In This Article:
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Net Sales: $538.9 million, a 1.6% increase year over year.
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North America Net Sales: $420.7 million, up 3.4% from the previous year.
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Europe Net Sales: $113.9 million, a decrease of 5.1% year over year.
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Gross Margin: Improved to 46.8% from 46.1% in Q1 2024.
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Operating Margin: Expanded by 90 basis points to 19%.
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Adjusted EBITDA: $121.8 million, a 3.8% increase year over year.
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Net Income: $77.9 million, or $1.85 per diluted share, compared to $75.4 million, or $1.77 per diluted share, in the prior year.
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Cash and Cash Equivalents: $150.3 million as of March 31, 2025.
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Debt Balance: Approximately $379.8 million.
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Inventory: $618.8 million, up $25.6 million from December 31, 2024.
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Cash Flow from Operations: $7.6 million for the first quarter.
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Capital Expenditures: $50.5 million in Q1 2025.
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Share Repurchase: 146,640 shares at an average price of $170.48 per share, totaling $25 million.
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2025 Financial Outlook: Operating margin expected to be between 18.5% and 20.5%.
Release Date: April 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Simpson Manufacturing Co Inc (NYSE:SSD) reported net sales of $538.9 million, reflecting modest growth over the prior year despite a highly uncertain macroeconomic environment.
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North American net sales increased by 3.4% to $420.7 million, driven by acquisitions and favorable comparisons to prior-year sales.
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The company achieved above-market growth in North America, exceeding US housing starts by approximately 420 basis points.
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Simpson Manufacturing Co Inc (NYSE:SSD) saw high-single-digit volume growth in the OEM segment, with strong sales in mass timber and off-site construction solutions.
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The company's operating margin expanded by 90 basis points to 19%, reflecting disciplined cost management and strategic investments.
Negative Points
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Net sales in Europe decreased by 5.1% compared to the prior year, impacted by unfavorable foreign currency translation.
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The national retail market experienced mid-single-digit decreases, despite efforts to drive growth through e-commerce and new product listings.
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Gross margin in Europe decreased to 35.2% from 36.5%, primarily due to higher factory, overhead, and labor costs.
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The company faces challenges from rising input costs and tariffs, leading to an 8% price increase on certain products to offset these costs.
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Simpson Manufacturing Co Inc (NYSE:SSD) anticipates a slightly lower overall gross margin due to increased labor, factory, and tooling costs.
Q & A Highlights
Q: How has the tariff noise and related impact affected your outlook for US housing starts? A: Michael Olosky, President and CEO, explained that while there are mixed views, the consensus is that the first half of the year will be softer, with hopes for improvement in the second half. The possibility of interest rate cuts is a key factor. The company maintains its outlook of flat to low-single-digit growth in US housing starts. Matt Dunn, CFO, added that the pricing impact provides flexibility, and they remain confident in their guidance range.