer, difficult housing market, high interest rates, and inflation. He attributed this to underlying strength, a premium position in the garage door category, diversified channels (big box retailers and 2,500 dealers), and a 15-year pivot that has reduced new home construction to less than 10% of HBP. He noted no issues with pricing discipline among peers and sees a recovering housing market ahead, indicating HBP is nowhere near peak earnings. For CPP, he emphasized that brands and quality matter, and expects 2026 to be similar to 2025 with no immediate consumer recovery. Destocking has occurred, and the global sourcing initiative has helped maintain margins. He believes interest rates may decline in 2026, potentially improving the spring season, but tariff uncertainty remains.
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