Simpson Manufacturing shares 2024 financials

2024 Q4 highlights (North America)

• Net sales of $404.8 million increased 4.4 percent from $387.8 million due to incremental sales from the company's 2024 acquisitions and a modest increase in sales volumes.
• Gross margin remained 47 percent as lower material costs were offset by higher factory and overhead as well as warehouse costs, as a percentage of net sales.
• Income from operations of $85.4 million increased 7 percent from $79.8 million. The increase was primarily due to higher gross profit, partly offset by higher operating expenses. The operating expense increases were driven by higher personnel costs, which were partly offset by decreased variable incentive compensation.

2024 full-year (North America)

• Net sales of $1.7 billion increased approximately 1.1 percent from 2023 due to higher sales volumes.
• Gross margin decreased to 49 percent from 50.3 percent, primarily due to higher factory and overhead as well as warehouse costs, partly offset by lower material costs, as a percentage of net sales.
• Income from operations of $439.6 million decreased 7.1 percent from $473.2 million. The decrease was primarily due to lower gross profit as well as increases in operating expenses. The operating expense increases were driven by higher personnel costs, computer software and hardware costs, and professional fees, which were partly offset by decreased variable incentive compensation.

Management commentary

"During 2024, we grew revenues modestly in a challenging year where housing starts in both the U.S. and Europe declined," commented Mike Olosky, president and CEO of Simpson Manufacturing Co., Inc. "In North America, I am very pleased that volume growth in pounds shipped exceeded U.S. housing starts by approximately 600 basis points. In Europe, sales were flat despite a difficult demand environment."

Olosky continued: "In 2025 we believe a low single-digit recovery in U.S. housing starts is possible and European housing starts to be consistent with 2024 levels. As part of our commitment to maximizing shareholder returns, we have revised our financial ambitions to continue above market growth relative to U.S. housing starts on a trailing twelve-month basis, maintain an operating income margin at or above 20 percent, and drive EPS growth ahead of net revenue growth. While the midpoint of our 2025 guidance range for operating income margin is below our ambition, we are working to offset significant input cost increases over the past three years and will carefully evaluate avenues to preserve our profitability. We believe our business is capable of achieving a 20 percent operating income margin or higher with modest market growth and continued above market volume growth. We continue to believe in the mid-to-long term prospects of the housing market and are well positioned to take advantage of future growth."

Read more about Simpson's financial outlook here.