Simpson Manufacturing said first-quarter net sales rose 9.1% to $588.0 million from $538.9 million a year earlier, while income from operations increased 12.0% to $114.6 million from $102.3 million.
Net income climbed 13.3% to $88.2 million from $77.9 million, and diluted earnings per share advanced 15.1% to $2.13 from $1.85.
Gross profit increased 6.1% to $265.9 million from $250.6 million, though gross margin narrowed to 45.2% from 46.5%. Operating expenses rose 1.7% to $150.7 million from $148.2 million, helping operating margin improve to 19.5% from 19.0%.
Adjusted EBITDA increased 14.1% to $139.4 million from $122.2 million.
In North America, net sales rose 9.8% to $461.9 million from $420.7 million, and income from operations climbed 12.8% to $118.3 million from $104.8 million. North America gross margin fell to 47.8% from 49.8%.
In Europe, net sales increased 6.3% to $121.0 million from $113.9 million, but income from operations fell 23.8% to $7.1 million from $9.3 million. Europe gross margin improved to 36.3% from 35.2%.
The company repurchased 269,064 shares for $50.0 million during the quarter at an average price of $185.83 per share. Cash and cash equivalents stood at $341.0 million at quarter-end, versus debt of $370.5 million.
Operating cash flow improved to $35.9 million from $7.6 million, while cash used in investing activities fell to $19.1 million from $50.1 million. Simpson reaffirmed full-year 2026 operating margin guidance of 19.5% to 20.5% and capital spending of $75 million to $85 million. Following these announcements, the company's shares moved -2.03%, and are now trading at a price of $181.57. If you want to know more, read the company's complete 8-K report here.
