Simpson Manufacturing Q4 sales beat estimates

Overview

• Building solutions firm's Q4 revenue rose 4.2%, beating analyst expectations

• Net income per diluted share increased to $1.35

• Company completed $120 mln stock repurchase program for fiscal 2025

Outlook

• Company estimates 2026 operating margin between 19.5% and 20.5%

• Simpson Manufacturing projects 2026 capital expenditures of $75 mln to $85 mln

• Company expects 2026 effective tax rate between 25% and 26%

Result Drivers

• PRICING AND ACQUISITIONS - Revenue growth driven by 3% pricing actions, 1% acquisitions, and 1% foreign exchange, offset by 1% volume decline

• TARIFF AND COST IMPACT - North America gross margin decreased due to tariffs and higher costs, partly offset by lower warehouse costs

• CURRENCY AND COST BENEFITS - Europe segment saw increased gross margin due to favorable currency effects and lower material costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Simpson Manufacturing Co Inc is $190.00, about 2.2% below its February 6 closing price of $194.28

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nPn5gW5qka

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.