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Sep 30
Simpson Q3 2025 Earnings Report
Simpson reported its Q3 2025 earnings with net sales of $623.5 million and EPS of $2.58, showing year-over-year growth across revenue, net income, and operating margins.
Key Takeaways
Simpson delivered a strong Q3 2025, with solid revenue and net income growth, supported by price increases and favorable foreign exchange. Operating income rose 12.7%, aided by a one-time asset sale gain, while cost-saving initiatives were launched to address ongoing housing market softness.
Revenue grew 6.2% year-over-year to $623.5 million, driven by pricing actions and FX benefits.
Net income reached $107.4 million, up 14.9% year-over-year.
Adjusted EBITDA came in at $155.3 million, a 4.5% increase from Q3 2024.
Strategic cost savings initiatives expected to deliver $30 million in annualized savings.
Simpson
Simpson
Simpson Revenue by Segment
Simpson Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Simpson updated its FY2025 guidance, targeting an operating margin of 19.0%–20.0% and reaffirming cost control and capital investment initiatives.
Positive Outlook
- Operating margin outlook reaffirmed at 19.0% to 20.0%.
- Expected $30M in annualized cost savings from new initiatives.
- Reiterated recent price increases from June and October 2025.
- Benefit of $12.9M from Gallatin facility sale included in guidance.
- Capital expenditures allocated to key facility expansion projects.
Challenges Ahead
- Housing market softness in U.S. and Europe continues to pressure sales volumes.
- One-time severance charges between $9M to $12M impacting FY2025.
- Gross margins slightly declined in North America due to cost increases.
- Europe segment facing rising operating expenses due to FX impact.
- Government data limitations due to shutdown hinder visibility on housing starts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income