#financial results #Q2 2025 #Simpson Manufacturing

Simpson Manufacturing Co., Inc. Reports Q2 2025 Financial Results

Simpson Manufacturing Co., Inc. (NYSE: SSD), a prominent player in engineered structural connectors, has unveiled its financial results for the second quarter of 2025, showcasing notable growth despite a challenging housing marketplace.

Financial Highlights

The company's net sales reached $631.1 million, marking a 5.7% increase year-over-year from $596.978 million in Q2 2024. This growth trajectory is further supported by an impressive income from operations of $140.2 million, which also reflects a 6.1% increase from the previous year, and the net income per diluted share rose to $2.47, a 6.9% year-on-year improvement.

The consolidated year-to-date financial results show that Simpson Manufacturing achieved total revenues of $1.169 billion, up 3.8% compared to $1.127 billion the previous year. This positive result positioned the operating income margin at 22.2%, just a notch above the 22.1% from the same quarter last year. The gross profit for the quarter stood at $294.5 million, demonstrating a strong 46.7% gross profit margin unchanged relative to the previous year.

Strategic Acquisitions and Market Dynamics

CEO Mike Olosky emphasized the resilience of the company's business model, particularly noting that even amidst a declining trend in housing starts, Simpson's sales outperformed estimates by approximately 240 basis points over the last twelve months. Sales in North America surged by 6.4%, significantly assisted by acquisitions made in 2024 along with recent price adjustments, while favorable currency impacts nurtured equivalent growth in Europe.

Europe’s sales amounted to $133.4 million, reflecting a 2.7% increase, buoyed by foreign currency translations despite a slight dip in sales volume. The operating income from this segment ballooned by 29% to $15.7 million, and the gross margin reached its highest level in over a decade at 36.2%.

Shareholder Value and Future Outlook

Simpson Manufacturing remains committed to enhancing shareholder value, having repurchased $35 million worth of common stock during the quarter, and declared a cash dividend of $0.29 per share. The Board's ongoing commitment includes returning at least 35% of free cash flow to its stockholders, reinforcing its strategy for sustainable growth.

Looking forward, Simpson reaffirmed its financial outlook for the year, targeting a consolidated operating margin between 18.5% to 20.5%, in line with the anticipated trends in housing starts and overall market dynamics. The effective tax rate is estimated to range between 25.5% to 26.5%, accommodating recently enacted tax legislation.

Invitation for Questions

Simpson intends to host a conference call on July 28, 2025, to delve deeper into the financial results, where stakeholders can tune in to gain insight into management's strategic plans via a live webcast. For those who miss the live session, a replay will be accessible.

About Simpson Manufacturing

Headquartered in Pleasanton, California, Simpson Manufacturing is renowned for its high-quality wood and concrete construction products, providing innovative solutions to both the residential and commercial sectors across North America and Europe. Trading on the NYSE as