Simpson Manufacturing Company, Inc. · NYSE:SSD
Simpson Manufacturing — Q2 2025 Earnings Presentation
38 slides from Simpson Manufacturing's earnings presentation, Jul 28, 2025
Slide 1: Strong Foundation. Stronger Future.
Strong Foundation. Stronger Future. Simpson Manufacturing Co., Inc. Investor Presentation July 2025
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generall
Slide 3: Investment Highlights
Investment Highlights Leader in structural solutions Customer-centric business Diversified product for wood connections with model, above market volume offerings serving customers significant opportunities in growth(1), high brand across five end-use market all addressable markets recognition and tr
Slide 4: Celebrating 30 Years as a Public Company
Celebrating 30 Years as a Public Company Performance Since IPO $250.00 Compound annual growth On September 6, 2024, the Company commemorated its rate of ~15%(1) since 1994 30th anniversary as a publicly traded company by $200.00 IPO ringing the NYSE closing bell. $165.66 $150.00 Revenue Growth (1994
Slide 5: Simpson's Purpose and Unique Culture
Simpson’s Purpose and Unique Culture OUR MISSION OUR COMPANY VALUES 1. Relentless Customer Focus 2. Long-Range View 3. High-Quality Products To deliver innovative 4. Be The Leader solutions that help people 5. Everybody Matters design and build safer, 6. Enable Growth stronger structures. 7. Risk-Ta
Slide 6: Our Strong Business Model
Our Strong Business Model Innovation leader Broad portfolio of solutions Pioneer of construction solutions 15K standard & custom wood products 8 accredited test labs 3K standard & custom concrete products ~120 code evaluation reports 50+ software and web-app solutions 500+ patents worldwide Comprehe
Slide 7: Simpson's Value Proposition
Simpson’s Value Proposition Our presence at every stage of the construction process — from compliance and specification to procurement and installation — creates an interconnected value chain, setting us apart and ensuring long-term market leadership. Code Officials Specifiers/Engineers Suppliers/De
Slide 8: Long-Term Housing Market
Long-Term Housing Market U.S. Housing Market Shortage Reasons to believe in the 2,500 2.1M starts Target housing starts needed market in the mid- to long-term: to keep up with demand 2,000 Sizable shortage of new homes after 1.8M starts more than a decade of under-building 1,500 relative to popula
Slide 9: Core Addressable Market
Core Addressable Market (1) Wood Connectors, Concrete & Steel Fastening Systems ICS (Truss) & Lateral Systems Connections Addressable Market $3.8 B Addressable Market $5.1 B Addressable Market $2.8 B 11% 12% 33% SSD Share SSD Share SSD Share $1.8 B $0.5 B $0.3 B Many opportunities to grow our produc
Slide 10: Broad Portfolio of Solutions
Broad Portfolio of Solutions Our broad and deep product offering includes 10,000+ standard and custom products for wood, concrete, and steel connections as well as digital solutions to make it easier to specify and order our products. Wood Connectors Integrated Component Systems Lateral Systems (Fra
Slide 11: 5 Key End-Use Markets in North America
5 Key End-Use Markets in North America See Appendix for additional details. Residential Commercial Component OEM National Retail Construction Construction Manufacturer Our market-focused approach enables us to better serve current customers while identifying opportunities to reach new customers with
Slide 12: Driving Growth with Digital Solutions
Driving Growth with Digital Solutions Key focus areas to make it easier Building out our digital offerings to serve to specify and order our products customers across the building industry Design/visualization, Project management estimating, online and truss design Make it easier to do business with
Slide 13: Europe Strategy
Europe Strategy Building Strong Brands in Our Core Business Grow with Our Strong Solutions Offer complete Further strengthen Double Build on our product solutions: Targeted expansion our #1 position in structural strong position Connectors in pavement wood connectors fasteners in facade Fasteners re
Slide 14: Strong Business Drives Stockholder Value
Strong Business Drives Stockholder Value $8.26 Concrete EPS $7.76 $7.60 Construction Other $2 $331 $6.12 Our 2024 Sales by $4.27 Product… Wood $2.72 $2.98 ($ USD Millions) Construction $1.86 $1.94 $1.05 $1.29 $1.38 $1,900 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Dividends Per Shar
Slide 15: Historical Market and Financial Performance
Historical Market and Financial Performance Total Company Revenue & Profitability Relative to U.S. Housing Starts $2,200 2.0 $2,000 1.8 $1,800 1.6 $1,600 Housing Starts (M) 1.4 $1,400 1.2 $1,200 ($M) 1.0 $1,000 0.8 $800 0.6 $600 $400 0.4 $200 0.2 $0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 16: Accelerating Above Market Growth
Accelerating Above Market Growth Our North America operations continue to outperform U.S. housing, and we are highly focused on accelerating above market volume growth beyond historical average performance while continuing to pursue strong profitability. ~7% pts. on avg. above market ~3% pts. on avg
Slide 17: Significant Progress in a Flat Market
Significant Progress in a Flat Market 2024 Share Gains ~$200 M ETANCO 2020 $300 M Net Pricing Revenue ~$450 M $2.23 B Revenue Op. Income $1.25 B $430 M Op. Income $250 M 1.38 M 1.37 M U.S. housing starts ~ 1.4 million U.S. housing starts in 2020 and 2024 U.S. housing starts (Census Bureau) (Census B
Slide 18: Progress Made from 2020 to 2024
Progress Made from 2020 to 2024 Despite market headwinds, we entered 2025 from a position of strength. ~$1B more revenue Transitioned to direct sales, away from two-step distribution ~$180M more operating profit Streamlined processes and focused on Clearer targets and strategies high-impac
Slide 19: Operating Income Margin Outperformance
Operating Income Margin Outperformance Simpson Historical Operating Income Margin Versus Proxy Peer Average(1) 25.0% Operating 23.4% 2006 - 2020- 2022- Income Margin 21.7% 21.5% 2019 2021 2024 Average 19.9% 19.9% 20.0% 19.3% Proxy Peer 8.6% 15.4% 17% 18.5% - 20.5%(2) Average(1) 16.5% 15.9% 16.0% 15.
Slide 20: Well-Positioned to Drive Growth
Well-Positioned to Drive Growth We are well-positioned to execute our growth strategy given our demonstrated commitment to disciplined capital allocation. $995 $79 $44 Dollar amounts shown in Millions $811 $400 $427 $408 $340 $100 $208 $47 $206 $142 $207 $79 $158 $151 $50 $116 $61 $76 $24 $45 $7 $23
Slide 21: Capital Return History
Capital Return History $983.2 Million 2021 – 2025(1) Cumulative Free Cash Flow defined as: Cash flow from operations ($1,448.5 M) less Capital expenditures ($465.4 M) Repurchases of Quarterly Cash Common Stock Dividends 31.8% 20.4% (1) Time frame represents January 1, 2021 to June 30, 2025. Cash flo
Slide 22: Use of Cash Priorities
Use of Cash Priorities Cash Flow From Operations Past and Potential Future Uses of Cash Flows Prioritizing facility expansions (capacity, service, efficiencies and safety) Organic Growth Investing in growth initiatives (engineering, marketing, sales personnel, testing capabilities, etc.) Selec
Slide 23: Investments to Meet Growing Demand
Investments to Meet Growing Demand Expansion of North American manufacturing operations to better serve our customers. Expansion of Columbus, OH Facility Greenfield Gallatin, TN Facility Future capacity to support growth Support fastener sales growth Maintain safety standards Reduce dependen
Slide 24: Acquisition Strategy
Acquisition Strategy Accelerate our strategic growth priorities through M&A opportunities, maximizing long-term value. Strengthen our business Improve our manufacturing Build a robust M&A model by expanding our capabilities and supply pipeline; most actionable product lines to develop chain efficien
Slide 25: Company Ambitions
Company Ambitions (1) (1) Revised January 1, 2025. 1 4 Continue above market volume growth Strengthen our values-based culture relative to U.S. housing starts 2 Be the business partner of choice 5 Maintain operating income margin of >20% 3 6 Strive to be an innovative leader in the EPS growth ahead
Slide 26: Appendix
Appendix Manufacturing COMPANY
Slide 27: Innovation Leader
Innovation Leader Simpson is a pioneer of construction solutions and the industry standard for structural connectors. EXPANSION INTO FIRST OPENED STEEL SHEAR WALLS EXPANSION INTO FIRST HOLDOWN TYE GILB TEST LAB STAINLESS STEEL CONNECTOR FASTENERS EXPANSION INTO FASTENERS NYSE LISTING CONNECTOR (SSD)
Slide 28: Innovation Leader (continued)
Innovation Leader (continued) Over the years, Simpson has remained an innovation leader in connectors, fasteners, lateral systems, anchors, concrete repair, construction software and structural steel solutions. EXPANSION INTO EXPANSION INTO EUROPEAN COMMERCIAL EXPANSION INTO BUILDER TRUSS SOFTWARE B
Slide 29: Innovation Leader (continued)
Innovation Leader (continued) (1) Data as of February 2025. A dedication to innovation through extensive research and development, academic partnerships and state-of-the-art structural testing. Innovation by the numbers(1) Testing is in our DNA ~300 8 ~120 Engineers Accredited Code Test Labs Reports
Slide 30: Residential End-Use Market
Residential End-Use Market Key Market Focus Areas Strategy Single family construction Build and maintain strong relationships with Builders and Multifamily construction pro-dealers Outdoor living (e.g., decks, pergolas, fences) Specify and create demand through national builders Repair,
Slide 31: Commercial End-Use Market
Commercial End-Use Market Key Market Focus Areas Strategy Retail and office buildings Call on and educate engineers and designers to drive Institutional (education, healthcare) specifications Public and utilities (water supply, pipelines, ports) Provide training and support to contractors
Slide 32: OEM End-Use Market
OEM End-Use Market Key Market Focus Areas Strategy Off-site construction (manufactured housing, modular construction, Aligned with our business model; identify opportunity for post-frame construction, prefab sheds) existing connectors, fasteners, anchors and truss plates products Mass timber c
Slide 33: National Retail End-Use Market
National Retail End-Use Market Key Market Focus Areas Strategy Large home centers Improve retail execution through merchandising, product Co-ops / retail chains development, and marketing Farm & hardware supply retailers Continue expanding availability of all product lines, and increase in
Slide 34: Component Manufacturer End-Use Market
Component Manufacturer End-Use Market Key Market Focus Areas Strategy Component manufactures who build roof and floor trusses, Continue to develop functional, stable, open software offer EWP solutions and/or wall panel solutions Continue to increase truss plate manufacturing capacity to Equi
Slide 35: Digital Solutions
Digital Solutions Building out our digital offerings to serve customers across the building industry. Project management and truss design Design/visualization, estimating, online ordering Free design software and plans Option management, Specification tools (apps/selectors) estimating 35
Slide 36: Corporate Social Responsibility
Corporate Social Responsibility Environmental: Committed to continuously improving the efficiency of our resource use to lessen our impact, and designing and manufacturing products with environmental conservation in mind Manufacturing Facilities Energy Conservation GOAL: Minimize amount of total w
Slide 37: Corporate Social Responsibility
Corporate Social Responsibility Social Responsibility: Dedicated to ensuring everyone at our Company feels included, valued, empowered, and equipped with the tools and confidence to improve, learn and thrive personally and professionally Inclusion and Belonging Leadership and Development GOAL: Fos
Slide 38: Strong Foundation. Stronger Future.
Strong Foundation. Stronger Future.
Simpson Manufacturing Company — Q2 2025 Earnings Presentation on 6ix