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Simpson Manufacturing Co., Inc. recently announced its financial results for the fourth quarter and full year of 2024.
For the full year, 2024 net sales reached $2.2 billion, a 0.8% increase year over year and income from operations for 2024 was reported at $430.0 million, resulting in an operational income margin of 19.3%.
“During 2024, we grew revenues modestly in a challenging year where housing starts in both the U.S. and Europe declined,” says Mike Olosky, president and chief executive officer of Simpson Manufacturing Co., Inc. “In North America, I am very pleased that volume growth in pounds shipped exceeded U.S. housing starts by approximately 600 basis points. In Europe, sales were flat despite a difficult demand environment.”
Net sales for the North American segment in Q4 increased to $404.8 million. Gross margin remained at 47% as low material costs were offset by higher factory, overhead and warehouse costs.
For the 2024 full-year, net sales increased approximately 1.1% from 2023 to $1.7 billion. Gross margin decreased to 49.0% from 50.3% due to increased factory, overhead and warehouse costs.
“In 2025 we believe a low single-digit recovery in U.S. housing starts is possible and European housing starts to be consistent with 2024 levels. As part of our commitment to maximizing shareholder returns, we have revised our financial ambitions to continue above-market growth relative to U.S. housing starts on a trailing twelve-month basis, maintain an operating income margin at or above 20%, and drive EPS growth ahead of net revenue growth,” Olosky says. “While the midpoint of our 2025 guidance range for operating income margin is below our ambition, we are working to offset significant input cost increases over the past three years and will carefully evaluate avenues to preserve our profitability.”
