2025 Fourth Quarter Highlights
—
Net sales of $539.3 million increased 4.2% year-over-year
—
Net income per diluted share of $1.35
—
Declared a quarterly dividend of $0.29 per share
2025 Full Year Highlights
—
Net sales of $2.3 billion increased 4.5% year-over-year
—
Income from operations of $458.1 million, resulting in an operating income margin of 19.6%
—
Net income per diluted share of $8.24
—
Repurchased $120.0 million in common stock, including $30.0 million during the fourth quarter
Simpson Manufacturing Co., Inc. (the “Company”) (NYSE: SSD), an industry leader in engineered structural connectors and building solutions, today announced its financial results for the fourth quarter and full year 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 December 31, 2025 with the quarter ended December 31, 2024 or the fiscal year ended December 31, 2025 with the fiscal year ended December 31, 2024.
Consolidated 2025 Highlights
Three Months Ended Quarter- Twelve Months Ended
, Over- , Year-Over-
December 31, Quarter December 31, Year
2025 2024 Change 2025 2024 Change
(In thousands, except per share data and (In thousands, except per share data and
percentages) percentages)
Net sales $539,345 $517,429 4.2 % $2,332,808 $2,232,139 4.5 %
Gross profit 235,073 227,236 3.4 % 1,069,605 1,023,888 4.5 %
Gross profit margin 43.6 % 43.9 % 45.9 % 45.9 %
Total operating expenses 161,839 149,552 8.2 % 626,977 588,547 6.5 %
Income from operations 74,759 76,849 (2.7) % 458,065 429,975 6.5 %
Operating income margin 13.9 % 14.9 % 19.6 % 19.3 %
Net income $56,214 $55,458 1.4 % $345,083 $322,224 7.1 %
Net income per diluted common $1.35 $1.31 3.1 % $8.24 $7.60 8.4 %
share
Adjusted EBITDA(1) $104,701 $105,705 (0.9) % $544,279 $526,803 3.3 %
Total U.S. Housing starts - December 31, 2025 data not available(2)
(1)Adjusted EBITDA is a non-GAAP financial measure and it is defined in the Non-GAAP Financial Measures section of the press release. For a reconciliation of Adjusted EBITDA to U.S. GAAP ("GAAP") net income see the schedule titled "Reconciliation of Non-GAAP Financial Measures."
(2)The housing starts data was unavailable at the time of the press release. Based on the United States Census Bureau's release calendar, we expect the next update on national housing market data to be issued around February 18, 2026.
Management Commentary
“In 2025, we executed with discipline across our business, and I am proud of what our teams accomplished,” said Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. “We delivered 4.5% revenue growth in a challenging housing market and achieved a solid 19.6% operating margin, reflecting the strength of our business model and effective cost management. Top-line growth in 2025 included approximately 3% from our pricing actions, 1% from acquisitions, and 1% from foreign exchange, which was partially offset by a 1% decline in volume. Importantly, we achieved a Total Recordable Incident Rate below 1.0 for the second consecutive year, our best safety performance in company history. Our commitment to safety demonstrates the values that define Simpson, above all, “everybody matters.”
Mr. Olosky continued, “Our results this year demonstrate the resilience of our portfolio and the effectiveness of our long-term strategy. We continued to innovate, expanded our digital capabilities, brought new manufacturing capabilities online, expanded our warehouse footprint, and strengthened customer relationships across our key end markets. As we look ahead, we remain focused on our ambitions to grow above the market, achieve an operating margin of at least 20%, and drive earnings per share growth ahead of net sales growth. This focus is supported by strong operational execution and a balanced approach to capital allocation, positioning us well for continued success in 2026 and beyond as we deepen our commitment to being the partner of choice for our customers.”
North America Segment Financial Highlights
2025 Fourth Quarter
— Net sales of $416.9 million increased 3.0% from $404.8 million due to the increases in pricing, partly offset by lower volumes.
— Gross margin decreased to 46.2% from 46.9% due to tariffs on certain imported fastener and anchor products, as well as higher factory and overhead and labor costs, partly offset by lower warehouse costs, as a percentage of net sales.
— Income from operations of $82.3 million decreased 3.6% from $85.4 million. The decrease was primarily driven by higher operating expenses resulting from the timing of increased charitable donations, as well as increases in variable incentive compensation, and personnel costs, including severance related costs.
2025 Full Year
— Net sales of $1.8 billion increased 4.5% from 2024 due to increases in pricing, and higher incremental sales related to the Company’s 2024 acquisitions, partly offset by lower volumes.
— Gross margin decreased to 48.8% from 48.9%, due to higher factory and overhead, labor costs, partly offset by lower warehouse costs, as a percentage of net sales. Tariffs on certain imported fastener and anchor products also had a negative impact on gross margin.
— Income from operations of $448.8 million increased 2.1% from $439.6 million. The increase was primarily due to higher gross profit, partly offset by higher operating expenses. The increase in operating expenses was driven by higher personnel costs including severance related costs, variable incentive compensation, IT application costs. as well as the timing of higher charitable donations,
Europe Segment Financial Highlights
2025 Fourth Quarter
— Net sales of $117.9 million increased 9.1% from $108.1 million, primarily due to the positive effect of approximately $9.1 million in foreign currency translation and a modest improvement in sales volumes and pricing.
— Gross margin increased to 33.6% from 32.3%, primarily due to lower material and freight costs, partly offset by higher factory and overhead, warehouse and labor costs, as a percentage of net sales. Gross profit was negatively impacted by footprint optimization and severance costs.
— Income from operations of $2.8 million increased 259.6% from $0.8 million, mostly due to higher gross profit, partly offset by increases in operating expenses driven primarily by the negative effect of approximately $2.9 million in foreign currency translation.
2025 Full Year
— Net sales of $499.6 million increased 4.3% from $479.1 million, primarily due to the positive effect of approximately $20.4 million in foreign currency translation.
— Gross margin increased to 35.8% from 35.3%, primarily due to lower material and freight costs, partly offset by higher factory and overhead, warehouse and labor costs, as a percentage of net sales. Gross profit was negatively impacted by footprint optimization and severance costs.
— Income from operations of $43.9 million increased 29.7% from $33.8 million mostly due to higher gross profit, partly offset by increases in operating expenses driven primarily by the negative effect of approximately $5.3 million in foreign currency translation.
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
— On January 28, 2026, the Board declared a quarterly cash dividend of $0.29 per share, estimated to be $12.0 million in aggregate. The dividend will be payable on April 23, 2026, to the Company’s stockholders of record on April 2, 2026.
— On December 16, 2025, the Company entered into an Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement amends and restates the Company’s previous Credit Agreement, dated as of July 27, 2012. The Amended and Restated Credit Agreement provides for a 5-year Revolving Credit Facility of $600.0 million, which includes a letter of credit sub-facility of up to $50.0 million, and for a 5-year Term Loan Facility of $300.0 million. As of December 31, 2025, the Company had $74.2 million outstanding under the Revolving Credit Facility and $300.0 million under the Term Loan Facility for ongoing working capital and general business needs.
— During the fourth quarter, the Company repurchased 177,845 shares of the Company’s common stock in the open market at an average price of $168.68 per share, for a total of $30.0 million, completing the repurchase of $120.0 million of the Company’s common stock that was previously authorized for fiscal 2025.
— The Company is authorized by the Board to repurchase up to $150.0 million of the Company’s common stock beginning January 1, 2026 through December 31, 2026.
Balance Sheet & Cash Flow Highlights
— As of December 31, 2025, cash and cash equivalents totaled $384.1 million with total debt outstanding of $374.2 million under the Company’s $900.0 million credit facility.
— For the 2025 fourth quarter, cash provided by operating activities of approximately $155.6 million increased from $115.8 million, primarily due to decreases in working capital. For the 2025 full year, cash provided by operating activities of $458.6 million increased from $338.2 million, primarily due to decreases in working capital and higher net income.
— For the 2025 fourth quarter, cash used in investing activities of approximately $30.2 million decreased from $57.1 million mostly due to decreased capital expenditures of $18.3 million and increased proceeds from the sale of assets of $7.4 million. For the 2025 full year, cash used in investing activities of $136.7 million decreased from $259.3 million mostly due to decreased acquisitions of $77.1 million.
— For the 2025 fourth quarter, cash used in financing activities of $42.9 million decreased from $150.4 million. For the 2025 full year, cash used in financing activities of $186.1 million decreased from $261.5 million, primarily as a result of debt refinancing activity.
Business Outlook
The Company is initiating its 2026 financial outlook to reflect its expectations regarding demand trends, cost of sales, and operating expenses. Based on business trends and conditions as of today, February 9, 2026, the Company’s outlook for the full fiscal year ending December 31, 2026 is as follows:
— Consolidated operating margin is estimated to be in the range of 19.5% to 20.5%. The operating margin range includes a projected gain of $10.0 million to $12.0 million on the sale of vacant land.
— The effective tax rate is estimated to be in the range of 25.0% to 26.0%, 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 $75.0 million to $85.0 million.
Conference Call Details
Investors, analysts and other interested parties are invited to join the Company’s fourth quarter and full year 2025 financial results conference call on Monday, February 9, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). To participate, callers may dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (International) approximately 10 minutes prior to the start time. The call will be webcast simultaneously and can be accessed through https://viavid.webcasts.com/starthere.jsp?ei=1748976&tp_key=941acbc869 or a link on the Investor Relations section of the Company’s website at https://ir.simpsonmfg.com/events-and-presentations. For those unable to participate during the live broadcast, a replay of the call will also be available beginning that same day at 8:00 p.m. Eastern Time until 11:59 p.m. Eastern Time on Monday, February 23, 2026, by dialing (844) 512-2921 (U.S. and Canada) or (412) 317-6671 (International) and entering the conference ID: 13758070. The webcast will remain posted on the Investor Relations section of the Company’s website for 90 days.
A copy of this earnings release will be available prior to the call, accessible through the Investor Relations section of the Company’s website at www.simpsonmfg.com.
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.”
Copies of Simpson Manufacturing’s Annual Report to Stockholders and its proxy statements and other SEC filings, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made available free of charge on the Company’s website on the same day they are filed with the SEC. To view these filings, visit the Investor Relations section of the Company’s website.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “outlook,” “target,” “continue,” “predict,” “project,” “change,” “result,” “future,” “will,” “could,” “can,” “may,” “likely,” “potentially,” or similar expressions. Forward-looking statements are all statements other than those of historical fact and include, but are not limited to, statements about future financial and operating results, our plans, objectives, business outlook, priorities, expectations and intentions, expectations for sales and market growth, comparable sales, earnings and performance, stockholder value, effective tax rates, capital expenditures, cash flows, the housing market, the home improvement industry, demand for services, share repurchases, our strategic initiatives, including the impact of these initiatives on our strategic and operational plans and financial results, and any statement of an assumption underlying any of the foregoing. Forward looking statements in this press release include, but are not limited to, statements regarding: anticipated consolidated operating margin for 2026; expected gain on the sale of undeveloped land; estimated effective tax rate for 2026; and projected capital expenditures for 2026.
Forward-looking statements are subject to inherent uncertainties, risks and other factors that are difficult to predict and could cause our actual results to vary in material respects from what we have expressed or implied by these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those expressed in or implied by our forward-looking statements include the effect of tariffs and international trade policies on our business operations, the effects of inflation and labor and supply shortages, on our operations, and the operations of our customers, suppliers and business partners, the effect of a global pandemic such as the COVID-19 pandemic or other widespread public health crisis and their effects on the global economy, as well as those discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other reports we file with the SEC.
We caution that you should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Readers are urged to carefully review and consider the various disclosures made in our reports filed with the SEC that advise of the risks and factors that may affect our business, results of operations and financial condition.
Non-GAAP Financial Measures
This press release includes certain financial information not prepared in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). Since not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Further, these measures should not be considered substitutes for the performance measures derived in accordance with GAAP. The Company uses Adjusted EBITDA as an additional financial measure in evaluating the ongoing operating performance of its business. The Company believes Adjusted EBITDA allows it to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. Adjusted EBITDA should not be considered in isolation or as a substitute for GAAP financial measures such as net income or any other performance measures derived in accordance with GAAP. See the Reconciliation of Non-GAAP Financial Measures below.
The Company defines Adjusted EBITDA as net income (loss) before income taxes, adjusted to exclude depreciation and amortization, integration, acquisition and restructuring costs, non-qualified compensation adjustments, goodwill impairment, gain on bargain purchase, lease termination costs, severance costs, net loss or gain on disposal of assets, interest income or expense, and foreign exchange and other expense (income).
Simpson Manufacturing Co., Inc. and Subsidiaries
UNAUDITED Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2025 2024 2025 2024
Net sales $539,345 $517,429 $2,332,808 $2,232,139
Cost of sales 304,272 290,193 1,263,203 1,208,251
Gross profit 235,073 227,236 1,069,605 1,023,888
Research and development and engineering expense 21,084 22,157 82,483 81,916
Selling expense 56,078 52,777 222,808 213,532
General and administrative expense 84,677 74,618 321,686 293,099
Total operating expenses 161,839 149,552 626,977 588,547
Acquisition and integration related costs 616 821 1,065 5,813
Net (gain) loss on disposal of assets (2,141) 14 (16,502) (447)
Income from operations 74,759 76,849 458,065 429,975
Interest income and other finance costs, net 4,022 1,166 8,337 5,277
Other & foreign exchange loss, net (4,080) (1,560) (3,929) (1,209)
Income before taxes 74,701 76,455 462,473 434,043
Provision for income taxes 18,487 20,997 117,390 111,819
Net income $56,214 $55,458 $345,083 $322,224
Earnings per common share:
Basic $1.36 $1.32 $8.27 $7.64
Diluted $1.35 $1.31 $8.24 $7.60
Weighted average shares outstanding:
Basic 41,345 41,980 41,718 42,182
Diluted 41,509 42,174 41,861 42,383
Other data:
Depreciation and amortization $24,961 $24,749 $88,477 $84,584
Pre-tax equity-based compensation expense 3,486 3,257 22,220 18,346
Simpson Manufacturing Co., Inc. and Subsidiaries
UNAUDITED Consolidated Condensed Balance Sheets
(In thousands)
December 31,
2025 2024
Cash and cash equivalents $384,138 $239,371
Trade accounts receivable, net 302,688 284,392
Inventories 594,192 593,175
Other current assets 71,485 59,383
Total current assets 1,352,503 1,176,321
Property, plant and equipment, net 627,854 531,655
Operating lease right-of-use assets 115,060 93,933
Goodwill 558,521 512,383
Intangible assets, net 387,729 375,051
Other noncurrent assets 31,959 46,825
Total assets $3,073,626 $2,736,168
Trade accounts payable $91,467 $100,972
Long-term debt, current portion 15,000 22,500
Accrued liabilities and other current liabilities 275,328 242,876
Total current liabilities 381,795 366,348
Operating lease liabilities, net of current portion 96,819 76,184
Long-term debt, net of current portion and issuance costs 355,509 362,563
Deferred income tax 99,792 90,303
Other long-term liabilities 104,234 27,636
Non-qualified deferred compensation plan share awards 5,715 7,786
Stockholders' equity 2,029,762 1,805,348
Total liabilities and stockholders' equity $3,073,626 $2,736,168
Simpson Manufacturing Co., Inc. and Subsidiaries
UNAUDITED Segment and Product Group Information
(In thousands)
Three Months Ended Twelve Months Ended
December 31, % December 31, %
2025 2024 change * 2025 2024 change *
Net Sales by Reporting Segment
North America $416,863 $404,753 3.0 % $1,813,856 $1,735,879 4.5 %
Percentage of total net sales 77.3 % 78.2 % 77.8 % 77.8 %
Europe 117,871 108,070 9.1 % 499,559 479,055 4.3 %
Percentage of total net sales 21.9 % 20.9 % 21.4 % 21.5 %
Asia/Pacific 4,611 4,606 0.1 % 19,393 17,205 12.7 %
Percentage of total net sales 0.9 % 0.9 % 0.8 % 0.8 %
Total $539,345 $517,429 4.2 % $2,332,808 $2,232,139 4.5 %
Net Sales by Product Group**
Wood Construction $447,458 $438,111 2.1 % $1,967,741 $1,899,524 3.6 %
Percentage of total net sales 83.0 % 84.7 % 84.4 % 85.1 %
Concrete Construction 90,728 78,665 15.3 % 360,613 330,557 9.1 %
Percentage of total net sales 16.8 % 15.2 % 15.5 % 14.8 %
Other 1,159 653 N/M 4,454 2,058 N/M
Total $539,345 $517,429 4.2 % $2,332,808 $2,232,139 4.5 %
Gross Profit (Loss) by Reporting Segment
North America $192,721 $189,749 1.6 % $885,028 $848,541 4.3 %
North America gross profit
margin 46.2 % 46.9 % 48.8 % 48.9 %
Europe 39,622 34,894 13.5 % 178,933 168,982 5.9 %
Europe gross profit margin 33.6 % 32.3 % 35.8 % 35.3 %
Asia/Pacific 1,112 2,017 N/M 6,449 5,798 N/M
Administrative and all other 1,618 576 N/M (805) 567 N/M
Total $235,073 $227,236 3.4 % $1,069,605 $1,023,888 4.5 %
Income (Loss) from Operations
North America $82,291 $85,354 (3.6) % $448,807 $439,567 2.1 %
North America operating profit
margin 19.7 % 21.1 % 24.7 % 25.3 %
Europe 2,765 769 259.6 % 43,862 33,806 29.7 %
Europe operating profit margin 2.3 % 0.7 % 8.8 % 7.1 %
Asia/Pacific (233) 323 N/M 595 (294) N/M
Administrative and all other (10,064) (9,597) N/M (35,199) (43,104) N/M
Total $74,759 $76,849 (2.7) % $458,065 $429,975 6.5 %
*
Unfavorable percentage changes are presented in parentheses.
** The Company manages its business by geographic segment but is presenting sales by product group as
additional information.
N/M
Statistic is not material or not meaningful.
Reconciliation of Non-GAAP Financial Measures
(In thousands) (Unaudited)
A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure, is set forth below.
Three Months Ended December 31, Twelve Months Ended December 31,
2025 2024 2025 2024
Net Income $56,214 $55,458 $345,083 $322,224
Provision for income taxes 18,487 20,997 117,390 111,819
Interest income, net and other financing costs (4,022) (1,166) (8,337) (5,277)
Depreciation and amortization 24,961 24,749 88,477 84,584
Other* 9,061 5,667 1,666 13,453
Adjusted EBITDA $104,701 $105,705 $544,279 $526,803
*Other: Includes acquisition, integration, and restructuring related expenses, non-qualified deferred compensation adjustments, lease termination, severance
costs, other & foreign exchange loss net, and net loss or gain on disposal of assets.
CONTACT: Addo Investor Relationsinvestor.relations@strongtie.com(310) 829-5400
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