Simpson Manufacturing (SSD) 16th Annual Wells Fargo Industrials & Materials Conference summary

Company overview and business model

• Provides structural solutions for building and construction, with three main product lines: connectors, fasteners, and anchors.

• Holds a leading market share in connectors (~75%) and significant patents and code reports for fasteners.

• Operates across five market segments, with 75% of business in North America and strong ties to U.S. housing starts.

• Differentiates through deep engagement with building code officials, architects, and builders, ensuring products are specified in blueprints.

• Offers digital solutions and rapid delivery, reaching 95% of ship-to locations within one day, creating a sticky business model.

Financial performance and growth

• Added $1 billion in revenue and $200 million in operating income from 2020 to 2025, despite flat housing starts.

• Achieved over $0.5 billion in pricing gains and $200 million in volume/share gains, with a major European acquisition tripling business size.

• Outperformed the market by an average of 300 basis points annually over the last decade.

Market environment and customer dynamics

• Expects a fifth consecutive year of market decline, with low single-digit decreases forecasted.

• Regional performance varies, with Midwest/Northeast faring better than West Coast/Florida; multifamily backlog growing in Southern California.

• Large production builders leverage balance sheets to subsidize loans, while smaller builders face more challenges and shift toward home improvement.