Simpson Manufacturing Reports $77.9 Million Net Income and $538.9 Million Revenue in Q1 2025

Simpson Manufacturing Co., Inc. reported a net income of $77.9 million for the first quarter of 2025, reflecting a 3.2% increase from $75.4 million in the same period last year. The company's revenue rose to $538.9 million, a 1.6% increase compared to $530.6 million in the first quarter of 2024. This growth was primarily driven by increased sales in the North America segment, which saw a 3.4% rise in net sales, attributed to incremental sales from acquisitions made in 2024 and adjustments in volume discount estimates that had negatively impacted prior year sales.

In terms of profitability, the gross profit for the quarter increased by 3.1% to $252.0 million, resulting in a gross margin of 46.8%, up from 46.1% in the previous year. The increase in gross profit was partially offset by higher factory and overhead costs, as well as increased labor and warehouse expenses. Operating income also saw a 5.4% increase to $104.2 million, driven by higher gross profits despite rising operating expenses, which were influenced by increased personnel costs and variable incentive compensation.

Operationally, Simpson Manufacturing has made significant investments in expanding its production capabilities, including the ongoing construction of a new facility in Gallatin, Tennessee, and the expansion of its Columbus, Ohio facility. These investments are expected to enhance production efficiency and service levels, allowing the company to better meet customer demands. The company also reported a decrease in research and development expenses, which fell by 9.5% to $19.8 million, due to a reclassification of certain digital solution efforts to general administrative expenses.

The company’s balance sheet as of March 31, 2025, showed total assets of $2.82 billion, with cash and cash equivalents at $150.3 million, down from $369.1 million a year earlier. Trade accounts receivable increased to $373.2 million, reflecting a rise in sales activity. Simpson Manufacturing's employee headcount remained stable, supporting its operational needs as it continues to focus on growth in both domestic and international markets.

Looking ahead, Simpson Manufacturing anticipates that U.S. housing starts may remain flat or increase slightly in 2025, with expectations for continued growth in net sales above market levels. The company plans to implement price increases on certain products to offset rising costs associated with labor, energy, and materials. The effective tax rate for the year is projected to be between 25.5% and 26.5%, and capital expenditures are estimated to be in the range of $150 million to $170 million, primarily for facility expansions and equipment purchases.