Simpson Manufacturing Sets Sights on Higher Margins for 2025

Published 1 hours agoSSD

Simpson Manufacturing Sets Sights on Higher Margins for 2025

Simpson Manufacturing Co., Inc. has announced its financial outlook for 2025, focusing on strategic investments to achieve a desired operating margin of 20%. The company is targeting an operating margin range between 18.5% and 20.5%, with the midpoint directly aligning with their goal. This projection is mindful of potential changes in U.S. housing starts compared to the prior year, according to Webull.

To support this margin goal, Simpson Manufacturing is planning capital expenditures between $150 million and $170 million. These funds will be primarily used for expanding the Columbus, Ohio facility and constructing a new fastener facility in Gallatin, Tennessee. Additionally, a projected $19.1 million gain from the sale of the Gallatin property is expected to boost the operating margin, as noted by Webull. The effective tax rate is estimated to range from 25.5% to 26.5%, which includes various levels of taxation.

The company expects the U.S. housing market to see modest recovery with low single-digit growth in housing starts, while European housing starts are anticipated to remain stable compared to 2024 levels. These initiatives aim to improve operational efficiency and profitability, assisting Simpson Manufacturing in meeting its financial objectives for 2025.

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