Earnings release
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1 Simpson Manufacturing Co., Inc. Announces 2026 Second Quarter Financial Results and Updates 2026 Guidance 2026 Second Quarter Highlights ⚫ Net sales of $671.1 million increased 6.3% year-over-year ⚫ Income from operations of $169.1 million increased 20.6% year-over-year ⚫ Net income per diluted share of $3.09 increased 25.1% year-over-year ⚫ Repurchased $48.7 million of common stock during the quarter ⚫ Increased 2026 share repurchase authorization by $50.0 million ⚫ Declared a $0.30 per share dividend Pleasanton, CA - July 27, 2026 : 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 second 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 June 30, 2026 with the quarter ended June 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 six months ended June 30, 2025 have been recast for comparison purposes and to conform to the current period classification, with $1.5 million and $3.0 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 Second Quarter Highlights Three Months Ended Year-Over- Six Months Ended Year-Over- June 30, Year June 30, Year 2026 2025 Change 2026 2025 Change (In thousands, except per share data and percentages) Net sales $ 671,076 $ 631,055 6.3% $ 1,259,040 $ 1,169,950 7.6% Gross profit 318,193 292,891 8.6% 584,084 543,457 7.5% Gross profit margin 47.4 % 46.4 % 46.4 % 46.5 % Total operating expenses 154,420 152,839 1.0% 305,076 301,034 1.3% Income from operations 169,130 140,244 20.6% 283,747 242,563 17.0% Operating income margin 25.2 % 22.2 % 22.5 % 20.7 % Net income $ 127,042 $ 103,541 22.7% $ 215,258 $ 181,425 18.6% Net income per diluted common share $ 3.09 $ 2.47 25.1% $ 5.22 $ 4.33 20.6% Adjusted EBITDA1 $ 196,083 $ 159,893 22.6% $ 335,444 $ 282,067 18.9% Trailing Twelve Months Ended Year-Over- June 30, Year 2026 2025 Change (In thousands, except percentages) Total U.S. Housing starts2 1,359 1,368 (0.6) % 1 Adjusted EBITDA is a non-GAAP financial measure and is defined in the Non-GAAP Financial Measures section of this press release. For a reconciliation of Adjusted EBITDA to U.S. GAAP (as defined below) net income, see the schedule titled “Reconciliation of Non-GAAP Financial Measures.” 2 Housing starts is based on the trailing twelve months for the periods ended June 30, 2026 and 2025 as reported by the United States Census Bureau.
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2 Management Commentary “Our second quarter results reflect solid execution across our operations, with net sales increasing 6.3% year‑over‑year to $671.1 million, driven by growth in both North America and Europe,” said Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. “North America sales growth of 6.0% year-over-year was driven primarily by our 2025 pricing actions in response to tariffs and multiyear cost increases, partially offset by lower volumes tied to a softer market. In Europe, net sales rose 7.6% year‑over‑year, leading to a record quarter for operating income margin of 13.7%. Consolidated profitability strengthened in the quarter, with gross margin expanding 100 basis points to 47.4% and operating margin improving 300 basis points to 25.2%, including a 100 basis point benefit from a $5.5 million eminent domain settlement and the benefit of our 2025 strategic cost savings initiatives. These results underscore the resilience of our business model, the dedication of our empl oyees, and the value customers place on our innovative solutions and trusted partnerships.” Mr. Olosky continued, “As we celebrate our 70th anniversary, we remain focused on deepening our position as the partner of choice for our customers, driving innovation in the markets we serve, and strengthening our values -based culture —all while continuing to deliver solid financial results. Our financial ambitions remain driving above market volume growth relative to United States housing starts, maintaining an operating income margin at or above 20%, and consistently driving EPS growth ahead of net sales growth.” North America Segment 2026 Second Quarter Financial Highlights • Net sales of $522.3 million increased 6.0% from $492.7 million primarily due to price increases that took effect in June 2025 and October 2025, partly offset by a slight decrease in unit sales volumes. • Gross margin increased to 50.2% from 49.5% reflecting primarily the impact from increased sales due to lower material costs as a percentage of net sales and cost savings initiatives. • Income from operations of $158.0 million increased 15.8% from $136.5 million, primarily due to the increases in net sales as well as lower operating expense including lower personnel costs, and software licensing fees as well as a reduction in travel and entertainment costs. Europe Segment 2026 Second Quarter Financial Highlights • Net sales of $143.5 million increased 7.6% from $133.4 million due to both increased unit sales volumes and price increases as well as the positive effect of approximately $3.7 million in foreign currency translation. • Gross margin increased to 38.2% from 36.2%, primarily driven by lower material costs, factory and tooling costs, and labor costs as a percentage of net sales. • Income from operations of $19.7 million increased 25.7% from $15.7 million primarily due to higher gross profits. Operating expenses were negatively affected by approximately $0.7 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 All Other segments). Corporate Developments • For the quarter ended June 30, 2026, the Company repurchased 259,846 shares of common stock in the open market at an average price of $187.47 per share, for a total of $48.7 million. As of June 30, 2026, approximately $51.3 million remained available for s hare repurchases through December 31, 2026, under the Company's previously announced $150.0 million share repurchase authorization. • On July 23, 2026, the Company’s Board of Directors (the "Board") increased the 2026 share repurchase authorization from $150.0 million to $200.0 million.
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4 • On July 23, 2026, the Board declared a quarterly cash dividend of $0.30 per share, estimated to be $ $12.2 million in aggregate. The dividend will be payable on October 22, 2026, to the Company's stockholders of record on October 1, 2026. Balance Sheet & 2026 Second Quarter Cash Flow Highlights • As of June 30, 2026, cash and cash equivalents totaled $450.5 million with total debt outstanding of $336.7 million under the Company's $900 million credit facility. • Cash flow provided by operating activities of $215.0 million increased by $89.8 million from $125.2 million, primarily due to increased net income and changes in working capital. • Cash flow used in investing activities of $8.6 million decreased by $31.9 million from $40.5 million primarily due to decreased capital expenditures. Business Outlook The Company is updating its prior 2026 financial outlook to reflect actual results of the second quarter as well as its expectations regarding demand trends, cost of sales, and operating expenses. Based on business trends and conditions as of today, July 27, 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 19.7% to 20.5%. The operating margin range includes a projected gain of $10.0 million to $12.0 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.
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4 Conference Call Details Investors, analysts and other interested parties are invited to join the Company’s 2026 second quarter financial results conference call on Monday, July 27, 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=1767895&tp_key=037ff0a3e6 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 b roadcast, 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, August 10, 2026 by dialing (844) 512–2921 (U.S. and Canada) or (412) 317–6671 (International) and entering the conference ID: 13761265. 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.
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5 About Simpson Manufacturing Co., Inc. Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California, through its subsidiary, 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 carbon and glass fiber materials. The Company primarily supplies its building product solutions to both the residentia l 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 websit e at ir.simpsonmfg.com.
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6 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 out look, 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 service s, 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 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. The Company believes Adjusted EBITDA allows it to readily view operating trends, 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).
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8 Simpson Manufacturing Co., Inc. and Subsidiaries UNAUDITED Condensed Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales $ 671,076 $ 631,055 $ 1,259,040 $ 1,169,950 Cost of sales 352,883 338,164 674,956 626,493 Gross profit 318,193 292,891 584,084 543,457 Research and development and engineering expense 18,000 20,767 36,631 40,606 Selling expense 52,848 56,443 107,311 110,607 General and administrative expense 83,572 75,629 161,134 149,821 Total operating expense 154,420 152,839 305,076 301,034 Acquisition and integration related costs 186 13 751 140 Net gain on disposal of assets (5,543) (205) (5,490) (280) Income from operations 169,130 140,244 283,747 242,563 Interest income and other finance costs, net 4,196 895 8,629 1,998 Other & foreign exchange loss, net (2,435) (1,684) (5,187) (626) Income before taxes 170,891 139,455 287,189 243,935 Provision for income taxes 43,849 35,914 71,931 62,510 Net income $ 127,042 $ 103,541 $ 215,258 $ 181,425 Earnings per common share: Basic $ 3.10 $ 2.48 $ 5.24 $ 4.34 Diluted $ 3.09 $ 2.47 $ 5.22 $ 4.33 Weighted average shares outstanding: Basic 40,964 41,705 41,095 41,775 Diluted 41,071 41,838 41,221 41,926 Cash dividends declared per common share $ 0.30 $ 0.29 $ 0.59 $ 0.57 Other data: Depreciation and amortization $ 25,437 $ 20,995 $ 50,948 $ 40,517 Pre-tax equity-based compensation expense $ 8,403 $ 6,367 $ 14,942 $ 12,905
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9 Simpson Manufacturing Co., Inc. and Subsidiaries UNAUDITED Condensed Consolidated Balance Sheets (In thousands) June 30, December 31, 2026 2025 2025 Cash and cash equivalents $ 450,526 $ 190,400 $ 384,138 Trade accounts receivable, net 438,050 415,926 302,688 Inventories 513,518 586,623 594,192 Other current assets 67,320 65,169 71,485 Total current assets 1,469,414 1,258,118 1,352,503 Property, plant and equipment, net 614,989 597,536 627,854 Operating lease right-of-use assets 109,521 100,649 115,060 Goodwill 546,729 560,633 558,521 Intangible assets, net 365,965 399,361 387,729 Other noncurrent assets 33,233 48,106 31,959 Total assets $ 3,139,851 $ 2,964,403 $ 3,073,626 Trade accounts payable $ 114,384 $ 95,560 $ 91,467 Long-term debt, current portion 15,000 22,500 15,000 Accrued liabilities and other current liabilities 317,579 254,800 275,328 Total current liabilities 446,963 372,860 381,795 Operating lease liabilities, net of current portion 90,372 83,001 96,819 Long-term debt, net of current portion and issuance costs 318,389 351,994 355,509 Deferred income tax 108,341 96,711 99,792 Other long-term liabilities 49,188 120,060 104,234 Non-qualified deferred compensation plan awards 8,840 9,737 5,715 Stockholders’ equity 2,117,758 1,930,040 2,029,762 Total liabilities, mezzanine equity, and stockholders’ equity $ 3,139,851 $ 2,964,403 $ 3,073,626
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10 Simpson Manufacturing Co., Inc. and Subsidiaries UNAUDITED Segment and Product Group Information (In thousands) Three Months Ended Six Months Ended June 30, % June 30, % 2026 2025 change* 2026 2025 change* Net Sales by Reporting Segment North America $ 522,290 $ 492,687 6.0% $ 984,215 $ 913,386 7.8% Percentage of total net sales 77.8 % 78.1 % 78.2 % 78.1 % Europe 143,491 133,398 7.6% 264,538 247,258 7.0% Percentage of total net sales 21.4 % 21.1 % 21.0 % 21.1 % Asia/Pacific 5,295 4,970 6.5% 10,287 9,306 10.5% $ 671,076 $ 631,055 6.3% $ 1,259,040 $ 1,169,950 7.6% Net Sales by Product Group** Wood Construction $ 568,314 $ 535,561 6.1% $ 1,065,978 $ 995,844 7.0% Percentage of total net sales 84.7 % 84.9 % 84.7 % 85.1 % Concrete Construction 101,411 94,402 7.4% 190,538 172,087 10.7% Percentage of total net sales 15.1 % 15.0 % 15.1 % 14.7 % Other 1,351 1,092 N/M 2,524 2,019 N/M $ 671,076 $ 631,055 6.3% $ 1,259,040 $ 1,169,950 7.6% Gross Profit (Loss) by Reporting Segment North America $ 262,137 $ 243,885 7.5% $ 482,870 $ 453,313 6.5% North America gross margin 50.2 % 49.5 % 49.1 % 49.6 % Europe 54,777 48,275 13.5% 98,723 88,297 11.8% Europe gross margin 38.2 % 36.2 % 37.3 % 35.7 % Asia/Pacific 1,851 1,537 N/M 3,647 3,260 N/M Administrative and all other (572) (806) N/M (1,156) (1,413) N/M $ 318,193 $ 292,891 8.6% $ 584,084 $ 543,457 7.5% Income (Loss) from Operations North America $ 157,987 $ 136,489 15.8% $ 276,297 $ 241,337 14.5% North America operating margin 30.2 % 27.7 % 28.1 % 26.4 % Europe 19,695 15,669 25.7% 26,786 24,978 7.2% Europe operating margin 13.7 % 11.7 % 10.1 % 10.1 % Asia/Pacific (53) (86) N/M 190 273 N/M Administrative and all other (8,499) (11,828) N/M (19,526) (24,025) N/M $ 169,130 $ 140,244 20.6% $ 283,747 $ 242,563 17.0% * Unfavorable percentage changes are presented in parentheses, if any. ** The Company manages its business by geographic segment but presents sales by product group as additional information. N/M Statistic is not material or not meaningful.
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11 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: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net Income $ 127,042 $ 103,541 $ 215,258 $ 181,425 Provision for income taxes 43,849 35,914 71,931 62,510 Interest income, net and other financing costs (4,196) (895) (8,629) (1,998) Depreciation and amortization 25,437 20,995 50,948 40,517 Other* 3,951 338 5,936 (387) Adjusted EBITDA** $ 196,083 $ 159,893 $ 335,444 $ 282,067 . *Includes acquisition integration and restructuring related expenses, non-qualified deferred compensation adjustments, severance costs, other & foreign exchange loss net, and net loss or gain on disposal of assets. **Includes certain reclassifications in the three and six months ended June 30, 2025, to conform to the current period presentation. CONTACT: Addo Investor Relations investor.relations@strongtie.com (310) 829-5400