DA Davidson maintains Neutral rating on Simpson Manufacturing Co, $203 price target

Stephens reduced its price target on Simpson Manufacturing (NYSE:SSD) to $205 from $215, citing margin pressure from higher raw material and freight costs. The company beat Q3 earnings and revenue estimates but reported lower gross margins. SSD raised its full-year operating margin guidance and authorized a $1 billion share repurchase program. Management expects Q4 margins to be weaker due to higher steel costs and a softer housing backdrop in 2027.

Simpson Manufacturing (SSD) reported Q3 2026 net sales up 2.3% YoY to $638.1M, with adjusted EBITDA rising 7.4% to $167.2M. North America sales grew 3.8%, while Europe declined 3.4%. The company lowered full-year operating margin guidance to 20.0-20.5% due to cost pressures. The board approved a $1B share repurchase program. Steel cost inflation and softer demand in retail and Europe were noted challenges.

Simpson (SSD) reported Q3 2026 revenue of $638.1M, up 2.3% YoY, and adjusted EPS of $2.68, beating estimates. Management cited pricing actions and cost controls for margin support. The company expects steel and freight cost pressures but aims to maintain 20% operating margins. European sales declined due to volume drops and currency effects. SSD trades at $181.80.

Simpson Manufacturing (SSD) reported Q3 2026 net sales of $638.1M, up 2.3% YoY, driven by pricing. Global volumes were flat, but North American sales rose 3.8%. Residential volumes grew slightly despite housing market softness, while commercial and OEM businesses saw high single to double-digit growth. European sales declined 3.4% YoY due to market conditions and currency effects. Gross margin fell 40 bps to 45.7% due to higher material and freight costs.

Simpson Manufacturing (SSD) reported Q3 earnings, with OEM volumes up double digits and component volumes up mid-single digits. European sales declined 3.4% due to economic headwinds. Gross profit rose 1.4% to $291.6M, but gross margin fell 40 bps. Net income was $109.1M, up from $107.4M YoY. The company announced a $1B share repurchase program and expects 2026 operating margin of 20-20.5%.

Simpson Manufacturing (NYSE: SSD) increased its share buyback authorization to $1 billion, replacing a $200 million program. The company repurchased $165 million of stock in 2026, including $66.3 million in Q3. Purchases will depend on market conditions and capital priorities, with no set timetable or funding source identified.