Simpson’s fourth quarter results were well received by the market, as revenue and non-GAAP profit exceeded Wall Street’s expectations. Management attributed the outperformance to the company’s strategic pricing actions, ongoing cost savings initiatives, and resilience in product delivery despite a challenging environment for North American housing starts. CEO Michael L. Olosky noted, “We continue to win business in soft markets demonstrating the resilience of our portfolio and the value we deliver to our customers.” Simpson saw pockets of strength in its OEM and component manufacturing businesses, while retail and residential segments faced headwinds driven by regional housing mix.
Is now the time to buy SSD? Find out in our full research report (it’s free for active Edge members).
Simpson (SSD) Q4 CY2025 Highlights:
- Revenue: $539.3 million vs analyst estimates of $530.7 million (4.2% year-on-year growth, 1.6% beat)
- Adjusted EPS: $1.33 vs analyst estimates of $1.26 (5.3% beat)
- Adjusted EBITDA: $104.7 million vs analyst estimates of $94.39 million (19.4% margin, 10.9% beat)
- Operating Margin: 13.6%, down from 15% in the same quarter last year
- Market Capitalization: $8.67 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Simpson’s Q4 Earnings Call
- Daniel Joseph Moore (CJS Securities) asked about the upside and downside to the outlook for flat North American housing starts. CEO Michael L. Olosky explained that Simpson’s growth historically outpaces the market by about 300 basis points, but the company is taking a conservative view and will adjust investment if demand picks up.
- Trey Grooms (Stephens) questioned the gross margin outlook and the impact of tariffs and pricing. CFO Matt Dunn detailed that while $100 million in annualized pricing is offsetting $100 million in tariff costs, gross margin is expected to decrease slightly in 2026, with no additional price increases planned unless costs rise further.
- Timothy Ronald Wojs (Baird) inquired about steel costs and regional housing mix. Dunn clarified that Simpson uses spot buys for steel and is comfortable with current price levels, while Olosky noted that regional declines in California and Florida are a headwind because of higher product content in those markets.
- Kurt Willem Yinger (D.A. Davidson) asked if cost reductions will benefit operating expenses in 2026. Dunn confirmed that most of the $30 million in cost savings will be realized in 2026, particularly in operating expenses, and that these initiatives are already underway.
- Kurt Willem Yinger (D.A. Davidson) followed up on monetization of software and services. Dunn and Olosky explained that while digital revenues are still small, initiatives like cloud-based production management and automated estimating tools are expected to become more meaningful over time.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the impact of cost savings and facility optimization on operating expenses, (2) the pace of adoption and monetization of new digital and software services, and (3) any signs of improvement or further weakness in U.S. housing starts, particularly in key regions like the South and West. Execution on expanding European profitability and managing tariff-related margin pressures will also be closely monitored.
Simpson currently trades at $209.02, up from $196.07 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
The Best Stocks for High-Quality Investors
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
