Core Insights - Simpson Manufacturing reported full-year 2025 net sales of $2.3 billion, reflecting a 4.5% increase from 2024, driven by pricing actions, acquisitions, and foreign exchange benefits, despite a 1% decline in volume due to weaker housing starts [3][4][7] Financial Performance - In Europe, full-year net sales reached $499.6 million, up 4.3% year over year, with volumes outperforming the market [1] - North America saw full-year net sales of $1.8 billion, up 4.5%, benefiting from approximately $60 million in pricing actions, although volumes declined due to lower housing starts [2] - The company generated $458.6 million in operating cash flow for 2025 and ended the year with a net cash position of $9.9 million [5][18] - Fourth-quarter consolidated net sales were $539.3 million, up 4.2%, with North America sales rising 3% and Europe sales increasing 9.1% [13] Margins and Costs - The consolidated gross margin for 2025 was relatively flat at 45.9%, while the operating margin improved to 19.6%, up 30 basis points year over year [12] - The company faced approximately $100 million in tariff-related costs impacting gross margins, but strategic cost-saving initiatives are expected to deliver at least $30 million in savings [6][17] Segment Performance - The OEM business experienced strong growth with double-digit volume increases, while component manufacturing saw low single-digit growth [10] - Commercial volumes were flat, and residential volumes declined modestly, particularly in the western and southern U.S. [10][11] Future Outlook - For 2026, the company targets an operating margin range of 19.5% to 20.5%, with expectations of slightly lower gross margins due to tariffs and increased depreciation costs [21] - The company anticipates U.S. housing starts to remain relatively flat year over year, while Europe is expected to see slight market growth [22] Shareholder Returns - Simpson repurchased $120 million of stock in 2025 and authorized a new $150 million buyback, committing to return at least 35% of free cash flow to shareholders [5][20]