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

Net sales of $538.9 million increased 1.6% year-over-year

Income from operations of $102.3 million, resulting in operating income margin of 19.0%

Net income per diluted share of $1.85

Repurchased $25.0 million in common stock

Simpson Manufacturing Co., Inc., an industry leader in engineered structural connectors and building solutions, today announced its financial results for the first 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 March 31, 2025 with the quarter ended March 31, 2024.

Management Commentary

“Our first quarter net sales reflected modest growth over the prior year in a highly uncertain macroeconomic environment in both the U.S. and Europe,” commented Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. “I’m pleased to report that our volume performance in North America once again exceeded U.S. housing starts by approximately 420 basis points over the trailing twelve months. Our sales included a $9.0 million benefit from our 2024 acquisitions and a favorable comparison to the prior year which was adversely affected by the timing of volume discount estimates, collectively more than offsetting a modest decline in volume. Absent these factors, North America net sales were relatively flat year-over-year. In Europe, though our sales moderately declined, we believe our volumes have outperformed the broader market.”

Mr. Olosky continued, “As previously announced, we implemented price increases across our product lines in the U.S., effective June 2^nd. Since our last pricing change, which was a decrease a few years ago, we have experienced significant increases in our costs. Additionally, while we are largely domestically sourced, we procure fasteners and a limited number of other products from countries that are subject to the recently announced tariffs. Accordingly, the price increases were an effort to offset rising costs across both non-material and material categories as well as a portion related to current trade policy actions. These increases, combined with cost discipline and productivity improvements, will help us maintain our current gross margin and make selective investments to provide even better customer service. We believe our focus on managing costs while improving our position in diversified end markets has strengthened our business through the cycle, particularly in a soft housing market. We remain confident in our mid to long-term housing outlook and believe Simpson is well positioned to capitalize on future growth.”

North America Segment 2025 First Quarter Financial Highlights

• Net sales of $420.7 million increased 3.4% from $406.7 million primarily due to incremental sales from the Company’s 2024 acquisitions and timing of volume discount estimates that negatively impacted 2024 net sales. The increases were partly offset by the negative effect of approximately $1.5 million in foreign currency translation.
• Gross margin increased to 50.0% from 49.3% primarily due to timing of 2024 volume discount estimates, as noted above.
• Income from operations of $104.2 million increased 5.4% from $98.9 million. The increase was primarily due to higher gross profits, partly offset by higher operating expenses. The operating expense increases were driven by higher personnel costs and variable incentive compensation.

Europe Segment 2025 First Quarter Financial Highlights

• Net sales of $113.9 million decreased 5.1% from $119.9 million, primarily due to the negative effect of approximately $4.0 million in foreign currency translation.
• Gross margin decreased to 35.2% from 36.5%, primarily due to higher factory and overhead, labor, as well as warehouse costs, partly offset by lower material costs, as a percentage of net sales.
• Income from operations of $9.3 million increased 12.7% from $8.3 million primarily due to a decrease in operating expenses including variable compensation 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

• The Company repurchased 146,640 shares of the Company’s common stock in the open market at an average price of $170.48 per share, for a total of $25.0 million. As of March 31, 2025, approximately $75.0 million remained available for share repurchases through December 31, 2025 under the Company’s previously announced $100.0 million share repurchase authorization.
• In 2025, some of the engineering costs related to the Company’s digital efforts that were part of research and development and engineering expense as well as selling expense are now being included in general and administrative expense. Accordingly, the financial results for the current period may not be directly comparable to those of previous periods.

Balance Sheet & 2025 First Quarter Cash Flow Highlights

• As of March 31, 2025, cash and cash equivalents totaled $150.3 million with total debt outstanding of $382.5 million under the Company’s $450.0 million credit facility.
• Cash provided by operating activities of $7.6 million decreased from $7.9 million.
• Cash used in investing activities of $50.5 million increased from $39.4 million due to increased capital expenditures.

Business Outlook

The Company is reaffirming its prior 2025 financial outlook after a reevaluation of business conditions, given the uncertainties noted below. As of today, April 28, 2025, the Company’s outlook for the full fiscal year ending December 31, 2025 is as follows:

• Given the uncertainty regarding 2025 U.S. housing starts compared to prior year housing starts, consolidated operating margin is estimated to be in the range of 18.5% to 20.5% with the low end of the range based on flat to declining 2025 housing starts compared to prior year and price increases implemented in 2025. The operating margin range includes a projected benefit of between $10.0 million to $12.0 million from the sale of the Gallatin property 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 assuming no tax law changes are enacted.
• Capital expenditures are estimated to be in the range of $150.0 million to $170.0 million, which includes approximately $75.0 million remaining for both the Columbus, Ohio facility expansion and the new Gallatin, Tennessee fastener facility construction.

For the full first quarter results, click here.

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.