Simpson Manufacturing reaffirms 2025 outlook

Consolidated operating margin is estimated to be 18.5%-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. The operating margin range does not include any additional pricing actions in 2025 and includes a projected benefit of $12.0M-$13.0M from the sale of the original Gallatin, Tennessee facility based on a contracted sales price of $19.1M. 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 assumes minimal impact from recently passed tax legislation. Capital expenditures are now estimated to be $140.0M-$160.0M, which includes approximately $70.0M-$75.0M remaining for both the Columbus, Ohio facility expansion and the new Gallatin, Tennessee facility construction.