Net sales of $588.0 million increased 9.1% year-over-year
Income from operations of $114.6 million increased 12.0% year-over-year
Net income per diluted share of $2.13 increased 15.1% year-over-year
Repurchased $50.0 million of common stock during the quarter
PLEASANTON, Calif., April 27, 2026 /PRNewswire/ -- 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 first quarter of 2026. 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, 2026 with the quarter ended March 31, 2025. In the first quarter of 2026, the Company reclassified certain software amortization costs related to the Company's component manufacturing efforts from general and administrative expense to cost of sales. Additionally, for the year ended December 31, 2025, the Company reclassified certain quality assurance costs from general and administrative expense to cost of sales. The financial results for the three months ended March 31, 2025 have been recast for comparison purposes and to conform to the current period classification, with $1.5 million of costs being reclassified from general and administrative expense to cost of sales. The reclassification did not have any impact on the total income from operations.
Consolidated 2026 First Quarter Highlights
Three Months Ended
Year-Over-
March 31,
Year
2026
2025
Change
(In thousands, except per share data and percentages)
Net sales
$ 587,964
$ 538,895
9.1 %
Gross profit
265,891
250,566
6.1 %
Gross profit margin
45.2 %
46.5 %
Total operating expenses
150,656
148,195
1.7 %
Income from operations
114,617
102,319
12.0 %
Operating income margin
19.5 %
19.0 %
Net income
$ 88,216
$ 77,884
13.3 %
Net income per diluted common share
$ 2.13
$ 1.85
15.1 %
Adjusted EBITDA1
$ 139,361
$ 122,174
14.1 %
Total U.S. Housing starts - April 27, 2026 data not available2
______________________________
1 Adjusted EBITDA is a non-GAAP financial measure and is defined in the Non-GAAP Financial Measures section of this press release. For a reconciliation of Adjusted EBITDA to U.S. GAAP (as defined below) 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, the Company expects the next update on national housing market data to be issued around April 29, 2026.
Management Commentary
"Simpson delivered a solid first quarter with net sales up 9.1% year‑over‑year to $588.0 million and operating margin improvement of 50 basis points to 19.5%," said Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. "Net sales growth was primarily driven by our 2025 pricing actions which contributed approximately 6%. Foreign exchange added an additional 3%, partially offset by a 1% decline in volume tied to softer housing start activity. Additionally, the cost savings initiatives we implemented last year contributed to improved operating income. I want to thank our team at Simpson for maintaining strong cost discipline throughout the quarter."
Mr. Olosky continued, "While the first quarter was a solid start to the year, revenue growth is expected to moderate throughout the remainder of 2026, reflecting the timing of 2025 price increases and lower volumes amid challenging market conditions. Even with a more cautious view of housing activity, our full year financial outlook remains intact. Our teams continue to execute well, and we remain focused on driving disciplined, profitable growth consistent with our financial ambitions."
North America Segment 2026 First Quarter Financial Highlights
Net sales of $461.9 million increased 9.8% from $420.7 million primarily due to price increases that took effect in June 2025 and October 2025 and an increase in sales volumes, as well as the positive effect of approximately $1.2 million in foreign currency translation.
Gross margin declined to 47.8% from 49.8% reflecting primarily the impact from tariffs and higher material, labor and factory and overhead costs, as a percentage of net sales.
Income from operations of $118.3 million increased 12.8% from $104.8 million, primarily due to the increases in net sales as well as lower operating expense including lower personnel costs, professional fees and variable incentive compensation.
Europe Segment 2026 First Quarter Financial Highlights
Net sales of $121.0 million increased 6.3% from $113.9 million due to the positive effect of approximately $13.2 million in foreign currency translation as well as price increases, partly offset by decreased sales volumes.
Gross margin increased to 36.3% from 35.2%, primarily driven by higher pricing and lower material costs, partly offset by higher factory and tooling costs, as a percentage of net sales.
Income from operations of $7.1 million decreased 23.8% from $9.3 million primarily due to lower sales volumes. Operating expenses were negatively affected by approximately $3.8 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 Development
For the quarter ended March 31, 2026, the Company repurchased 269,064 shares of common stock in the open market at an average price of $185.83 per share, for a total of $50.0 million. As of March 31, 2026, approximately $100.0 million remained available for share repurchases through December 31, 2026 under the Company's previously announced $150.0 million share repurchase authorization.
Balance Sheet & 2026 First Quarter Cash Flow Highlights
As of March 31, 2026, cash and cash equivalents totaled $341.0 million with total debt outstanding of $370.5 million under the Company's $900 million credit facility.
Cash flow provided by operating activities of $35.9 million increased by $28.3 million from $7.6 million, primarily due to increased net income and changes in working capital.
Cash flow used in investing activities of $19.1 million decreased by $31.0 million from $50.1 million primarily due to decreased capital expenditures.
Business Outlook
The Company is reaffirming its prior 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, April 27, 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 2026 first quarter financial results conference call on Monday, April 27, 2026, at 5:00 pm Eastern Time (2:00 pm 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=1756901&tp_key=61205759b3 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, May 11, 2026 by dialing (844) 512–2921 (U.S. and Canada) or (412) 317–6671 (International) and entering the conference ID: 13759442. 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 Securities and Exchange Commission ("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 vacant 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 ...
