Simpson’s third quarter results came in ahead of Wall Street’s revenue and earnings expectations, but the market responded negatively, reflecting ongoing concerns about demand in housing and construction sectors. Management attributed the company’s sales growth to a June price increase and favorable foreign exchange, while acknowledging that North American volumes declined due to lower housing starts, particularly in the South and West. CEO Michael Olosky noted, “Our growth reflects the ability of our business model to navigate a challenging macroeconomic environment even as residential housing markets in the U.S. and Europe remain soft.”

Is now the time to buy SSD? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Simpson’s Q3 Earnings Call

• Dan Moore (CJS Securities) asked about the breakdown of organic volume declines versus pricing contributions; CFO Matt Dunn clarified that volume was down about 1% globally and 1.4% year-to-date in North America.
• Dan Moore (CJS Securities) questioned whether the $30 million in cost savings would be used for bottom line improvement or reinvested; CEO Michael Olosky confirmed the savings are aimed primarily at maintaining the 20% operating margin target.
• Timothy Wojs (Baird) inquired about the gross margin impact from tariffs and the opening of the Gallatin facility; Dunn explained that about 80% of tariff impact is already realized, and Gallatin’s impact will unfold gradually as in-sourcing ramps up.
• Kurt Yinger (D.A. Davidson) sought details on the timing and allocation of cost savings; Dunn said most savings will be realized in 2026, with over 90% from SG&A reductions.
• Timothy Wojs (Baird) asked about the expected pricing carryover into next year; management estimated $30–35 million in carryover pricing into 2026 from recent actions.

Catalysts in Upcoming Quarters

In the quarters ahead, the StockStory team will closely monitor (1) the pace of cost savings realization and SG&A reductions, (2) the impact of new price increases on offsetting tariff and input cost pressures, and (3) stabilization or improvement in North American housing volumes—especially in regions with higher Simpson product content. Execution on new product launches and the ability to hold operating margins above 20% will also be key indicators.

Simpson currently trades at $176, in line with $175.81 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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