Simpson Q1 2025 Earnings Report
Key Takeaways
Simpson Manufacturing Co., Inc. announced its first quarter 2025 financial results, showing modest net sales growth of 1.6% year-over-year to $538.9 million. Income from operations increased by 6.5% to $102.3 million, resulting in an operating income margin of 19.0%. Diluted net income per share rose by 4.5% to $1.85. The company also repurchased $25.0 million in common stock during the quarter.
Net sales increased by 1.6% to $538.9 million compared to the prior year quarter.
Income from operations grew by 6.5% to $102.3 million, with an operating income margin of 19.0%.
Diluted net income per common share was $1.85, a 4.5% increase year-over-year.
The company repurchased $25.0 million of its common stock during the first quarter.
Simpson
Simpson
Simpson Revenue by Segment
Simpson Revenue by Geographic Location
Forward Guidance
The company reaffirmed its full fiscal year 2025 financial outlook, estimating consolidated operating margin to be between 18.5% and 20.5%. This range is based on potential flat to declining U.S. housing starts compared to the prior year and includes the impact of price increases implemented in 2025. The outlook also anticipates a benefit of $10.0 million to $12.0 million from the sale of the Gallatin property. The effective tax rate is estimated to be between 25.5% and 26.5%, and capital expenditures are projected to be in the range of $150.0 million to $170.0 million.
Positive Outlook
- Reaffirmed 2025 financial outlook despite macroeconomic uncertainty.
- Estimated consolidated operating margin range of 18.5% to 20.5% for 2025.
- Price increases implemented in the U.S. to offset rising costs.
- Projected benefit of $10.0 million to $12.0 million from the sale of the Gallatin property.
- Confidence in mid to long-term housing outlook and strong market position.
Challenges Ahead
- Uncertain macroeconomic environment in both the U.S. and Europe.
- Uncertainty regarding 2025 U.S. housing starts compared to prior year.
- Potential for flat to declining 2025 housing starts impacting the lower end of the operating margin range.
- Higher personnel costs and variable incentive compensation in North America operating expenses.
- Higher factory and overhead, labor, and warehouse costs in Europe gross margin.