Simpson Manufacturing (SSD) Q1 2026 earnings summary

Executive summary

• Net sales grew 9.1% year-over-year to $588 million, driven by 2025 pricing actions and favorable foreign exchange, partially offset by a 1% volume decline due to softer housing starts.

• Adjusted EBITDA rose 14.1% to $139.4 million, with operating margin up 50 basis points to 19.5%.

• Net income was $88.2 million ($2.13 per diluted share), up from $77.9 million ($1.85 per share) year-over-year, with EPS up 15.1%.

• Gross margin declined to 45.2% from 46.5% due to higher material, labor, and startup costs, partially offset by pricing and productivity initiatives.

• $50 million of common stock was repurchased during the quarter.

Financial highlights

• Consolidated gross profit increased 6.1% to $265.9 million.

• North America net sales rose 9.8% to $461.9 million; Europe up 6.3% to $121 million; Asia/Pacific up 15.1% to $5 million.

• Cash and cash equivalents at quarter-end were $341 million; total debt outstanding was $370.5 million.

• Cash flow from operations was $35.9 million; capital expenditures were $17.7 million.

• Effective tax rate was 24.1%, down from 25.5% year-over-year.

Outlook and guidance

• 2026 consolidated operating margin expected between 19.5%-20.5%, including a projected $10–12 million gain on land sale.

• Gross margin anticipated to be lower due to tariffs and higher depreciation.

• Capital expenditures projected at $75-$85 million; effective tax rate estimated at 25%-26%.

• Revenue growth expected to moderate for the remainder of 2026 due to timing of price increases and lower volumes.

• U.S. housing starts forecasted to be down low single digits; Europe expected flat to modest growth.