[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) Details the quarterly report filing specifics for Simpson Manufacturing Co., Inc. - Filing Type: Quarterly Report (Form 10-Q) for the period ended March 31, 2025[2](index=2&type=chunk) - Registrant: Simpson Manufacturing Co., Inc. (Commission file number: 1-13429)[2](index=2&type=chunk) Company Filer Status and Shares Outstanding | Metric | Value | | :--- | :--- | | Filer Status | Large accelerated filer | | Common Stock Outstanding (as of May 5, 2025) | 41,827,893 shares | [Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) Presents the company's unaudited condensed consolidated financial statements and related disclosures [Item 1. Financial Statements](index=3&type=section&id=Item%201%20-%20Financial%20Statements) Presents unaudited condensed consolidated financial statements, including balance sheets, income, equity, and cash flow statements [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes the company's financial position, detailing assets, liabilities, and stockholders' equity at period-end Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $2,822,956 | $2,736,168 | $2,721,946 | | Total Liabilities | $952,438 | $923,034 | $996,283 | | Total Stockholders' Equity | $1,861,714 | $1,805,348 | $1,725,663 | | Cash and cash equivalents | $150,290 | $239,371 | $369,122 | | Inventories | $618,784 | $593,175 | $555,745 | [Condensed Consolidated Statements of Earnings and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20and%20Comprehensive%20Income) Details the company's financial performance, including net sales, gross profit, operating income, and net income Condensed Consolidated Statements of Earnings and Comprehensive Income (in thousands, except per-share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $538,895 | $530,579 | | Gross profit | $252,040 | $244,556 | | Income from operations | $102,319 | $96,098 | | Net income | $77,884 | $75,430 | | Diluted EPS | $1.85 | $1.77 | | Cash dividends declared per common share | $0.28 | $0.27 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in stockholders' equity, including net income, translation adjustments, dividends, and share repurchases Key Changes in Stockholders' Equity (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $77,884 | $75,430 | | Translation adjustment and other, net of tax | $17,836 | $(19,642) | | Cash dividends declared on common stock | $(11,759) | $(11,459) | | Repurchase of common stock | $(25,105) | — | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents cash flows from operating, investing, and financing activities, showing changes in cash and equivalents Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $7,563 | $7,938 | | Net cash used in investing activities | $(50,102) | $(39,371) | | Net cash used in financing activities | $(42,832) | $(24,800) | | Net decrease in cash and cash equivalents | $(89,081) | $(60,700) | | Cash and cash equivalents at end of period | $150,290 | $369,122 | - Operating cash flow was impacted by increases in **trade accounts receivable ($85.4 million)** and **inventory ($18.5 million)** in Q1 2025[146](index=146&type=chunk) - Investing activities primarily funded facility expansion projects and machinery/equipment purchases[147](index=147&type=chunk) - Financing activities included **$25.0 million in share repurchases** and **$11.7 million in dividends paid**[148](index=148&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies and specific financial line items within the consolidated statements [1. Basis of Presentation](index=8&type=section&id=1.%20Basis%20of%20Presentation) Explains the basis of financial statement preparation, including accounting changes and reclassifications - The Company changed its depreciation method for Machinery and Equipment from accelerated to straight-line, effective January 1, 2025[22](index=22&type=chunk) Impact of Depreciation Method Change (Q1 2025) | Metric | Impact | | :--- | :--- | | Reduction in depreciation expense | $1.9 million | | Estimated increase in net income | $1.4 million | | Estimated increase in basic/diluted EPS | $0.03 | - Certain costs were reallocated from 'Research and development and engineering expense' and 'Selling expense' to 'General and administrative expense' in Q1 2025, impacting comparability but not total operating expenses[20](index=20&type=chunk) - The Company adopted ASU 2023-07 (interim segment disclosure) retrospectively for Q1 2025, with no impact on consolidated financial statements[47](index=47&type=chunk) [2. Revenue from Contracts with Customers](index=12&type=section&id=2.%20Revenue%20from%20Contracts%20with%20Customers) Details revenue recognition policies, including transfer of control and contract liabilities by product group - Revenue is recognized when control of a product is transferred to a customer, typically at the shipping point (Incoterm C.P.T.)[39](index=39&type=chunk) Net Sales by Product Group (Q1 2025 vs Q1 2024) | Product Group | Q1 2025 (% of total net sales) | Q1 2024 (% of total net sales) | | :--- | :--- | :--- | | Wood Construction Products | 85.3% | 85.1% | | Concrete Construction Products | 14.4% | 14.8% | Contract Liabilities (in millions) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Contract liability | $7.2 | Immaterial | | Revenue recognized from contract liability (Q1 2025) | $3.0 | N/A | [3. Net Income per Share](index=13&type=section&id=3.%20Net%20Income%20per%20Share) Presents the calculation of basic and diluted net income per share, including weighted-average shares outstanding Net Income Per Share (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income available to common stockholders | $77,884 | $75,430 | | Basic weighted-average shares outstanding | 41,846 | 42,386 | | Diluted weighted-average shares outstanding | 42,010 | 42,630 | | Basic EPS | $1.86 | $1.78 | | Diluted EPS | $1.85 | $1.77 | [4. Stock-Based Compensation](index=13&type=section&id=4.%20Stock-Based%20Compensation) Details stock-based compensation expense, RSU/PSU grants, and unamortized compensation expense Stock-Based Compensation Expense (in millions) | Period | Stock-Based Compensation Expense | | :--- | :--- | | Three Months Ended March 31, 2025 | $6.5 | | Three Months Ended March 31, 2024 | $5.3 | - The Company granted **110 thousand RSUs and PSUs** in Q1 2025 at an estimated weighted average fair value of **$166.60 per share**[62](index=62&type=chunk) - Unamortized stock compensation expense as of March 31, 2025, was **$37.5 million**, with a weighted-average recognition period of **2.5 years**[63](index=63&type=chunk) [5. Trade Accounts Receivable, net](index=14&type=section&id=5.%20Trade%20Accounts%20Receivable%2C%20net) Provides a breakdown of trade accounts receivable, net of allowances for credit losses and sales discounts Trade Accounts Receivable, net (in thousands) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Trade accounts receivable | $381,725 | $291,480 | $350,622 | | Allowance for credit losses | $(3,179) | $(2,998) | $(2,927) | | Allowance for sales discounts and returns | $(5,348) | $(4,090) | $(4,281) | | **Trade accounts receivable, net** | **$373,198** | **$284,392** | **$343,414** | [6. Inventories](index=14&type=section&id=6.%20Inventories) Details the composition of inventories, including raw materials, in-process, and finished products Inventories (in thousands) | Component | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Raw materials | $206,466 | $207,818 | $165,152 | | In-process products | $60,059 | $57,627 | $57,058 | | Finished products | $352,259 | $327,730 | $333,535 | | **Total Inventories** | **$618,784** | **$593,175** | **$555,745** | [7. Derivative Instruments](index=14&type=section&id=7.%20Derivative%20Instruments) Explains the use of derivative instruments to manage foreign currency and interest rate market risks - The Company uses derivatives (forward foreign currency, interest rate swaps, cross-currency swaps) to mitigate market risks, primarily foreign currency and interest rate risk[31](index=31&type=chunk)[66](index=66&type=chunk) Aggregate Notional Amounts of Derivative Instruments (as of March 31, 2025, in millions) | Derivative Type | Notional Amount | | :--- | :--- | | Interest rate contracts | $382.5 | | Cross currency swap contracts | $401.0 | | EUR forward contract | $321.7 | - The fair value of derivative instruments on the balance sheet as of March 31, 2025, included an asset of **$22.9 million** and a non-current liability of **$20.9 million**[69](index=69&type=chunk) [8. Property, Plant and Equipment, net](index=16&type=section&id=8.%20Property%2C%20Plant%20and%20Equipment%2C%20net) Details the composition of property, plant, and equipment, including land, buildings, and capital projects Property, Plant and Equipment, net (in thousands) | Component | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Land | $59,512 | $61,054 | $62,036 | | Buildings and site improvements | $249,000 | $246,138 | $245,240 | | Machinery and equipment | $581,423 | $567,322 | $530,283 | | Capital projects in progress | $196,474 | $162,148 | $76,349 | | **Total Property, Plant and Equipment, net** | **$568,503** | **$531,655** | **$437,429** | - The Company decided to sell unimproved land in Stockton, California, with a carrying value of approximately **$2.4 million**, classifying it as held for sale[71](index=71&type=chunk) [9. Goodwill and Intangible Assets, net](index=16&type=section&id=9.%20Goodwill%20and%20Intangible%20Assets%2C%20net) Presents goodwill by segment and the net carrying amount of intangible assets, including amortization Goodwill by Segment (in thousands) | Segment | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | North America | $134,155 | $134,148 | $101,496 | | Europe | $392,273 | $377,049 | $390,026 | | Asia/Pacific | $1,193 | $1,186 | $1,245 | | **Total Goodwill** | **$527,621** | **$512,383** | **$492,767** | Net Intangible Assets (in thousands) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Net Carrying Amount | $381,079 | $375,051 | $352,527 | - Amortization of definite-lived intangible assets was **$6.4 million** for Q1 2025, with a weighted-average amortization period of **9.4 years**[75](index=75&type=chunk) [10. Leases](index=19&type=section&id=10.%20Leases) Details operating lease balances, related cash flows, weighted-average lease term, and discount rate Operating Lease Balances (in thousands) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Operating lease right-of-use assets | $101,701 | $93,933 | $65,933 | | Total operating lease liabilities | $103,704 | $95,599 | $67,429 | Lease-Related Cash Flows (Q1 2025 vs Q1 2024, in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Operating cash flows for operating leases | $6,131 | $4,587 | | Operating ROU assets obtained for new lease liabilities | $24,502 | $2,213 | - The weighted-average remaining lease term is **6.7 years**, with a weighted-average discount rate of **5.3%** as of March 31, 2025[81](index=81&type=chunk) [11. Debt](index=20&type=section&id=11.%20Debt) Outlines outstanding debt, including term loan and revolving credit facilities, and compliance with covenants Outstanding Debt (in millions) | Debt Type | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | 5-Year Term Loan Facility | $382.5 | $388.1 | $480.0 | | Revolving Credit Facility (available) | $450.0 | N/A | N/A | - The Company was in compliance with its financial covenants under the Amended and Restated Credit Facility as of March 31, 2025[83](index=83&type=chunk) [12. Commitments and Contingencies](index=20&type=section&id=12.%20Commitments%20and%20Contingencies) Discusses environmental liabilities and legal proceedings, assessing their potential financial impact - The Company accrues for environmental liabilities when probable and estimable, and does not expect current matters to have a material adverse effect[85](index=85&type=chunk) - The Company is involved in various legal proceedings related to product failures (e.g., corrosion, manufacturing defects) and product information inaccuracies[86](index=86&type=chunk) - No current legal proceedings are expected to have a material adverse effect, but resolution of claims is inherently uncertain[161](index=161&type=chunk) [13. Segment Information](index=21&type=section&id=13.%20Segment%20Information) Provides financial data by geographic segment, including net sales, gross margins, and product group contributions - The Company operates in three geographic segments: North America, Europe, and Asia/Pacific, with performance assessed by revenue, gross margins, and operating margins[88](index=88&type=chunk)[89](index=89&type=chunk) Net Sales by Segment (Q1 2025 vs Q1 2024, in thousands) | Segment | Q1 2025 Net Sales | Q1 2024 Net Sales | % of Total 2025 Sales | % of Total 2024 Sales | | :--- | :--- | :--- | :--- | :--- | | North America | $420,699 | $406,749 | 78.1% | 76.7% | | Europe | $113,860 | $119,938 | 21.1% | 22.6% | | Asia/Pacific | $4,336 | $3,892 | 0.8% | 0.7% | | **Total** | **$538,895** | **$530,579** | **100.0%** | **100.0%** | - Wood construction products accounted for **85.3% of total net sales** in Q1 2025, and concrete construction products for **14.4%**[93](index=93&type=chunk) [14. Subsequent Events](index=22&type=section&id=14.%20Subsequent%20Events) Reports significant events occurring after the balance sheet date, such as dividend declarations - On May 6, 2025, the Board declared a quarterly cash dividend of **$0.29 per share**, estimated at **$12.1 million**, payable July 24, 2025[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion of financial condition, operations, outlook, key performance factors, and non-GAAP reconciliations [Overview](index=24&type=section&id=Overview) Provides a general description of the company's business, strategic ambitions, and recent growth initiatives - The Company designs, manufactures, and sells building construction products across three segments: North America, Europe, and Asia/Pacific[102](index=102&type=chunk) - Key ambitions include strengthening values-based culture, being a partner of choice, innovative leadership, above-market growth relative to U.S. housing starts, and an operating income margin at or above **20%**[107](index=107&type=chunk) - Significant progress has been made on growth initiatives, including adding **$1.0 billion in revenue** and **$200.0 million in operating profit**, realigning sales teams, investing in production/warehouses (e.g., Gallatin, TN facility), and digital solutions[104](index=104&type=chunk)[107](index=107&type=chunk) [Non-GAAP Financial Measures](index=25&type=section&id=Non-GAAP%20Financial%20Measures) Explains the use and definition of non-GAAP financial measures, such as Adjusted EBITDA, for performance evaluation - Adjusted EBITDA is used as a non-GAAP measure to evaluate operating performance, providing insight into operating performance given growth investments and approximating cash flows[109](index=109&type=chunk) - Adjusted EBITDA is defined as net income (loss) before income taxes, adjusted for depreciation, amortization, integration/acquisition/restructuring costs, non-qualified deferred compensation adjustments, goodwill impairment, asset disposal gains/losses, interest, and foreign exchange[109](index=109&type=chunk) [Factors Affecting Our Results of Operations](index=25&type=section&id=Factors%20Affecting%20Our%20Results%20of%20Operations) Discusses key external and internal factors influencing financial results, including housing starts, tariffs, and commodity prices - Results are largely dependent on U.S. housing starts, which slightly decreased in the trailing twelve months ending March 31, 2025[110](index=110&type=chunk) - New U.S. tariffs announced on April 2, 2025, are expected to primarily impact the North America segment, affecting fastener and anchor sales[112](index=112&type=chunk) - The company is exposed to commodity price risk, particularly steel, and while price increases have historically mitigated costs, future success is not guaranteed[156](index=156&type=chunk) - Diversification of geographic footprint, product offerings, and market approach is reducing historical sales seasonality[113](index=113&type=chunk) [Business Segment Information](index=26&type=section&id=Business%20Segment%20Information) Provides an overview of performance across North America, Europe, and Asia/Pacific segments, highlighting key drivers - North America net sales increased due to 2024 acquisitions and timing of volume discount estimates, partially offset by **$1.5 million negative foreign currency translation**[115](index=115&type=chunk) - Europe net sales decreased **5.1%** primarily due to a **$4.0 million negative foreign currency translation effect**[118](index=118&type=chunk) - Europe's long-term potential is supported by ongoing housing shortages and new environmental regulations[118](index=118&type=chunk) - The Asia/Pacific segment is not considered significant to the Company's overall performance[119](index=119&type=chunk) [Business Outlook](index=26&type=section&id=Business%20Outlook) Presents the fiscal year 2025 business outlook, including consolidated operating margin, tax rate, and capital expenditures Fiscal Year 2025 Business Outlook | Metric | Estimate | | :--- | :--- | | Consolidated Operating Margin | 18.5% to 20.5% | | Effective Tax Rate | 25.5% to 26.5% | | Capital Expenditures | $150.0 million to $170.0 million | - The operating margin range includes a projected benefit of **$10.0 million to $12.0 million** from the sale of the existing Gallatin, Tennessee facility[121](index=121&type=chunk) - Capital expenditures include **$75.0 million** for the Columbus, Ohio facility expansion and the new Gallatin, Tennessee facility[121](index=121&type=chunk) [Results of Operations (Q1 2025 vs Q1 2024)](index=26&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%2C%202025%2C%20Compared%20with%20the%20Three%20Months%20Ended%20March%2031%2C%202024) Compares the company's financial performance for Q1 2025 against Q1 2024, detailing key consolidated and segment metrics [Consolidated Financial Highlights](index=27&type=section&id=First%20Quarter%202025%20Consolidated%20Financial%20Highlights) Summarizes key consolidated financial metrics for Q1 2025 versus Q1 2024, including sales, profit, and EPS Consolidated Financial Highlights (Q1 2025 vs Q1 2024, in thousands) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $538,895 | $530,579 | 1.6% | | Gross profit | $252,040 | $244,556 | 3.1% | | Gross margin | 46.8% | 46.1% | +0.7 pp | | Income from operations | $102,319 | $96,098 | 6.5% | | Net income | $77,884 | $75,430 | 3.3% | | Diluted EPS | $1.85 | $1.77 | 4.5% | | Adjusted EBITDA | $121,769 | $117,282 | 3.8% | - Reorganization of digital solution efforts led to reclassification of **$4.0 million in engineering costs** from R&D (**$2.5M**) and selling (**$1.5M**) to G&A in 2024, impacting comparability of expense categories[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - Effective income tax rate increased to **25.5%** from **23.4%**[128](index=128&type=chunk) [Net Sales by Segment](index=28&type=section&id=Net%20sales) Details net sales performance for North America, Europe, and Asia/Pacific segments for Q1 2025 versus Q1 2024 Net Sales by Segment (Q1 2025 vs Q1 2024, in thousands) | Segment | Q1 2025 Net Sales | Q1 2024 Net Sales | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | North America | $420,699 | $406,749 | $13,950 | 3.4% | | Europe | $113,860 | $119,938 | $(6,078) | (5.1)% | | Asia/Pacific | $4,336 | $3,892 | $444 | 11.4% | | **Total** | **$538,895** | **$530,579** | **$8,316** | **1.6%** | [Gross Profit by Segment](index=28&type=section&id=Gross%20profit) Presents gross profit and gross margin performance for each segment for Q1 2025 versus Q1 2024 Gross Profit by Segment (Q1 2025 vs Q1 2024, in thousands) | Segment | Q1 2025 Gross Profit | Q1 2024 Gross Profit | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | North America | $210,292 | $200,537 | $9,755 | 4.9% | | Europe | $40,022 | $43,812 | $(3,790) | (8.7)% | | Asia/Pacific | $1,725 | $676 | $1,049 | * | | **Total** | **$252,040** | **$244,556** | **$7,484** | **3.1%** | Gross Margin by Segment (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Gross Margin | Q1 2024 Gross Margin | | :--- | :--- | :--- | | North America | 50.0% | 49.3% | | Europe | 35.2% | 36.5% | | Asia/Pacific | 39.8% | 17.4% | | **Total** | **46.8%** | **46.1%** | - Europe's gross margin decrease was primarily due to higher factory, overhead, labor, and warehouse costs, partly offset by lower material costs[135](index=135&type=chunk) [North America Segment Performance](index=29&type=section&id=North%20America%20Segment%20Performance) Analyzes North America segment's net sales, gross margin, operating expenses, and income from operations - North America net sales increased **3.4%** due to 2024 acquisitions and timing of volume discount estimates, partially offset by **$1.5 million negative foreign currency translation**[135](index=135&type=chunk) - Gross margin for North America increased to **50.0%** from **49.3%**[135](index=135&type=chunk) - R&D expense decreased **11.5%** and G&A expense increased **15.4%** due to reclassification of digital solution efforts' engineering costs (totaling **$4.0 million** in 2024) to G&A[135](index=135&type=chunk) - Income from operations for North America increased by **$5.3 million**[135](index=135&type=chunk) [Europe Segment Performance](index=29&type=section&id=Europe%20Segment%20Performance) Analyzes Europe segment's net sales, gross margin, operating expenses, and income from operations - Europe net sales decreased **5.1%** primarily due to a **$4.0 million negative foreign currency translation**[135](index=135&type=chunk) - Gross margin decreased to **35.2%** from **36.5%** due to higher factory, overhead, labor, and warehouse costs, partly offset by lower material costs[135](index=135&type=chunk) - Income from operations increased by **$1.0 million**, driven by an **8.6% decrease in operating expenses**, including variable compensation costs[135](index=135&type=chunk) [Asia/Pacific Segment Performance](index=29&type=section&id=Asia%2FPacific%20Segment%20Performance) Analyzes Asia/Pacific segment's net sales, gross profit, and gross margin performance - Asia/Pacific net sales increased **11.4%** to **$4.3 million** in Q1 2025[129](index=129&type=chunk) - Asia/Pacific gross profit significantly increased to **$1.7 million** in Q1 2025 from **$0.7 million** in Q1 2024, with gross margin rising to **39.8%** from **17.4%**[130](index=130&type=chunk)[131](index=131&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=30&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Provides a reconciliation of net income to Adjusted EBITDA, detailing adjustments for non-GAAP reporting Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Income | $77,884 | $75,430 | | Provision for income taxes | $26,596 | $22,988 | | Interest (income) expense, net and other financing costs | $(1,103) | $(351) | | Depreciation and amortization | $19,522 | $19,189 | | Other (includes acquisition/integration, DCP adjustments, FX, asset disposal) | $(1,130) | $26 | | **Adjusted EBITDA** | **$121,769** | **$117,282** | - Adjusted EBITDA increased **3.8%** primarily due to higher gross profits[129](index=129&type=chunk) [Effect of New Accounting Standards](index=30&type=section&id=Effect%20of%20New%20Accounting%20Standards) Discusses the adoption and expected impact of new accounting standards on the company's financial statements - ASU 2023-07 (interim segment disclosure) was adopted retrospectively for Q1 2025, with no impact on consolidated financial statements[47](index=47&type=chunk) - ASU 2023-09 (enhanced income tax disclosures) is effective for annual periods after December 15, 2024, with immaterial impact expected[48](index=48&type=chunk) - ASU 2024-03 (additional expense disclosures) is effective for annual periods after December 15, 2026, and interim periods after December 15, 2027; potential impacts are being assessed[49](index=49&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's liquidity, capital needs, and capital allocation strategies, including share repurchases - The Company's capital needs are met through operating cash flows and credit facilities[140](index=140&type=chunk) Cash and Credit Facility Status (as of March 31, 2025, in millions) | Metric | Amount | | :--- | :--- | | Cash and cash equivalents | $150.3 | | International cash and cash equivalents | $89.5 | | Revolving credit facility (available) | $450.0 | | Term loan facility (outstanding) | $382.5 | - The Company believes its liquidity is sufficient for the next 12 months and beyond[143](index=143&type=chunk) - Since early 2022 through May 7, 2025, the Company returned **$401.0 million** to stockholders via share repurchases (over **1.9 million shares**) and dividends[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Discusses exposure to foreign exchange, interest rate, and commodity price risks, and strategies for mitigation [Foreign Exchange Risk](index=31&type=section&id=Foreign%20Exchange%20Risk) Details exposure to foreign exchange risk from international operations and hedging strategies using forward contracts - Foreign exchange risk stems from international operations and purchases from foreign vendors[152](index=152&type=chunk) - The Company uses foreign currency forward contracts to hedge transactional risk, specifically for the Euro and Chinese Yuan[153](index=153&type=chunk) - A **10% change in exchange rates** in any operating country is not expected to materially impact net income[152](index=152&type=chunk) [Interest Rate Risk](index=32&type=section&id=Interest%20Rate%20Risk) Explains interest rate risk from variable-rate debt and the use of interest rate swaps for hedging - Primary interest rate risk is from **$382.5 million** in variable-rate borrowings under the Credit Agreement as of March 31, 2025[154](index=154&type=chunk) - Interest rate swap agreements are used to convert variable interest rates to fixed rates, designated as cash flow hedges, to eliminate payment cash flow variability[155](index=155&type=chunk) [Commodity Price Risk](index=32&type=section&id=Commodity%20Price%20Risk) Discusses commodity price risk, primarily steel, and the company's approach to managing this exposure - The Company is exposed to commodity price risk, primarily related to steel, a significant raw material[156](index=156&type=chunk) - Steel prices stabilized in late 2024 but started to rise again in Q1 2025[156](index=156&type=chunk) - No derivative or hedging instruments are used to manage steel price risk; mitigation relies on price increases, which may not always be successful[156](index=156&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204%20-%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective; no material changes in internal control over financial reporting [Disclosure Controls and Procedures](index=32&type=section&id=Disclosure%20Controls%20and%20Procedures) Details the effectiveness of disclosure controls and procedures as concluded by the CEO and CFO - CEO and CFO concluded disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2025[157](index=157&type=chunk) - Disclosure controls are designed to ensure information required for SEC reports is recorded, processed, summarized, and reported timely[157](index=157&type=chunk) - Internal controls provide reasonable, not absolute, assurance and are subject to inherent limitations like faulty judgments, errors, circumvention, or management override[158](index=158&type=chunk) [Changes in Internal Control over Financial Reporting](index=32&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) Reports no material changes in internal control over financial reporting during the quarter - No material changes in internal control over financial reporting were identified during the three months ended March 31, 2025[159](index=159&type=chunk) [Part II - Other Information](index=33&type=section&id=Part%20II%20-%20Other%20Information) Contains additional disclosures not included in the financial statements, such as legal and risk factors [Item 1. Legal Proceedings](index=33&type=section&id=Item%201%20-%20Legal%20Proceedings) Details routine legal proceedings related to product failures and information inaccuracies, with no material adverse effect anticipated - The Company is involved in various legal proceedings arising in the normal course of business, often related to product failures (e.g., corrosion, manufacturing defects) and product information inaccuracies[160](index=160&type=chunk) - No current legal proceedings are expected to have a material adverse effect on the Company's financial condition, cash flows, or results of operations[161](index=161&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A%20-%20Risk%20Factors) Reports no material changes or new risk factors since the 2024 Annual Report on Form 10-K filing - No material changes or new risk factors have been identified since the 2024 Annual Report on Form 10-K[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q1 2025 common stock repurchases and the remaining authorization under the share repurchase program Common Stock Repurchases (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased under Programs | Remaining Value under Programs | | :--- | :--- | :--- | :--- | :--- | | January 1 - January 31, 2025 | — | $— | — | $100,000,000 | | February 1 - February 28, 2025 | 172,897 | $171.06 | 146,640 | $75,000,000 | | March 1 - March 31, 2025 | 56 | $158.43 | — | $75,000,000 | | **Total** | **172,953** | | | | - On October 23, 2024, the Board authorized a **$100.0 million share repurchase program** for 2025. As of May 7, 2025, **$75.0 million remained available**[164](index=164&type=chunk) [Item 3. Defaults Upon Senior Securities](index=33&type=section&id=Item%203%20-%20Defaults%20Upon%20Senior%20Securities) None - No defaults upon senior securities were reported[165](index=165&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204%20-%20Mine%20Safety%20Disclosures) Not applicable - Mine Safety Disclosures are not applicable to the Company[166](index=166&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205%20-%20Other%20Information) Reports no Rule 10b5-1 or non-Rule 10b5-1 trading arrangement changes by directors or officers in Q1 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during Q1 2025[167](index=167&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206%20-%20Exhibits) Lists exhibits filed with the Form 10-Q, including corporate governance documents and certifications - Exhibits include corporate governance documents (Certificate of Incorporation, Bylaws), CEO/CFO certifications, and XBRL financial data files[169](index=169&type=chunk) [Signatures](index=37&type=section&id=SIGNATURES) Certifies the report's submission, signed by Matt Dunn, Chief Financial Officer, on May 8, 2025 - The report was signed by Matt Dunn, Chief Financial Officer, on May 8, 2025[171](index=171&type=chunk)

Company Overview - Simpson Manufacturing Co., Inc. (NYSE: SSD) has been a significant player in the construction industry since the mid-20th century, focusing on connectors, fasteners, and anchors that are essential for construction projects [1] Investment Focus - The analysis primarily targets small- to mid-cap companies, which are often overlooked by many investors, while also occasionally reviewing large-cap companies to provide a comprehensive view of the broader equity markets [1]

Financial Data and Key Metrics Changes - The company's net sales for Q1 2025 were $538.9 million, reflecting a modest growth of 1.6% year over year in a challenging macroeconomic environment [6][19] - Consolidated gross profit increased by 3.1% to $252 million, resulting in a gross margin of 46.8%, up from 46.1% in the prior year [11][20] - Adjusted EBITDA for the first quarter was $121.8 million, an increase of 3.8% year over year, resulting in a margin of 22.6% [14][26] Business Line Data and Key Metrics Changes - North American net sales totaled $420.7 million, up 3.4% from $406.7 million last year, with a contribution of approximately $9 million from acquisitions [6][19] - In the outdoor living category, there was low double-digit growth compared to the prior year, attributed to an expanded product offering and targeted marketing efforts [9] - OEM delivered high single-digit volume growth year over year, with strong sales in mass timber and off-site construction solutions [10] Market Data and Key Metrics Changes - European net sales decreased by 5.1% to $113.9 million, primarily due to unfavorable foreign currency translation effects [10][20] - The company reported that its European business continued to outperform local markets, supported by new applications and customer wins [11] Company Strategy and Development Direction - The company aims to maintain an operating income margin at or above 20% while driving EPS growth ahead of net revenue growth [14][16] - Strategic growth plans include expanding warehouse and manufacturing capacity, with significant investments in facilities in Columbus, Ohio, and Gallatin, Tennessee [28][30] - The company is committed to returning at least 35% of free cash flow to shareholders, reinforcing a balanced approach to capital allocation [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the mid to long-term housing outlook, despite current macroeconomic uncertainties [18] - The outlook for U.S. housing starts is expected to remain flat to up in the low single-digit range from 2024 levels, with growth weighted towards the second half of the year [15][30] - Management noted that customer and employee engagement remains strong, reflecting the success of their strategy to inspire employees and serve customers [17] Other Important Information - The company implemented price increases averaging 8% on certain products to offset rising costs due to tariffs and inflation [12][13] - The effective tax rate for the first quarter was 25.5%, slightly above the prior year period [25] Q&A Session Summary Question: Impact of tariffs and consumer confidence on housing starts outlook - Management indicated that while there is mixed visibility, they expect the first half to be softer than the second half, with hopes for increased interest rate cuts to stimulate the market [35][36] Question: Feedback on price increases amid macro uncertainty - Management noted that they are working hard to communicate the value of their products and have been thoughtful in implementing price increases, not passing through the full tariff impact [40][41][43] Question: Capital allocation priorities and share repurchase strategy - Management confirmed they were active in share repurchases and plan to continue returning capital to shareholders while remaining cautious about significant opportunistic repurchases [46][47] Question: Annualized tariff impact and pricing strategy - Management clarified that the tariff impact is relatively small, and the recent price increase is aimed at managing overall cost increases [51][52][55] Question: Seasonal progression of volumes and demand outlook - Management observed that while Q1 volumes were slightly down year over year, they expect a consistent pickup in demand moving forward [63][65]

Financial Performance & Growth - Simpson Manufacturing's EPS has grown at a compound annual growth rate (CAGR) of 19% over the last 10 years (as of December 31, 2024)[7] - Since its IPO in 1994, the company has achieved a compound annual growth rate of approximately 14%[9, 12] - Revenue has grown approximately 15 times from $150 million to $2.2 billion between 1994 and 2024[11] - EPS has grown approximately 54 times from $0.14 to $7.60 between 1994 and 2024[13] - The company has returned approximately 52% of free cash flow to stockholders since 2021, exceeding its 35% target[7] Market Position & Strategy - The company holds a leading position in structural solutions for wood connections[7] - Simpson Manufacturing has a significant share in its core addressable markets: 33% in wood connectors, 11% in fastening systems, and 12% in concrete & steel connections[28] - The company is focused on accelerating above-market volume growth in North America[46] - The company aims to maintain an operating income margin of over 20% and EPS growth ahead of net revenue growth[70] Housing Market & Demand - The total projected US housing demand from 2024 to 2034 is 186 million, or 186 million per year[25]

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

Core Viewpoint - Simpson Manufacturing Co., Inc. reported modest growth in net sales for Q1 2025 despite a challenging macroeconomic environment, with a focus on managing costs and improving productivity to maintain gross margins and support future growth [3][5]. Financial Performance - Net sales for Q1 2025 reached $538.9 million, an increase of 1.6% compared to $530.6 million in Q1 2024 [2][4]. - Gross profit increased by 3.1% to $252.0 million, with a gross profit margin of 46.8%, up from 46.1% [2][4]. - Income from operations was $102.3 million, reflecting a 6.5% increase year-over-year, resulting in an operating income margin of 19.0% [2][4]. - Net income rose to $77.9 million, a 3.3% increase from $75.4 million, with net income per diluted share at $1.85, up 4.5% from $1.77 [2][4]. Segment Performance - North America segment net sales increased by 3.4% to $420.7 million, accounting for 78.1% of total net sales [24]. - Europe segment net sales decreased by 5.1% to $113.9 million, representing 21.1% of total net sales [24]. - The Asia/Pacific segment saw an 11.4% increase in net sales to $4.3 million, contributing 0.8% to total net sales [24]. Cost Management and Pricing Strategy - The company implemented price increases across its product lines in the U.S. effective June 2, 2025, to offset rising costs due to inflation and tariffs [3][5]. - The management emphasized cost discipline and productivity improvements to maintain gross margins and support customer service enhancements [5]. Business Outlook - The company reaffirmed its financial outlook for 2025, estimating consolidated operating margins to be in the range of 18.5% to 20.5%, influenced by U.S. housing starts and price increases [9]. - The projected benefit from the sale of the Gallatin property is estimated between $10.0 million to $12.0 million based on a contracted sales price of $19.1 million [9]. Share Repurchase Activity - The company repurchased $25.0 million in common stock during the quarter, with approximately $75.0 million remaining for future repurchases under the previously announced $100.0 million authorization [4][10]. Balance Sheet Highlights - As of March 31, 2025, cash and cash equivalents totaled $150.3 million, with total debt outstanding at $382.5 million [10][23]. - Total assets increased to $2.83 billion from $2.72 billion year-over-year [23]. Conference Call Information - A conference call to discuss the financial results was scheduled for April 28, 2025, providing an opportunity for investors and analysts to engage with the company's management [11].

Core Viewpoint - Simpson Manufacturing Co., Inc. will report its financial results for the first quarter of 2025 on April 28, 2025, at 4:15 p.m. Eastern Time, followed by a conference call at 5:00 p.m. Eastern Time [1][2]. Group 1: Financial Reporting Details - The financial results will cover the period ended March 31, 2025 [1]. - The conference call will be hosted by Michael Olosky, President and CEO, and Matt Dunn, CFO and Treasurer [1]. - The call will be accessible via the Investor Relations section of the Company's website [1]. Group 2: Conference Call Information - The conference call is scheduled for April 28, 2025, at 5:00 p.m. Eastern Time, which is 2:00 p.m. Pacific Time and 4:00 p.m. Central Time [2]. - Dial-in numbers for the call include (877) 407-0792 for U.S. and Canada and (201) 689-8263 for international participants [2]. - A replay of the call will be available starting at 8:00 p.m. Eastern Time on the same day until May 12, 2025 [2]. Group 3: Company Overview - Simpson Manufacturing Co., Inc. is headquartered in Pleasanton, California, and is a leading manufacturer of wood and concrete construction products [3]. - The Company supplies building product solutions primarily to residential and commercial markets in North America and Europe [3]. - The common stock of the Company trades on the New York Stock Exchange under the symbol "SSD" [3].

Product Development and Innovation - The company produced and marketed over 15,000 standard and custom products for wood construction applications, contributing to structural integrity and resistance to seismic, wind, and gravitational forces[21]. - The company developed over 65 new products in 2024, expanding its product offerings significantly[28]. - The company has a commitment to innovation, with extensive product testing capabilities at its state-of-the-art labs[35]. - The company continues to develop new potentially patentable products and enhancements, with a focus on securing intellectual property protection for innovations[40]. - The company is focused on expanding its software solutions to enhance collaboration with building industry partners and improve operational efficiencies[23]. - The company is investing in software development to enhance its offerings in the residential construction industry, but faces risks of obsolescence and competition from specialized software firms[75][77]. - The company is committed to continuous improvement and innovation, leveraging engineering expertise and relationships with builders and contractors[166]. Market Presence and Geographic Operations - The company has established a presence in Europe through the acquisition of ETANCO, significantly increasing its market presence across Europe[19]. - The company serves multiple geographic markets, including North America, Europe, and Asia/Pacific, with operations in various countries[25]. - Revenue from international sales was $591.5 million, accounting for approximately 26.5% of consolidated sales in 2024[86]. - Sales outside of the U.S. accounted for 26.5% of consolidated net sales in 2024[99]. - The North America Segment accounted for approximately 77.8% of the Company's net sales for the fiscal year ended December 31, 2024[41]. Financial Performance and Sales Trends - North America net sales increased by 1.1% to $2.23 billion for the year ended December 31, 2024, compared to $2.21 billion in 2023, driven by higher sales volumes despite product price decreases[175]. - Net sales increased by 1.1% to $2,232.1 million in 2024 from $2,213.8 million in 2023, with North America contributing $1,735.9 million, Europe $479.1 million, and Asia/Pacific $17.2 million[1]. - Operating income decreased by 7.1% to $439.6 million from $473.2 million, impacted by lower gross profits and increased personnel and integration costs[176]. - Gross profit decreased approximately 1.7% to $1.0 billion, with gross margins declining to 46.0% from 47.1% due to higher factory and overhead costs[183]. - The company faced challenges in passing increased costs of raw materials and energy to customers, which could adversely affect financial results[64]. - The company aims for above-market growth relative to U.S. housing starts, targeting an excess of approximately 250 basis points above historical average volume performance in North America[169]. Workforce and Talent Development - As of December 31, 2024, the Company employed approximately 5,872 employees globally, with 3,539 in the Americas, 1,536 in Europe, and 797 in Asia Pacific[43]. - The Company has a commitment to talent development, providing comprehensive global leadership development programs to enhance employee skills and capabilities[46]. - Approximately 18.4% of the Company's employees are represented by labor unions, with collective bargaining agreements in place at various locations[50]. - The Company has a diverse workforce, with women representing 22.0% of all employees and various ethnicities represented among U.S. employees[45]. - The Company’s compensation philosophy emphasizes internal pay equity, ensuring employees are rewarded based on performance regardless of personal characteristics[47]. Risks and Challenges - The company is vulnerable to cyber security risks, which could lead to data breaches and negatively impact profitability and reputation[80]. - Compliance with increasingly stringent environmental, social, and governance regulations poses potential liabilities and could affect the company's reputation and financial condition[70]. - The company may face challenges in renewing software agreements, which could affect access to critical software products[85]. - International operations are subject to various risks, including legal, regulatory, and economic factors that could adversely affect sales and financial results[86]. - Economic conditions, including inflation and interest rate volatility, may negatively impact demand for products and overall financial performance[102]. - Natural disasters could materially affect manufacturing capacity and financial condition, with insurance coverage potentially inadequate[110]. - The company faces risks related to design defects, product recalls, and liability claims that could adversely affect its business and financial condition[112]. - Claims regarding damage to structures incorporating the company's products may require significant time and resources to resolve, potentially impacting financial results[114]. - The company faces risks from governmental corruption and potential violations of the Foreign Corrupt Practices Act, which could lead to significant penalties[89]. Capital and Investment - The Company has made significant investments in production and warehouse capabilities, including a new facility in Gallatin, Tennessee, to enhance manufacturing and delivery[169]. - Capital expenditures for 2025 are estimated to be between $150 million and $170 million, including $75 million for facility expansions[181]. - The company had $388.1 million in borrowings under a term loan facility, with $450.0 million available under a revolving credit facility as of December 31, 2024[1]. - Cash and cash equivalents as of December 31, 2024, were $239.4 million, down from $429.8 million in 2023[1]. Shareholder Returns - The Company paid a total of $46.5 million in cash dividends during 2024 and declared a quarterly cash dividend of $0.28 per share to be paid on April 23, 2025[153]. - Approximately 559 thousand shares of the Company's common stock were repurchased in 2024 for a total amount of $100.0 million[159].

Note: The financial results in this presentation as of and for the fiscal year ended December 31, 2024 are unaudited. This presentation 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," "out ...

Group 1 - Simpson Manufacturing (NYSE: SSD) announced financial results for the final quarter of the company's 2024 fiscal year after the market closed on February 10th [1] - The focus of the analysis is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers have access to a 50+ stock model account and in-depth cash flow analyses of exploration and production (E&P) firms [2] - The service includes live chat discussions about the sector, enhancing community engagement and information sharing [2]