Simpson Manufacturing Co., Inc.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
SSD$196.89-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0000920371-25-000113
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001628280-25-050724
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 136 previous paragraphs and 147 current paragraphs.
74 unchanged; 51 reworded; 21 added; 11 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Due to a declining housing starts market, we are undertaking proactive strategic cost savings initiatives to align our operations with evolving market demand to position the Company for long-term success. These actions include workforce reduction and portfolio management. As a result, we incurred approximately $3.0 million, net, in one-time charges during the third quarter of 2025, and estimate total one-time charges of approximately $9.0 million to $12.0 million, net, in fiscal year 2025. We expect these initiatives will generate at least $30.0 million in annualized cost savings.
Current report
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.
Current report
Selling expense increased 5.9% to $56.1 million from $53.0 million, primarily due to increases of $1.9 million in personnel costs, $1.9 million in variable compensation, and $1.1 million in severance costs related tostrategic cost savings initiatives.
Current report
General and administrative expense increased 13.3% to $85.4 million from $75.3 million, primarily due to increases of $3.0 million in variable compensation, $1.2 million in software related costs, net of amount capitalized, and $1.1 million in personnel costs.
Current report
Income from operations increased 12.7% to$140.7 million from$124.9 million mostly due to a $12.9 million gain on disposal of assets from the sale of the existing Gallatin, Tennessee facility.
Current report
•Selling expense increased 6.8%, primarily due to increases of $2.0 million in personnel costs, $1.3 million in variable compensation, and $0.9 million in severance costs related tostrategic cost savings initiatives, partially offset by a decrease of $1.2 million in advertising and trade show costs.
Current report
•Net sales increased 10.9% due to higher sales volumes as well as the positive effect of approximately $8.1 million in foreign currency translation. In local currency, net sales increased 4.3%.
Current report
•Income from operations increased by $3.5 million to $16.1 million from $12.6 million primarily due to an increase in gross profit, partially offset by increases in operating expenses mostly due to the negative effect of approximately $2.1 million in foreign currency translation.
Current report
Administrative and All Other
Current report
•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.
Current report
Research and development and engineering expense increased 2.7% to $61.4 million from $59.8 million.
Current report
General and administrative expense increased to $238.2 million from $220.0 million, primarily due to increases of $7.6 million in variable compensation, $7.6 million in personnel costs, and $2.8 million in depreciation and amortization expenses, partially offset by a decrease of $1.4 million in travel related costs.
Current report
Income from operations increased 8.5% to$383.3 million from$353.1 million primarily due to increase in net sales as noted above, a $12.9 million gain on disposal of assets from the sale of the existing Gallatin, Tennessee facility, and a decrease of $4.5 million in integration expenses.
Current report
•Net sales increased 4.9%, primarily due toprice increases that took effect in June 2025 and incremental sales from the Company's 2024 acquisitions, partially offset by a decrease in sales volume of 1.3% (volume is based on pounds shipped and excludes software, service and equipment sales).
Current report
•Gross margin remained flat at 49.6%.
Current report
•General and administrative expense increased 11.7%, primarily due to increases of $5.0 million in variable compensation, $4.2 million in depreciation and amortization expenses, $3.8 million in personnel costs, and $1.6 million in professional fees.
Current report
•Gross margin increased to 36.5% from 36.1%, primarily due to lower material costs, partly offset by higher labor, factory and overhead as well as warehouse costs, as percentages of net sales.
Current report
•Income from operations increased $8.1 million, primarily due to higher gross margins on increased net sales.
Current report
Administrative and All Other
Current report
•Loss from operations decreased to $25.1 million from $33.5 million primarily due to a $12.9 million gain on disposal of assets from the sale of the existing Gallatin, Tennessee facility.
Current report
On October 23, 2025, the Company's Board of Directors (the“Board”) increased the 2025 share repurchase authorization by an additional $20.0 million resulting in a $30.0 million available for repurchases of the Company's common stock through December 31, 2025. The Board also authorized the Company to repurchase up to $150.0 million of the Company's common stock, effective January 1, 2026 through December 31, 2026.
Removed paragraphs (11)
Previous report
Selling expense increased 3.6% to $56.4 million from $54.5 million, primarily due to an increase of $1.9 million in personnel costs.
Previous report
General and administrative expense increased 9.4% to $77.2 million from $70.6 million, primarily due to increases of $2.9 million in variable compensation, $1.8 million in personnel costs, and $1.0 million in computer and software, net of amount capitalized.
Previous report
•Selling expense increased 6.5%, primarily due to increases of $1.8 million in personnel costs and $0.8 million in variable compensation.
Previous report
•Income from operations increased by $3.5 million to $15.7 million from $12.1 million primarily due to an increase in gross profit and a decrease in operating expenses including variable compensation and travel related costs.
Previous report
Research and development and engineering expense increased 3.6% to $40.6 million from $39.2 million primarily due to increases of $4.8 million in in computer and software cost, net of amount capitalized and $0.6 million in personnel costs, partially offset by a decrease of $3.8 million in professional fees.
Previous report
General and administrative expense increased to $152.9 million from $144.6 million, primarily due to increases of $5.2 million in personnel costs and $5.0 million in variable compensation, partially offset by a decrease of $1.1 million in travel related costs.
Previous report
•Net sales increased 5.0%, primarily due toincremental sales from the Company's 2024 acquisitions and price increases that took effect in June 2025.
Previous report
•Research and development and engineering expense increased 2.6%, primarily due to an increase of $4.7 million in computer and software expenses, net of amounts capitalized, partially offset by a decrease of $3.7 million in professional fees.
Previous report
•General and administrative expense increased 10.0%, primarily due to increases of $3.7 million in personnel costs, $3.5 million in variable compensation, and $2.6 million in professional fees, partially offset by a decrease of $2.3 million in computer and software expenses, net of amounts capitalized.
Previous report
•Net sales decreased 1.0%, primarily due tolower sales volumes, partially offset by the positive effect of $3.0 million in foreign currency translation.
Previous report
•Income from operations increased $4.6 million, primarily due to lower operating expenses.
Reworded paragraphs (51)
Previous wording
•Above market growth relative to the U.S. housing starts (exceeding our historical average volume performance in North America of approximately 250 basis points above the housing starts market);
Current wording
•Above market growth relative to the U.S. housing starts (exceeding our historical average volume performance in North America);
Previous wording
Since announced in 2021, we have made great progress on our key growth initiatives. Examples include:
Current wording
Since announced in 2021, we continue to make progress on our key growth initiatives. Examples include:
Previous wording
During the six months ended June 30, 2025, the recent tariff and trade policy actions have had some impact and will continue to impact our results of operations. We also experienced increased foreign currency exchange rate volatility, which we attribute, in part, to the rapidly changing global trade environment.
Current wording
During the nine months ended September 30, 2025, the recent tariff and trade policy actions have had some impact and will continue to impact our results of operations. We also experienced increased foreign currency exchange rate volatility, which we attribute, in part, to the rapidly changing global trade environment.
Previous wording
As previously announced, we increased prices as of June 2, 2025 on certain wood connectors, fasteners and mechanical anchors in the U.S. We believe North America net sales could increase in future periods even if demand does not increase. However, increased selling prices are expected to be offset by increased non-material costs including labor, energy, transportation, and equipment incurred over the prior three years. In addition, the announced price increases will partly offset the increased costs related to the initial tariffs that effected a portion of our fastener and anchors sales, while it does not offset tariffs announced after June 2, 2025.
Current wording
North America net sales could increase in future periods even if demand does not increase. However, increased selling prices are expected to be offset by increased non-material costs including labor, energy, transportation, and equipment incurred over the prior three years. In addition, the announced price increases will partly offset the increased costs related to the tariffs that effected a portion of our fastener and anchors sales, while it does not offset tariffs announced after October 15, 2025.
Previous wording
Our business, financial condition, and results of operations depend in large part on the level of U.S. housing starts and residential construction activity. Overall U.S. housing starts decreased under the trailing twelve months ending June 30, 2025, compared to the trailing twelve months ending June 30, 2024. Lower housing starts in the U.S. could result in lower demand, which would affect our sales and possibly operating profit.
Current wording
Our business, financial condition, and results of operations depend in large part on the level of U.S. housing starts and residential construction activity. Overall U.S. housing starts have been decreasing year over year since 2021. Lower housing starts in the U.S. could result in lower demand, which would affect our sales and possibly operating profit.
Previous wording
In prior years, our sales were heavily seasonal with operating results varying from quarter to quarter depending on weather conditions that could delay construction starts. Our sales and income have historically been lower in the first and fourth quarters than in the second and third quarters of a fiscal year. Increased tariffs (as noted above), political uncertainty, and rising costs can also have an effect on our gross and operating profits as well. Due to efforts in diversifying our geographic footprint, product offerings, and changing our path to market in the U.S., sales from our product lines, customer base, and customer purchases are becoming less seasonal. Changes in raw material cost could impact the amount of inventory on-hand, and negatively affect our gross profit and operating margins depending on the timing of raw material purchases or how much sales prices can be increased to offset any increases in raw material costs. Changes in labor, freight and warehousing costs, could also negatively impact gross profit depending on timing and amount of sales price can be increased to offset the higher costs.
Current wording
In prior years, our sales were heavily seasonal with operating results varying from quarter to quarter depending on weather conditions that could delay construction starts. Our sales and income have historically been lower in the first and fourth quarters than in the second and third quarters of a fiscal year. Increased tariffs (as noted above), political uncertainty, mortgage interest rates, and rising costs can also have an effect on our gross and operating profits as well. Due to efforts in diversifying our geographic footprint, product offerings, and changing our path to market in the U.S., sales from our product lines, customer base, and customer purchases are becoming less seasonal. Changes in raw material cost could impact the amount of inventory on-hand, and negatively affect our gross profit and operating margins depending on the timing of raw material purchases or how much sales prices can be increased to offset any increases in raw material costs. Changes in labor, freight and warehousing costs, could also negatively impact gross profit depending on timing and amount of sales price can be increased to offset the higher costs.
Previous wording
Historically, our North America segment has generated more revenues from wood construction products compared to concrete construction products. North America net sales increased for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to incremental sales from the Company's 2024 acquisitions and price increase that took effect in June 2025. The increases were partly offset by decreased sales volumes and the negative effect of approximately $1.9 million in foreign currency translation. Our wood construction product net sales increased 4.6% for the six months ended June 30, 2025 compared to June 30, 2024. Our concrete construction product net sales increased 6.2% over the same periods. For 2025, U.S. housing starts could decline in the low-single digit range from 2024 levels. With the investments we have made, we believe we will be able to continue to grow volumes above the U.S. housing starts market, one of our ambitions. For the year-to-date period, housing starts have decreased in 2025 compared to the same period in 2024.
Current wording
Historically, our North America segment has generated more revenues from wood construction products compared to concrete construction products. North America net sales increased for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to price increase that took effect in June 2025 and incremental sales from the Company's 2024 acquisitions. The increases were partly offset by decreased sales volumes of 1.3% and the negative effect of approximately $2.2 million in foreign currency translation. Our wood construction product net sales increased 4.6% for the nine months ended September 30, 2025 compared to September 30, 2024. Our concrete construction product net sales increased 6.2% over the same periods. For 2025, U.S. housing starts could decline in the mid-single digit range from 2024 levels. We believe we will be able to continue to grow volumes above the U.S. housing starts market, one of our ambitions.
Previous wording
Operating income increased 4.5% to $241.3 million. The increase was primarily due to higher gross profits, partially offset by higher operating expenses. The operating expense increases were driven primarily by higher personnel costs and variable compensation. Additional incremental investments in the business willbe limited until the U.S. housing market shows long-term improvement.
Current wording
Operating income increased 3.5% to $366.5 million. The increase was primarily due to higher net sales, partially offset by higher operating expenses. The operating expense increases were driven primarily by higher personnel costs, variable compensation, subscription licensing costs, partially offset by decreases in professional fees, travel related costs, and advertising and tradeshow costs. Additional incremental investments in the business willbe limited until the U.S. housing market shows long-term improvement.
Previous wording
In May 2025, we held the grand opening on our Columbus, Ohio facility. We expect the construction of our new Gallatin, Tennessee facility to be completed and operations to commence in the fourth quarter of 2025. These facilities are expected to improve our overall service, production efficiencies and safety in the workplace, as well as reduce our reliance on certain outsourced finished goods and component products. These facilities will help ensure we have ample capacity to meet our customer needs. These investments reinforce our core business model differentiators to remain the partner of choice as we continue to produce products locally and ensure superior levels of customer service.
Current wording
We completed construction of our Columbus, Ohio facility in the second quarter and the construction of our new Gallatin, Tennessee facility was mostly completed in the third quarter with operations to commence in the fourth quarter of 2025. The cost of both projects was at or below budget. These facilities are expected to improve our overall service, production efficiencies and safety in the workplace, as well as reduce our reliance on certain outsourced finished goods and component products. These facilities will help ensure we have ample capacity to meet our customer needs. These investments reinforce our core business model differentiators to remain the partner of choice as we continue to produce products locally and ensure superior levels of customer service.
Previous wording
Europe net sales decreased 1.0% for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, Wood construction product net sales decreased 0.9% for the six months ended June 30, 2025 compared to June 30, 2024 and concrete construction product net sales, which are mostly project based, decreased 1.6% over the same periods. Gross profit decreased $1.5 million primarily due to lower net sales as well as gross margins decreasing to 35.7% from 35.9% due to increased factory overhead, warehouse and labor costs, partially offset by lower material costs, as a percentage of net sales. Operating income increased $4.6 million and operating margin increased to 10.1% from 8.2%due to lower operating and integration expenses. We currently anticipate Europe 2025 results to be impacted by economic headwinds but also believe in the long term potential given Europe's on-going housing shortage (with an increasing use of wood construction) and new environmental regulations for which we have products and solutions.
Current wording
Europe net sales increased 2.9% for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, mostly due to favorable foreign currency translations, and increased 10.9% or $13.3 million for the three months ended September 30, 2025 compared to the same period in 2024, with approximately $8.1 million of the increase due to favorable foreign currency translation and remaining increase mostly due to increased sales volumes. Wood construction product net sales increased 1.6% for the nine months ended September 30, 2025 compared to September 30, 2024 and concrete construction product net sales, which are mostly project based, increased 8.2% over the same periods. Gross profit increased $5.2 million primarily due to higher net sales as well as gross margins increasing to 36.5% from 36.1% due to a decrease in material costs, as a percentage of net sales. Operating income increased $8.1 million and operating margin increased to 10.8% from 8.9%due to lower integration expenses and slightly lower operating expenses, negatively affected by foreign currency transactions. In local currency, operating expenses decreased by 3%. We currently anticipate Europe results for 2025 to be impacted by economic headwinds but also believe in the long term potential given Europe's on-going housing shortage (with an increasing use of wood construction) and new environmental regulations for which we have products and solutions.
Previous wording
•Consolidated operating margin is estimated to be in the range of 18.5% to 20.5% given the declining trends and projections for 2025 U.S. housing starts compared to the prior year and the current trade environment. The outlook reflects the previously announced price increases that went into effect on June 2, 2025. The operating margin range does not include any additional pricing actions in 2025 and includes a projected benefit of $12.0 million to $13.0 million from the sale of the original Gallatin, Tennessee facility based on a contracted sales price of $19.1 million.
Current wording
•Consolidated operating margin is estimated to be in the range of 19.0% to 20.0%, reflecting current market conditions and recent strategic initiatives. The outlook reflects the previously announced price increases that went into effect on June 2, 2025 and October 15, 2025 and includes a benefit of $12.9 million from the sale of the existing Gallatin, Tennessee facility as well as non-recurring severance costs related to the strategic cost savings initiatives of approximately $9.0 to $12.0 million.
Previous wording
•The effective tax rate is estimated to be in the range of 25.5% to 26.5%, including both federal and state income tax rates as well as international income tax rates, and assuming no tax law changes are enacted.
Current wording
•The effective tax rate is estimated to be in the range of 25.5% to 26.5%, incl uding both federal and state income tax rates as well as international income tax rates, and assumes minimal impact from recently passed tax legislation.
Previous wording
•Capital expenditures are estimated to range between $140.0 and $160.0 million, which includes approximately $70.0 million to $75.0 million remaining for both the Columbus, Ohio facility expansion and the new Gallatin, Tennessee facility construction.
Current wording
•Capital expenditures are now estimated to be in the range of $150.0 million to $160.0 million, which includes approximately $75.0 million to $80.0 million remaining for both the Columbus, Ohio facility expansion and the new Gallatin, Tennessee facility construction.
Previous wording
Unless otherwise stated, the below results, when providing comparisons (which are generally indicated by words such as “increased,” “decreased,” “unchanged” or “compared to”), compare the results of operations for the three months ended June 30, 2025, against the results of operations for the three months ended June 30, 2024. Unless otherwise stated, the results announced below, when referencing “both quarters,” refer to the three months ended June 30, 2024 and the three months ended June 30, 2025. In the first quarter of 2025, the Company reclassified certain engineering costs related to the Company's digital efforts from research and development and engineering expense as well as selling expense to general and administrative expense. The financial results of prior three months ended June 30, 2024 were revised to reflect these changes with $2.8 million of costs being reclassified from research and development expenses and $1.4 million from selling expense to general and administrative expense. The reclassification did not have any impact on the total operating expenses.
Current wording
Unless otherwise stated, the below results, when providing comparisons (which are generally indicated by words such as “increased,” “decreased,” “unchanged” or “compared to”), compare the results of operations for the three months ended September 30, 2025, against the results of operations for the three months ended September 30, 2024. Unless otherwise stated, the results announced below, when referencing “both quarters,” refer to the three months ended September 30, 2024 and the three months ended September 30, 2025. In the first quarter of 2025, the Company reclassified certain engineering costs related to the Company's digital efforts from research and development and engineering expense as well as selling expense to general and administrative expense. The financial results of prior three months ended September 30, 2024 were revised to reflect these changes with $3.1 million of costs being reclassified from research and development expenses and $1.6 million from selling expense to general and administrative expense. The reclassification did not have any impact on the total operating expenses.
Previous wording
Second Quarter 2025 Consolidated Financial Highlights
Current wording
Third Quarter 2025 Consolidated Financial Highlights
Previous wording
Net sales increased 5.7% to $631.1 million from $597.0 million. Wood construction product sales, including sales of connectors, truss plates, fastening systems, fasteners and shearwalls, represented 84.9% and 85.5% of the Company's total sales in the second quarters of 2025 and 2024, respectively. Concrete construction product sales, including sales of adhesives, chemicals, mechanical anchors, powder actuated tools and reinforcing fiber materials, represented 15.0% and 14.5% of the Company's total sales in the second quarters of 2025 and 2024, respectively.
Current wording
Net sales increased 6.2% to $623.5 million from $587.2 million. Wood construction product sales, including sales of connectors, truss plates, fastening systems, fasteners and shearwalls, represented 84.1% and 85.1% of the Company's total sales in the third quarters of 2025 and 2024, respectively. Concrete construction product sales, including sales of adhesives, chemicals, mechanical anchors, powder actuated tools and reinforcing fiber materials, represented 15.7% and 14.8% of the Company's total sales in the third quarters of 2025 and 2024, respectively.
Previous wording
Gross profit increased 5.7% to $294.5 million from $278.5 million primarily due to higher net sales on flat gross margins of 46.7%. From a product perspective, gross margin decreased to 47.1% from 47.2% for wood construction products and decreased to 45.0% from 47.5% for concrete construction products, respectively.
Current wording
Gross profit increased 5.2% to $289.3 million from $275.1 million primarily due to higher net sales while gross margins decreased to 46.4% from 46.8%. From a product perspective, gross margin slightly decreased to 46.2% from 46.3% for wood construction products and decreased to 48.0% from 49.8% for concrete construction products, respectively.
Previous wording
Our effective income tax rate decreased to 25.8%from 26.3%.
Current wording
Our effective income tax rate decreased to 25.3% from 26.1%.
Previous wording
Consolidated net incomewas $103.5 million compared to $97.8 million. Diluted earnings per share was $2.47 compared to $2.31.
Current wording
Consolidated net incomewas $107.4 million compared to $93.5 million. Diluted earnings per share was $2.58 compared to $2.21.
Previous wording
Adjusted EBITDA 1 of $159.9 million increased 4.8% compared to $152.6 million, primarily due to higher gross profits.
Current wording
Adjusted EBITDA 1 of $155.3 million increased 4.5% compared to $148.6 million, primarily due to higher gross profits.
Previous wording
•Net sales increased 6.4%, primarily due to price increases that took effect in June 2025 and incremental sales from the Company's 2024 acquisitions.
Current wording
•Net sales increased 4.8%, primarily due to price increases that took effect in June 2025 and incremental sales from the Company's 2024 acquisitions, partially offset by a decrease in sales volume of 2.5% (volume is based on pounds shipped and excludes software, service and equipment sales).
Previous wording
•Gross margin decreased to 49.8% from 50.0%, primarily due to higher warehouse costs, as a percentage of net sales.
Current wording
•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.
Previous wording
•General and administrative expense increased 15.0%, primarily due to increases of $1.8 million in depreciation and amortization, $1.7 million in professional fees, $1.6 million in variable compensation and $1.1 million in personnel costs.
Current wording
•General and administrative expense increased 14.8%, primarily due to increases of $1.8 million in variable compensation and $1.1 in depreciation and amortization expenses.
Previous wording
•Income from operations increased by $4.4 million due to the factors discussed above.
Current wording
•Income from operations increased by $1.9 million due to the factors discussed above.
Previous wording
•Gross margin increased to 36.2% from 35.4%, primarily due to lower material costs, partly offset by an increase in factory overhead, as a percentage of net sales.
Current wording
•Gross margin increased to 37.9% from 36.6%, primarily due to lower material costs, as a percentage of net sales.
Previous wording
Results of Operations for the Six Months Ended June 30, 2025, Compared with the Six Months Ended June 30, 2024
Current wording
Results of Operations for the Nine Months Ended September 30, 2025, Compared with the Nine Months Ended September 30, 2024
Previous wording
Unless otherwise stated, the results announced below, when providing comparisons (which are generally indicated by words such as “increased,” “decreased,” “unchanged” or “compared to”), compare the results of operations for the six months ended June 30, 2025, against the results of operations for the six months ended June 30, 2024. Unless otherwise stated, the results announced below, when referencing “both periods,” refer to the six months ended June 30, 2024 and the six months ended June 30, 2025. In the first quarter of 2025, the Company reclassified certain engineering costs related to the Company's digital efforts from research and development and engineering expense as well as selling expense to general and administrative expense. The financial results of prior six months ended June 30, 2024, were revised to reflect these changes with $5.4 million of costs being reclassified from research and development expenses and $2.7 million from selling expense to general and administrative expense. The reclassification did not have any impact on the total operating expenses.
Current wording
Unless otherwise stated, the results announced below, when providing comparisons (which are generally indicated by words such as “increased,” “decreased,” “unchanged” or “compared to”), compare the results of operations for the nine months ended September 30, 2025, against the results of operations for the nine months ended September 30, 2024. Unless otherwise stated, the results announced below, when referencing “both periods,” refer to the nine months ended September 30, 2024 and the nine months ended September 30, 2025. In the first quarter of 2025, the Company reclassified certain engineering costs related to the Company's digital efforts from research and development and engineering expense as well as selling expense to general and administrative expense. The financial results of prior nine months ended September 30, 2024, were revised to reflect these changes with $8.5 million of costs being reclassified from research and development expenses and $4.3 million from selling expense to general and administrative expense. The reclassification did not have any impact on the total operating expenses.
Previous wording
Year-to-Date (6-month) 2025 Consolidated Financial Highlights
Current wording
Year-to-Date (9-months) 2025 Consolidated Financial Highlights
Previous wording
The following table illustrates the differences in our operating results for the six months ended June 30, 2025, from the six months ended June 30, 2024, and the increases or decreases for each category by segment:
Current wording
The following table illustrates the differences in our operating results for the nine months ended September 30, 2025, from the nine months ended September 30, 2024, and the increases or decreases for each category by segment:
Previous wording
Net sales increased 3.8% to $1,170.0 million from $1,127.6 million driven by incremental sales from the Company's 2024 acquisitions and price increases that took effect in June 2025, partly offset by an overall decrease in sales volumes. Wood construction product sales represented 85.1% and 85.3% of the Company's total sales in the first six months of 2025 and 2024. Concrete construction product sales represented 14.7% and 14.6%of the Company's total sales in the first six months of 2025 and 2024.
Current wording
Net sales increased 4.6% to $1,793.5 million from $1,714.7 million driven by price increases that took effect in June 2025, positive effect of approximately $8.4 million in foreign currency translation, and incremental sales from the Company's 2024 acquisitions, partly offset by an overall decrease in sales volumes. Wood construction product sales represented 84.8% and 85.2% of the Company's total sales in the first nine months of 2025 and 2024. Concrete construction product sales represented 15.0% and 14.7%of the Company's total sales in the first nine months of 2025 and 2024.
Previous wording
Gross profit increased 4.5% to $546.5 million from $523.1 million. Gross margins increased to 46.7% from 46.4%. The increase is due to lower material costs for the Company overall. Gross margins increased to 46.9% from 46.2% for wood construction products and decreased to 47.0% from 47.1% for concrete construction products.
Current wording
Gross profit increased 4.7% to $835.8 million from $798.2 million. Gross margins remained relatively flat. Gross margins increased to 46.5% from 46.2% for wood construction products and decreased to 47.3% from 48.0% for concrete construction products.
Previous wording
Selling expense increased to $110.6 million from $107.8 million, primarily due to increases of $4.8 million in personnel costs, $1.3 million in variable compensation, partially offset by decreases of $1.2 million in advertising and trade shows costs and $1.0 million in travel related costs.
Current wording
Selling expense increased to $166.7 million from $160.8 million, primarily due to increases of $6.7 million in personnel costs, $2.9 million in variable compensation and $1.4 million inseverance costs partly related tostrategic cost savings initiatives, partially offset by decreases of $2.5 million in advertising and trade shows costs and $1.1 million in travel related costs.
Previous wording
Oureffective income tax rate increased to 25.6% from 25.0%.
Current wording
Oureffective income tax rate increased to 25.5% from 25.4%.
Previous wording
Consolidated net incomewas $181.4 million compared to $173.3 million. Diluted earnings per share was $4.33 compared to $4.07.
Current wording
Consolidated net incomewas $288.9 million compared to $266.8 million. Diluted earnings per share was $6.89 compared to $6.28.
Previous wording
Adjusted EBITDA 1 of $281.7 million increased 4.4% compared to $269.9 million primarily due to higher gross profits.
Current wording
Adjusted EBITDA 1 of $437.2 million increased 4.3% compared to $419.3 million primarily due to higher gross profits.
Previous wording
The following table represents net sales by segment for the six-month periods ended June 30, 2024 and 2025:
Current wording
The following table represents net sales by segment for the nine-month periods ended September 30, 2024 and 2025:
Previous wording
The following table represents segment sales as percentages of total net sales for the six-month periods ended June 30, 2024 and 2025, respectively:
Current wording
The following table represents segment sales as percentages of total net sales for the nine-month periods ended September 30, 2024 and 2025, respectively:
Previous wording
The following table represents gross profit (loss) by segment for the six-month periods ended June 30, 2024 and 2025:
Current wording
The following table represents gross profit (loss) by segment for the nine-month periods ended September 30, 2024 and 2025:
Previous wording
The following table represents gross margins by segment for the six-month periods ended June 30, 2024 and 2025:
Current wording
The following table represents gross margins by segment for the nine-month periods ended September 30, 2024 and 2025:
Previous wording
•Selling expense increased 5.2%, primarily due to increases of $4.7 million in personnel costs and $1.5 million in variable compensation, partially offset by decreases of $0.9 million in advertising and trade shows expenses and $0.8 million in travel related expenses.
Current wording
•Selling expense increased 5.7%, primarily due to increases of $7.1 million in personnel costs, $2.5 million in variable compensation, and $1.1 million in professional fees, partially offset by decreases of $2.1 million in advertising and trade shows expenses and $1.0 million in depreciation and amortization expenses.
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Current report — wording carried from elsewhere
As previously announced, we increased prices as of June 2, 2025 on certain wood connectors, fasteners and mechanical anchors in the U.S., and increased prices as of October 15, 2025 on certain fasteners and mechanical anchors in the U.S. We believe