Simpson MFG | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 623.51 M

Revenue: As of FY2025 Q3, the actual value is USD 623.51 M, beating the estimate of USD 604.86 M.

EPS: As of FY2025 Q3, the actual value is USD 2.58, beating the estimate of USD 2.4133.

EBIT: As of FY2025 Q3, the actual value is USD 138.43 M.

North America Segment

• Net Sales: Increased by 4.8% to $483.6 million for the three months ended September 30, 2025, primarily due to price increases and incremental sales from 2024 acquisitions, partially offset by a 2.5% decrease in sales volume.
• Gross Margin: Decreased to 49.0% from 49.5%, primarily due to higher factory and overhead as well as warehouse costs as a percentage of net sales.
• Operating Income: Increased by $1.9 million due to higher net sales, partially offset by increased operating expenses.

Europe Segment

• Net Sales: Increased by 10.9% to $134.4 million, driven by higher sales volumes and a positive foreign currency translation effect of approximately $8.1 million.
• Gross Margin: Increased to 37.9% from 36.6%, primarily due to lower material costs.
• Operating Income: Increased by $3.5 million to $16.1 million, primarily due to increased gross profit and lower integration expenses.

Asia/Pacific Segment

• Net Sales: Increased by 17.3% to $14.8 million for the nine months ended September 30, 2025.
• Gross Margin: Increased to 36.1% from 30.0%.

Administrative and All Other

• Loss from Operations: Decreased to $1.1 million from $11.3 million due to a $12.9 million gain on disposal of assets from the sale of the existing Gallatin, Tennessee facility.

Cash Flow

• Operating Cash Flow: Provided $302.9 million, primarily from net income and non-cash expenses, offset by changes in operating assets and liabilities.
• Investing Activities: Used $106.5 million, primarily for facility expansion projects and machinery purchases, offset by proceeds from asset sales.
• Financing Activities: Used $143.1 million, primarily for stock repurchases and dividend payments.

Future Outlook and Strategy

• Operating Margin: Estimated to be in the range of 19.0% to 20.0% for the full fiscal year ending December 31, 2025, reflecting current market conditions and strategic initiatives.
• Capital Expenditures: Estimated to be between $150.0 million and $160.0 million, focusing on facility expansions and productivity enhancements.