Simpson Manufacturing (SSD) Investor presentation summary

Investment profile

• Structural solutions leader with growth opportunities across addressable markets; customer-centric model, strong brand recognition and above-market North American volume growth.

• Diversified product portfolio serves five end-use markets; 2024 EPS was $7.60 and 10-year EPS CAGR was 19%.

• Strong balance sheet with less than 1x leverage; ~52% of free cash flow returned to stockholders from 2021–2024, exceeding the 35% target.

• Since the May 1994 IPO, shares delivered ~14% total CAGR through April 25, 2025, including quarterly dividends; revenue grew ~15x and EPS ~54x from 1994 to 2024.

Business model and markets

• Differentiation spans 8 accredited test labs, ~120 code reports, 500+ patents, ~700 field sales reps, 15K wood products, 3K concrete products and 50+ software and web-app solutions.

• Service capabilities include a ~98% product fill rate, typical 24–48-hour delivery, 26 training centers and 700+ workshops annually.

• Core addressable markets: wood connectors, ICS and lateral systems $3.8B with 33% share; fastening systems $5.1B with 11%; concrete and steel connections $2.8B with 12%.

• 2024 net sales totaled $2.23B; wood construction contributed $1.90B, concrete construction $331M and other $2M.

• Long-term U.S. housing demand projection is 18.6M units from 2024–2034, or 1.86M annually, including demand from household growth and housing undersupply.

Performance and strategic progress

• Revenue increased from $1.25B in 2020 to $2.23B in 2024, while operating income rose from $250M to $430M; U.S. housing starts were 1.38M and 1.37M, respectively.

• The 2020–2024 progress included ~ $1B more revenue, ~ $180M more operating profit, stronger connector leadership and improved share in fasteners and anchors.

• North American volume outperformed U.S. housing starts by an average ~7 percentage points in 2015–2019 and ~3 points in 2020–2024.

• Strategic changes included market-focused sales, transition to direct sales from two-step distribution, streamlined processes, manufacturing and logistics investment, and improved M&A integration processes.