Simpson Manufacturing Reports 0.1% Decrease in Q2 Net Sales

By Bobby Samwell • Tuesday, July 23 08:13 • Permanent Link

Simpson Manufacturing Co., Inc. has reported its financial results for the second quarter of 2024, with net sales of $597.0 million, a decrease of 0.1% from the same period in 2023. The company's income from operations was $132.2 million, resulting in an operating income margin of 22.1%. However, this represents a decrease of 8.9% from the second quarter of 2023.

In terms of net income, Simpson Manufacturing Co., Inc. reported a figure of $97.8 million, or $2.31 per diluted share, representing a decrease of 8.7% compared to the second quarter of 2023. Adjusted EBITDA also decreased by 7.8% to $152.6 million.

The company's cash flow from operating activities decreased by approximately $78.2 million, from $197.2 million to $119.0 million, primarily due to increases in working capital. Additionally, cash flow used in investing activities increased by approximately $49.1 million, with capital expenditures amounting to approximately $79.6 million compared to $37.9 million in the same period last year.

Simpson Manufacturing Co., Inc.'s gross margin decreased to 46.7% from 48.1%, with North America gross margin at 50.0% (down from 51.2%) and Europe gross margin at 35.4% (down from 37.4%). These decreases were primarily attributed to higher costs as a percentage of net sales in various areas.

Looking ahead, the company anticipates operating margin to be in the range of 20.0% to 21.0% for the full fiscal year ending December 31, 2024. Additionally, capital expenditures are estimated to be in the range of $180.0 million to $190.0 million.

In terms of corporate developments, Simpson Manufacturing Co., Inc. repurchased 283,273 shares of common stock in the open market at an average price of $176.51 per share, totaling $50.0 million. Furthermore, the company completed the acquisition of calculated structured designs (“csd”), inc., a software development company providing solutions for the engineered wood, engineering, design, and building industries in North America, Australia, and the U.K.

The market has reacted to these announcements by moving the company's shares -0.4% to a price of $180.66. If you want to know more, read the company's complete 8-K report here.

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