#United States #financial results #Pleasanton #Simpson Manufacturing #SSD

On February 10, 2025, Simpson Manufacturing Co., Inc. announced its financial results for the fourth quarter and full fiscal year of 2024. The company, recognized as a leader in engineered structural connectors and building solutions, demonstrated resilience amid challenging market conditions. Financial Performance In the fourth quarter of 2024, Simpson's net sales reached $517.4 million, marking a 3.1% increase compared to $501.7 million in the same quarter the previous year. For the entire year, net sales totaled $2.2 billion, reflecting a modest growth of 0.8% year-over-year. The company's income from operations was reported at $76.8 million for the fourth quarter, up by 7.4% from $71.6 million in 2023. However, for the full year, operating income totaled $430.0 million, down 9.5% compared to the previous year's $475.1 million. Simpson's net income per diluted share for 2024 was $7.60, down from $8.26 in the prior year. The company declared a quarterly dividend of $0.28 per share, totaling $11.7 million, paid on January 23, 2025. Segment Analysis Breaking down performance by region, the North America segment showed robust growth. Net sales increased to $404.8 million, up 4.4% from $387.8 million in the same quarter last year. Gross margin for this segment remained at 47%. However, the Europe segment faced challenges, with net sales decreasing to $108.1 million, a 1.5% decline from $109.7 million. The gross margin for Europe dropped to 32.3%. Market Outlook Looking forward, Simpson’s CEO, Mike Olosky, expressed cautious optimism for 2025, anticipating a potential recovery in the U.S. housing market and consistent levels in Europe. The company aims to maintain an operating income margin of at least 20%, despite rising input costs that have pressured profitability. Management has set financial goals that include continued above-market growth relative to U.S. housing starts and shareholder value enhancements. Capital Activities Simpson also reported significant activities regarding its stock buyback program, having repurchased 275,906 shares in the fourth quarter at an average price of $181.22 per share. This initiative is part of a broader strategy authorized by the board to repurchase up to $100 million of common stock through the end of 2025. They also appointed Matt Dunn as the new Chief Financial Officer, signaling a commitment to strong financial leadership moving forward. Conclusion Despite the headwinds faced in both North American and European markets, Simpson Manufacturing Co., Inc. has navigated 2024 by reporting growth in sales and being proactive in financial management. As the company prepares to launch into 2025, it remains focused on maximizing shareholder returns and ensuring operational resilience in a fluctuating market landscape.