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Dec 31, 2024
Simpson Q4 2024 Earnings Report
Key Takeaways
Simpson Manufacturing Co., Inc. reported a modest increase in revenue for Q4 2024 despite a challenging housing market. Net sales grew by 3.1% to $517.43 million, while net income reached $55.46 million, up 1.2% year-over-year. Operating income rose by 7.4%, driven by higher gross profit, though partially offset by increased expenses.
Simpson
Simpson
Simpson Revenue by Segment
Simpson Revenue by Geographic Location
Forward Guidance
Simpson Manufacturing expects a low single-digit recovery in U.S. housing starts in 2025 and stable European demand. The company aims to maintain above-market revenue growth and restore its operating margin to 20%.
Positive Outlook
- Projected slight recovery in U.S. housing starts.
- Continued focus on volume growth exceeding market trends.
- Commitment to maintaining strong operating margins.
- Expansion plans for Columbus, Ohio and Gallatin, Tennessee facilities.
- Steady cash position to support growth initiatives.
Challenges Ahead
- Uncertainty around 2025 housing market conditions.
- Significant input cost increases impacting margins.
- European sales expected to remain flat.
- Higher operating expenses due to personnel costs.
- Increased capital expenditures reducing free cash flow.
Revenue & Expenses
Visualization of income flow from segment revenue to net income