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Simpson Manufacturing Q3 sales beat estimates, aided by pricing actions

By Reuters News


Overview

  • US structural connectors maker's Q3 sales rose 2.3% yr/yr, beating analyst expectations

  • Company repurchased $66.3 mln in stock and approved new $1 bln buyback


Outlook

  • Simpson Manufacturing sees 2026 operating margin between 20.0% and 20.5%

  • Company expects 2026 effective tax rate between 25.0% and 26.0%

  • Simpson Manufacturing estimates 2026 capital expenditures at $80 mln to $90 mln


Result Drivers

  • PRICE INCREASES - Co said Q3 sales growth was supported by pricing actions, while global volumes remained relatively flat

  • HIGHER MATERIAL COSTS - Co said gross margin declined due to higher material, labor and freight costs as a percentage of net sales

  • DISCIPLINED COST MANAGEMENT - Co said strong operating margin reflected disciplined cost management and execution despite higher steel costs


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$638.13 mln

$625.39 mln (5 Analysts)

Q3 Net Income

$109.12 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

  • Wall Street's median 12-month price target for Simpson Manufacturing Co., Inc. is $213.50, about 15.8% above its October 23 closing price of $184.36

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago


Reuters Recommended Reads

  • Oct 26 - Amkor Technology Q3 sales slightly miss estimates on weak Communications

  • Oct 26 - Kforce Q3 revenue rises on technology staffing, slightly beats estimates

  • Oct 26 - PriceSmart Q4 revenue, net income rise on favorable FX, club expansion


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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