Simpson Manufacturing Co., Inc. Announces 2026 First Quarter Financial Results and Reaffirms 2026 Guidance
Rhea-AI Summary
Simpson Manufacturing (NYSE: SSD) reported 2026 Q1 net sales of $587.96M (+9.1% YoY), gross profit of $265.89M and net income of $88.22M. Diluted EPS was $2.13 (+15.1% YoY). The company repurchased $50.0M of stock and held $341.0M cash vs. $370.5M debt.
Management reaffirmed 2026 guidance: consolidated operating margin 19.5%-20.5% (including a $10M–$12M land-sale gain), effective tax rate 25.0%-26.0%, and capex $75M–$85M.
Positive
- Net sales +9.1% to $587.96M
- Diluted EPS +15.1% to $2.13
- Adjusted EBITDA +14.1% to $139.36M
- Repurchased $50.0M of common stock in Q1
- Cash balance of $341.0M with $100.0M repurchase capacity remaining
Negative
- Gross profit margin down to 45.2% from 46.5%
- North America gross margin declined to 47.8% from 49.8%
- Europe operating income down 23.8% due to lower volumes
- Volume decline of ~1% tied to softer housing-start activity
News Market Reaction – SSD
In the Apr 28 session, SSD gained 2.45%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.4% during that session. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 09 | Earnings & outlook | Positive | +5.0% | Reported 2025 results, set 2026 margin, tax rate and capex outlook. |
| Oct 27 | Quarterly earnings | Positive | +6.0% | Q3 2025 sales and EPS growth with cost savings and margin targets. |
| Jul 28 | Quarterly earnings | Positive | +10.6% | Q2 2025 revenue and EPS growth with reaffirmed 2025 guidance. |
| Jun 16 | CSR report | Positive | -2.5% | Fiscal 2024 CSR achievements and sustainability initiatives update. |
| Apr 28 | Quarterly earnings | Positive | +0.2% | Q1 2025 growth, buybacks, and reaffirmed operating margin guidance. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related releases have generally been received positively, with only one notable divergence on a CSR-focused report.
Over the last several earnings cycles, Simpson reported steady growth with expanding margins and recurring shareholder returns through dividends and buybacks. Prior earnings releases on Apr 28, 2025, Jul 28, 2025, Oct 27, 2025 and Feb 9, 2026 all highlighted higher net sales and EPS, alongside maintained or tightened margin guidance. Those events typically saw positive price reactions, suggesting the market has historically rewarded consistent execution and reaffirmed outlooks similar to this quarter’s update.
Key Terms
adjusted EBITDA financial
non-GAAP financial measure financial
credit facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
2026 First Quarter Highlights
- Net sales of
$588.0 million 9.1% year-over-year - Income from operations of
$114.6 million 12.0% year-over-year - Net income per diluted share of
$2.13 15.1% year-over-year - Repurchased
$50.0 million
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 |
______________________________ |
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 |
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
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 9.8% from$420.7 million $1 - Gross margin declined to
47.8% from49.8% 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 12.8% from$104.8 million
Europe Segment 2026 First Quarter Financial Highlights
- Net sales of
$121.0 million 6.3% from$113.9 million $13 - Gross margin increased to
36.3% from35.2% , 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 23.8% from$9.3 million $3.8 million
Refer to the "Segment and Product Group Information" table below for additional segment information (including information about the Company's
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 $50.0 million $100.0 million $150
Balance Sheet & 2026 First Quarter Cash Flow Highlights
- As of March 31, 2026, cash and cash equivalents totaled
$341.0 million $370.5 million $900 million - Cash flow provided by operating activities of
$35.9 million $28.3 million $7.6 million - Cash flow used in investing activities of
$19.1 million $31.0 million $50.1 million
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% to20.5% . The operating margin range includes a projected gain of$10.0 million $12.0 million - The effective tax rate is estimated to be in the range of
25.0% to26.0% , 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 $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 (
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
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 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, volatile supply and demand conditions affecting prices and volumes in the markets for both our products and raw materials we purchase; and 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. Additional risks include: the cyclicality and impact of general economic conditions; changing conditions in global markets including the impact of sanctions and tariffs, quotas and other trade actions and import restrictions; the impact of pandemics, epidemics or other public health emergencies; the impact of foreign currency fluctuations; potential limitations on our ability to access capital resources and borrowings under our existing credit agreement; restrictions on our business and financial covenants under our credit agreement; reliance on employees subject to collective bargaining agreements; and or ability to repurchase shares of our common stock and the amounts and timing of repurchases, if any.
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 Company defines Adjusted EBITDA as net income (loss), adjusted to exclude provision for income taxes, depreciation and amortization, acquisition integration and restructuring costs, non-qualified compensation adjustments, lease termination costs, severance costs, net loss or gain on disposal of assets, interest income or expense and other financing costs, and foreign exchange and other expense (income).
Simpson Manufacturing Co., Inc. and Subsidiaries UNAUDITED Condensed Consolidated Statements of Operations (In thousands, except per share data)
| |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
Net sales | $ 587,964 | $ 538,895 | |
Cost of sales | 322,073 | 288,329 | |
Gross profit | 265,891 | 250,566 | |
Research and development and engineering expense | 18,631 | 19,839 | |
Selling expense | 54,463 | 54,164 | |
General and administrative expense | 77,562 | 74,192 | |
Total operating expense | 150,656 | 148,195 | |
Acquisition and integration related costs | 565 | 127 | |
Net loss (gain) on disposal of assets | 53 | (75) | |
Income from operations | 114,617 | 102,319 | |
Interest income and other finance costs, net | 4,433 | 1,103 | |
Other & foreign exchange (loss) gain, net | (2,752) | 1,058 | |
Income before taxes | 116,298 | 104,480 | |
Provision for income taxes | 28,082 | 26,596 | |
Net income | $ 88,216 | $ 77,884 | |
Earnings per common share: | |||
Basic | $ 2.14 | $ 1.86 | |
Diluted | $ 2.13 | $ 1.85 | |
Weighted average shares outstanding: | |||
Basic | 41,228 | 41,846 | |
Diluted | 41,366 | 42,010 | |
Cash dividends declared per common share | $ 0.29 | $ 0.28 | |
Other data: | |||
Depreciation and amortization | $ 25,511 | $ 19,522 | |
Pre-tax equity-based compensation expense | $ 6,539 | $ 6,538 | |
Simpson Manufacturing Co., Inc. and Subsidiaries UNAUDITED Condensed Consolidated Balance Sheets (In thousands)
| ||||||
March 31, | December 31, | |||||
2026 | 2025 | 2025 | ||||
Cash and cash equivalents | $ 341,005 | $ 150,290 | $ 384,138 | |||
Trade accounts receivable, net | 400,082 | 373,198 | 302,688 | |||
Inventories | 548,978 | 618,784 | 594,192 | |||
Other current assets | 65,424 | 61,973 | 71,485 | |||
Total current assets | 1,355,489 | 1,204,245 | 1,352,503 | |||
Property, plant and equipment, net | 621,137 | 568,503 | 627,854 | |||
Operating lease right-of-use assets | 112,033 | 101,701 | 115,060 | |||
Goodwill | 548,283 | 527,621 | 558,521 | |||
Intangible assets, net | 373,468 | 381,079 | 387,729 | |||
Other noncurrent assets | 32,997 | 39,807 | 31,959 | |||
Total assets | $ 3,043,407 | $ 2,822,956 | $ 3,073,626 | |||
Trade accounts payable | $ 105,743 | $ 118,019 | $ 91,467 | |||
Long-term debt, current portion | 15,000 | 22,500 | 15,000 | |||
Accrued liabilities and other current liabilities | 277,787 | 239,511 | 275,328 | |||
Total current liabilities | 398,530 | 380,030 | 381,795 | |||
Operating lease liabilities, net of current portion | 92,951 | 82,913 | 96,819 | |||
Long-term debt, net of current portion and issuance costs | 351,949 | 357,278 | 355,509 | |||
Deferred income tax | 104,233 | 90,346 | 99,792 | |||
Other long-term liabilities | 30,710 | 41,871 | 104,234 | |||
Non-qualified deferred compensation plan awards | 6,302 | 8,804 | 5,715 | |||
Stockholders' equity | 2,058,732 | 1,861,714 | 2,029,762 | |||
Total liabilities, mezzanine equity, and stockholders' equity | $ 3,043,407 | $ 2,822,956 | $ 3,073,626 | |||
Simpson Manufacturing Co., Inc. and Subsidiaries UNAUDITED Segment and Product Group Information (In thousands)
| ||||||
Three Months Ended | ||||||
March 31, | % | |||||
2026 | 2025 | change* | ||||
Net Sales by Reporting Segment | ||||||
$ 461,925 | $ 420,699 | 9.8 % | ||||
Percentage of total net sales | 78.6 % | 78.1 % | ||||
121,047 | 113,860 | 6.3 % | ||||
Percentage of total net sales | 20.6 % | 21.1 % | ||||
4,992 | 4,336 | 15.1 % | ||||
$ 587,964 | $ 538,895 | 9.1 % | ||||
Net Sales by Product Group** | ||||||
Wood Construction | $ 497,664 | $ 459,442 | 8.3 % | |||
Percentage of total net sales | 84.6 % | 85.3 % | ||||
Concrete Construction | 89,127 | 77,683 | 14.7 % | |||
Percentage of total net sales | 15.2 % | 14.4 % | ||||
Other | 1,173 | 1,770 | N/M | |||
$ 587,964 | $ 538,895 | 9.1 % | ||||
Gross Profit (Loss) by Reporting Segment | ||||||
$ 220,733 | $ 209,428 | 5.4 % | ||||
47.8 % | 49.8 % | |||||
43,946 | 40,022 | 9.8 % | ||||
36.3 % | 35.2 % | |||||
1,796 | 1,725 | N/M | ||||
Administrative and all other | (584) | (609) | N/M | |||
$ 265,891 | $ 250,566 | 6.1 % | ||||
Income (Loss) from Operations | ||||||
$ 118,310 | $ 104,848 | 12.8 % | ||||
25.6 % | 24.9 % | |||||
7,091 | 9,309 | (23.8) % | ||||
5.9 % | 8.2 % | |||||
243 | 358 | N/M | ||||
Administrative and all other | (11,027) | (12,196) | N/M | |||
$ 114,617 | $ 102,319 | 12.0 % | ||||
* | Unfavorable percentage changes are presented in parentheses, if any. |
** | The Company manages its business by geographic segment but presents sales by product group as additional information. |
N/M | Statistic is not material or not meaningful. |
Simpson Manufacturing Co., Inc. and Subsidiaries 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 March 31, | |||
2026 | 2025 | ||
Net Income | $ 88,216 | $ 77,884 | |
Provision for income taxes | 28,082 | 26,596 | |
Interest income, net and other financing costs | (4,433) | (1,103) | |
Depreciation and amortization | 25,511 | 19,522 | |
Other* | 1,985 | (725) | |
Adjusted EBITDA** | $ 139,361 | $ 122,174 | |
*Includes acquisition integration and restructuring related expenses, non-qualified deferred compensation adjustments, severance costs, other & foreign exchange loss net, and net loss or gain on disposal of assets. |
**Includes certain reclassifications in the three months ended March 31, 2025, to conform to the current period presentation. |
CONTACT:
Addo Investor Relations
investor.relations@strongtie.com
(310) 829-5400
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SOURCE Simpson Manufacturing Co., Inc.