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1. Company Snapshot

1.a. Company Description

Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells wood and concrete construction products.The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and pre-fabricated lateral systems for use in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber-reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products for use in concrete construction repair, and strengthening and protection products.It also provides connectors and lateral products for wood framing, timber and offsite construction, structural steel construction, and cold-formed steel applications; and mechanical and adhesive anchors for concrete and masonry construction applications.


In addition, the company offers engineering and design services, as well as software solutions that facilitate the specification, selection, and use of its products.It markets its products to the residential construction, light industrial and commercial construction, remodeling, and do-it-yourself markets in the United States, Canada, France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands, Belgium, Spain, Sweden, Norway, Australia, New Zealand, China, Taiwan, and Vietnam.The company was founded in 1956 and is headquartered in Pleasanton, California.

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1.b. Last Insights on SSD

Simpson Manufacturing Co., Inc.'s recent performance was negatively impacted by a significant reduction in stake by institutional investor Janney Montgomery Scott LLC, which sold 82,910 shares, lowering its stake by 96.5%. Despite Q3 2025 financial results showing a 6.2% year-over-year increase in net sales to $623.5 million and a 12.7% increase in income from operations, the company's performance was likely affected. Additionally, the company announced a share repurchase program, increasing its 2025 authorization to $120.0 million and announcing 2026 share repurchases of up to $150.0 million. (Source: PRNewswire, Oct 27, 2025)

1.c. Company Highlights

2. Simpson Manufacturing's Q3 2025 Earnings: Solid Performance Amidst Macro Challenges

Simpson Manufacturing Co. reported a 6.2% year-over-year increase in net sales to $623.5 million for the third quarter of 2025, driven by a June price increase and a positive impact from foreign exchange. The company's consolidated gross margin was 46.4%, slightly below the previous year, due to higher input costs. Operating margin was 22.6%, up 130 basis points year-over-year, including a $12.9 million gain from the sale of the Gallatin, Tennessee facility. Earnings per share (EPS) came in at $2.56, beating analyst estimates of $2.37.

Publication Date: Oct -28

📋 Highlights
  • Net Sales Growth:: Increased 6.2% YoY to $623.5M, driven by a June price hike and foreign exchange benefits.
  • Operating Margin Expansion:: Rose 130 bps to 22.6% YoY, aided by a $12.9M facility sale gain but offset by $3M restructuring costs.
  • Cost Savings Initiatives:: Aims for $30M annualized savings by 2026, with $9M–$12M one-time charges in 2025 and $52M from pricing actions.
  • Strong Cash Flow & Buybacks:: Generated $169.5M cash from operations, repurchased $30M stock, and authorized an additional $20M in buybacks.
  • Regional Performance:: Europe net sales surged 10.9% to $134.4M (vs. 4.8% in North America), driven by above-market growth and profitability improvements.

Segment Performance

The company's North American net sales rose 4.8% to $483.6 million, while European net sales increased 10.9% to $134.4 million. The residential market was down mid-single digits for the quarter, but Simpson continues to pick up share at some of its lumber yards and pro dealers. Europe is also seeing above-market growth and improving profitability.

Cost Savings Initiatives

Simpson is undertaking proactive strategic cost savings initiatives to align operations with evolving market demand, expecting to generate annualized cost savings of at least $30 million with one-time charges of approximately $9 million to $12 million. These initiatives will deliver at least $30 million of annualized cost savings in 2026, primarily in SG&A, with a little bit in COGS.

Outlook and Guidance

The company updated its 2025 outlook, expecting an operating margin of 19% to 20%, U.S. housing starts to decline mid-single digits, and a slightly lower overall gross margin. For 2026, Simpson targets $150 million in share repurchases, barring unforeseen events or significant M&A, and expects to outperform the mid-single digits market growth.

Valuation and Metrics

With a P/E Ratio of 21.32, P/B Ratio of 2.97, and EV/EBITDA of 12.08, Simpson's valuation metrics indicate a relatively stable position. The company's ROE (%) of 17.04 and ROIC (%) of 12.94 suggest a strong ability to generate returns. Analysts estimate next year's revenue growth at 5.1%, which is slightly higher than the company's expected outperformance of the mid-single digits market growth.

3. NewsRoom

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Ceredex Value Advisors LLC Purchases 14,725 Shares of Simpson Manufacturing Company, Inc. $SSD

Nov -29

Source: defenseworld.net

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Simpson Manufacturing Co., Inc. (SSD) Presents at Stephens Annual Investment Conference 2025 Transcript

Nov -18

Source: seekingalpha.com

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Simpson Manufacturing Co., Inc. (SSD) Presents at Baird 55th Annual Global Industrial Conference Transcript

Nov -11

Source: seekingalpha.com

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Simpson Manufacturing Co., Inc. Announces November Conference Participation

Nov -04

Source: prnewswire.com

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Silicon Motion Announces Results for the Period Ended September 30, 2025

Oct -30

Source: globenewswire.com

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Simpson Manufacturing Co., Inc. (SSD) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

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Simpson Manufacturing Co., Inc. Announces 2025 Third Quarter Financial Results and Updates 2025 Guidance

Oct -27

Source: prnewswire.com

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Janney Montgomery Scott LLC Sells 82,910 Shares of Simpson Manufacturing Company, Inc. $SSD

Oct -18

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

North America

Expected Growth: 4.5%

The North American market, driven by increasing construction activities, infrastructure development, and growing demand for building materials, is expected to witness significant growth. Simpson Manufacturing Co., Inc.'s strong market presence in the US, Canada, and Mexico, along with its diversified product portfolio, will contribute to its growth in the region.

Europe

Expected Growth: 4.5%

The European segment of Simpson Manufacturing Co., Inc. is expected to grow driven by increasing demand for sustainable building solutions, government initiatives promoting energy-efficient construction, and a rising trend of urbanization in Europe.

Asia Pacific

Expected Growth: 4.5%

The Asia Pacific segment of Simpson Manufacturing Co., Inc. is expected to grow driven by increasing demand for building products and services in Australia, New Zealand, and Asia, fueled by infrastructure development, urbanization, and a growing middle class.

7. Detailed Products

Anchors

Simpson Strong-Tie offers a wide range of anchors for various applications, including concrete, masonry, and drywall.

Fasteners

Simpson Strong-Tie provides a variety of fasteners, including screws, nails, and staples, for wood, metal, and concrete applications.

Connectors

Simpson Strong-Tie offers a range of connectors for wood-to-wood, wood-to-metal, and metal-to-metal connections.

Structural Repair Systems

Simpson Strong-Tie provides solutions for structural repair and strengthening of damaged or deteriorated structures.

Concrete Repair and Protection

Simpson Strong-Tie offers a range of products for concrete repair, protection, and strengthening.

Roofing and Siding Fasteners

Simpson Strong-Tie provides fasteners specifically designed for roofing and siding applications.

Decking and Railing Systems

Simpson Strong-Tie offers a range of decking and railing systems for outdoor living spaces.

8. Simpson Manufacturing Co., Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Simpson Manufacturing Co., Inc. is medium due to the availability of alternative building materials and construction methods.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and the lack of price sensitivity in the construction industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the construction industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.81%
Debt Cost 3.95%
Equity Weight 77.19%
Equity Cost 10.55%
WACC 9.04%
Leverage 29.54%

11. Quality Control: Simpson Manufacturing Co., Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Armstrong World Industries

A-Score: 5.9/10

Value: 2.2

Growth: 5.9

Quality: 8.0

Yield: 2.0

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Simpson Manufacturing Co

A-Score: 4.9/10

Value: 3.1

Growth: 7.9

Quality: 7.5

Yield: 1.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

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Installed Building Products

A-Score: 4.8/10

Value: 2.9

Growth: 9.0

Quality: 5.6

Yield: 2.0

Momentum: 5.0

Volatility: 4.0

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Lennox International

A-Score: 4.7/10

Value: 2.5

Growth: 7.7

Quality: 6.7

Yield: 2.0

Momentum: 3.0

Volatility: 6.3

1-Year Total Return ->

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GMS

A-Score: 4.7/10

Value: 4.4

Growth: 7.6

Quality: 4.1

Yield: 0.0

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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Carlisle

A-Score: 4.5/10

Value: 4.0

Growth: 8.0

Quality: 5.2

Yield: 2.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

169.47$

Current Price

169.47$

Potential

-0.00%

Expected Cash-Flows