Griffon (GFF) risk factors, FY2025 10-K

Griffon's FY2025 10-K, filed Nov 19, 2025, lists 32 risk factors in 3 groups. Against the prior year's 32: 3 new, 3 dropped, 9 substantially reworded.

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Risk factors listed
323 groups
New this year
3vs 32 last year
Dropped
3since the prior 10-K
Substantially reworded
9of those kept
Section length
8k wordsItem 1A

What the changes say

  • Griffon added risks regarding forced labor compliance, artificial intelligence usage, and cybersecurity communication disruptions.
  • China sourcing reliance and inflation metrics were updated, while past acquisition integration details were dropped.

What changed since the prior 10-K

New

  • NewRisks Related to Our Business

    materials through components to finished goods, to ensure our goods are not made using forced labor. We cannot be certain that our products will not be targeted or that our shipments will not be detained, which may impact our operating performance

    Griffon faces risks that its supply chain may involve forced labor, leading to product detentions and impacted operations.

  • NewRisks Related to Our Business

    incident or otherwise, our ability to communicate internally as well as with our customers and suppliers could be significantly impaired, which may adversely impact our business, operations and reputation

    Cyber security breaches or operational failures could impair internal and external communications, risking sensitive data and reputation.

  • NewRisk Related to Our Common Stock

    Griffon may use artificial intelligence in its business, and challenges with properly managing its use could result in reputational harm, competitive harm and legal liability

    The use or mismanagement of artificial intelligence tools in operations, supply chain, and marketing could cause operational disruptions and legal liability.

Dropped

  • DroppedRisks Related to Our Business

    The expansion of CPP’s global sourcing strategy may not achieve its intended results

  • DroppedRisks Related to Our Business

    Unionized employees could strike or participate in a work stoppage

  • DroppedRisks Related to Our Business

    short time period, which could occur again; the risks relating to integration of an acquisition may be exacerbated when numerous acquisitions are consummated in a short time period

Reworded

  • 72% rewrittenRisks Related to Our Business

    Griffon’s operations and reputation may be adversely impacted if our information technology (IT) systems, or the IT systems of third parties with whom we do business, fail to perform adequately or if we or such third parties are the subject of a data breach or cyber-attack

    Expanded to detail the specific consequences if IT systems cease to function properly for an extended period of time.

  • 66% rewrittenRisks Related to Our Business

    CPP is subject to risks from sourcing from international locations, especially China

    Updated to state that CPP raw materials are sourced from China and that the expanded strategy could exacerbate tariff impacts.

  • 54% rewrittenRisks Related to Our Business

    Griffon may be unable to implement its acquisition growth strategy, which may result in added expenses without a commensurate increase in revenue and income, and divert management’s attention

    Removed the historical reference to consummating a group of acquisitions within a short time period.

  • 46% rewrittenRisks Related to Our Business

    Griffon is exposed to fluctuations in inflation, which could negatively affect its business, financial condition and results of operations

    Updated U.S. annual inflation figures from prior years to reflect 9.1% in 2022 and moderation to the low-to-mid 2% range.

  • 45% rewrittenRisk Related to Our Common Stock

    Griffon may be required to record impairment charges for goodwill and indefinite-lived intangible assets

    Added the fiscal year 2025 to the ongoing annual impairment testing timeline for goodwill and intangibles.

  • 36% rewrittenRisks Related to Our Business

    Reliance on third party suppliers and manufacturers may impair the ability of HBP and CPP to meet their customer demands

    Updated metrics for 2025, showing CPP worldwide sourced finished goods increased to 38% and components decreased to 3% of cost of goods sold.

  • 35% rewrittenRisks Related to Our Business

    The loss of large customers can harm financial results

    Updated Home Depot's revenue contribution for 2025 to 10% of consolidated revenue, 9% for HBP, and 12% for CPP.

  • 34% rewrittenRisks Related to Our Business

    HBP’s business is driven by renovation and construction during warm weather, which is historically at reduced levels during the winter months, generally in our second quarter. In 2025, 49% of CPP's sales occurred during the second and third quarters compared to 52% in 2024 and 54% in 2023

    Added language noting climate change has warmed global temperatures and decreased average snowfall, reducing snow tool sales.

    Was: HBP’s business is driven by renovation and construction during warm weather, which is historically at reduced levels during the winter months, generally in our second quarter. In 2024, 52% of CPP's' sales occurred during the second and third quarters compared to 54% in 2023 and 58% in 2022

  • 22% rewrittenRisks Related to Our Business

    Current worldwide economic uncertainty and market volatility could adversely affect Griffon’s businesses

All 32 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Business

  1. 01Current worldwide economic uncertainty and market volatility could adversely affect Griffon’s businesses22% rewritten
  2. 02Adverse trends and general economic conditions, especially those that relate to construction and renovation, will impact Griffon’s business
  3. 03Griffon is exposed to fluctuations in inflation, which could negatively affect its business, financial condition and results of operations46% rewritten
  4. 04Griffon operates in highly competitive industries and may be unable to compete effectively
  5. 05The loss of large customers can harm financial results35% rewritten
  6. 06Reliance on third party suppliers and manufacturers may impair the ability of HBP and CPP to meet their customer demands36% rewritten
  7. 07If Griffon is unable to obtain raw materials for products at favorable prices it could adversely impact operating performance
  8. 08CPP is subject to risks from sourcing from international locations, especially China66% rewritten
  9. 09materials through components to finished goods, to ensure our goods are not made using forced labor. We cannot be certain that our products will not be targeted or that our shipments will not be detained, which may impact our operating performanceNew
  10. 10A future pandemic could adversely impact our results of operations
  11. 11HBP’s business is driven by renovation and construction during warm weather, which is historically at reduced levels during the winter months, generally in our second quarter. In 2025, 49% of CPP's sales occurred during the second and third quarters compared to 52% in 2024 and 54% in 202334% rewritten
  12. 12Griffon’s operations and reputation may be adversely impacted if our information technology (IT) systems, or the IT systems of third parties with whom we do business, fail to perform adequately or if we or such third parties are the subject of a data breach or cyber-attack72% rewritten
  13. 13incident or otherwise, our ability to communicate internally as well as with our customers and suppliers could be significantly impaired, which may adversely impact our business, operations and reputationNew
  14. 14Griffon may be unable to implement its acquisition growth strategy, which may result in added expenses without a commensurate increase in revenue and income, and divert management’s attention54% rewritten

Risks Related to Our Indebtedness

  1. 15Compliance with restrictions and covenants in Griffon’s debt agreements may limit its ability to take corporate actions
  2. 16Griffon may be unable to raise additional financing if needed
  3. 17Griffon’s indebtedness and interest expense could limit cash flow and adversely affect operations and Griffon’s ability to make full payment on outstanding debt

Risk Related to Our Common Stock

  1. 18Griffon has the ability to issue additional equity securities, which would lead to dilution of issued and outstanding common stock
  2. 19Each of Griffon's businesses faces risks related to the disruption of its primary manufacturing facilities
  3. 20Manufacturing capacity constraints or increased manufacturing costs may have a material adverse effect on Griffon's business, results of operations, financial condition and cash flows
  4. 21If HBP and CPP do not continue to develop and maintain leading brands or realize the anticipated benefits of advertising and promotion spend, its operating results may suffer
  5. 22Griffon may be required to record impairment charges for goodwill and indefinite-lived intangible assets45% rewritten
  6. 23If Griffon's subcontractors or suppliers fail to perform their obligations, Griffon's performance and ability to win future business could be harmed
  7. 24Griffon’s companies must continually improve existing products, design and sell new products and invest in research and development in order to compete effectively
  8. 25The loss of certain key officers or employees could adversely affect Griffon’s business
  9. 26Griffon may not be able to protect its proprietary rights
  10. 27Griffon or its suppliers may inadvertently infringe on, or may be accused of infringing on, proprietary rights of others
  11. 28Griffon may use artificial intelligence in its business, and challenges with properly managing its use could result in reputational harm, competitive harm and legal liabilityNew
  12. 29Griffon is exposed to product liability and warranty claims
  13. 30Griffon has been, and may in the future be, subject to claims and liabilities under environmental laws and regulations
  14. 31Changes in income tax laws and regulations or exposure to additional income tax liabilities could adversely affect profitability
  15. 32Actions taken by activist shareholders could be disruptive and costly and may conflict with or disrupt the strategic direction of our business

Other Griffon 10-Ks

  • FY2024 10-K risk factors
    32 risks

    Griffon faces significant exposure to U.S. housing and commercial property markets through its HBP and CPP segments. Operations rely heavily on key customers like Home Depot and Menards, alongside global supply chains. Debt covenants, raw material price fluctuations, and seasonal weather patterns heavily impact financial stability.

    Filed Nov 13, 2024

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.