Simpson Manufacturing (SSD) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 2.3% YoY to $638.1M, driven by pricing as global volumes remained relatively flat; operating income increased 0.2% to $141.0M and diluted EPS rose to $2.68 from $2.58.

• 9M net sales increased 5.8% to $1.897B, operating income rose 10.8% to $424.8M, and Adjusted EBITDA advanced 14.8% to $502.7M.

Financial highlights

• Q3 gross profit increased 1.4% to $291.6M; gross margin fell to 45.7% from 46.1%, and operating margin was 22.1% versus 22.6%.

• Q3 net income was $109.1M versus $107.4M; Adjusted EBITDA increased 7.4% to $167.2M.

• Q3 operating expenses fell 6.3% to $150.5M, reflecting lower personnel costs and professional fees; SG&A headcount declined ~6% YoY.

• 9M gross profit increased 5.4% to $875.7M; gross margin eased to 46.2% from 46.3%. 9M net income was $324.4M versus $288.9M, and diluted EPS was $7.90 versus $6.89.

• Adjusted EBITDA margin was 26.2%; Q3 and 9M effective tax rates were 25.4% and 25.2%, respectively.

Outlook and guidance

• FY 2026 operating margin guidance is 20.0%-20.5%, including an expected $11.0M Q4 gain on a vacant-land sale; assumptions include higher material and freight costs, tariffs, depreciation, and ~$4M in European footprint costs.

• FY 2026 effective tax rate is expected at 25.0%-26.0%; capital expenditures are forecast at $80M-$90M, including footprint optimization.

• Volumes are expected to be slightly lower for the remainder of 2026; Q4 operating income margin was indicated at 13%-14%, reflecting seasonality and gross-margin cost pressure.

• North America is expected to grow above the U.S. housing-start market; additional pricing actions are planned for January 2027. Early 2027 market expectations are flattish, with no assumed market tailwind.

• Europe’s 2026 market outlook is flat to slightly declining, with weakness in some markets partly offset by pricing, cost savings and footprint optimization.