What Griffon Corp. told the SEC could break it.

Griffon's CPP segment is acutely tariff-exposed because it sources so heavily from China. The impact is realized: CPP revenue fell $99.2 million, or 10%, in 2025, driven by a 12% volume decline that the company attributes in part to disrupted U.S. customer ordering patterns due to increased tariffs. Most Chinese imports were already subject to Section 301 tariffs (since March 2018), and the January 2025 'America First Trade Policy' launched broad new trade investigations and tariff actions. Because some CPP products are sourced exclusively from China and U.S. facilities have been closed, shifting the supply chain away from China is itself costly, and ongoing tariff uncertainty may cause CPP to delay or modify sourcing changes and forgo expected benefits.

“CPP revenue decreased $99,151, or 10%, compared to 2024, primarily driven by decreased volume of 12% due to reduced consumer demand in North America and the United Kingdom (U.K.) and disrupted U.S. historical customer ordering patterns due to increased tariffs, partially offset by increased organic volume in Australia.”

Griffon's Consumer & Professional Products (CPP) segment is highly outsourced and China-concentrated: worldwide-sourced finished goods equaled approximately 38% of CPP revenue (and 6% of HBP revenue) in 2025, it relies on a limited number of companies globally to supply and manufacture certain products, and some CPP products are sourced exclusively from suppliers in China. Through its expanded global-sourcing strategy and the closure of U.S. facilities, CPP has increased its reliance on Chinese suppliers. If those suppliers' output is interrupted — or if exclusive China-sourced items become unavailable — CPP may be unable to find timely alternatives, threatening product availability and cost.

“HBP and CPP rely on a limited number of companies globally to supply components and manufacture certain of their products.”