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• Net Sales: $2.23 billion for 2024, with North America contributing $1.74 billion.

• North America Sales Growth: Increased by $12 million from 2024 acquisitions.

• Europe Net Sales: $479.2 million, relatively flat year-over-year.

• Gross Margin: Declined to 46% from 47.1% in 2023.

• Operating Margin: Declined by 220 basis points to 19.3%.

• Adjusted EBITDA: $520.1 million, a decline of 6.2% year-over-year.

• Q4 Net Sales: Increased 3.1% year-over-year to $57.4 million.

• Q4 Gross Profit: Increased 3.3% to $227.7 million, with a gross margin of 44%.

• Q4 Operating Expenses: $150 million, an increase of 1.1%.

• Q4 Income from Operations: $76.8 million, an increase of 7.4%.

• Net Income: $55.4 million or $1.31 per diluted share for Q4.

• Cash and Cash Equivalents: $239.4 million as of December 31, 2024.

• Debt Balance: Approximately $388.1 million.

• Cash Flow from Operations: $117.7 million in Q4 and $39.8 million for the full year 2024.

• Capital Expenditures: $183 million in 2024.

• Share Repurchases: 559,179 shares at an average price of $178.83 per share, totaling $100 million.

• 2025 Operating Margin Outlook: Expected to be in the range of 18.5% to 20.5%.

• 2025 Capital Expenditures Estimate: $150 million to $170 million.

• Warning! GuruFocus has detected 3 Warning Sign with SSD.

Release Date: February 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Simpson Manufacturing Co Inc (NYSE:SSD) achieved net sales of $2.23 billion in 2024, reflecting modest growth over 2023 levels despite challenging housing markets.

• North American sales volumes exceeded US housing starts by approximately 600 basis points, demonstrating above-market growth.

• The company saw mid-single-digit increases in the national retail market, driven by increased shelf space and share gains in fastening solutions.

• Simpson Manufacturing Co Inc (NYSE:SSD) delivered high single-digit volume growth in the OEM segment, reflecting share gains in mass timber construction solutions.

• The company maintained a strong balance sheet with cash and cash equivalents totaling $239.4 million as of December 31, 2024.

Negative Points

• Gross margin declined to 46% from 47.1% in 2023, impacted by higher input and labor costs.

• Operating margin decreased by approximately 220 basis points to 19.3%, reflecting investments ahead of anticipated market growth that did not materialize.

• Net sales in Europe were relatively flat, with a 1% decrease on a local currency basis, due to lower sales volumes.

• Consolidated adjusted EBITDA declined by 6.2% year-over-year, resulting in an adjusted EBITDA margin of 23.3%.

• The company faced significant cost pressures, including higher labor, warehouse, and freight costs, which impacted margins.