Simpson(US:SSD)2025-07-28 21:00Financial 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]