0001628280-26-032199
SEC filingSimpson Manufacturing delivered strong top- and bottom-line growth in Q1 FY2026, with revenue up 9.1% and net income up 13.3%, reflecting pricing power and disciplined cost management—though gross margin compression persisted amid tariff and input cost pressures.
Revenue for Q1 FY2026 totaled $587.96 million, an increase of 9.1% compared to $538.89 million in Q1 FY2025. The increase was primarily due to higher net sales and lower operating expenses, partially offset by increased cost of goods sold reflecting primarily the impact from tariffs and higher material costs, labor and factory and overhead costs, as a percentage of net sales. Gross profit was $265.89 million, up 5.5% year-over-year, resulting in a gross margin of 45.2%. This margin reflects the net effect of higher net sales but persistent cost pressures—including tariffs and elevated input costs—consistent with management’s observation that tariff and trade policy actions have impacted, and are expected to continue impacting, results of operations.
Net income for Q1 FY2026 was $88.22 million, an increase of 13.3% compared to $77.88 million in Q1 FY2025. Diluted earnings per share were $2.13, up 15.1% from $1.85 in the prior-year quarter. This improvement reflects the combined effect of revenue growth, operating expense discipline, and the absence of certain prior-year cost items—though no specific reconciliation of operating expense changes is quantified in the authoritative packet beyond the directional statement that operating expenses were lower overall.
Net cash provided by operating activities was $35.55 million in Q1 FY2026, a significant increase from $7.56 million in Q1 FY2025. Our operating cash flows are impacted by prevailing macro-economic conditions and subject to seasonality, which is cyclically associated with the volume and timing of construction project starts. Capital expenditures totaled $17.63 million, down from $50.17 million in Q1 FY2025. Free cash flow—the difference between operating cash flow and capital expenditures—was $17.92 million. These figures represent actual outflows and inflows for the period; no forward-looking statements about capital allocation intent, buyback execution, or dividend funding are supported by the authoritative financial or business context packets.
As noted in management discussion, the results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any future periods. Tariff and trade policy actions have impacted our results of operations and are expected to continue to do so. Changes in raw material cost could impact the amount of inventory on-hand and negatively affect gross profit and operating margins depending on the timing of raw material purchases or how much sales prices can be increased to offset any increases in raw material costs.