What Did Simpson Manufacturing (NYSE:SSD) Report Alongside Its New $1.0 Billion Buyback?

Sonal Goyal

28 October 2026 12:12 AM AEDT

What Did Simpson Manufacturing (NYSE:SSD) Report Alongside Its New $1.0 Billion Buyback?

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Key Highlights

Net sales reached $638.1 million, up 2.3%, with diluted earnings per share of $2.68, up 3.9%.
The board approved a $1.0 billion repurchase authorization, replacing the prior $200.0 million program.
The company repurchased $66.3 million of stock in the quarter and declared a $0.30 per share dividend.
Updated 2026 outlook calls for an operating margin of 20.0% to 20.5% and capital spending of $80.0 million to $90.0 million.

Simpson Manufacturing Co., Inc. (NYSE:SSD), the Pleasanton, California-based maker of engineered structural connectors and building solutions, reported third-quarter 2026 results on October 26, 2026. In a separate announcement the same day, the company said its board had approved a new $1.0 billion share repurchase authorization, effective October 22, 2026, with no expiration date.

Third-Quarter Results and Segments

Net sales rose 2.3% to $638.1 million from $623.5 million a year earlier. The gross margin eased to 45.7% from 46.1%. Income from operations was $141.0 million, up 0.2%, with an operating margin of 22.1% against 22.6%.

Net income was $109.1 million, up 1.6%, and diluted earnings per share were $2.68 compared with $2.58. Adjusted EBITDA, a non-GAAP measure, was $167.2 million, up 7.4%. Nine-month diluted earnings per share were $7.90 versus $6.89. President and CEO Mike Olosky said pricing actions supported sales while global volumes stayed relatively flat.

The North America segment recorded net sales of $502.0 million, up 3.8%, with income from operations of $137.0 million, up 9.5%. Europe net sales fell 3.4% to $129.9 million on lower unit volumes.

At September 30, 2026, cash and cash equivalents stood at $491.3 million, with $308.0 million of debt outstanding under the $900 million credit facility. Operating cash flow was $173.1 million.

Buyback, Dividend and Guidance

The new authorization supersedes the prior $200.0 million program. Through September 30, it had repurchased about $165 million of stock under that program, including 352,346 shares in the third quarter at an average of $188.25, or $66.3 million. The company is not obligated to buy any set amount.

The board also declared a quarterly dividend of $0.30 per share, about $12.1 million in aggregate, payable January 28, 2027 to holders of record on January 7, 2027. For 2026, the company now estimates an operating margin of 20.0% to 20.5%, including an expected $11.0 million gain on the Stockton, California land sale that closed in the fourth quarter, and capital expenditures of $80.0 million to $90.0 million.

Why This Could Matter

The repurchase authorization is five times the size of the program it replaces, and the company described it as part of a capital allocation approach that balances growth investment with returns to stockholders. Olosky also pointed to housing affordability pressures, higher steel costs and tighter steel availability as features of the near-term environment, and said additional pricing actions are expected in 2027.

Wrapping Up

Simpson Manufacturing reported modest sales growth and slightly lower margins for the quarter, alongside a larger repurchase authorization, a $0.30 dividend and a refreshed full-year outlook.

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