Simpson Manufacturing Co., Inc. Announces 2026 Second Quarter Financial Results and Updates 2026 Guidance
Rhea-AI Summary
Simpson Manufacturing (NYSE: SSD) reported 2026 Q2 net sales of $671.1 million, up 6.3% year-over-year, with gross profit of $318.2 million and a gross margin of 47.4%. Income from operations rose 20.6% to $169.1 million, driving net income up 22.7% to $127.0 million and diluted EPS up 25.1% to $3.09. Adjusted EBITDA increased 22.6% to $196.1 million.
North America net sales grew 6.0% to $522.3 million and Europe sales rose 7.6% to $143.5 million, with Europe achieving a record operating margin of 13.7%. The company generated $215.0 million of operating cash flow, ended the quarter with $450.5 million in cash and $336.7 million of debt, repurchased $48.7 million of stock, increased its 2026 repurchase authorization to $200.0 million, and declared a $0.30 per-share dividend.
For full-year 2026, Simpson estimates a consolidated operating margin of 19.7%–20.5%, an effective tax rate of 25.0%–26.0%, and capital expenditures of $80–$90 million, including a projected $10–$12 million gain on sale of vacant land.
Positive
- Net sales +6.3% year-over-year to $671.1 million in Q2 2026
- Diluted EPS +25.1% year-over-year to $3.09 in Q2 2026
- Operating margin expansion to 25.2% from 22.2% year-over-year
- Adjusted EBITDA +22.6% year-over-year to $196.1 million
- Operating cash flow of $215.0 million, up $89.8 million year-over-year
- Shareholder returns with $48.7 million buybacks and $0.30 per-share dividend
Negative
- Full-year 2026 operating margin outlook 19.7%–20.5%, below Q2 level of 25.2%
- General and administrative expense increased to $83.6 million from $75.6 million year-over-year
- U.S. housing starts trailing twelve months slightly down 0.6% year-over-year
News Market Reaction – SSD
In the Jul 28 session, SSD gained 2.61%, reflecting a moderate positive market reaction. Argus tracked a peak move of +3.1% during that session. Our momentum scanner triggered 11 alerts that day, indicating notable 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 |
|---|---|---|---|---|
| Apr 27 | 1Q26 earnings | Positive | +2.5% | Higher sales and EPS with reaffirmed full-year guidance |
| Feb 09 | FY25 earnings | Positive | +5.0% | Full-year results accompanied by 2026 outlook and shareholder returns |
| Oct 27 | 3Q25 earnings | Positive | +6.0% | Sales and EPS growth with updated buyback authorization |
| Jul 28 | 2Q25 earnings | Positive | +10.6% | Revenue and EPS growth with reaffirmed operating margin guidance |
| Jun 16 | CSR report | Neutral | -2.5% | Sustainability report detailed safety, product, and charitable initiatives |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
SSD's earnings-related announcements were followed by positive 24-hour price reactions in four of five tag-specific events.
Key Terms
adjusted ebitda financial
non-gaap financial measure financial
foreign currency translation financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
2026 Second Quarter Highlights
- Net sales of
$671.1 million 6.3% year-over-year - Income from operations of
$169.1 million 20.6% year-over-year - Net income per diluted share of
$3.09 25.1% year-over-year - Repurchased
$48.7 million of common stock during the quarter - Increased 2026 share repurchase authorization by
$50.0 million - Declared a
$0.30
Consolidated 2026 Second Quarter Highlights | |||||||||||
Three Months Ended | Year-Over- | Six Months Ended | Year-Over- | ||||||||
June 30, | Year | June 30, | Year | ||||||||
2026 | 2025 | Change | 2026 | 2025 | Change | ||||||
(In thousands, except per share data and percentages) | |||||||||||
Net sales | $ 671,076 | $ 631,055 | 6.3 % | $ 1,259,040 | $ 1,169,950 | 7.6 % | |||||
Gross profit | 318,193 | 292,891 | 8.6 % | 584,084 | 543,457 | 7.5 % | |||||
Gross profit margin | 47.4 % | 46.4 % | 46.4 % | 46.5 % | |||||||
Total operating expenses | 154,420 | 152,839 | 1.0 % | 305,076 | 301,034 | 1.3 % | |||||
Income from operations | 169,130 | 140,244 | 20.6 % | 283,747 | 242,563 | 17.0 % | |||||
Operating income margin | 25.2 % | 22.2 % | 22.5 % | 20.7 % | |||||||
Net income | $ 127,042 | $ 103,541 | 22.7 % | $ 215,258 | $ 181,425 | 18.6 % | |||||
Net income per diluted common share | $ 3.09 | $ 2.47 | 25.1 % | $ 5.22 | $ 4.33 | 20.6 % | |||||
Adjusted EBITDA1 | $ 196,083 | $ 159,893 | 22.6 % | $ 335,444 | $ 282,067 | 18.9 % | |||||
Trailing Twelve Months Ended | Year-Over- | ||||||||||
June 30, | Year | ||||||||||
2026 | 2025 | Change | |||||||||
(In thousands, except percentages) | |||||||||||
Total | 1,359 | 1,368 | (0.6) % | ||||||||
______________________________ |
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 | Housing starts is based on the trailing twelve months for the periods ended June 30, 2026 and 2025 as reported by the United States Census Bureau. |
Management Commentary
"Our second quarter results reflect solid execution across our operations, with net sales increasing
Mr. Olosky continued, "As we celebrate our 70th anniversary, we remain focused on deepening our position as the partner of choice for our customers, driving innovation in the markets we serve, and strengthening our values-based culture—all while continuing to deliver solid financial results. Our financial ambitions remain driving above market volume growth relative to
North America Segment 2026 Second Quarter Financial Highlights
- Net sales of
$522.3 million 6.0% from$492.7 million - Gross margin increased to
50.2% from49.5% due to lower material costs as a percentage of net sales and cost savings initiatives. - Income from operations of
$158.0 15.8% from$136.5 million
Europe Segment 2026 Second Quarter Financial Highlights
- Net sales of
$143.5 million 7.6% from$133.4 million $3.7 million - Gross margin increased to
38.2% from36.2% , primarily driven by lower material costs, factory and tooling costs, and labor costs as a percentage of net sales. - Income from operations of
$19.7 million 25.7% from$15.7 million $0
Refer to the "Segment and Product Group Information" table below for additional segment information (including information about the Company's
Corporate Developments
- For the quarter ended June 30, 2026, the Company repurchased 259,846 shares of common stock in the open market at an average price of
$187.47 $48.7 million $51.3 million $150.0 million - On July 23, 2026, the Company's Board of Directors (the "Board") increased the 2026 share repurchase authorization from
$150.0 million $200.0 million - On July 23, 2026, the Board declared a quarterly cash dividend of
$0.30 $12.2 million
Balance Sheet & 2026 Second Quarter Cash Flow Highlights
- As of June 30, 2026, cash and cash equivalents totaled
$450.5 million $336.7 million $900 million - Cash flow provided by operating activities of
$215.0 million increased by$89.8 million $125.2 million - Cash flow used in investing activities of
$8.6 million decreased by$31.9 million $40.5 million
Business Outlook
The Company is updating its prior 2026 financial outlook to reflect actual results of the second quarter as well as its expectations regarding demand trends, cost of sales, and operating expenses. Based on business trends and conditions as of today, July 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
19.7% 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
$80.0 million $90.0 million
Conference Call Details
Investors, analysts and other interested parties are invited to join the Company's 2026 second quarter financial results conference call on Monday, July 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 ir.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 SEC's website and at the Company's website on the same day they are filed with the SEC. To view these filings, visit the SEC's website at www.sec.gov or the Financials section of the Company's website at ir.simpsonmfg.com.
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 cyclicality and impact of general economic conditions; 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; the impact of foreign currency fluctuations; our ability to repurchase shares of our common stock and the amounts and timing of repurchases, if any; and those other risks 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), 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 June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net sales | $ 671,076 | $ 631,055 | $ 1,259,040 | $ 1,169,950 | |||
Cost of sales | 352,883 | 338,164 | 674,956 | 626,493 | |||
Gross profit | 318,193 | 292,891 | 584,084 | 543,457 | |||
Research and development and engineering expense | 18,000 | 20,767 | 36,631 | 40,606 | |||
Selling expense | 52,848 | 56,443 | 107,311 | 110,607 | |||
General and administrative expense | 83,572 | 75,629 | 161,134 | 149,821 | |||
Total operating expense | 154,420 | 152,839 | 305,076 | 301,034 | |||
Acquisition and integration related costs | 186 | 13 | 751 | 140 | |||
Net gain on disposal of assets | (5,543) | (205) | (5,490) | (280) | |||
Income from operations | 169,130 | 140,244 | 283,747 | 242,563 | |||
Interest income and other finance costs, net | 4,196 | 895 | 8,629 | 1,998 | |||
Other & foreign exchange loss, net | (2,435) | (1,684) | (5,187) | (626) | |||
Income before taxes | 170,891 | 139,455 | 287,189 | 243,935 | |||
Provision for income taxes | 43,849 | 35,914 | 71,931 | 62,510 | |||
Net income | $ 127,042 | $ 103,541 | $ 215,258 | $ 181,425 | |||
Earnings per common share: | |||||||
Basic | $ 3.10 | $ 2.48 | $ 5.24 | $ 4.34 | |||
Diluted | $ 3.09 | $ 2.47 | $ 5.22 | $ 4.33 | |||
Weighted average shares outstanding: | |||||||
Basic | 40,964 | 41,705 | 41,095 | 41,775 | |||
Diluted | 41,071 | 41,838 | 41,221 | 41,926 | |||
Cash dividends declared per common share | $ 0.30 | $ 0.29 | $ 0.59 | $ 0.57 | |||
Other data: | |||||||
Depreciation and amortization | $ 25,437 | $ 20,995 | $ 50,948 | $ 40,517 | |||
Pre-tax equity-based compensation expense | $ 8,403 | $ 6,367 | $ 14,942 | $ 12,905 | |||
Simpson Manufacturing Co., Inc. and Subsidiaries UNAUDITED Condensed Consolidated Balance Sheets (In thousands) | ||||||
June 30, | December 31, | |||||
2026 | 2025 | 2025 | ||||
Cash and cash equivalents | $ 450,526 | $ 190,400 | $ 384,138 | |||
Trade accounts receivable, net | 438,050 | 415,926 | 302,688 | |||
Inventories | 513,518 | 586,623 | 594,192 | |||
Other current assets | 67,320 | 65,169 | 71,485 | |||
Total current assets | 1,469,414 | 1,258,118 | 1,352,503 | |||
Property, plant and equipment, net | 614,989 | 597,536 | 627,854 | |||
Operating lease right-of-use assets | 109,521 | 100,649 | 115,060 | |||
Goodwill | 546,729 | 560,633 | 558,521 | |||
Intangible assets, net | 365,965 | 399,361 | 387,729 | |||
Other noncurrent assets | 33,233 | 48,106 | 31,959 | |||
Total assets | $ 3,139,851 | $ 2,964,403 | $ 3,073,626 | |||
Trade accounts payable | $ 114,384 | $ 95,560 | $ 91,467 | |||
Long-term debt, current portion | 15,000 | 22,500 | 15,000 | |||
Accrued liabilities and other current liabilities | 317,579 | 254,800 | 275,328 | |||
Total current liabilities | 446,963 | 372,860 | 381,795 | |||
Operating lease liabilities, net of current portion | 90,372 | 83,001 | 96,819 | |||
Long-term debt, net of current portion and issuance costs | 318,389 | 351,994 | 355,509 | |||
Deferred income tax | 108,341 | 96,711 | 99,792 | |||
Other long-term liabilities | 49,188 | 120,060 | 104,234 | |||
Non-qualified deferred compensation plan awards | 8,840 | 9,737 | 5,715 | |||
Stockholders' equity | 2,117,758 | 1,930,040 | 2,029,762 | |||
Total liabilities, mezzanine equity, and stockholders' equity | $ 3,139,851 | $ 2,964,403 | $ 3,073,626 | |||
Simpson Manufacturing Co., Inc. and Subsidiaries UNAUDITED Segment and Product Group Information (In thousands) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | % | June 30, | % | |||||||||
2026 | 2025 | change* | 2026 | 2025 | change* | |||||||
Net Sales by Reporting Segment | ||||||||||||
$ 522,290 | $ 492,687 | 6.0 % | $ 984,215 | $ 913,386 | 7.8 % | |||||||
Percentage of total net sales | 77.8 % | 78.1 % | 78.2 % | 78.1 % | ||||||||
143,491 | 133,398 | 7.6 % | 264,538 | 247,258 | 7.0 % | |||||||
Percentage of total net sales | 21.4 % | 21.1 % | 21.0 % | 21.1 % | ||||||||
5,295 | 4,970 | 6.5 % | 10,287 | 9,306 | 10.5 % | |||||||
$ 671,076 | $ 631,055 | 6.3 % | 7.6 % | |||||||||
Net Sales by Product Group** | ||||||||||||
Wood Construction | $ 568,314 | $ 535,561 | 6.1 % | $ 995,844 | 7.0 % | |||||||
Percentage of total net sales | 84.7 % | 84.9 % | 84.7 % | 85.1 % | ||||||||
Concrete Construction | 101,411 | 94,402 | 7.4 % | 190,538 | 172,087 | 10.7 % | ||||||
Percentage of total net sales | 15.1 % | 15.0 % | 15.1 % | 14.7 % | ||||||||
Other | 1,351 | 1,092 | N/M | 2,524 | 2,019 | N/M | ||||||
$ 671,076 | $ 631,055 | 6.3 % | 7.6 % | |||||||||
Gross Profit (Loss) by Reporting Segment | ||||||||||||
$ 262,137 | $ 243,885 | 7.5 % | $ 482,870 | $ 453,313 | 6.5 % | |||||||
50.2 % | 49.5 % | 49.1 % | 49.6 % | |||||||||
54,777 | 48,275 | 13.5 % | 98,723 | 88,297 | 11.8 % | |||||||
38.2 % | 36.2 % | 37.3 % | 35.7 % | |||||||||
1,851 | 1,537 | N/M | 3,647 | 3,260 | N/M | |||||||
Administrative and all other | (572) | (806) | N/M | (1,156) | (1,413) | N/M | ||||||
$ 318,193 | $ 292,891 | 8.6 % | $ 584,084 | $ 543,457 | 7.5 % | |||||||
Income (Loss) from Operations | ||||||||||||
$ 157,987 | $ 136,489 | 15.8 % | $ 276,297 | $ 241,337 | 14.5 % | |||||||
30.2 % | 27.7 % | 28.1 % | 26.4 % | |||||||||
19,695 | 15,669 | 25.7 % | 26,786 | 24,978 | 7.2 % | |||||||
13.7 % | 11.7 % | 10.1 % | 10.1 % | |||||||||
(53) | (86) | N/M | 190 | 273 | N/M | |||||||
Administrative and all other | (8,499) | (11,828) | N/M | (19,526) | (24,025) | N/M | ||||||
$ 169,130 | $ 140,244 | 20.6 % | $ 283,747 | $ 242,563 | 17.0 % | |||||||
* | 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 June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net Income | $ 127,042 | $ 103,541 | $ 215,258 | $ 181,425 | |||
Provision for income taxes | 43,849 | 35,914 | 71,931 | 62,510 | |||
Interest income, net and other financing costs | (4,196) | (895) | (8,629) | (1,998) | |||
Depreciation and amortization | 25,437 | 20,995 | 50,948 | 40,517 | |||
Other* | 3,951 | 338 | 5,936 | (387) | |||
Adjusted EBITDA** | $ 196,083 | $ 159,893 | $ 335,444 | $ 282,067 | |||
* | 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 and six months ended June 30, 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.