SSD

Simpson’s second quarter was marked by effective pricing strategies and disciplined cost management, resulting in financial performance that exceeded Wall Street expectations and led to a positive market reaction. Management identified price increases as the primary growth driver, supplemented by a modest sales mix benefit and continued momentum in the OEM and component manufacturing segments. CEO Michael Olosky highlighted that “net sales growth was primarily driven by our 2025 pricing actions,” while also noting a small decline in overall volumes due to ongoing softness in housing activity and selective business exits. These strategic responses helped the company improve operating margins and adapt to mixed demand conditions. Is now the time to buy SSD? Find out in our full research report (it’s free). Revenue: $671.1 million vs analyst estimates of $658.8 million (6.3% year-on-year growth, 1.9% beat) Adjusted EPS: $3.00 vs analyst estimates of $2.69 (11.2% beat) Adjusted EBITDA: $196.1 million vs analyst estimates of $173.4 million (29.2% margin, 13.1% beat) Operating Margin: 24.4%, up from 22.2% in the same quarter last year Market Capitalization: $7.72 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ethan (Stephens) asked about the margin outperformance and sustainability. CFO Matt Dunn attributed margin gains to a settlement benefit, improved gross margin from pricing and efficiency, and flat operating expenses, but cautioned that margin pressure would increase in the back half. Tim Wojs (Baird) questioned gross margin guidance and volume trends. Dunn confirmed gross margin is expected to decline slightly for the full year, with CEO Michael Olosky emphasizing a disciplined approach to pricing and productivity to protect margins. Kurt Yinger (D.A. Davidson) sought clarity on North America volumes and mix. Dunn explained volumes were nearly flat, with some impact from strategic business exits, while Olosky highlighted strong OEM and component manufacturing growth offsetting residential softness. Daniel Moore (CJS Securities) inquired about inventory trends and capital allocation. Dunn indicated inventory reductions were driven by lower raw materials and ongoing optimization, and said the company remains focused on shareholder returns and prudent capital deployment. Andrew Carter (Stifel) asked about risks of further declines in single-family starts and competitive activity. Olosky acknowledged regional volatility and competitive pricing pressures in fasteners, but maintained confidence in Simpson’s differentiated solutions and growth initiatives. In the coming quarters, the StockStory team will be monitoring (1) the sustainability of pricing and cost discipline as the company laps last year’s price increases, (2) the margin impact from rising steel costs and shifting product mix, and (3) adoption rates of new product offerings like cloud-based truss software and merchandising initiatives in the retail channel. Progress in these areas will be key to determining Simpson’s ability to maintain above-market growth and stable profitability. Simpson currently trades at $187.19, down from $193.24 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net sales growth of 6.3% was primarily driven by 2025 pricing actions, which contributed approximately 5% to the increase, while global volumes declined by 1% due to market softness. The component manufacturer segment achieved mid-single-digit volume growth through new customer wins and increased share of connector spend from existing clients. OEM business volumes rose high-single digits, supported by momentum in material handling, anchoring solutions, and an expanding mass timber project pipeline. Residential volumes saw modest declines as persistent affordability pressures impacted housing activity, though multi-family and fire rebuild sectors provided relative strength. Gross margin expansion of 100 basis points to 47.4% was fueled by pricing discipline, partially offset by startup costs at the new Gallatin facility. Operating margin reached 25.2%, benefiting from a $5.5 million eminent domain settlement and effective leverage on flat operating expenses. Management emphasized a value-based pricing approach to maintain margins while reinvesting in engineering expertise and field support as key differentiators. Full-year 2026 U.S. housing starts are expected to be down low-single digits, with management anticipating a softer second half as pricing actions are fully lapped. Operating margin guidance was narrowed to 19.7%-20.5%, incorporating expectations of rising raw material costs, tariffs, and increased depreciation. The company expects a $10 million-$12 million gain from the sale of vacant land in the back half of 2026 to support financial results. Capital expenditure guidance was increased to $80 million-$90 million to account for shifting project timelines and continued footprint optimization efforts. Management anticipates the launch of the Cornerstone cloud-based truss software in late 2026 will serve as a long-term catalyst for onboarding larger component manufacturing customers. Steel market volatility and rising input costs are identified as significant headwinds for the second half of 2026, potentially pressuring gross margins. Startup costs at the Gallatin facility impacted Q2 gross margin by approximately 20 basis points, though these costs are moderating sequentially. Strategic cost savings initiatives resulted in a $500,000 one-time charge in Q2, aimed at long-term footprint and headcount optimization. Inventory optimization efforts reduced North America inventory pounds by 27.4% since year-end 2025, though raw material levels may fluctuate with steel purchasing cycles. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that the pricing benefit will drop from 5-6 points to roughly 1 point in the second half as they lap 2025 increases. Volume trajectory is expected to remain flat to slightly down, making revenue growth more difficult without the previous pricing tailwinds. Rising steel costs and typical Q4 seasonality are expected to result in lower margins compared to the first half of the year. Management noted increased competition in the fastener space from players using price to win business for non-differentiated, non-patented products. Simpson intends to counter this by continuing to differentiate through load rating, testing, and driving manufacturing cost efficiencies. The company remains focused on maintaining its 'partner of choice' status rather than engaging in pure price wars for commodity-like products. Truss plate volume has been the fastest-growing component of the segment, with sequential customer wins over the last eight quarters. The upcoming launch of the next-generation cloud-based software is viewed as an 'unlock' for larger customers, though management expects a steady acceleration rather than an immediate step-change in Q1 2027. The share repurchase authorization was increased to $200 million, reflecting confidence in cash flow and long-term prospects. Management stated there is currently nothing of meaningful size on the near-term M&A horizon. The company remains committed to returning at least 35% of free cash flow to shareholders, a threshold they have historically exceeded.

This article first appeared on GuruFocus. Net Sales: $671.1 million, up 6.3% from the prior year quarter. North America Net Sales: $522.3 million, up 6% from the prior year quarter. Europe Net Sales: $143.5 million, up 7.6% year-over-year. Gross Margin: 47.4%, improved by 100 basis points year-over-year. Operating Margin: 25.2%, up 300 basis points year-over-year. Adjusted EBITDA: $196.1 million, a 22.6% increase year-over-year. Net Income: $127 million or $3.09 per fully diluted share. Cash and Cash Equivalents: $450.5 million. Debt Balance: $336.7 million, down $33.8 million from March 31, 2026. Inventory: $513.5 million, down $80.7 million compared to December 31, 2025. Cash Flow from Operations: $250.6 million in 2026. Share Repurchase Authorization: Increased by $50 million to $200 million. Warning! GuruFocus has detected 5 Warning Signs with SSD. Is SSD fairly valued? Test your thesis with our free DCF calculator. Release Date: July 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Simpson Manufacturing Co Inc (NYSE:SSD) reported a 6.3% increase in net sales to $671.1 million, driven by pricing actions and favorable sales mix. The company's operating margin improved by 300 basis points year-over-year to 25.2%, supported by disciplined pricing and effective cost management. The OEM business experienced strong growth with volumes up high single digits year-over-year, driven by momentum in material handling and anchoring solutions. Simpson Manufacturing Co Inc (NYSE:SSD) achieved a record operating income margin of 13.7% in Europe, reflecting strong cost control and volume gains. The company generated strong cash flows from operations of $250.6 million, allowing for significant capital returns to shareholders, including share repurchases and dividends. Global volumes declined by 1.6% over the last 12 months, with a 1% decline in the second quarter due to a softer market. The residential business saw a modest year-over-year volume decline, reflecting continued softness in housing activity due to affordability pressures. Rising steel costs and mix headwinds are expected to create a challenging backdrop for revenue growth and profitability in the second half of 2026. The commercial business experienced a modest year-over-year volume decline, impacted by mixed construction activity across segments and geographies. Simpson Manufacturing Co Inc (NYSE:SSD) anticipates lower overall gross margins for the full year due to rising raw material costs and increased depreciation. Q: Can you provide more detail on what drove the better margin performance in the quarter relative to your initial expectations? A: Matt Dunn, CFO, explained that the quarterly operating margin was up 300 basis points due to three main factors: a 100 basis point gain from an imminent domain settlement, 100 basis points from gross margin improvements due to better absorption and efficiency, and 100 basis points from keeping operating expenses flat while achieving revenue growth primarily through pricing. Q: Has your gross margin guidance changed at all given the rising steel costs? A: Matt Dunn, CFO, stated that there is no change in the expectation that gross margin for the full year will be down slightly compared to 2025. The company had anticipated these pressures, and the guidance remains consistent with previous expectations. Q: How would you characterize the current volume environment compared to earlier this year? A: Matt Dunn, CFO, noted that the volume environment is roughly consistent with earlier in the year. The company expects US housing starts to be down low single digits for 2026, with single-family starts down significantly and multifamily starts up. Regional mix headwinds continue to be a challenge. Q: Can you discuss the improvements in the European business and the timeline for achieving mid-teens EBIT margins? A: Michael Olosky, CEO, highlighted the European team's efforts in cost control and footprint optimization, leading to a record operating margin of 13.7% in the quarter. The target remains a 15% operating margin, with continued volume growth expected to help achieve this goal in the midterm. Q: What factors would lead you to consider additional pricing actions going into next year? A: Michael Olosky, CEO, emphasized a disciplined, long-term perspective on pricing, considering factors like input costs, value, mix, margins, and customer relationships. The goal is to maintain a good gross margin to reinvest in the business and support customer service. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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, Calif., July 27, 2026 /PRNewswire/ -- 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. 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 employees, 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% 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 share 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. 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. 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 broadcast, 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. 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 residential 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 website at ir.simpsonmfg.com. 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 outlook, 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 services, 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). CONTACT: Addo Investor [email protected] (310) 829-5400 View original content to download multimedia:https://www.prnewswire.com/news-releases/simpson-manufacturing-co-inc-announces-2026-second-quarter-financial-results-and-updates-2026-guidance-302835215.html

Looking back on home construction materials stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Simpson (NYSE:SSD) and its peers. Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of home construction materials companies. The 11 home construction materials stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was 1.6% above. In light of this news, share prices of the companies have held steady as they are up 3.3% on average since the latest earnings results. Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products. Simpson reported revenues of $588 million, up 9.1% year on year. This print exceeded analysts’ expectations by 6.4%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. "Simpson delivered a solid first quarter with net sales up 9.1% year‑over‑year to $588.0 million and operating margin improvement of 50 basis points to 19.5%," said Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $188.37. Is now the time to buy Simpson? Access our full analysis of the earnings results here, it’s free. Credited with the discovery of fiberglass, Owens Corning (NYSE:OC) supplies building and construction materials to the United States and international markets. Owens Corning reported revenues of $2.27 billion, down 10.5% year on year, outperforming analysts’ expectations by 4.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. Owens Corning pulled off the highest guidance raise of the whole group. The market seems happy with the results as the stock is up 13.1% since reporting. It currently trades at $138.98. Is now the time to buy Owens Corning? Access our full analysis of the earnings results here, it’s free. Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products. Griffon reported revenues of $421.9 million, down 1.1% year on year, exceeding analysts’ expectations by 1.8%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations. Griffon delivered the weakest full-year guidance update in the group. As expected, the stock is down 4% since the results and currently trades at $88.89. Read our full analysis of Griffon’s results here. Starting in the seamless tube industry, Quanex (NYSE:NX) manufactures building products like window, door, kitchen, and bath cabinet components. Quanex reported revenues of $462.4 million, up 2.2% year on year. This print beat analysts’ expectations by 0.6%. It was a very strong quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. The stock is up 2.6% since reporting and currently trades at $18.28. Read our full, actionable report on Quanex here, it’s free. Headquartered in Irving, TX, Builders FirstSource (NYSE:BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products. Builders FirstSource reported revenues of $3.29 billion, down 10.1% year on year. This number topped analysts’ expectations by 3.6%. Zooming out, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but full-year EBITDA guidance missing analysts’ expectations significantly. The stock is down 15.4% since reporting and currently trades at $70.54. Read our full, actionable report on Builders FirstSource here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Simpson Manufacturing (SSD) has moved into the spotlight after its board declared a regular quarterly dividend of $0.30 per share, with investors now also watching the company’s upcoming second quarter 2026 earnings release. See our latest analysis for Simpson Manufacturing. The Simpson Manufacturing share price has gained 17.7% year to date and the 1 year total shareholder return is 17.57%, although the 30 day share price return declined 7.7%, suggesting recent momentum has cooled ahead of the upcoming Q2 earnings release and dividend payment. If you are looking beyond Simpson Manufacturing for other potential ideas in industrial and infrastructure related themes, it could be worth scanning 35 power grid technology and infrastructure stocks Simpson Manufacturing has a long established position in structural connectors and a fresh dividend decision behind it, but after the recent share price run and pullback, how does the current valuation compare with the underlying business? At a last close of $193.88 versus a narrative fair value of $217.80, Simpson Manufacturing is framed as undervalued, with that gap resting on several detailed earnings and margin assumptions. Read the complete narrative. Want to see what powers that valuation gap for Simpson Manufacturing? The narrative leans on measured revenue growth, firmer margins, and a richer future earnings multiple. Curious which specific earnings and profit assumptions sit behind that price target and discount rate? The full narrative sets out the numbers that make $217.80 the anchor value. Result: Fair Value of $217.80 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Simpson Manufacturing’s reliance on cyclical housing activity, along with its exposure to higher steel and input costs, could pressure margins and challenge the current undervalued narrative. Find out about the key risks to this Simpson Manufacturing narrative. While the prevailing Simpson Manufacturing narrative leans on a fair value of $217.80, the current P/E ratio of 22.4x paints a more measured picture. It sits almost in line with the US Building industry at 22.5x and below peer averages at 25.9x, with a fair ratio of 23.4x suggesting only a modest potential re rating. For an investor, that narrows the margin of error, so how much conviction do you really have in the growth story behind the earnings multiple? See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Simpson Manufacturing for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Given the mixed signals around Simpson Manufacturing’s valuation and outlook, it makes sense to review the data yourself and move quickly to your own view, starting with the 3 key rewards. If Simpson Manufacturing has caught your attention, do not stop there. Broadening your watchlist across different styles of opportunities can help sharpen your overall perspective. Use the Simply Wall St screener to quickly spot stocks that fit what you are looking for, then compare them side by side before you commit any capital. Target strong income potential by reviewing stocks in the 9 dividend fortresses that may suit investors who prioritize cash returns. Hunt for mispriced quality by checking the screener containing 20 high quality undiscovered gems that could sit off the usual radar but still have solid fundamentals. Prioritize resilience by focusing on companies in the 83 resilient stocks with low risk scores that may better hold up when conditions turn tougher. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SSD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Simpson Manufacturing Company, Inc.? Here are five stocks we like better. Strong Q2 performance: Simpson Manufacturing’s net sales rose 6.3% to $671.1 million, while net income increased to $127 million and adjusted EBITDA climbed 22.6% to $196.1 million. Pricing actions, favorable product mix and foreign exchange offset a modest volume decline. Margins expanded across regions: Consolidated operating margin improved to 25.2%, aided by pricing, efficiency gains, cost leverage and a $5.5 million eminent-domain settlement. Europe delivered record operating margin of 13.7%, while North America’s margin reached 30.2%. More cautious outlook: Simpson narrowed its full-year 2026 operating-margin forecast to 19.7%–20.5% and expects slower revenue growth in the second half as pricing benefits lap, while steel costs, tariffs, housing pressure and mix weigh on results. The company raised planned capital expenditures to $80 million–$90 million and expanded its share-repurchase authorization to $200 million. Simpson Manufacturing: A Mid-Cap Rally With New Highs in Sight Simpson Manufacturing (NYSE:SSD) reported second-quarter 2026 net sales of $671.1 million, up 6.3% from the prior-year period, as pricing actions, favorable mix and foreign exchange more than offset modestly lower sales volumes. President and Chief Executive Officer Michael Olosky said the company’s 2025 pricing actions contributed approximately 5% to sales growth during the quarter, while sales mix and foreign currency each added about 1%. Those gains were partially offset by an approximately 1% decline in volume amid softer construction markets. → MarketBeat Week in Review – 07/20- 07/24 Simpson Manufacturing: Buy This Future Dividend King While Down Net income rose to $127 million, or $3.09 per diluted share, from $103.5 million, or $2.47 per diluted share, a year earlier. Adjusted EBITDA increased 22.6% to $196.1 million, representing a 29.2% margin. Consolidated gross profit increased 8.6% to $318.2 million, with gross margin rising 100 basis points to 47.4%. Olosky said the improvement reflected last year’s price increases, which contributed about $34 million in quarterly net sales, partly offset by higher factory and overhead costs as a percentage of sales. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Simpson Manufacturing stock doubled in value; It can double again The company’s Gallatin facility, which opened late last year, created about $1.5 million, or 20 basis points, of startup-cost pressure on gross margin during the quarter. Chief Financial Officer Matt Dunn said the impact improved from the first quarter and is expected to continue moderating through the year. Operating income increased 20.6% to $169.1 million, and operating margin expanded to 25.2% from 22.2% a year earlier. The margin included a 100-basis-point benefit from a $5.5 million eminent domain settlement. The company also incurred about $500,000 in one-time costs associated with strategic cost-savings initiatives. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Dunn said the 300-basis-point operating-margin expansion was driven by three roughly equal factors: the Texas settlement gain, improved gross-margin absorption and efficiency, and operating-expense leverage as expenses remained essentially flat while revenue grew. Operating expenses increased 1% to $154.4 million but declined as a percentage of sales to 23% from 24.2%. SG&A headcount was down approximately 8% year over year. Higher expenses from the company’s non-qualified deferred compensation program and incentive-based compensation partly offset lower personnel, travel, advertising and certain professional costs. North American net sales increased 6% to $522.3 million, including an approximate $30 million benefit from pricing actions. North American gross margin reached 50.2%, up from 49.5% a year earlier, while operating income rose 15.8% to $158 million. The segment’s operating margin increased to 30.2% from 27.7%. Globally, wood construction product sales rose 6.1%, while concrete construction product sales increased 7.4%. Concrete product gross margin improved to 48.3% from 45%, reflecting lower material costs as a percentage of sales and pricing, according to Dunn. In Europe, net sales rose 7.6% to $143.5 million, including approximately $3.7 million of favorable foreign currency translation. On a local-currency basis, sales grew 4.9%. Olosky said European volume increased about 3%, supported by healthy customer engagement and several project wins, including mass timber projects. European operating income increased 25.7% to $19.7 million, and operating margin reached a record 13.7%, compared with 11.7% a year earlier. Dunn attributed the improvement to higher gross profit and continued cost control, while Olosky said the company remains focused on a midterm goal of reaching a 15% European operating margin. Olosky said the component manufacturer business delivered mid-single-digit volume growth during the quarter, driven by new customer wins and a greater share of connector spending from existing customers. Customers continued to focus on labor efficiency, throughput and operational visibility, he said. The company plans to launch its Cornerstone program, a cloud-based truss software platform covering production, design and project management software, at the BCMC show in the fall. Dunn said the launch could broaden Simpson’s access to customers and support growth over a multiyear period, though he does not expect an immediate step change in quarterly results. OEM volumes increased by high single digits, supported by material handling, anchoring solutions, engineered applications and customer expansion. Simpson also continued building its mass timber pipeline through project specifications, wins and investments in engineering, testing and field support. Residential volumes declined modestly amid housing affordability pressures, though Olosky cited relative strength in multifamily construction, fire rebuild activity, selected regions and new product adoption. Commercial volumes also declined modestly as construction activity remained mixed. The national retail business posted a slight year-over-year volume increase, supported by merchandising initiatives, Outdoor Accents expansion and a fastener merchandising pilot expected to expand later this year. Simpson narrowed its full-year 2026 consolidated operating-margin outlook to a range of 19.7% to 20.5%. The company continues to expect U.S. housing starts to decline by low single digits in 2026 and expects flat to modest market growth in Europe. Dunn said Simpson still expects full-year gross margin to be slightly lower than in 2025. While second-quarter gross margin exceeded the first quarter’s level, rising steel prices, tariffs, depreciation costs and reduced pricing benefits in the second half are expected to pressure results. “We do not anticipate maintaining the same rate of revenue growth through the back half of 2026 as we fully lap last year’s increases and navigate mix and steel cost headwinds,” Dunn said. The company expects $2 million to $4 million in European footprint-optimization costs, along with a $10 million to $12 million gain from the sale of vacant land in the second half. Capital expenditures are now projected at $80 million to $90 million, up from the prior range due to timing changes for certain projects. As of June 30, Simpson had $450.5 million in cash and cash equivalents and $336.7 million in debt, resulting in a net cash position of $113.8 million. Inventory declined by $80.7 million from year-end to $513.5 million. The company generated $250.6 million in operating cash flow during 2026 through the second quarter. Year to date, Simpson spent $98.7 million repurchasing common stock and returned $23.9 million through dividends. Its board increased the 2026 repurchase authorization by $50 million to $200 million on July 23, leaving $76.8 million available through year-end at that date. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Simpson Manufacturing Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Simpson Manufacturing (SSD) came out with quarterly earnings of $3.09 per share, beating the Zacks Consensus Estimate of $2.72 per share. This compares to earnings of $2.47 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +13.60%. A quarter ago, it was expected that this building materials company would post earnings of $1.84 per share when it actually produced earnings of $2.13, delivering a surprise of +15.76%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Simpson Manufacturing, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $671.08 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.85%. This compares to year-ago revenues of $631.05 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Simpson Manufacturing shares have added about 20.1% since the beginning of the year versus the S&P 500's gain of 8.3%. While Simpson Manufacturing has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Simpson Manufacturing was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.60 on $633.95 million in revenues for the coming quarter and $9.08 on $2.43 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Advanced Drainage Systems (WMS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This maker of water drainage systems and pipes is expected to post quarterly earnings of $2.19 per share in its upcoming report, which represents a year-over-year change of +12.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Advanced Drainage Systems' revenues are expected to be $976.86 million, up 17.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simpson Manufacturing Company, Inc. (SSD) : Free Stock Analysis Report Advanced Drainage Systems, Inc. (WMS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research