Simpson Manufacturing Company, Inc.

Greetings, and welcome to the Simpson Manufacturing Company fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. Any question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kim Rolando, for Vesta Relations. Thank you, Kim. You may begin.

Good afternoon, ladies and gentlemen, and welcome to Simpson Manufacturing Company's fourth quarter and full year 2025 earnings conference call. Any statements made on this call that are not statements of historical fact are forward-looking statements. Such statements are based on certain estimates and expectations and are subject to a number of risks and uncertainties. Actual future results may vary materially from those expressed or implied by the forward-looking statements. We encourage you to read the risks described in the company's public filings and reports, which are available on the SEC's or the company's corporate website. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements that we make here today, whether as a result of new information, future events, or otherwise. On this call, we will also refer to non-GAAP measures such as adjusted EBITDA, which is reconciled to the most comparable GAAP measure of net income in the company's earnings press release. Please note that the earnings press release was issued today at approximately 4.15 p.m. Eastern Time. The earnings press release is available on the Investor Relations page of the company's website at ir.simsimmfg.com. Today's call is being webcast and a replay will also be available on the investor relations page of the company's website. Now, I would like to turn the conference over to Mike Oloski, Simpson's President and Chief Executive Officer.

Thanks, Kim. Good afternoon, everyone, and thank you for joining today's call. I'm joined by Matt Dunn, our Chief Financial Officer. This afternoon, I'll begin with an overview of our 2025 performance, a review of trends across our end markets, and an update on our strategic priorities. That will follow with a deeper dive into our financial results and our fiscal 2026 outlook. Before we start, I want to highlight that for the second consecutive year, we achieved a total recordable incident rate of less than 1.0, our best result in company history. We also saw a meaningful reduction in lost time injuries and a decrease in incident severity. We are extremely proud of our employees for keeping safety at the forefront of everything we do. Their commitment demonstrates the values that define Simpson above all that everybody matters. Now turning to our results, I'm pleased to report full year 2025 net sales of $2.3 billion, up 4.5% from 2024 in a challenging market. As outlined in our investor presentation, approximately 3% of this growth came from pricing, 1% from acquisitions, and 1% from foreign exchange. These gains were partially offset by approximate 1% decline in volume due to weaker housing starts. Historically, our volume metrics focused on North American unit sales measured in pound shift, which did not capture the growing contributions from our more premium offerings, including software, services, and equipment. We believe this revenue bridge provides a more complete view of our consolidated business. In North America, full-year net sales were $1.8 billion, up 4.5% from prior year, including an approximate $60 million benefit from pricing actions. North American volumes were down year-over-year, pressured by lower housing starts at a more challenging regional mix with the most pronounced declines in the southern and western United States, where our content per unit is typically higher due to stronger building codes. Even with these headwinds, our focus on innovation, customer service, and operational excellence continue to drive solid performance. We continue to win business in soft markets, demonstrating the resilience of our portfolio and the value we deliver to our customers. As we look at full-year results across North American end markets, performance was mixed by market segment, but we saw encouraging developments across several parts of the business. The OEM business delivered a strong year with volume of double digits. We saw particularly strong growth with off-site construction manufacturers and mass timber projects, where our products and support model are a great fit for complex applications with high performance requirements. We succeed by combining innovative products that meet demanding load requirements and improve ease of installation with deep technical and field support throughout the project lifecycle. Although OEM remains a smaller part of our portfolio today, we believe we are growing well above market and see substantial runway for continued expansion. The component manufacturing business continues to grow with volumes up in the low single digits driven by new customer acquisitions and expanded capabilities, including software. We continue to convert new customers to our software and trust plate solutions with growth supported by our design services and a broader solution set. As a reminder, CS Producer, our cloud-based trust production management software announced last quarter, represents an important milestone in our digital roadmap, extending our capabilities beyond design into production planning and daily operations. In addition, our Monet to Saw acquisition continues to perform well in a challenging market, strengthening our equipment offering and deepening customer relationships. Together, these capabilities position us well to capitalize on what we view as one of our most attractive long-term growth opportunities. In our commercial business, 2025 volumes were essentially flat year-over-year in a commercial market that was down mid-single digits. We saw strong growth in cold-formed steel and anchoring products, supported by our takeoff service that streamlines design and procurement for customers. We are also seeing increased adoption of our third-generation anchoring pieces, which deliver reliable performance across a wide range of applications and conditions, backed by our testing, code evaluation, and engineering expertise. Our residential business volume declined modestly, reflecting continued challenging market conditions, particularly in the West and the South. We continue to expand our digital solutions with LLBM and builder customers, partnering with them to improve efficiency across estimating design and project workflows, further reinforcing our value proposition to our customers. We also saw steady growth in our multifamily business, supported by increased quoting activity. In single family, we strengthened our competitive position by securing multi-year renewals and new national contracts with key builders. These wins highlight the strength of our supply chain network, proximity to customers, and the value of our digital and technical capabilities. With programs now in place with 25 of the top 30 U.S. national builders, we are well positioned as the residential market recovers. Our national retail business saw a mid-single-digit decline in shipments versus 2024, while point-of-sale volume performance declined in the low single-digits. This was driven in part by regional differences and a difficult comparison to new product listings and expanded retail space we secured in late 2024. Throughout the year, we focused on bay expansion programs with our largest retail partners. We also expanded our decorative hardware portfolio with the launch of the outdoor accent sage system, now testing in select markets. Our emphasis on customer service, disciplined execution, merchandising support, and in-market testing continues to strengthen our retail partnerships and positions us well for ongoing growth. In Europe, four-year net sales totaled $499.6 million, up 4.3% year-over-year, which was up slightly on a local currency basis. Mines outperformed the market and were slightly higher compared to 2024. Our consolidated gross margin was relatively flat year-over-year at 45.9%. As previously discussed, our 2025 price increases, which we expect will contribute at least $100 million in annualized net sales, helped offset increased costs, including those attributed to tariffs. Our 2025 operating margin was 19.6%, up 30 basis points year over year, which included approximately $13.1 million in strategic cost savings initiatives and footprint optimization costs. Our 2025 operating margin also included a $12.9 million gain from the sale of our Gallatin, Tennessee facility, adjusted EBIT a total of $544.3 million, a 3.3% increase year over year. Next, I'd like to detail the progress we made on our financial ambitions in 2025, which will guide our strategy throughout 2026. First, continuing above-market volume growth relative to U.S. housing starts. Since roughly half of our business remains tied to U.S. housing starts, this continues to be the most accurate benchmark for evaluating our volume performance. While the government shutdown delayed the release of official housing starts data from the Census Bureau, we will resume this comparison once it becomes available. That said, we continue to monitor starts estimates from multiple sources. Based on those benchmarks, we believe our consolidated volumes of down 1% in 2025 slightly outperformed an expected average market decline in the single digits. Second, maintaining an operating income margin at or above 20%. We made good progress in 2025 despite the down markets, adding 30 basis points to our operating income margin, narrowing the gap to our 20% target, even with housing starts being down approximately 500 basis points versus our initial market forecast. And third, as a growth-focused company with industry-leading margins, we believe we can consistently drive EPS growth ahead of net sales growth. In 2025, EPS growth outpaced revenue by 390 basis points, highlighting the leverage in our model and the durability of our margin profile. In summary, 2025 was a year of strong execution despite continued softness in U.S. and European housing markets. We maintained an exceptional 98% product delivery fill rate and customer satisfaction remained high, contributing to eight major awards recognizing our service and product innovation. We make progress by launching new products, bringing new manufacturing capabilities online, expanding our warehouse footprint, and strengthening our digital capabilities. Combined with our pricing actions, cost savings initiatives, and new business wins, we believe we are well positioned for continued success. Looking ahead to 2026, we believe we can continue above-market volume growth relative to U.S. housing starts, which we expect will be relatively flat year-over-year with continued challenging regional mixed headwinds. In Europe, we expect slight growth in the market in 2026. I'd also like to highlight that 2026 marks a special milestone for Simpson Strong-Thai as we celebrate 70 years of growth and innovation. Since our founding in 1956 by Bark Simpson, our company has been defined by a spirit of problem-solving, integrity, and unwavering commitment to building safer, stronger structures. What began with a single joist hanger has grown into a global portfolio of trusted solutions backed by advanced technology, rigorous testing, and a team dedicated to excellence. We're proud to honor the legacy that brought us here while continuing to build our future together with our employees, customers, and partners. as we break new ground for the next generation. With that, I'd like to turn the call over to Matt, who will discuss our financial results and outlook in greater detail.