Simpson Manufacturing Co., Inc. Announces 2025 Second Quarter Financial Results and Reaffirms 2025 Guidance

Simpson Manufacturing Co., Inc. (the “Company”), an industry leader in engineered structural connectors and building solutions, announced its financial results for the second quarter of 2025. All comparisons below (which are generally indicated by words such as “increased,” “decreased,” “remained,” or “compared to”), unless otherwise noted, are comparing the quarter ended June 30, 2025 with the quarter ended June 30, 2024. In the first quarter of 2025, the Company reclassified certain engineering costs related to the Company’s digital efforts from research and development and engineering expense as well as selling expense to general and administrative expense. The financial results of prior three and six month periods ending on June 30, 2024, were revised to reflect these changes, with $2.8 million and $5.4 million, respectively, of costs being reclassified from research and development expenses and $1.4 million and $2.7 million, respectively, from selling expense to general and administrative expense. While this reclassification impacts the comparability of the results for prior periods, the reclassification did not have any impact on the total operating expenses.

Consolidated 2025 Second Quarter Highlights

• Net sales of $631.1 million increased 5.7% year-over-year
• Income from operations of $140.2 million increased 6.1% year-over-year
• Net income per diluted share of $2.47 increased 6.9% year-over-year
• Repurchased $35.0 million of common stock during the quarter
• Declared a $0.29 per share dividend

Management Commentary

“Our results underscore the strength and resilience of our business model, as we delivered year-over-year sales growth in a challenging housing market,” said Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. “We achieved an operating income margin of 22.2%, with year-to-date earnings growth outpacing sales growth. Our volumes outperformed U.S. housing starts by approximately 240 basis points over the trailing twelve months, consistent with our financial objectives. In North America, sales rose 6.4%, driven by a $9.0 million contribution from our 2024 acquisitions and a partial-month benefit from our recent price increases. In Europe, favorable currency translation supported sales growth, while disciplined cost management led to operating margin expansion to 11.7%, our highest second quarter level in over a decade.”

Mr. Olosky added, “We remain confident in our ability to execute our strategic plan through the remainder of 2025, even as headwinds persist in the housing market. Our disciplined capital allocation strategy ensures that investments are aligned with market dynamics and long-term value creation. We are committed to returning at least 35% of free cash flow to stockholders, reflecting our focus on delivering sustainable returns. Our goal remains to be the partner of choice by providing world-class service, innovation, and support to our customers while maintaining strong margins in a dynamic operating environment.”

North America Segment 2025 Second Quarter Financial Highlights

• Net sales of $492.7 million increased 6.4% from $463.0 million primarily due to price increases that took effect in June 2025, incremental sales from the Company’s 2024 acquisitions, and increased sales volumes.
• Gross margin declined slightly to 49.7% from 50.0% primarily due to higher warehouse costs, as a percentage of net sales.
• Income from operations of $135.7 million increased 2.7% from $132.1 million. The increase was primarily due to an increase in gross profit, partly offset by higher computer software and hardware costs, personnel costs, mostly due to annual cost of living wage increases and a slight increase in variable incentive compensation.

Europe Segment 2025 Second Quarter Financial Highlights

• Net sales of $133.4 million increased 2.7% from $129.9 million, primarily due to the positive effect of approximately $7.0 million in foreign currency translation, partly offset by lower sales volumes.
• Gross margin increased to 36.2% from 35.4%, primarily due to lower material costs, partly offset by an increase in factory and overhead costs, as a percentage of net sales.
• Income from operations of $15.7 million increased 29.0% from $12.1 million primarily due to an increase in gross profit and a decrease in operating expenses including variable incentive compensation and travel related costs.

Refer to the “Segment and Product Group Information” table below for additional segment information (including information about the Company’s Asia/Pacific and Administrative and All Other segments).

Corporate Developments

• For the quarter ended June 30, 2025, the Company repurchased 216,645 shares of common stock in the open market at an average price of $161.55 per share, for a total of $35.0 million. For the six month period ended June 30, 2025, the Company repurchased 363,285 shares of common stock in the open market at an average price of $165.16 per share, for a total of $60.0 million. As of June 30, 2025, $40.0 million remained available for share repurchases through December 31, 2025 under the Company’s previously announced $100.0 million share repurchase authorization.
• The Company’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.29 per share, estimated to be $12.1 million in aggregate. The dividend will be payable on October 23, 2025, to the Company’s stockholders of record on October 2, 2025.

Balance Sheet & 2025 Second Quarter Cash Flow Highlights

• As of June 30, 2025, cash and cash equivalents totaled $190.4 million with total debt outstanding of $376.9 million under the Company’s $450.0 million term credit facility.
• Cash flow provided by operating activities of $124.7 million increased from $111.1 million, primarily due to an increase in net income.
• Cash flow used in investing activities of $42.8 million decreased from $56.3 million mostly due to decreases in asset acquisitions.

Business Outlook

The Company is reaffirming its prior 2025 financial outlook. As of today, July 28, 2025, the Company’s outlook for the full fiscal year ending December 31, 2025 is as follows:

• Consolidated operating margin is estimated to be in the range of 18.5% to 20.5% given the declining trends and projections for 2025 U.S. housing starts compared to the prior year and the current trade environment. The outlook reflects the previously announced price increases that went into effect on June 2, 2025. The operating margin range does not include any additional pricing actions in 2025 and includes a projected benefit of $12.0 million to $13.0 million from the sale of the original Gallatin, Tennessee facility based on a contracted sales price of $19.1 million.
• The effective tax rate is estimated to be in the range of 25.5% to 26.5%, including both federal and state income tax rates as well as international income tax rates, and assumes minimal impact from recently passed tax legislation.
• Capital expenditures are now estimated to be in the range of $140.0 million to $160.0 million, which includes approximately $70.0 million to $75.0 million remaining for both the Columbus, Ohio facility expansion and the new Gallatin, Tennessee facility construction.

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About Simpson Manufacturing Co., Inc.

Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California, through its subsidiary, Simpson Strong-Tie Company Inc., designs, engineers and is a leading manufacturer of wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and concrete construction products, including adhesives, specialty chemicals, mechanical anchors, powder actuated tools and reinforcing carbon and glass fiber materials. The Company primarily supplies its building product solutions to both the residential and commercial markets in North America and Europe. The Company’s common stock trades on the New York Stock Exchange under the symbol “SSD.”

Source: Simpson Manufacturing Co., Inc.