Simpson Manufacturing (NYSE:SSD) Issues Earnings Results

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

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 Price Performance

Shares of NYSE SSD opened at $190.62 on Friday. Simpson Manufacturing has a one year low of $151.38 and a one year high of $211.98. The firm has a market capitalization of $7.85 billion, a P/E ratio of 22.35 and a beta of 1.37. The company's fifty day moving average is $180.16 and its two-hundred day moving average is $177.21. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.99 and a current ratio of 3.40.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Robert W. Baird raised their price target on shares of Simpson Manufacturing from $216.00 to $220.00 and gave the company an "outperform" rating in a research note on Tuesday. Wall Street Zen cut Simpson Manufacturing from a "buy" rating to a "hold" rating in a report on Sunday, March 8th. DA Davidson lifted their price objective on Simpson Manufacturing from $200.00 to $212.00 and gave the stock a "neutral" rating in a research report on Tuesday. Stifel Nicolaus increased their price objective 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, Stephens lifted their target price on Simpson Manufacturing from $200.00 to $210.00 and gave the company an "equal weight" rating in a report on Tuesday. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $214.75.

Hedge Funds Weigh In On Simpson Manufacturing

Institutional investors and hedge funds have recently modified their holdings of the company. EverSource Wealth Advisors LLC grew its position in 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 acquiring an additional 92 shares during the period. Los Angeles Capital Management LLC acquired a new position in Simpson Manufacturing during the 4th quarter valued at approximately $32,000. Brown Brothers Harriman & Co. bought a new stake in Simpson Manufacturing in the third quarter valued at $34,000. Smartleaf Asset Management LLC increased its holdings in shares of 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 purchasing an additional 57 shares during the period. Finally, Empowered Funds LLC acquired a new stake in shares of Simpson Manufacturing in the 4th quarter worth 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.