Simpson Manufacturing Co., Inc. Announces 2026 Third Quarter Financial Results and Updates 2026 Guidance

2026 Third Quarter Highlights

• Net sales of $638.1 million increased 2.3% year-over-year
• Income from operations of $141.0 million increased 0.2% year-over-year
• Net income per diluted share of $2.68 increased 3.9% year-over-year
• Repurchased $66.3 million of common stock during the quarter
• Approved a new $1.0 billion share repurchase authorization 
• Declared a $0.30 per share dividend

PLEASANTON, Calif., Oct. 26, 2026 /PRNewswire/ -- Simpson Manufacturing Co., Inc. (the "Company") (NYSE: SSD), an industry leader in engineered structural connectors and building solutions, today announced its financial results for the third quarter of 2026. All comparisons below (which are generally indicated by words such as "increased," "decreased," "remained," or "compared to"), unless otherwise noted, are comparing the quarter ended September 30, 2026 with the quarter ended September 30, 2025. In the first quarter of 2026, the Company reclassified certain software amortization costs related to the Company's component manufacturing efforts from general and administrative expense to cost of sales. Additionally, for the year ended December 31, 2025, the Company reclassified certain quality assurance costs from general and administrative expense to cost of sales. The financial results for the three and nine months ended September 30, 2025 have been recast for comparison purposes and to conform to the current period classification, with $1.6 million and $4.6 million of costs being reclassified from general and administrative expense to cost of sales. The reclassification did not have any impact on the total income from operations.

Consolidated 2026 Third Quarter Highlights

Management Commentary

"Our third quarter performance reflects the resilience of our business and continued progress against our key growth initiatives despite a challenging market environment," said Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. "Net sales increased 2.3% year-over-year to $638.1 million, supported by our pricing actions, while global volumes remained relatively flat. We continued to outperform the majority of our relevant end markets and delivered solid growth across several key areas, including residential, commercial, OEM, and component manufacturer. Our teams are continuing to strengthen our position with customers through differentiated product solutions, software and service, while advancing opportunities across a broader range of applications. We also maintained a strong operating margin of 22.1%, demonstrating disciplined cost management and execution despite higher steel costs."

Mr. Olosky continued, "Looking ahead, demand for our value-added solutions remains encouraging, although we are navigating a more challenging near-term operating environment characterized by housing affordability pressures, higher steel costs and tighter steel availability. We remain disciplined in our approach to pricing and cost management while maintaining the reliable supply, service and technical support our customers expect from Simpson. As we look at 2027, we expect to take additional pricing actions to address the evolving cost environment. We believe the strength of our customer relationships, differentiated market position and continued investments in our key growth initiatives position us well to navigate current market conditions while advancing our long-term growth objectives."

North America Segment 2026 Third Quarter Financial Highlights

• Net sales of $502.0 million increased 3.8% from $483.6 million primarily due to price increases and higher unit sales volumes.
• Gross margin decreased to 48.4% from 48.7% due to higher material, labor and freight costs as a percentage of net sales.
• Income from operations of $137.0 million increased 9.5% from $125.2 million, primarily due to the increases in net sales as well as lower operating expense including lower personnel costs, professional fees and bad debt reserve charges.

Europe Segment 2026 Third Quarter Financial Highlights

• Net sales of $129.9 million decreased 3.4% from $134.4 million due to decreased unit sales volumes, partly offset by unit price increases. Net sales were negatively affected by approximately $1.6 million in foreign currency translation.
• Gross margin decreased to 36.1% from 37.9%, primarily driven by higher factory and tooling, labor, warehouse and freight costs as a percentage of net sales, partly offset by lower material costs.
• Income from operations of $15.3 million decreased 5.0% from $16.1 million while the operating margin decreased from 12.0% to 11.8%. The decrease was primarily due to lower sales and increased cost of goods sold as percentage of net sales, partly offset by lower operating expenses including lower personnel costs and professional fees. Income from operations was negatively affected by approximately $0.3 million in foreign currency translation.

Refer to the "Segment and Product Group Information" table below for additional segment information (including information about the Company's Asia/Pacific and Administrative and unallocated other segments).

Corporate Developments

• On October 22, 2026, the Company's Board of Directors (the "Board") approved a new stock repurchase authorization of $1.0 billion, with no expiration date, superseding the prior $200.0 million authorization.
• On October 22, 2026, the Board declared a quarterly cash dividend of $0.30 per share, estimated to be $12.1 million in aggregate. The dividend will be payable on January 28, 2027, to the Company's stockholders of record on January 7, 2027.
• For the quarter ended September 30, 2026, the Company repurchased 352,346 shares of common stock in the open market at an average price of $188.25 per share, for a total of $66.3 million. As noted above the $200.0 million authorization was superseded on October 22, 2026.
• The Company's sale of unimproved land in Stockton, California, which was originally scheduled to close in the third quarter of 2026, actually closed in the fourth quarter of 2026. Consequently, the estimated $11.0 million net gain on disposal and its effect on income from operations will be recognized in the fourth quarter, rather than the third.

Balance Sheet & 2026 Third Quarter Cash Flow Highlights

• As of September 30, 2026, cash and cash equivalents totaled $491.3 million with total debt outstanding of $308.0 million under the Company's $900 million credit facility.
• Cash flow provided by operating activities of $173.1 million increased by $2.9 million from $170.2 million, primarily due to increased net income and changes in working capital.
• Cash flow used in investing activities of $13.2 million decreased by $2.8 million from $16.0 million primarily due to decreased capital expenditures.

Business Outlook

The Company is updating its prior 2026 financial outlook to reflect actual results of the third quarter as well as its expectations regarding demand trends, cost of sales, and operating expenses. Based on business trends and conditions as of today, October 26, 2026, the Company's outlook for the full fiscal year ending December 31, 2026, is as follows:

• Consolidated operating margin is estimated to be in the range of 20.0% to 20.5%. The operating margin range includes a projected gain of $11.0 million on the sale of vacant land.
• The effective tax rate is estimated to be in the range of 25.0% to 26.0%, including both federal and state income tax rates as well as international income tax rates, and assuming no tax law changes are enacted.
• Capital expenditures are estimated to be in the range of $80.0 million to $90.0 million.

Conference Call Details

Investors, analysts and other interested parties are invited to join the Company's 2026 third quarter financial results conference call on Monday, October 26, 2026, at 5:00 pm Eastern Time (2:00 pm Pacific Time). To participate, callers may dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (International) approximately 10 minutes prior to the start time. The call will be webcast simultaneously and can be accessed through https://viavid.webcasts.com/starthere.jsp?ei=1777451&tp_key=64d5cfc85c or a link on the Investor Relations section of the Company's website at https://ir.simpsonmfg.com/events-and-presentations. For those unable to participate during the live broadcast, a replay of the call will also be available beginning that same day at 8:00 p.m. Eastern Time until 11:59 p.m. Eastern Time on Monday, November 9, 2026 by dialing (844) 512–2921 (U.S. and Canada) or (412) 317–6671 (International) and entering the conference ID: 13762883. The webcast will remain posted on the Investor Relations section of the Company's website for 90 days.

A copy of this earnings release will be available prior to the call, accessible through the Investor Relations section of the Company's website at ir.simpsonmfg.com.

About Simpson Manufacturing Co., Inc.

Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California, through its subsidiaries, including Simpson Strong-Tie Company Inc., designs, engineers and is a leading manufacturer of wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and concrete construction products, including adhesives, specialty chemicals, mechanical anchors, powder actuated tools and reinforcing fiber materials. The Company primarily supplies its building product solutions to both the residential and commercial markets in North America and Europe. The Company's common stock trades on the New York Stock Exchange under the symbol "SSD".

Copies of Simpson Manufacturing's Annual Report to Stockholders and its proxy statements and other Securities and Exchange Commission ("SEC") filings, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made available free of charge on the SEC's website and at the Company's website on the same day they are filed with the SEC. To view these filings, visit the SEC's website at www.sec.gov or the Financials section of the Company's website at ir.simpsonmfg.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "outlook," "target," "continue," "predict," "project," "change," "result," "future," "will," "could," "can," "may," "likely," "potentially," or similar expressions. Forward-looking statements are all statements other than those of historical fact and include, but are not limited to, statements about future financial and operating results, our plans, objectives, business outlook, priorities, expectations and intentions, expectations for sales and market growth, comparable sales, earnings and performance, stockholder value, effective tax rates, capital expenditures, cash flows, the housing market, the home improvement industry, demand for services, share repurchases, our strategic initiatives, including the impact of these initiatives on our strategic and operational plans and financial results, and any statement of an assumption underlying any of the foregoing. Forward-looking statements in this press release include, but are not limited to, statements regarding: anticipated consolidated operating margin for 2026; expected gain on the sale of vacant land; estimated effective tax rate for 2026; and projected capital expenditures for 2026.

Forward-looking statements are subject to inherent uncertainties, risks and other factors that are difficult to predict and could cause our actual results to vary in material respects from what we have expressed or implied by these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those expressed in or implied by our forward-looking statements include the cyclicality and impact of general economic conditions; the impact of rising interest rates on cost of capital. higher pricing pressure and lower housing and end-consumer demand; the effect of tariffs and international trade policies on our business operations; the effects of inflation and labor and supply shortages on our operations and the operations of our customers, suppliers and business partners; volatile supply and demand conditions affecting prices and volumes in the markets for both our products and raw materials we purchase; the impact of foreign currency fluctuations; our ability to repurchase shares of our common stock and the amounts and timing of repurchases, if any; and those other risks discussed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other reports we file with the SEC.

We caution that you should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Readers are urged to carefully review and consider the various disclosures made in our reports filed with the SEC that advise of the risks and factors that may affect our business, results of operations and financial condition.

Non-GAAP Financial Measures

This press release includes certain financial information not prepared in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"). Since not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Further, these measures should not be considered substitutes for the performance measures derived in accordance with GAAP. The Company uses Adjusted EBITDA as an additional financial measure in evaluating the ongoing operating performance of its business Adjusted EBITDA excludes the impact of items including acquisition, integration and restructuring related expenses; non-qualified deferred compensation adjustments; severance costs; net loss or gain on foreign exchange; and net loss or gain on disposal of assets. The Company believes Adjusted EBITDA allows it to assess operating trends on a consistent basis from period to period, perform analytical comparisons, and identify strategies to improve operating performance. Adjusted EBITDA should not be considered in isolation or as a substitute for GAAP financial measures such as net income or any other performance measures derived in accordance with GAAP. See the Reconciliation of Non-GAAP Financial Measures below.

The Company defines Adjusted EBITDA as net income (loss), adjusted to exclude provision for income taxes, depreciation and amortization, acquisition integration and restructuring costs, non-qualified compensation adjustments, lease termination costs, severance costs, net loss or gain on disposal of assets, interest income or expense and other financing costs, and foreign exchange and other expense (income).

Simpson Manufacturing Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data, unaudited)

Simpson Manufacturing Co., Inc. and Subsidiaries 
Condensed Consolidated Balance Sheets
(In thousands, unaudited)

Simpson Manufacturing Co., Inc. and Subsidiaries
Segment and Product Group Information
(In thousands, unaudited)

Simpson Manufacturing Co., Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
(In thousands, unaudited)

A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure, is set forth below:

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CONTACT:
Addo Investor Relations
[email protected]  
(310) 829-5400

SOURCE Simpson Manufacturing Co., Inc.