Simpson Manufacturing (NYSE:SSD) Announces Quarterly Earnings Results, Beats Estimates By $0.29 EPS

Simpson Manufacturing (NYSE:SSD) released its earnings results on Monday. The construction company reported $2.13 earnings per share for the quarter, beating the consensus estimate of $1.84 by $0.29, Zacks reports. The company had revenue of $587.96 million for the quarter, compared to the consensus estimate of $550.08 million. Simpson Manufacturing had a return on equity of 17.72% and a net margin of 14.92%.Simpson Manufacturing’s quarterly revenue was up 9.1% compared to the same quarter last year. During the same period in the previous year, the business earned $1.85 earnings per share.

Here are the key takeaways from Simpson Manufacturing’s conference call:

• Delivered strong Q1 results with net sales of $588M (+9.1%), adjusted EBITDA of $139.4M (+14.1%), and operating margin of 19.5%, driven by 2025 pricing actions and favorable FX.
• Management now expects U.S. housing starts to be down low single digits in 2026 and does not expect Q1 revenue growth to be sustained through the rest of the year, trimming near?term top?line outlook.
• Consolidated gross margin declined 130 bps to 45.2% due to higher material, factory, tooling and labor costs, tariffs, and ~100 bps startup costs from the Gallatin ramp, with Europe also facing input cost surcharges.
• High?growth areas showed momentum: component manufacturing and OEM segments posted double?digit volume gains and rising adoption of software, equipment, and mass?timber solutions that management expects will help outpace market growth.
• Balance sheet and capital allocation remain supportive of shareholders with $341M cash, net debt of ~$29.5M, $50M of Q1 buybacks and a new $150M repurchase authorization, plus a commitment to return ?35% of free cash flow.

Simpson Manufacturing Trading Up 0.7%

Simpson Manufacturing stock opened at $192.09 on Friday. Simpson Manufacturing has a 1 year low of $151.38 and a 1 year high of $211.98. The firm’s 50 day moving average price is $180.16 and its 200-day moving average price is $177.21. The company has a debt-to-equity ratio of 0.17, a current ratio of 3.40 and a quick ratio of 1.99. The stock has a market cap of $7.91 billion, a P/E ratio of 22.52 and a beta of 1.34.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on SSD. Stephens lifted their price objective on Simpson Manufacturing from $200.00 to $210.00 and gave the company an “equal weight” rating in a research report on Tuesday. Robert W. Baird raised their target price on shares of Simpson Manufacturing from $216.00 to $220.00 and gave the stock an “outperform” rating in a research note on Tuesday. Weiss Ratings downgraded shares of Simpson Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, April 2nd. Stifel Nicolaus upped their price target on shares of Simpson Manufacturing from $205.00 to $217.00 and gave the stock a “buy” rating in a research report on Tuesday. Finally, DA Davidson increased their price objective on shares of Simpson Manufacturing from $200.00 to $212.00 and gave the stock a “neutral” rating in a research note on Tuesday. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $214.75.

Institutional Trading of Simpson Manufacturing

Hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC grew its position in shares of Simpson Manufacturing by 135.3% during the second quarter. EverSource Wealth Advisors LLC now owns 160 shares of the construction company’s stock valued at $25,000 after purchasing an additional 92 shares in the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Simpson Manufacturing in the fourth quarter worth about $32,000. Brown Brothers Harriman & Co. bought a new position in Simpson Manufacturing during the third quarter valued at approximately $34,000. Smartleaf Asset Management LLC boosted its stake in Simpson Manufacturing by 33.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 226 shares of the construction company’s stock valued at $37,000 after buying an additional 57 shares during the last quarter. Finally, Empowered Funds LLC purchased a new position in Simpson Manufacturing during the 4th quarter valued at approximately $51,000. Hedge funds and other institutional investors own 93.68% of the company’s stock.

About Simpson Manufacturing

Simpson Manufacturing Co, Inc, through its Simpson Strong-Tie® brand, is a leading global supplier of structural building products. The company specializes in the design, testing, manufacture and supply of connectors, anchors, fasteners and lateral systems that enhance the safety and performance of wood, concrete and masonry structures. Its product portfolio also includes repair and strengthening systems, concrete reinforcement and high-performance adhesives used in residential, commercial and industrial construction projects.

Founded in 1956 by Barclay Simpson in Oakland, California, Simpson Manufacturing has grown from a single product business into a diversified manufacturer with worldwide operations.