Jun 30, 2024

Simpson Q2 2024 Earnings Report

Simpson Manufacturing Co. Inc. reported a decrease in net sales and net income for Q2 2024.

Key Takeaways

Simpson Manufacturing Co. Inc. announced its Q2 2024 financial results, with net sales of $597.0 million, a slight decrease of 0.1% compared to the same quarter last year. Income from operations was $132.2 million, resulting in an operating income margin of 22.1%. Net income was $97.8 million, or $2.31 per diluted share, a decrease of 8.7% compared to the prior year. The company repurchased $50.0 million of common stock during the quarter.

Net sales were $597.0 million, a 0.1% decrease year-over-year.

Operating income was $132.2 million, with an operating income margin of 22.1%.

Net income was $97.8 million, or $2.31 per diluted share, down 8.7% from the previous year.

The company repurchased $50.0 million of common stock during the quarter.

Total Revenue
$597M
Previous year: $598M
-0.1%
EPS
$2.31
Previous year: $2.5
-7.6%
Gross Profit Margin
46.7%
Previous year: 48.1%
-2.9%
Operating Income Margin
22.1%
Previous year: 24.3%
-9.1%
Gross Profit
$279M
Previous year: $287M
-3.1%
Cash and Equivalents
$355M
Previous year: $408M
-13.0%
Free Cash Flow
$70.9M
Previous year: $175M
-59.5%
Total Assets
$2.77B
Previous year: $2.72B
+2.1%

Simpson

Simpson

Simpson Revenue by Segment

Simpson Revenue by Geographic Location

Forward Guidance

The Company has updated its 2024 financial outlook based on two quarters of financial information to reflect its latest expectations regarding demand trends, raw material costs and operating expenses. Based on business trends and conditions as of today, July 22, 2024, the Company's outlook for the full fiscal year ending December 31, 2024 is as follows:

Positive Outlook

  • Operating margin is estimated to be in the range of 20.0% to 21.0%.
  • The effective tax rate is estimated to be in the range of 24.5% to 25.5%, including both federal and state income tax rates as well as international income tax rates, and assuming no tax law changes are enacted.

Challenges Ahead

  • Capital expenditures are estimated to be in the range of $180.0 million to $190.0 million, which includes $90.0 million to $100.0 million for the Columbus, Ohio facility expansion and the new Gallatin,Tennessee fastener facility construction with the remaining spend carrying over into 2025.

Revenue & Expenses

Visualization of income flow from segment revenue to net income