2026 Third Quarter
Filed Oct 26, 2026Simpson Manufacturing Co., Inc. Announces 2026 Third Quarter Financial Results and Updates 2026 Guidance
Third-quarter net sales, operating income, net income and diluted EPS increased year-over-year, while consolidated gross margin, operating margin and Europe profitability declined. Management cited relatively flat global volumes, higher steel costs and tighter steel availability, while returning capital through repurchases, a new authorization and a dividend.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $638.1M | – | 2.3% |
| Cost of sales, three months ended September 30, 2026GAAP | 346,547 | – | – |
| Gross profit, three months ended September 30, 2026GAAP | 291,583 | – | 1.4% |
| Gross profit margin, three months ended September 30, 2026GAAP | 45.7 % | – | – |
| Research and development and engineering expense, three months ended September 30, 2026GAAP | 18,907 | – | – |
| Selling expense, three months ended September 30, 2026GAAP | 54,928 | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | 76,663 | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | 150,498 | – | (6.3)% |
| Acquisition and integration related costs, three months ended September 30, 2026GAAP | 141 | – | – |
| Net gain on disposal of assets, three months ended September 30, 2026GAAP | (65) | – | – |
| Income from operations, three months ended September 30, 2026GAAP | 141,009 | – | 0.2% |
| Operating income margin, three months ended September 30, 2026GAAP | 22.1 % | – | – |
| Interest income and other finance costs, net, three months ended September 30, 2026GAAP | 4,665 | – | – |
| Other & foreign exchange loss, net, three months ended September 30, 2026GAAP | 679 | – | – |
| Income before taxes, three months ended September 30, 2026GAAP | 146,353 | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | 37,229 | – | – |
| Net income, three months ended September 30, 2026GAAP | $109.1M | – | 1.6% |
| Basic earnings per common share, three months ended September 30, 2026GAAP | $ 2.69 | – | – |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $ 2.68 | – | 3.9% |
| Weighted average shares outstanding, basic, three months ended September 30, 2026GAAP | 40,612 | – | – |
| Weighted average shares outstanding, diluted, three months ended September 30, 2026GAAP | 40,738 | – | – |
| Cash dividends declared per common share, three months ended September 30, 2026GAAP | $ 0.30 | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $26.04M | – | – |
| Pre-tax equity-based compensation expense, three months ended September 30, 2026GAAP | $6.91M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $167.2M | – | 7.4% |
| Net sales, nine months ended September 30, 2026GAAP | $1.90B | – | 5.8% |
| Gross profit, nine months ended September 30, 2026GAAP | 875,667 | – | 5.4% |
| Gross profit margin, nine months ended September 30, 2026GAAP | 46.2 % | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | 455,574 | – | (1.3)% |
| Income from operations, nine months ended September 30, 2026GAAP | 424,756 | – | 10.8% |
| Operating income margin, nine months ended September 30, 2026GAAP | 22.4 % | – | – |
| Net income, nine months ended September 30, 2026GAAP | $324.4M | – | 12.3% |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $ 7.90 | – | 14.7% |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $502.7M | – | 14.8% |
| Total U.S. Housing starts, trailing twelve months ended September 30, 2026other | 1,344 | – | (1.9) % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America, three months ended September 30, 2026Price increases and higher unit sales volumes. | $502.0M | – | 3.8% |
| Europe, three months ended September 30, 2026Decreased unit sales volumes, partly offset by unit price increases; net sales were negatively affected by approximately $1.6 million in foreign currency translation. | $129.9M | – | (3.4)% |
| Asia/Pacific, three months ended September 30, 2026No driver provided. | $6.29M | – | 14.9% |
| Wood Construction, three months ended September 30, 2026No driver provided. | $534.1M | – | 1.8% |
| Concrete Construction, three months ended September 30, 2026No driver provided. | $102.5M | – | 4.8% |
| Other, three months ended September 30, 2026No driver provided. | $1.54M | – | N/M |
| North America, nine months ended September 30, 2026No driver provided. | $1.49B | – | 6.4% |
| Europe, nine months ended September 30, 2026No driver provided. | $394.4M | – | 3.3% |
| Asia/Pacific, nine months ended September 30, 2026No driver provided. | $16.58M | – | 12.2% |
| Wood Construction, nine months ended September 30, 2026No driver provided. | $1.60B | – | 5.2% |
| Concrete Construction, nine months ended September 30, 2026No driver provided. | $293.0M | – | 8.6% |
| Other, nine months ended September 30, 2026No driver provided. | $4.07M | – | N/M |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
full fiscal year ending December 31, 2026 outlook
- Tax rate25.0% to 26.0%
- NoteConsolidated operating margin is estimated to be in the range of 20.0% to 20.5%.
- NoteThe operating margin range includes a projected gain of $11.0 million on the sale of vacant land.
- NoteCapital expenditures are estimated to be in the range of $80.0 million to $90.0 million.
Capital returns
- Repurchased 352,346 shares of common stock in the open market at an average price of $188.25 per share, for a total of $66.3 million, for the quarter ended September 30, 2026.
- On October 22, 2026, the Board approved a new stock repurchase authorization of $1.0 billion, with no expiration date, superseding the prior $200.0 million authorization.
- On October 22, 2026, the Board declared a quarterly cash dividend of $0.30 per share, estimated to be $12.1 million in aggregate.
- The dividend will be payable on January 28, 2027, to stockholders of record on January 7, 2027.
What drove it
- Net sales increased 2.3% year-over-year to $638.1 million, supported by pricing actions, while global volumes remained relatively flat.
- North America sales increased due to price increases and higher unit sales volumes.
- North America income from operations increased due to higher net sales and lower operating expense, including lower personnel costs, professional fees and bad debt reserve charges.
- Concrete Construction net sales increased 4.8%, compared with 1.8% growth in Wood Construction.
- Nine-month operating income increased 10.8% and nine-month Adjusted EBITDA increased 14.8%.
Concerns
- Consolidated gross profit margin declined to 45.7 % from 46.1 % and operating income margin declined to 22.1 % from 22.6 %.
- Europe net sales declined 3.4% due to decreased unit sales volumes, and were negatively affected by approximately $1.6 million in foreign currency translation.
- Europe gross margin declined to 36.1 % from 37.9 % due to higher factory and tooling, labor, warehouse and freight costs as a percentage of net sales.
- Management identified housing affordability pressures, higher steel costs and tighter steel availability as elements of a more challenging near-term operating environment.
- The estimated $11.0 million net gain on disposal of land will be recognized in the fourth quarter rather than the third quarter.
What to watch
- Fourth-quarter recognition of the projected gain of $11.0 million on the sale of vacant land.
- The full-year consolidated operating margin outlook of 20.0% to 20.5%, which includes the projected land-sale gain.
- Additional pricing actions expected in 2027 to address the evolving cost environment.
- Europe unit sales volumes, foreign currency translation effects and gross-margin recovery.
- Housing affordability pressures, steel costs and steel availability.
Balance sheet and cash flow
- As of September 30, 2026, cash and cash equivalents totaled $491.3 million.
- Total debt outstanding was $308.0 million under the Company's $900 million credit facility as of September 30, 2026.
- Cash flow provided by operating activities was $173.3 million, increasing by $3.1 million from $170.2 million.
- Cash flow used in investing activities was $13.2 million, decreasing by $2.8 million from $16.0 million.
- Trade accounts receivable, net was 409,361 as of September 30, 2026.
- Inventories were 511,886 as of September 30, 2026.
- Total assets were $ 3,124,775 as of September 30, 2026.
- Stockholders’ equity was 2,145,179 as of September 30, 2026.
Analysis
Simpson reported third-quarter net sales of $ 638,130, up 2.3%, with GAAP income from operations of 141,009, up 0.2%, and GAAP net income of $ 109,124, up 1.6%. Diluted EPS increased 3.9% to $ 2.68. Adjusted EBITDA increased 7.4% to $ 167,239. For the first nine months, net sales increased 5.8%, income from operations increased 10.8%, net income increased 12.3%, and Adjusted EBITDA increased 14.8%.
Growth was concentrated in North America, where quarterly sales increased 3.8% to $ 501,951 on price increases and higher unit volumes. North America income from operations increased 9.5% to $ 137,024 and operating margin improved to 27.3 % from 25.9 %. Europe sales fell 3.4% to $ 129,887 on lower unit volumes, partly offset by price increases, with approximately $1.6 million of negative foreign currency translation. Europe gross margin fell to 36.1 % from 37.9 %, and income from operations declined 5.0% to $ 15,316.
Consolidated margin performance was weaker in the quarter. Gross profit margin declined to 45.7 % from 46.1 %, while operating income margin declined to 22.1 % from 22.6 %, despite total operating expenses decreasing 6.3% to 150,498. Management attributed North America gross-margin pressure to higher material, labor and freight costs, and Europe pressure to higher factory and tooling, labor, warehouse and freight costs. Management also stated that global volumes remained relatively flat and cited higher steel costs and tighter steel availability.
Capital allocation remained active. The company repurchased $66.3 million of shares during the quarter and approved a new $1.0 billion authorization with no expiration date. The Board also declared a $0.30 per share quarterly cash dividend estimated at $12.1 million in aggregate. At September 30, 2026, cash and cash equivalents were $491.3 million and total debt outstanding was $308.0 million under the $900 million credit facility. Operating cash flow was $173.3 million, compared with $170.2 million.
The updated full-year outlook calls for consolidated operating margin of 20.0% to 20.5%, an effective tax rate of 25.0% to 26.0%, and capital expenditures of $80.0 million to $90.0 million. The operating-margin range includes a projected $11.0 million gain on the sale of vacant land, which moved from an expected third-quarter closing to the fourth quarter. Management expects additional pricing actions in 2027 as it addresses the evolving cost environment.
Management, verbatim
Our third quarter performance reflects the resilience of our business and continued progress against our key growth initiatives despite a challenging market environment.
Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc.
Net sales increased 2.3% year-over-year to $638.1 million, supported by our pricing actions, while global volumes remained relatively flat.
Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc.
Looking ahead, demand for our value-added solutions remains encouraging, although we are navigating a more challenging near-term operating environment characterized by housing affordability pressures, higher steel costs and tighter steel availability.
Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc.
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Quarterly and nine-month free cash flow were not reported.
- Sequential, or quarter-over-quarter, comparisons were not reported for the operating metrics.
- Full-year revenue, gross-margin and operating-expense guidance were not reported.
- A CFO commentary section was not provided.
- Segment revenue drivers for Asia/Pacific and product groups were not provided.
- The filing did not provide a reported effective tax rate for the third quarter or nine months.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.