Simpson Manufacturing (SSD) CJS Securities 26th Annual "New Ideas for the New Year” Investor Conference summary

Business overview and market positioning

• Provides structural solutions for building and construction, with a broad and deep product line spanning connectors, fasteners, anchors, and digital tools.

• Serves five main market segments: residential, commercial, OEM, national retail, and component manufacturing.

• Business model emphasizes close collaboration with building code officials, engineers, architects, and builders to drive product specification and demand.

• Offers rapid delivery and extensive training to pro dealers and contractors, supported by over 50 digital tools for product selection and engineering.

• Focuses on pulling demand through the supply chain by securing builder agreements and leveraging code-driven specifications.

Financial performance and growth drivers

• Added $1 billion in revenue and $180 million in operating income from 2020 to 2024, despite flat U.S. housing starts.

• Growth driven by net pricing, the ETANCO acquisition (tripling European business), and share gains, especially in connectors, fasteners, and anchors.

• Shifted to a market-focused sales approach and invested in talent and direct distribution, particularly in the Pacific Northwest.

• Expanded manufacturing and logistics footprint, including new facilities in Tennessee and Ohio, and invested in software development.

• Achieved organic volume growth in Europe and improved operating margins in recent quarters.

Market outlook and strategic priorities

• U.S. housing market remains below trend due to affordability issues, high prices, and economic uncertainty; forecasts for 2026 are flat.

• Focus remains on controllable factors: customer service, product innovation, and increasing content per house.

• Aims for above-market growth, 20%+ operating income, and EPS growth ahead of revenue, with tailored playbooks for each segment and product line.

• Regional housing trends impact growth, with slower markets in seismic and hurricane-prone areas creating headwinds.

• Truss and new product innovation identified as key near- and mid-term growth drivers, with significant opportunity to increase share in the $1.5 billion truss market.