NYSE:SSD
Simpson Manufacturing Co., Inc.
A premier global manufacturer of fastening systems providing secure connections for industries ranging from construction to aerospace.
Key Metrics
Investment Thesis
Bull Case
Simpson Manufacturing offers an attractive investment profile due to its consistent revenue growth trajectory and resilient operating cash flows that support shareholder returns. The company's diversified customer base across multiple non-cyclical industries provides stability against economic headwinds. Strong balance sheet with over $384M in cash allows for strategic acquisitions and sustained capital allocation flexibility.
Bear Case
Valuation may be stretched given the mature nature of the fastening industry and limited organic growth opportunities without significant M&A activity. Heavy reliance on commodity input prices creates margin compression risks that could erode returns if supply chains remain unstable. High levels of goodwill ($558.5M) suggest potential impairment risks if acquired businesses underperform expectations.
About Simpson Manufacturing Co., Inc.
Simpson Manufacturing Co., Inc. is a leading manufacturer of fastening systems serving diverse industries including construction, agriculture, automotive, and energy. The company leverages its extensive distribution network and product innovation to provide secure solutions for assembly and connection across global markets.
Analysis
Management Discussion
The company delivered strong financial performance in 2025 with revenue reaching $2.33B, marking a steady upward trend from the prior four years. Operating profit of $458.1M reflects efficient cost management despite inflationary pressures, supported by significant capital expenditures of $161.0M for growth initiatives. Robust cash flow from operations of $458.7M enabled substantial share repurchases of $120.0M and a healthy dividend payout.
Industry Overview
The global fastening systems industry is essential to manufacturing and infrastructure development, driven by demand in construction, automotive, and energy sectors. Competition is fierce but consolidated among players with established distribution networks and specialized technical capabilities like Simpson Manufacturing. Industry trends favor manufacturers who can offer sustainable, high-performance solutions that meet evolving regulatory and environmental standards.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.12B | $2.21B | $2.23B | $2.33B |
| Cost of Revenue | $1.17B | $1.17B | $1.21B | $1.26B |
| Gross Profit | $941.3M | $1.04B | $1.03B | $1.07B |
| Operating Expenses | $466.2M | $564.2M | $590.5M | $627.0M |
| Operating Income | $459.1M | $475.1M | $430.0M | $458.1M |
| R&D | $15.7M | $24.8M | $20.7M | $11.5M |
| G&A | $228.5M | $268.1M | $277.5M | $321.7M |
| Marketing | $169.4M | $204.0M | $219.4M | $222.8M |
| Stock-Based Comp | $15.0M | $23.9M | $19.0M | $23.0M |
| D&A | $60.9M | $74.7M | $85.4M | $90.0M |
| Depreciation | $43.4M | $51.2M | $59.7M | $61.8M |
| Amortization | $17.4M | $23.5M | $24.8M | $26.7M |
| Other OpEx | $52.7M | $67.4M | $72.9M | $71.0M |
| Non-Operating Income | $-11.0M | $1.4M | $4.1M | $4.4M |
| Interest Expense | $8.0M | $4.5M | $2.3M | $-9.0M |
| Pre-Tax Income | $448.1M | $476.5M | $434.0M | $462.5M |
| Income Tax | $114.1M | $122.6M | $111.8M | $117.4M |
| Continuing Ops | $334.0M | $354.0M | $322.2M | $345.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $334.0M | $354.0M | $322.2M | $345.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $334.0M | $354.0M | $322.2M | $345.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.18B | $1.31B | $1.18B | $1.35B |
| Cash & Equivalents | $300.7M | $429.8M | $239.4M | $384.1M |
| Accounts Receivable | $269.1M | $284.0M | $284.4M | $302.7M |
| Inventory | $556.8M | $551.6M | $593.2M | $594.2M |
| Other Current Assets | $52.6M | $47.1M | $59.4M | $71.5M |
| Long-Term Assets | $1.32B | $1.39B | $1.56B | $1.72B |
| PP&E (Net) | $361.6M | $418.6M | $531.7M | $627.9M |
| Intangibles | $362.9M | $365.3M | $375.1M | $387.7M |
| Goodwill | $495.7M | $502.6M | $512.4M | $558.5M |
| Operating Leases | $57.7M | $68.8M | $93.9M | $115.1M |
| Other LT Assets | $46.9M | $37.0M | $46.8M | $32.0M |
| Total Assets | $2.50B | $2.70B | $2.74B | $3.07B |
| Current Liabilities | $348.6M | $361.3M | $366.3M | $381.8M |
| Accounts Payable | $97.8M | $107.5M | $101.0M | $91.5M |
| Current Debt | $22.5M | $22.5M | $22.5M | $15.0M |
| Current Leases | $11.5M | $15.0M | $19.4M | $20.3M |
| Other Current Liab | $-34.4M | $-41.2M | $-35.8M | $-43.0M |
| Long-Term Liabilities | $742.0M | $663.7M | $556.7M | $656.4M |
| LT Operating Leases | $46.9M | $55.3M | $76.2M | $96.8M |
| Other LT Liab | $695.1M | $608.4M | $480.5M | $559.5M |
| Total Liabilities | $1.09B | $1.02B | $923.0M | $1.04B |
| Shareholders' Equity | $1.41B | $1.68B | $1.81B | $2.04B |
| Retained Earnings | $1.12B | $1.43B | $1.65B | $1.84B |
| AOCI | $-4.1M | $-10.0M | $-46.8M | $-14.6M |
| Treasury Stock | — | $50.4M | $100.8M | $121.0M |
| Total L&E | $2.50B | $2.70B | $2.74B | $3.07B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $334.0M | $354.0M | $322.2M | $345.1M |
| Non-Cash Adjustments | $15.1M | $56.0M | $-54.2M | $72.3M |
| Working Capital Changes | $50.8M | $17.0M | $70.1M | $41.3M |
| Cash from Operations | $399.8M | $427.0M | $338.2M | $458.7M |
| Capital Expenditures | $62.4M | $88.8M | $180.4M | $161.0M |
| Cash from Investing | $-870.2M | $-103.3M | $-259.3M | $-136.2M |
| Share Buybacks | $78.6M | $50.0M | $100.0M | $120.0M |
| Dividends Paid | $43.9M | $45.2M | $46.5M | $47.6M |
| Cash from Financing | $465.5M | $-199.0M | $-261.5M | $-186.1M |
| FX Effect | $4.5M | $4.3M | $-7.9M | $8.4M |
| Net Change in Cash | $-413.0K | $129.1M | $-190.5M | $144.8M |
| Beginning Cash | $301.2M | $300.7M | $429.8M | $239.4M |
| Ending Cash | $300.7M | $429.8M | $239.4M | $384.1M |
Frequently Asked Questions
How does Simpson Manufacturing Co., Inc. make money?
The company's revenue is derived primarily from the sale of manufacturing and assembly fasteners, structural connectors, and specialized industrial fastening solutions. Key market verticals include commercial construction, agriculture, automotive manufacturing, and renewable energy sectors where reliable joining technology is critical.
What are the main risks for SSD?
Fluctuations in raw material costs such as steel and aluminum can impact cost of revenue and operating margins given the commodity-intensive nature of fasteners. Cyclical demand in key end-markets like construction and agriculture poses a risk to revenue stability during economic downturns. Currency exchange rate volatility may affect profitability for international operations and export sales.
What is SSD's competitive advantage?
Simpson Manufacturing benefits from a deeply entrenched global distribution network that ensures rapid product availability to customers. The company possesses strong proprietary intellectual property regarding unique fastening designs that offer superior performance in demanding environments. Significant scale economies in manufacturing allow for robust gross margins and consistent cash flow generation.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.