Simpson Manufacturing Reports EPS of $2.68, Beats Estimates by $0.15
Key Facts
Simpson Manufacturing reported third-quarter 2026 results on October 26, with earnings per share of $2.68, $0.15 above analysts’ estimate of $2.53, according to Investing.com. The company said net sales rose 2.3% year over year to $638.1 million, supported by pricing actions, while global volumes remained relatively stable. CEO Mike Olosky said the operating margin was 22.1% for the quarter. The results combined revenue growth and an earnings beat with stable global unit volumes. They also showed geographic divergence, with sales and operating income rising in North America and declining in Europe.
In North America, sales rose 3.8% to $502.0 million compared with the same period a year earlier. The company attributed the increase mainly to higher prices and an increase in unit volumes. Segment operating income rose 9.5% to $137.0 million. In Europe, sales fell 3.4% to $129.9 million, as lower unit volumes were partly offset by price increases. European operating income declined 5.0% to $15.3 million, leaving the two segments moving in opposite directions during the quarter.
At the company level, gross margin declined to 45.7% in the third quarter from 46.1% in the same period of 2025. Meanwhile, cash flow from operating activities was $173.1 million, up $2.9 million from $170.2 million a year earlier. As of September 30, Simpson had $491.3 million in cash and cash equivalents, compared with total debt of $308.0 million. In the second quarter of 2026, the company reported sales of $635.4 million, up 4.6% year over year. Diluted earnings per share were $2.73, while operating income rose 11.0% to $160.6 million.
The company updated its 2026 guidance for consolidated operating margin to a range of 20.0% to 20.5%. The range includes an expected gain of $11.0 million from the sale of vacant land. Olosky said the near-term operating environment is marked by housing affordability pressures, higher steel costs and limited availability. He added that the company expects to take additional pricing actions in 2027. The outlook links the pricing trend that supported sales in the quarter with input costs and conditions that constrain housing demand.
On capital allocation, the board approved a new $1.0 billion share repurchase authorization on October 22, with no expiration date, replacing the previous authorization of $200.0 million. During the quarter ended September 30, the company repurchased 352,346 shares in the open market at an average price of $188.25 per share, for a total of $66.3 million. It also declared a quarterly cash dividend of $0.30 per share. The dividend is scheduled to be paid on January 28, 2027, to shareholders of record on January 7, 2027. These dates distinguish the repurchases completed during the quarter from the new authorization and the dividend announced for shareholders.
SSD shares closed at $184.36 on October 23, three days before the results announcement. They had closed at $180.60 on October 20 and then at $186.92 on October 22, before the October 23 close. These prices therefore predate the results and do not represent the stock’s movement after the announcement. The company reported its results on October 26, after the market close, according to Investing.com. The company’s announced outlook for the coming period includes its 2026 operating margin guidance and additional pricing actions expected in 2027.