Simpson Manufacturing Company: Expansion of Manufacturing Facilities Driving Our ‘Outperform’ Rating

Simpson Manufacturing Company’s third quarter 2024 results provide an insight into its current operational and financial positioning. The company’s net sales reached $587.2 million, showing a modest increase over the prior year, despite pressures in both U.S. and European housing markets. This resilience is partly attributed to Simpson’s growth strategy, as North American volume growth outperformed U.S. housing starts by approximately 500 basis points. In North America, sales of wood and concrete construction products rose, albeit marginally, underpinned by gains in the national retail market and market share expansion among component manufacturers. However, the residential and commercial markets showed low single-digit declines due to challenging market conditions. Meanwhile, the European segment saw a slight sales increase, supported by new customer acquisitions and product applications.