Core Viewpoint - Simpson Manufacturing (SSD) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [4]. Company Performance and Outlook - The upgrade for Simpson Manufacturing indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [5][10]. - For the fiscal year ending December 2025, Simpson Manufacturing is projected to earn $8.22 per share, with a 1.5% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating [9][10]. - The upgrade to Zacks Rank 2 places Simpson Manufacturing in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - Silicon Motion Technology Corporation reported a strong recovery in its business for the second quarter of 2025, with net sales reaching $198.7 million, a 19% increase quarter-over-quarter but a 6% decrease year-over-year [2][4]. Financial Highlights - Net sales for 2Q 2025 were $198.7 million, up from $166.5 million in 1Q 2025, but down from $210.7 million in 2Q 2024 [5][6]. - Gross margin for 2Q 2025 was 47.7%, compared to 47.1% in 1Q 2025 and 45.9% in 2Q 2024 [5][6]. - Operating margin for 2Q 2025 was 11.2%, significantly lower than 14.6% in 2Q 2024 [5][6]. - Earnings per diluted ADS were $0.49 (GAAP) and $0.69 (non-GAAP) for 2Q 2025, compared to $0.58 (GAAP) and $0.60 (non-GAAP) in 1Q 2025 [5][6][3]. Business Performance - The company experienced over 75% growth in PCIe5 client SSD controller sales quarter-over-quarter, driven by the increasing market traction of AI-at-the-edge PCs and strong sales of eMMC and UFS products due to better-than-expected smartphone sales [4][10]. - SSD controller sales remained flat to a slight increase of 0% to 5% quarter-over-quarter but decreased by 15% to 20% year-over-year [6][10]. - eMMC and UFS controller sales increased by 40% to 45% quarter-over-quarter and by 10% to 15% year-over-year [6][10]. Shareholder Returns - The company declared a $2.00 per ADS annual cash dividend, with $16.7 million paid to shareholders as the third installment [8]. - A new share repurchase program was authorized for up to $50 million, but no shares were repurchased in 2Q 2025 [9][8]. Future Outlook - The company anticipates a stronger second half of 2025, targeting a revenue run rate of $1 billion as it ramps up new products, including a 6nm, 8-channel PCIe5 client SSD controller and a new automotive portfolio [10][11]. - Management expects 3Q 2025 revenue to be between $219 million and $228 million, reflecting a 10% to 15% increase quarter-over-quarter [11].

Core Insights - Simpson Manufacturing reported strong Q2 2025 results with GAAP EPS of $2.47, exceeding the consensus estimate of $2.26, and revenue of $631.1 million, surpassing expectations of $599.4 million [1][2] - The company experienced a year-over-year revenue growth of 5.7% despite challenges in the U.S. housing market, indicating resilience and effective market strategies [1][5] - Management emphasized the importance of geographic expansion and product innovation as key drivers of performance, reaffirming full-year guidance [1][4] Financial Performance - Q2 2025 GAAP EPS was $2.47, a 6.9% increase from Q2 2024's $2.31 [2] - Revenue for Q2 2025 reached $631.1 million, up 5.7% from $597.0 million in Q2 2024 [2] - Operating income margin for Q2 2025 was 22.2%, slightly up from 22.1% in the previous year [2] Geographic and Segment Trends - North America saw a 6.4% increase in GAAP net sales year-over-year, driven by price increases and acquisitions, despite a 2.6% decline in U.S. housing starts [5][6] - European sales grew 2.7%, primarily due to favorable currency fluctuations, with operating income increasing by 29% to $15.7 million [7] - Asia/Pacific revenue grew 21.8%, although it accounted for less than 1% of total sales [7] Strategic Focus and Future Guidance - The company is focusing on geographic expansion and innovation, with recent acquisitions enhancing its market presence [4] - Full-year 2025 guidance includes maintaining a consolidated operating margin between 18.5% and 20.5% and a capital expenditure plan of $140–160 million [10] - Management is monitoring North American margins and sales volumes closely due to cost pressures and is also attentive to European sales trends [11]

Financial Data and Key Metrics Changes - The company's net sales for Q2 2025 were $631.1 million, reflecting a 5.7% increase year-over-year despite a challenging residential housing market [5][16] - North American net sales increased by 6.4% to $492.7 million, while European net sales rose by 2.7% to $133.4 million [5][16] - Consolidated gross margin remained stable at 46.7%, with operating margin at 22.2%, consistent with the prior year [11][20] Business Line Data and Key Metrics Changes - The OEM business experienced double-digit volume growth year-over-year, while the commercial business saw mid-single-digit volume improvement [6][7] - The national retail business had flat shipment growth, but point-of-sale performance improved with mid-single-digit gains [9] - The residential business volumes declined slightly due to challenging market conditions [10] Market Data and Key Metrics Changes - North American volumes were flat year-over-year, down approximately 1% year-to-date [50] - European business outperformed local markets despite lower volumes, driven by new application launches [10][17] - Global wood construction product sales increased by 5%, while concrete construction product sales rose by 9.2% [18] Company Strategy and Development Direction - The company aims to maintain an operating income margin at or above 20% and continues to focus on above-market growth relative to U.S. housing starts [14][27] - The company is investing in domestic production to reduce tariff exposure and improve responsiveness to customer demand [25][26] - The company is evaluating potential M&A opportunities aligned with strategic objectives [26] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half of the year due to market uncertainties and potential tariff impacts [36][72] - The company remains committed to disciplined cost management and targeted pricing strategies to maintain gross margins [12][28] - The outlook for U.S. housing starts is revised to be down in the low single digits compared to 2024 levels [27] Other Important Information - The company generated strong cash flow from operations of $124.7 million for Q2 2025, enabling investments in capital expenditures and stock repurchases [23] - The effective tax rate for the second quarter was 25.8%, slightly lower than the prior year [21] Q&A Session Summary Question: Contribution from acquisitions and revenue growth - The $9 million contribution from acquisitions was confirmed, with pricing being the primary driver of revenue growth while volumes remained flat [34] Question: Margins and outlook for the second half - Management acknowledged uncertainty in the market and potential gross margin headwinds from tariffs, leading to a cautious outlook for the second half [36] Question: Reclassification of expenses - The reclassification was a housekeeping change with no real impact on overall spending or investment levels [37] Question: Working capital and stock repurchase plans - The company remains focused on returning free cash flow to shareholders and is open to opportunistic stock repurchases [40] Question: Order progression and market conditions - Management did not observe substantial pre-buying and noted that the second half is expected to be softer in line with market forecasts [72]

Financial Data and Key Metrics Changes - The company reported net sales of $631.1 million, reflecting a 5.7% increase year over year despite a challenging residential housing market in the US and Europe [5][15] - North American net sales increased by 6.4% to $492.7 million, while European net sales rose by 2.7% to $133.4 million, aided by foreign currency translation [15][19] - Consolidated gross margin remained stable at 46.7%, consistent with the prior year, despite rising input and labor costs [10][16] - Adjusted EBITDA totaled $159.6 million, marking a 4.8% year-over-year increase, resulting in a margin of 25.3% [20] Business Line Data and Key Metrics Changes - The OEM business experienced double-digit volume growth year over year, while the commercial business saw mid-single-digit volume improvements [6][7] - The residential business volumes declined slightly due to ongoing market challenges, while the national retail business had flat shipment growth but improved point of sale performance [8][9] - In Europe, despite a year-over-year volume decline, the business outperformed local markets due to new application launches and customer wins [9] Market Data and Key Metrics Changes - North American volumes were flat year to date, down approximately 1% compared to the prior year, while European sales were impacted by lower volumes but benefited from foreign exchange [15][48] - The company anticipates US housing starts to decline in the low single digits compared to 2024, while European housing starts are expected to remain stable [12][24] Company Strategy and Development Direction - The company is focused on driving customer conversions and expanding product lines, particularly through integrated equipment and software solutions [9] - A new facility in Gallatin, Tennessee, is expected to enhance operational efficiency and support growth, allowing for approximately 50% of fastener products to be manufactured in-house [22][23] - The company is evaluating potential M&A opportunities aligned with strategic objectives while continuing to integrate 2024 acquisitions [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining operating margins above 20% in a favorable market environment, despite uncertainties in the housing market [13][24] - The company remains committed to returning at least 35% of free cash flow to shareholders while balancing growth and maximizing stockholder returns [26] - Management acknowledged the challenges posed by tariffs and the need for disciplined cost management to sustain margins [10][34] Other Important Information - The company generated strong cash flow from operations of $124.7 million for the second quarter, enabling investments in capital expenditures and stock repurchases [21] - The effective tax rate for the second quarter was 25.8%, approximately 50 basis points lower than the prior year [19] Q&A Session Summary Question: Clarification on revenue growth components - The $9 million contribution from acquisitions is correct, with pricing being the primary driver of revenue growth while volumes remained flat [31] Question: Expectations for operating margins - Management indicated that the second half may be tougher due to market uncertainties and additional tariffs impacting gross margins [34] Question: Changes in expense classification - The reclassification of expenses was a housekeeping change with no real impact on overall spending or investment levels [35] Question: Working capital outlook - Seasonal trends suggest higher volume quarters in Q2 and Q3, with a focus on managing inventory levels amid fluctuating steel prices [39] Question: Pricing strategy and competitive dynamics - The company is monitoring competitive pricing closely while ensuring that its products provide value to customers [66][68] Question: Order progression and market conditions - No substantial pre-buying was observed, and the market forecast for the second half aligns with expectations of softer conditions [70] Question: Customer expansion and software improvements - The company is making progress in software solutions to enhance customer project management and supply chain efficiency [72][73]

Financial Performance & Growth - Simpson has a customer-centric business model with above-market volume growth, high brand recognition, and a trusted reputation[7] - Since its IPO in 1994, Simpson has achieved a compound annual growth rate of approximately 15%[10, 12] - Simpson's EPS has grown from $0.14 to $7.60 between 1994 and 2024[13] - Approximately 52% of free cash flow has been returned to stockholders since 2021, exceeding the 35% target[7] - From 2020 to 2024, despite flat U S housing starts (approximately 14 million in both years), revenue increased from $125 billion to $223 billion, and operating income increased from $250 million to $430 million[46] - Simpson's North America operations have consistently outperformed U S housing starts, with an average of approximately 3% points above market growth historically and approximately 7% points above market growth more recently[43, 44] Market Position & Strategy - Simpson is a leader in structural solutions for wood connections with significant opportunities in all addressable markets[7] - The company's core addressable market includes wood connectors, ICS (Truss) & lateral systems ($38 billion market, $18 billion SSD share), fastening systems ($51 billion market, $05 billion SSD share), and concrete & steel connections ($28 billion market, $03 billion SSD share)[27] - Simpson has a broad portfolio of solutions, including over 10,000 standard and custom products for wood, concrete, and steel connections[30] - The company is focused on driving growth with digital solutions to make it easier to specify and order products[34] Capital Allocation & Future Ambitions - Simpson is well-positioned to execute its growth strategy with a demonstrated commitment to disciplined capital allocation[52] - The company's ambitions include maintaining an operating income margin of >20% and achieving EPS growth ahead of net revenue growth[66]

Exhibit 99.1 Press Release dated July 28, 2025 Simpson Manufacturing Co., Inc. Announces 2025 Second Quarter Financial Results and Reaffirms 2025 Guidance Pleasanton, CA - July 28, 2025: 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 2025. All comparisons below (which are generally indicated by words such as "increased," "decreased," "remained," or "com ...

Core Insights - Simpson Manufacturing Co., Inc. reported a year-over-year sales growth of 5.7% in Q2 2025, with net sales reaching $631.1 million compared to $596.978 million in Q2 2024 [2][5] - The company achieved a net income of $103.541 million, reflecting a 5.8% increase from $97.831 million in the same quarter last year [2][5] - The operating income margin improved to 22.2%, up from 22.1% in Q2 2024, indicating effective cost management and operational efficiency [2][3] Financial Performance - Net sales for the first half of 2025 totaled $1.16995 billion, a 3.8% increase from $1.127557 billion in the first half of 2024 [2] - Gross profit for Q2 2025 was $294.450 million, a 5.7% increase from $278.547 million in Q2 2024, maintaining a gross profit margin of 46.7% [2][20] - Total operating expenses rose by 6.5% to $154.398 million in Q2 2025, compared to $145.009 million in Q2 2024 [2][20] Segment Performance - North America segment net sales increased by 6.4% to $492.687 million, driven by price increases and contributions from acquisitions [2][23] - The Europe segment saw a modest sales increase of 2.7% to $133.398 million, supported by favorable currency translation [2][23] - The Asia/Pacific segment reported a significant sales growth of 21.8%, reaching $4.970 million [2][23] Management Commentary - The CEO highlighted the resilience of the business model amid a challenging housing market, with operating income growth outpacing sales growth [3] - The company remains committed to returning at least 35% of free cash flow to shareholders, emphasizing sustainable returns and strategic investments [3] - Management expressed confidence in executing the strategic plan for the remainder of 2025 despite ongoing market headwinds [3] Cash Flow and Capital Management - Cash flow from operating activities increased to $124.7 million in Q2 2025, up from $111.1 million in Q2 2024 [10] - The company repurchased $35.0 million of common stock during the quarter, with a total of $60.0 million repurchased in the first half of 2025 [10][5] - A quarterly cash dividend of $0.29 per share was declared, estimated to total $12.1 million [10][5] Outlook - The company reaffirmed its financial outlook for the full fiscal year 2025, estimating an operating margin range of 18.5% to 20.5% [10] - The effective tax rate is projected to be between 25.5% and 26.5% for the year [10] - Capital expenditures are estimated to be between $140.0 million and $160.0 million, including significant investments in facility expansions [10]

Core Insights - Micron Technology's NAND revenues increased by 16% quarter over quarter to $2.2 billion in Q3 FY25, driven by a mid-20% rise in bit shipments due to strong demand for SSDs in client and data center markets [1][10] - The company achieved record market share in client SSDs and maintained record market share in data center SSDs for three consecutive quarters, reflecting its competitive advantage [2] - Micron launched new SSDs based on G9 QLC NAND, which offer up to four times the performance of typical QLC SSDs, expected to benefit from the growing adoption of AI in PCs [3] - Management anticipates NAND bit supply growth to remain below industry demand growth in 2025, potentially leading to increased prices and margin expansion [4] - The Zacks Consensus Estimate projects fiscal 2025 NAND revenues at $8.52 billion, indicating a year-over-year growth of 17.9%, with total revenues expected to grow 46.5% to $36.79 billion [5] Competitive Landscape - Micron competes with Western Digital in the NAND market, where Western Digital has a diversified portfolio including HDDs and NAND-based SSDs [6] - Seagate is a significant player in the HDD market and is expanding its presence in the SSD market through partnerships and portfolio expansion [7] Financial Performance - Micron's shares have gained 32.2% year to date, outperforming the Zacks Computer - Integrated Systems industry growth of 27.5% [8] - The company trades at a forward price-to-sales ratio of 2.61X, which is lower than the industry average of 3.76X [11] - The Zacks Consensus Estimate for Micron's fiscal 2025 earnings suggests a year-over-year growth of 497.7%, with 2026 earnings expected to grow by 57.9% [14]

Group 1 - Simpson Manufacturing (NYSE: SSD) focuses on designing, engineering, and producing wood and concrete construction products, such as trusses [1] - The company was previously assessed to have limited upside potential [1] Group 2 - Crude Value Insights provides an investing service and community centered on oil and natural gas, emphasizing cash flow and companies that generate it [1] - The service aims to identify value and growth prospects with real potential in the sector [1]