Simpson Manufacturing estimates 2026 consolidated operating margin at 19.7% to 20.5%
Company expects 2026 effective tax rate between 25.0% and 26.0%
Capital expenditures for 2026 projected at $80 mln to $90 mln
Overview
US structural connectors maker's Q2 sales rose 6.3% yr/yr, beating analyst expectations
Diluted EPS for Q2 rose 25% yr/yr
Company repurchased $48.7 mln in stock, increased buyback authorization by $50 mln
Result Drivers
Pricing actions - North America sales growth was driven primarily by price increases in response to tariffs and multiyear cost increases, partly offset by lower volumes tied to a softer market
Cost savings and settlement - Gross and operating margin expansion reflected lower material costs, cost savings initiatives, and a $5.5 mln eminent domain settlement
European sales and currency - Europe segment growth was supported by increased unit sales, price increases, and a positive $3.7 mln effect from foreign currency translation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Simpson Manufacturing Co Inc is $217.73, about 12.3% above its July 24 closing price of $193.88
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago
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