Simpson Manufacturing Reports 6.2% Q3 Sales Growth, EPS Beats Estimates

Simpson Manufacturing (NYSE: SSD) reported third-quarter 2025 results exceeding Wall Street expectations, with net sales up 6.2% year-over-year to $623.5 million, driven mainly by price increases and favorable foreign exchange. Despite a 1% global volume decline and mid-single-digit volume decreases in residential and commercial segments due to a weak market, operating margin improved to 22.6% aided by cost savings initiatives targeting $30 million annually. Gross margins compressed by 40 basis points to 46.4%, impacted by higher input costs including tariffs and labor, with operating expenses rising 9% year-over-year. The company launched new products such as CS producer, a cloud-based truss production management software, and saw positive growth in European markets with a 10.9% sales increase. Over the past three years, Simpson's stock price more than doubled, reflecting market optimism despite modest earnings per share growth, while CEO compensation remains below median for similar-sized companies. Overall, the company is navigating volume softness and cost pressures with strategic pricing and efficiency efforts to maintain profitability and long-term growth potential.