Simpson Manufacturing (SSD) Q3 2026 Earnings Call: Steel Costs Pressure Margins
Source Tradingkey
Key Takeaways
- Third-quarter 2026 net sales increased 2.3% year over year to $638.1 million. Pricing contributed 2.5 percentage points, while global sales volumes were relatively flat.
- Adjusted EBITDA rose 7.4% to $167.2 million, with a 26.2% margin. Diluted EPS increased to $2.68 from $2.58.
- Gross margin declined 40 basis points to 45.7% as higher material, depreciation and freight costs offset pricing. Management said steel prices were more than 50% above the prior year and at their highest level in over four years.
- North American sales grew 3.8% to $502.0 million, while European sales fell 3.4% to $129.9 million amid lower volumes and unfavorable currency translation.
- Simpson Manufacturing lowered its full-year operating margin guidance to 20.0%-20.5%. Management expects slightly lower volumes for the remainder of 2026 and plans additional pricing actions.
- The board authorized a new $1 billion share repurchase program with no expiration date, replacing the previous $200 million authorization.
Core Financial Results
| Metric | Q3 2026 | Year-over-year change / context |
|---|---|---|
| Net sales | $638.1 million | Up 2.3% |
| North America net sales | $502.0 million | Up 3.8%; included about $10 million of pricing benefit |
| Europe net sales | $129.9 million | Down 3.4%; down 2.1% in local currency |
| Gross profit | $291.6 million | Up 1.4% |
| Gross margin | 45.7% | Down 40 basis points |
| Operating expenses | $150.5 million | Down 6.3% |
| Operating income | $141.0 million | Up 0.2% |
| Operating margin | 22.1% | Down from 22.6%; the prior-year quarter included a $12.9 million facility-sale gain |
| Net income | $109.1 million | Up from $107.4 million |
| Diluted EPS | $2.68 | Up from $2.58 |
| Adjusted EBITDA | $167.2 million | Up 7.4%; 26.2% margin |
| Operating cash flow | $173.3 million | Generated during Q3 2026 |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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