Simpson Manufacturing Co., Inc. 10-Q

Item 1. Financial Statements. Simpson Manufacturing Co., Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, unaudited) March 31, December 31, 2025 2024 2024 ASSETS Current assets Cash and cash equivalents $ 150,290 $ 369,122 $ 239,371 Trade accounts receivable, net 373,198 343,414 284,392 Inventories 618,784 555,745 593,175 Other current assets 61,973 60,473 59,383 Total current assets 1,204,245 1,328,754 1,176,321 Property, plant and equipment, net 568,503 437,429 531,655 Operating lease right-of-use assets 101,701 65,933 93,933 Goodwill 527,621 492,767 512,383 Intangible assets, net 381,079 352,527 375,051 Other noncurrent assets 39,807 44,536 46,825 Total assets $ 2,822,956 $ 2,721,946 $ 2,736,168 LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY Current liabilities Trade accounts payable $ 118,019 $ 102,997 $ 100,972 Accrued liabilities and other current liabilities 239,511 226,944 242,876 Long-term debt, current portion 22,500 22,500 22,500 Total current liabilities 380,030 352,441 366,348 Operating lease liabilities, net of current portion 82,913 52,051 76,184 Long-term debt, net of current portion and issuance costs 357,278 453,454 362,563 Deferred income tax 90,346 96,937 90,303 Other long-term liabilities 41,871 41,400 27,636 Total liabilities 952,438 996,283 923,034 Commitments and contingencies (Note 12) Non-qualified deferred compensation plan share awards 8,804 — 7,786 Stockholders’ equity Common stock, at par value 419 424 424 Additional paid-in capital 311,215 309,661 307,197 Retained earnings 1,611,095 1,440,165 1,646,568 Common stock held in non-qualified deferred compensation plan ("DCP") ( 1,284 ) — ( 1,297 ) Treasury stock ( 25,105 ) — ( 100,771 ) Accumulated other comprehensive loss ( 34,626 ) ( 24,587 ) ( 46,773 ) Total stockholders’ equity 1,861,714 1,725,663 1,805,348 Total liabilities, mezzanine equity, and stockholders’ equity $ 2,822,956 $ 2,721,946 $ 2,736,168 The accompanying notes are an integral part of these condensed consolidated financial statements 4 Simpson Manufacturing Co., Inc. and Subsidiaries Condensed Consolidated Statements of Earnings and Comprehensive Income (In thousands except per-share amounts, unaudited) Three Months Ended March 31, 2025 2024 Net sales $ 538,895 $ 530,579 Cost of sales 286,855 286,023 Gross profit 252,040 244,556 Operating expenses: Research and development and engineering expense 19,839 21,918 Selling expense 54,164 54,499 General and administrative expense 75,666 70,193 Total operating expenses 149,669 146,610 Acquisition and integration related costs 127 2,046 Net gain on disposal of assets ( 75 ) ( 198 ) Income from operations 102,319 96,098 Interest income, net and other finance costs 1,103 351 Other & foreign exchange gain, net 1,058 1,969 Income before taxes 104,480 98,418 Provision for income taxes 26,596 22,988 Net income $ 77,884 $ 75,430 Other comprehensive income Translation adjustment and other, net of tax 17,836 ( 19,642 ) Unamortized pension adjustments, net of tax 420 ( 73 ) Cash flow hedge adjustment, net of tax ( 6,109 ) 5,118 Comprehensive income $ 90,031 $ 60,833 Earnings per common share: Basic $ 1.86 $ 1.78 Diluted $ 1.85 $ 1.77 Weighted average shares outstanding Basic 41,846 42,386 Diluted 42,010 42,630 Cash dividends declared per common share $ 0.28 $ 0.27 The accompanying notes are an integral part of these condensed consolidated financial statements 5 Simpson Manufacturing Co., Inc. and Subsidiaries Condensed Consolidated Statements of Stockholders’ Equity (In thousands except per-share data, unaudited) Three Months Ended March 31, 2025 and 2024 Common Stock Additional Paid-in Retained Accumulated Other Comprehensive DCP Vested Treasury Shares Par Value Capital Earnings Loss Stock Stock Total Balance at December 31, 2024 41,878 $ 424 $ 307,197 $ 1,646,568 $ ( 46,773 ) $ ( 1,297 ) $ ( 100,771 ) $ 1,805,348 Net income — — — 77,884 — — — 77,884 Translation adjustment and other, net of tax — — — — 17,836 — — 17,836 Pension adjustment, net of tax — — — — 420 — — 420 Cash flow hedges, net of tax — — — — ( 6,109 ) — — ( 6,109 ) Stock-based compensation and deferred compensation plan ("DCP") expense — — 4,981 — — — — 4,981 Common stock held in DCP ( 15 ) — 87 — — ( 87 ) — — Distribution/ diversification of common stock held in DCP 1 — — — — 100 — 100 Change in redemption value of share awards in DCP — — — ( 833 ) — — — ( 833 ) Shares issued from release of Restricted Stock Units 64 1 ( 4,576 ) — — — — ( 4,575 ) Repurchase of common stock, including excise tax ( 147 ) — — — — — ( 25,105 ) ( 25,105 ) Retirement of common stock — ( 6 ) — ( 100,765 ) — — 100,771 — Cash dividends declared on common stock, $ 0.28 per share — — — ( 11,759 ) — — — ( 11,759 ) Common stock issued at $ 165.83 per share for stock bonus 21 — 3,526 — — — — 3,526 Balance at March 31, 2025 41,802 $ 419 $ 311,215 $ 1,611,095 $ ( 34,626 ) $ ( 1,284 ) $ ( 25,105 ) $ 1,861,714 Balance December 31, 2023 42,323 $ 426 $ 313,119 $ 1,426,554 $ ( 9,990 ) $ — $ ( 50,363 ) $ 1,679,746 Net income — — — 75,430 — — — 75,430 Translation adjustment and other, net of tax — — — — ( 19,642 ) — — ( 19,642 ) Pension adjustment, net of tax — — — — ( 73 ) — — ( 73 ) Cash flow hedges, net of tax — — — — 5,118 — — 5,118 Stock-based compensation expense — — 4,085 — — — — 4,085 Shares issued from release of Restricted Stock Units 119 1 ( 7,543 ) — — — — ( 7,542 ) Retirement of common stock — ( 3 ) — ( 50,360 ) — — 50,363 — Cash dividends declared on common stock, $ 0.27 per share — — — ( 11,459 ) — — — ( 11,459 ) Balance at March 31, 2024 42,442 $ 424 $ 309,661 $ 1,440,165 $ ( 24,587 ) $ — $ — $ 1,725,663 The accompanying notes are an integral part of these condensed consolidated financial statements 6 Simpson Manufacturing Co., Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In thousands, unaudited) Three Months Ended March 31, 2025 2024 Cash flows from operating activities Net income $ 77,884 $ 75,430 Adjustments to reconcile net income to net cash provided by operating activities: Gain on sale of assets and other ( 76 ) ( 198 ) Depreciation and amortization 19,193 19,189 Noncash lease expense 4,247 3,865 Release of acquisition related tax and legal contingency — ( 1,363 ) Loss in equity method investment, before tax 141 30 Deferred income taxes ( 1,256 ) ( 881 ) Noncash compensation related to stock plans and other changes in the fair value of DCP 6,598 5,346 Provision (recovery) for doubtful accounts 254 ( 416 ) Deferred hedge gain ( 897 ) ( 752 ) Changes in operating assets and liabilities, net of amounts acquired Trade accounts receivable ( 85,384 ) ( 61,254 ) Inventories ( 18,484 ) ( 9,055 ) Trade accounts payable 18,224 399 Other current assets ( 4,807 ) ( 12,758 ) Accrued liabilities and other current liabilities ( 5,100 ) ( 2,654 ) Other noncurrent assets and liabilities ( 2,974 ) ( 6,990 ) Net cash provided by operating activities 7,563 7,938 Cash flows from investing activities Capital expenditures ( 50,165 ) ( 39,412 ) Purchases of equity investments ( 187 ) ( 101 ) Proceeds from sale of property and equipment 250 142 Net cash used in investing activities ( 50,102 ) ( 39,371 ) Cash flows from financing activities Repurchase of common stock ( 25,000 ) — Issuance of common stock 3,526 — Proceeds from line of credits 1,768 1,262 Repayments of lines of credit and term loan ( 6,815 ) ( 7,088 ) Dividends paid ( 11,735 ) ( 11,430 ) Cash paid on behalf of employees for shares withheld ( 4,576 ) ( 7,544 ) Net cash used in financing activities ( 42,832 ) ( 24,800 ) Effect of exchange rate changes on cash ( 3,710 ) ( 4,467 ) Net decrease in cash and cash equivalents ( 89,081 ) ( 60,700 ) Cash and cash equivalents at beginning of period 239,371 429,822 Cash and cash equivalents at end of period $ 150,290 $ 369,122 Noncash activity during the period Noncash capital expenditures $ 9,081 $ 7,532 Dividends declared but not paid 11,758 11,459 Issuance of Company’s common stock for compensation 3,526 — The accompanying notes are an integral part of these condensed consolidated financial statements 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 1. Basis of Presentation Principles of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either the cost or the equity method. All significant intercompany transactions have been eliminated upon consolidation. Certain amounts in the Condensed Consolidated Financial Statements of the prior year have been reclassified to conform to the fiscal 2025 presentation. These reclassifications had no impact on the Company's Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Stockholders’ Equity or Condensed Consolidated Statements of Cash Flow. For the three months ended March 31, 2025, the Company reallocated some of the costs from “Research and development and engineering expense” and “Selling expense” to “General and administrative expense” within the Condensed Consolidated Statements of Earnings and Comprehensive Income. The change was made on a prospective basis and did not adjust operating results of prior periods. While this change impacts the comparability of the results for prior periods presented, the change did not have any impact on the total operating expenses. Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Management believes that these Condensed Consolidated Financial Statements include all normal and recurring adjustments necessary for a fair presentation under GAAP. Effective January 1, 2025, the Company changed its method of computing depreciation of Machinery and Equipment from accelerated methods to a straight-line method. The Company determined that the change in depreciation method is considered change in accounting estimate affected by a change in accounting principle. Accordingly, a change in accounting estimate affected by a change in accounting principle was applied prospectivel y. As a result of the change to the straight-line method, there is a $ 1.9 million reduction in depreciation expense and an estimated $ 1.4 million increase in net income, o r approximately $ 0.03 per basic and $ 0.03 per diluted share, for the three months ended March 31, 2025. Interim Reporting Period The accompanying unaudited quarterly Condensed Consolidated Financial Statements have been prepared in accordance with GAAP pursuant to the rules and regulations for reporting interim financial information and instructions on Form 10-Q. Accordingly, certain information and footnotes required by GAAP have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Form 10-K”). The unaudited quarterly Condensed Consolidated Financial Statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein in accordance with GAAP. The year-end Condensed Consolidated Balance Sheet data provided herein were derived from audited consolidated financial statements included in the 2024 Form 10-K, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. Accordingly, the results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any future periods. Cash and Cash Equivalents The Company classifies investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. 8 Current Estimated Credit Loss - Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts receivable for estimated future expected credit losses resulting from customers' failure to make payments on its accounts receivable. The Company determines the estimate of the allowance for doubtful accounts receivable by considering several factors, including (1) specific information on the financial condition and the current creditworthiness of customers, (2) credit rating, (3) payment history and historical experience, (4) aging of the accounts receivable, and (5) reasonable and supportable forecasts about collectability. The Company also reserves 100 % of the amounts deemed uncollectible due to a customer's deteriorating financial condition or bankruptcy. Every quarter, the Company evaluates the customer group using the accounts receivable aging report and its best judgment when considering changes in customers' credit ratings, level of delinquency, customers' historical payments and loss experience, current market and economic conditions, and expectations of future market and economic conditions. The changes in the allowance for doubtful accounts receivable for the three months ended March 31, 2025 are outlined in the table below: December 31, 2024 Expense (Deductions), net Write-Offs 1 March 31, 2025 Allowance for credit losses $ 2,998 254 73 $ 3,179 1 Amount is net of recoveries and the effect of foreign currency fluctuations. Fair Value of Financial Instruments Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between unrelated market participants. As such, fair value is a market-based measurement that is determined based on assumptions that unrelated market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified under a three-tier fair valuation hierarchy based on the observability of the inputs available in the market: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of trade accounts receivable, accounts payable, accrued liabilities and other current liabilities approximate fair value due to the short-term nature of these instruments. The fair values of the Company's investments and liabilities in the deferred compensation plan are classified as Level 1 within the fair value hierarchy, and are subject to investment risks. The fair values of interest rate and foreign currency contracts are classified as Level 2 within the fair value hierarchy. The fair values of the Company’s contingent consideration related to acquisition is classified as Level 3 within the fair value hierarchy, as this amount is based on unobservable inputs such as management estimates and entity-specific assumptions and are evaluated on an ongoing basis. The following tables summarize the financial assets and financial liabilities measured at fair value for the Company as of March 31, 2025 and 2024: 2025 2024 (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash equivalents (1) $ 21,901 $ — $ — $ 113,716 $ — $ — Derivative instruments - assets (3) — 22,936 — — 28,876 — Investment in deferred compensation plan (4) 1,065 — — — — — Liabilities Term loan due 2027 (2) — 382,500 — — 405,000 — Revolver due 2027 (2) — — — — 75,038 — Derivative instruments - liabilities (3) 20,910 — — 19,472 — Deferred compensation plan liabilities (4) 2,897 — — — — — Contingent considerations — — 5,400 — — 6,508 9 (1) The carrying amounts of cash equivalents, representing money market funds traded in an active market with relatively short maturities, are reported on the consolidated balance sheet as of March 31, 2025 and 2024 as a component of "Cash and cash equivalents". (2) The carrying amounts of our term loan and revolver approximate fair value as of March 31, 2025 and 2024 based upon their terms and conditions in comparison to debt instruments with similar terms and conditions available on the same date. (3) Derivatives for interest rate, foreign exchange and forward swap contracts are discussed in Note 7. (4) Non-qualified deferred compensation plan. Derivative Instruments The Company uses derivative instruments as a risk management tool to mitigate the potential impact of certain market risks. Foreign currency and interest rate risk are the primary market risks the Company manages through the use of derivative instruments, which are accounted for as cash flow hedges or net investment hedges under the accounting standards and carried at fair value as other current or noncurrent assets or as other current or other long-term liabilities. Assets and liabilities with the legal right of offset are not offset in the consolidated balance sheets. Net deferred gains and losses related to changes in fair value of cash flow hedges are included in accumulated other comprehensive income/loss (“OCI”), a component of stockholders' equity, and are reclassified into the line item in the Condensed Consolidated Statement of Earnings and Comprehensive Income in which the hedged items are recorded in the same period the hedged item affects earnings. The effective portion of gains and losses attributable to net investment hedges is recorded net of tax to OCI to offset the change in the carrying value of the net investment being hedged. Recognition in earnings of amounts previously recorded to OCI are limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. Changes in fair value of any derivatives that are determined to be ineffective are immediately reclassified from OCI into earnings. Deferred Compensation Plan The Company established a non-qualified deferred compensation plan ("DCP" or “the Plan”) in April 2023 for eligible employees and members of the Board of Directors. The Plan provides eligible participants the opportunity to defer and invest a specified percentage of their compensation, including the Company stock awards upon vesting. The Plan is a non-qualified plan that is informally funded by assets in a rabbi trust, which restricts the Company's use and access to the assets held but is subject to the claims of the Company's creditors in the event that the Company becomes insolvent. The amount of compensation to be deferred by participants are based on their own elections and are adjusted for any investment changes that the participants direct. This plan does not provide for employer contributions. The Plan permits diversification of vested shares (common stock) into other equity securities subject to a six-month holding period subsequent to vesting. Accounting for deferred common stock will be under either plan C or plan D. Accounting will depend on whether or not the employee has diversified the common stock. Under plan C, diversification is permitted but the employee has not diversified. Under plan D, diversification is permitted and the employee has diversified. For common stock that has not been diversified, the Company common stock held in the deferred compensation plan is classified in a manner similar to treasury stock and presented separately on the Condensed Consolidated Balance Sheets as Company's common stock held by the non-qualified deferred compensation plan. Common stock is recorded at fair value of the stock at the time it vested, subsequent changes in the value of the common stock is not recognized. The deferred compensation obligations are measured independently at fair value of the common stock with a corresponding charge or credit to compensation cost. Fair value is determined as the product of the common stock and the closing price of the stock each reporting period. Under plan D, assets held by the rabbi trust are subject to applicable GAAP. The deferred compensation obligation is measured independently at fair value of the underlying assets. The Company previously presented certain DCP transactions within existing financial statement line items of the condensed consolidated balance sheets and Condensed Consolidated Statement of Stockholders’ Equity for period ended March 31, 2024. The Company has reflected these DCP transactions in the accompanying Condensed Consolidated Balance Sheets and Condensed Consolidated Statement of Stockholders’ Equity for the periods ended March 31, 2025 and December 31, 2024 . The transactions resulted in reclassifying equity balances related to "Non-qualified deferred compensation plan share awards" as mezzanine equity for $ 8.8 million and they were combined with stock-based compensation expense in the Condensed Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2025 . The Company has evaluated the prior period reclassifications both qualitatively and quantitatively and has concluded that they have an immaterial impact on the periods presented. 10 Business Combinations and Asset Acquisitions Business combinations are accounted for under the acquisition method in accordance with ASC 805, Business Combinations. The acquisition method requires identifiable assets acquired and liabilities assumed and any noncontrolling interest in the business acquired be recognized and measured at fair value on the acquisition date, which is the date that the acquirer obtains control of the acquired business. The amount by which the fair value of consideration transferred as the purchase price exceeds the net fair value of assets acquired and liabilities assumed is recorded as goodwill. Acquisitions that do not meet the definition of a business under the ASC 805 are accounted for as an acquisition of assets, whereby all of the cost of the individual assets acquired and liabilities assumed, including certain transactions costs, are allocated on a relative fair value basis. Accordingly, goodwill is not recognized in an asset acquisition. Revenue Recognition Generally, the Company's revenue contract with a customer exists when (1) the goods are shipped, services are rendered, and the related invoice is generated, (2) the duration of the contract does not extend beyond the promised goods or services already transferred and (3) the transaction price of each distinct promised product or service specified in the invoice is based on its relative stated standalone selling price. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer at a point in time. The Company's shipping terms provide the primary indicator of the transfer of control. The Company's general shipping terms are Incoterm C.P.T. (F.O.B. shipping point), where the title, and risk and rewards of ownership transfer at the point when the products are no longer on the Company's premises. Other Incoterms are allowed as exceptions depending on the product or service being sold and the nature of the sale. The Company recognizes revenue based on the consideration specified in the invoice with a customer, excluding any sales incentives, discounts, and amounts collected on behalf of third parties (i.e., governmental tax authorities). Based on historical experience with the customer, the customer's purchasing pattern, and its significant experience selling products, the Company concluded that a significant reversal in the cumulative amount of revenue recognized would not occur when the uncertainty (if any) is resolved (that is, when the total amount of purchases is known). Contract liability is recorded when consideration is received from a customer and the Company has remaining unsatisfied performance obligations The Company presents taxes collected and remitted to governmental authorities on a net basis in the consolidated statements of operations. Additionally, all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer (e.g., sales, use, value added, and some excise taxes) are excluded from revenue. Refer to Note 2 for additional information. Leases The Company has operating leases for certain facilities, equipment, autos and data centers. As an accounting policy for short-term leases, the Company elected to not recognize a right-of-use (“ROU”) asset and liability if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on a straight-line basis over the full lease term. Stock-Based Compensation The Company recognizes stock-based compensation expense related to the estimated fair value of restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of three or four years . Stock-based compensation related to performance share grants are measured based on grant date fair value and expensed on a graded basis over the service period of the awards, which is generally a performance period of three years . The performance conditions are based on the Company's achievement of revenue growth and return on invested capital over the performance period, and are evaluated for the probability of vesting at the end of each reporting period with changes in expected results cumulatively recognized as an adjustment to expense. The assumptions used to calculate the fair value of restricted stock grants are evaluated and revised, as necessary, to reflect market conditions and the Company’s experience. Income Taxes Income taxes are calculated using an asset and liability approach. The provision for income taxes includes federal, state and foreign taxes currently payable, and deferred taxes due to temporary differences between the financial statement and tax bases of assets and liabilities. In addition, future tax benefits are recognized to the extent that realization of such benefits is more 11 likely than not. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period. Net Income Per Share Basic net income per common share is computed based on the weighted average number of common shares outstanding. Potentially dilutive shares are included in the diluted per-share calculations using the treasury stock method for all periods when the effect of their inclusion is dilutive. Accounting Standard Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update ("ASU") 2023-07, which aligns interim segment disclosure requirements with existing annual requirements and includes updates to segment reporting, most notably through enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker (“CODM”). The Company adopted the ASU for annual disclosures for the year ended December 31, 2024, and interim disclosures for the first quarter of 2025. The ASU is applied retrospectively to all prior periods presented in the accompanying unaudited consolidated financial statements, and it had no impact on the Company’s consolidated financial statements. Refer to Note 1 3 for more information. Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-09 requiring enhanced income tax disclosures. The ASU requires disclosure of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The requirements of the ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied on a prospective basis. Retrospective application is permitted. The Company is continuing to analyze the requirements and expects immaterial impact of the ASU on its Condensed Consolidated Financial Statements. In November 2024, the FASB issued ASU 2024-03 requiring public companies to disclose, in interim and reporting periods, additional information about certain expenses in the financial statements. The ASU is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and is effective on either a prospective basis or retrospective basis. The Company is currently assessing the potential impacts of adoption on the consolidated financial statements. The Company does not believe other new accounting pronouncements issued by the FASB that have not become effective will have a material impact on its Condensed Consolidated Financial Statements. 2. Revenue from Contracts with Customers Disaggregated revenue The Company disaggregates net sales into the following major product groups as described in its segment information included in these interim financial statements under Note 1 3. Wood Construction Products Revenue . Wood construction products represented approximately 85.3 % and 85.1 % of total net sales for the three months ended March 31, 2025 and 2024, respectively. Concrete Construction Products Revenue. Concrete construction products represented approximately 14.4 % and 14.8 % of total net sales for the three months ended March 31, 2025 and 2024 respectively. Customer acceptance criteria. Generally, there are no customer acceptance criteria included in the Company's standard sales agreement with customers. When an arrangement with the customer does not meet the criteria to be accounted for as a revenue contract under the standard, the Company recognizes revenue in the amount of nonrefundable consideration received when the Company has transferred control of the goods or services and has stopped transferring (and has no obligation to transfer) 12 additional goods or services. The Company offers certain customers discounts for paying invoices ahead of the due date, which are generally 30 to 60 days after the issue date. Other revenue . Service sales, representing after-market repair and maintenance, engineering activities and software license sales and services were less than 0.5 % of total net sales and recognized as the services are completed or by transferring control over a product to a customer at a point in time. Services may be sold separately or in bundled packages. The typical contract length for services is generally less than one year. For bundled packages, the Company accounts for individual services separately when they are distinct within the context of the contract. A distinct service is separately identifiable from other items in the bundled package if a customer can benefit from it on its own or with other resources that are readily available to the customer. The consideration (including any discounts) is allocated between separate services in a bundle based on their stand-alone selling prices. The stand-alone selling prices are determined based on the prices at which the Company separately sells the services. Reconciliation of contract balances Contract assets are the right to receive consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditional on something other than the passage of time. Contract liabilities are recorded for any services billed to customers and not yet recognizable if the contract period has commenced or for the amount collected from customers in advance of the contract period commencing. Contract liabilities consist of billings in excess of costs and earnings and other deferred revenue on cancellable contracts. The time period between when consideration was received to when performance obligations are complete may not be significant. As of March 31, 2025 and 2024, the Company's contract liability was $ 7.2 million and immaterial, respectively. The Company recognized revenue of $ 3.0 million during the period ended March 31, 2025. The Company had no material contract assets from contract with customers. 3. Net Income per Share The following shows a reconciliation of basic net earnings per share ("EPS") to diluted EPS: Three Months Ended March 31, (in thousands, except per share amounts) 2025 2024 Net income available to common stockholders $ 77,884 $ 75,430 Basic weighted-average shares outstanding 41,846 42,386 Dilutive effect of potential common stock equivalents 164 244 Diluted weighted-average shares outstanding 42,010 42,630 Net earnings per common share: Basic $ 1.86 $ 1.78 Diluted $ 1.85 $ 1.77 4. Stock-Based Compensation The Company currently maintains the Simpson Manufacturing Co., Inc. Amended and Restated 2011 Incentive Plan (the “2011 Plan”) as its only equity incentive plan. Under the 2011 Plan, no more than 16.3 million shares of the Company’s common stock in aggregate may be issued, including shares already issued pursuant to prior awards granted under the 2011 Plan. Shares of the Company's common stock underlying awards to be issued pursuant to the 2011 Plan are registered under the Securities Act. Under the 2011 Plan, the Company may grant restricted stock, restricted stock units, and stock options. The Company currently intends to award only performance-based stock units ("PSUs") and/or time-based restricted stock units ("RSUs"). The Company allocates stock-based compensation expense amongst cost of sales, research and development and other engineering expense, selling expense, or general and administrative expense based on the job functions performed by the employees to whom the stock-based compensation is awarded. Stock-based compensation capitalized in inventory was 13 immaterial for all periods presented. The Company recognized stock-based compensation expense related to its equity plans for employees of $ 6.5 million and $ 5.3 million for the three months ended March 31, 2025 and 2024, respectively. During the three months ended March 31, 2025, the Company granted an aggregate of 110 thousand RSUs and PSUs to the Company's employees, including officers at an estimated weighted average fair value of $ 166.60 per share based on the closing price (adjusted for certain market factors primarily the present value of dividends) of the Company's common stock on the grant date. The RSUs and PSUs granted to the Company's employees may be time-based, performance-based, or time and performance-based. Certain of the PSUs are granted to officers and key employees, where the number of performance-based awards to be issued is based on the achievement of certain Company performance criteria established in the award agreement over a cumulative three year period. These awards cliff vest after three years . In addition, these same officers and key employees also receive time-based RSUs, which vest pursuant to a three-year graded vesting schedule. Time-based RSUs are granted to the Company's employees excluding officers and certain key employees, vest ratably over the four year vesting-term of the award. As of March 31, 2025, the Company's aggregate unamortized stock compensation expense was approximately $ 37.5 million which is expected to be recognized in expense over a weighted-average period of 2.5 years. 5. Trade Accounts Receivable, net Trade accounts receivable consisted of the following: As of March 31, As of December 31, (in thousands) 2025 2024 2024 Trade accounts receivable $ 381,725 $ 350,622 $ 291,480 Allowance for credit losses ( 3,179 ) ( 2,927 ) ( 2,998 ) Allowance for sales discounts and returns ( 5,348 ) ( 4,281 ) ( 4,090 ) $ 373,198 $ 343,414 $ 284,392 6. Inventories The components of inventories are as follows: As of March 31, As of December 31, (in thousands) 2025 2024 2024 Raw materials $ 206,466 $ 165,152 $ 207,818 In-process products 60,059 57,058 57,627 Finished products 352,259 333,535 327,730 $ 618,784 $ 555,745 $ 593,175 7. Derivative Instruments The Company enters into derivative instrument agreements, including forward foreign currency exchange contracts, interest rate swaps, and cross currency swaps to manage risk in connection with changes in foreign currency and interest rates. The Company hedges committed exposures and does not engage in speculative transactions. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit. As of March 31, 2025, the aggregate notional amount of the Company's outstanding interest rate contracts, cross currency swap contracts and EUR forward contract were $ 382.5 million, $ 401.0 million and $ 321.7 million, respectively. Changes in fair value of any forward contracts that are determined to be ineffective are immediately reclassified from OCI into earnings. There were no amounts recognized due to ineffectiveness during the three months ended March 31, 2025 and March 31, 2024. 14 The effects of fair value and cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended March 31, were as follows: 2025 2024 (in thousands) Cost of sales Interest income (expense), net and other finance costs Other & foreign exchange loss, net Cost of sales Interest income (expense), net and other finance costs Other & foreign exchange loss, net Total amounts of income and expense line items presented in the Condensed Consolidated Statement of Earnings in which the effects of fair value or cash flow hedges are recorded $ 286,855 $ 1,103 $ 1,058 $ 286,023 $ 351 $ 1,969 The effects of fair value and cash flow hedging Gain or (loss) on cash flow hedging relationships Interest contracts: Amount of gain or (loss) reclassified from OCI to earnings 1,965 — — — 3,147 — Cross currency swap contract Amount of gain or (loss) reclassified from OCI to earnings 1,127 — ( 15,844 ) — 1,240 10,140 Forward contract Amount of gain reclassified from OCI to earnings — — — ( 188 ) — — The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended March 31, 2025 and 2024 were as follows: Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from OCI into Earnings Gain (Loss) Reclassified from OCI into Earnings (in thousands) 2025 2024 2025 2024 Interest rate contracts $ ( 1,787 ) $ 6,806 Interest expense $ 1,965 $ 3,147 Cross currency contracts ( 13,789 ) 10,975 Interest expense 1,127 1,240 Forward contracts — — FX gain (loss) ( 15,844 ) 10,140 Cost of goods sold — ( 188 ) Total $ ( 15,576 ) $ 17,781 $ ( 12,752 ) $ 14,339 For the three months ending March 31, 2025 and March 31, 2024 loss on the net investment hedge of $ 4.1 million and gain on the net investment hedge of $ 4.7 million were included in OCI, respectively. For the three months ending March 31, 2025 and March 31, 2024, excluded gains of $ 1.2 million and $ 1.3 million were reclassified from OCI to interest expense, respectively. As of March 31, 2025, the aggregate fair values of the Company’s derivative instruments on the Condensed Consolidated Balance Sheet were comprised of an asset of $ 22.9 million, of which $ 11.2 million is included in other current assets, and the balance of $ 11.7 million as other non-current assets, and of a non-current liability of $ 20.9 million included as deferred income tax and other long-term liabilities. 15 8. Property, Plant and Equipment, net Property, plant and equipment consisted of the following: As of March 31, As of December 31, (in thousands) 2025 2024 2024 Land $ 59,512 $ 62,036 $ 61,054 Buildings and site improvements 249,000 245,240 246,138 Leasehold improvements 13,487 10,085 11,313 Machinery and equipment 581,423 530,283 567,322 903,422 847,644 885,827 Less: accumulated depreciation and amortization ( 531,393 ) ( 486,564 ) ( 516,320 ) 372,029 361,080 369,507 Capital projects in progress 196,474 76,349 162,148 Total $ 568,503 $ 437,429 $ 531,655 Assets held-for sale In January 2025, the Company made a decision to sell its unimproved land located in Stockton, California. The Company determined that the long-lived assets meet the criteria to be classified as held for sale in its condensed financial statements, and presented the asset's carrying value of approximately $2.4 million in Other current assets line of the condensed consolidated balance sheets. 9. Goodwill and Intangible Assets, net Goodwill by segment were as follows: As of March 31, As of December 31, (in thousands) 2025 2024 2024 North America $ 134,155 $ 101,496 $ 134,148 Europe 392,273 390,026 377,049 Asia/Pacific 1,193 1,245 1,186 Total $ 527,621 $ 492,767 $ 512,383 Amortizable intangible assets were as follows: (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents Balance as of December 31, 2023 $ 38,598 $ ( 4,854 ) $ 33,744 Amortization — ( 691 ) ( 691 ) Foreign exchange ( 419 ) — ( 419 ) Balance as of March 31, 2024 38,179 ( 5,545 ) 32,634 Purchases 15,800 — 15,800 Amortization — ( 2,777 ) ( 2,777 ) Foreign exchange ( 507 ) — ( 507 ) Balance as of December 31, 2024 53,472 ( 8,322 ) 45,150 Amortization — ( 675 ) ( 675 ) Foreign exchange 285 — 285 Balance as of March 31, 2025 $ 53,757 $ ( 8,997 ) $ 44,760 16 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Unpatented Technology Balance as of December 31, 2023 $ 22,508 $ ( 20,279 ) $ 2,229 Amortization — ( 210 ) ( 210 ) Foreign exchange ( 184 ) — ( 184 ) Balance as of March 31, 2024 22,324 ( 20,489 ) 1,835 Amortization — ( 781 ) ( 781 ) Foreign exchange 135 — 135 Balance as of December 31, 2024 22,459 ( 21,270 ) 1,189 Amortization — ( 171 ) ( 171 ) Foreign exchange ( 490 ) — ( 490 ) Balance as of March 31, 2025 $ 21,969 $ ( 21,441 ) $ 528 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Non-Compete Agreements, Trademarks and Other Balance as of December 31, 2023 $ 28,147 $ ( 15,745 ) $ 12,402 Amortization — ( 378 ) ( 378 ) Foreign exchange 35 — 35 Balance as of March 31, 2024 28,182 ( 16,123 ) 12,059 Purchases 14,100 — 14,100 Amortization — ( 2,594 ) ( 2,594 ) Foreign exchange ( 42 ) — ( 42 ) Balance as of December 31, 2024 42,240 ( 18,717 ) 23,523 Amortization — ( 1,219 ) ( 1,219 ) Foreign exchange and other 1,036 — 1,036 Balance as of March 31, 2025 $ 43,276 $ ( 19,936 ) $ 23,340 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer Relationships Balance as of December 31, 2023 $ 269,166 $ ( 46,399 ) $ 222,767 Amortization — ( 4,591 ) ( 4,591 ) Foreign exchange ( 4,601 ) — ( 4,601 ) Balance as of March 31, 2024 264,565 ( 50,990 ) 213,575 Purchases 10,560 — 10,560 Disposals 331 — 331 Amortization — ( 12,771 ) ( 12,771 ) Foreign exchange ( 12,144 ) — ( 12,144 ) Balance as of December 31, 2024 263,312 ( 63,761 ) 199,551 Amortization — ( 4,346 ) ( 4,346 ) Foreign exchange and other 11,500 — 11,500 Balance as of March 31, 2025 $ 274,812 $ ( 68,107 ) $ 206,705 17 Definite-lived and indefinite-lived assets, net, by segment were as follows : As of March 31, 2025 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount North America $ 116,930 $ ( 40,839 ) $ 76,091 Europe 378,951 ( 77,172 ) 301,779 Asia/Pacific 3,936 ( 727 ) 3,209 Total $ 499,817 $ ( 118,738 ) $ 381,079 As of March 31, 2024 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount North America $ 64,189 $ ( 34,505 ) $ 29,684 Europe 377,408 ( 58,263 ) 319,145 Asia/Pacific 4,077 ( 379 ) 3,698 Total $ 445,674 $ ( 93,147 ) $ 352,527 As of December 31, 2024 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount North America $ 116,550 $ ( 39,061 ) $ 77,489 Europe 366,586 ( 72,621 ) 293,965 Asia/Pacific 4,240 ( 643 ) 3,597 Total $ 487,376 $ ( 112,325 ) $ 375,051 Intangible assets consist of definite-lived and indefinite-lived assets. Definite-lived intangible assets include customer relationships, patents, unpatented technology, and non-compete agreements. Amortization of definite-lived intangible assets was $ 6.4 million and $ 5.6 million for the three months ended March 31, 2025 and 2024, respectively. The weighted-average amortization period for all amortizable intangibles on a combined basis is 9.4 years. At March 31, 2025, the estimated future amortization of definite-lived intangible assets was as follows: (in thousands) Remaining nine months of 2025 $ 19,626 2026 25,799 2027 25,518 2028 25,370 2029 25,104 2030 24,244 Thereafter 144,289 $ 289,950 Indefinite-lived intangible assets totaled $ 105.7 million, $ 92.4 million, and $ 105.7 million as of March 31, 2025, and 2024 and December 31, 2024, respectively. 18 The changes in the carrying amount of goodwill and intangible assets for the three months ended March 31, 2025, were as follows: (in thousands) Goodwill Intangible Assets Balance at December 31, 2024 $ 512,383 $ 375,051 Amortization — ( 6,411 ) Foreign exchange and other 15,238 12,439 Balance at March 31, 2025 $ 527,621 $ 381,079 10. Leases The Company has operating leases for certain facilities, equipments, and automobiles. The existing operating leases expire at various dates through 2039, some of which include options to extend the leases for up to five years . The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the ROU assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the Condensed Consolidated Balance Sheets as of March 31, 2025 and 2024 and December 31, 2024, Condensed Consolidated Statements of Earnings and Comprehensive Income, and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 : Condensed Consolidated Balance Sheets Line Item March 31, December 31, (in thousands) 2025 2024 2024 Operating leases Assets Operating leases Operating lease right-of-use assets $ 101,701 $ 65,933 $ 93,933 Liabilities Operating - current Accrued expenses and other current liabilities $ 20,791 $ 15,378 $ 19,415 Operating - noncurrent Operating lease liabilities 82,913 52,051 76,184 Total operating lease liabilities $ 103,704 $ 67,429 $ 95,599 The components of lease expense were as follows: Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item Three Months Ended March 31, (in thousands) 2025 2024 Operating lease cost General administrative expenses and cost of sales $ 6,518 $ 4,685 Other Information Supplemental cash flow information related to leases is as follows: Three Months Ended March 31, (in thousands) 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 6,131 $ 4,587 Operating right-of-use assets obtained in exchange for new lease liabilities 24,502 2,213 19 The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2025: (in thousands) Operating Leases Remaining nine months of 2025 $ 19,358 2026 23,266 2027 20,045 2028 17,658 2029 14,254 2030 10,591 Thereafter 22,787 Total lease payments 127,959 Less: Present value discount ( 24,255 ) Total lease liabilities $ 103,704 The following table summarizes the Company's operating lease terms and discount rates as of March 31, 2025 and 2024: 2025 2024 Weighted-average remaining lease terms (in years) 6.7 5.3 Weighted-average discount rate 5.3 % 4.9 % 11. Debt As of March 31, 2025, the Company had $ 382.5 million, excluding deferred financing costs, outstanding under its Amended and Restated Credit Facility. The Company had outstanding balances of $ 480.0 million and $ 388.1 million under the Amended and Restated Credit Facility as of March 31, 2024, and December 31, 2024, respectively. The following is a schedule, by years, of maturities for the remaining term loan facility as of March 31, 2025: (in thousands) 5-Year Term Loan Remaining nine months of 2025 $ 16,875 2026 22,500 2027 343,125 Total loan outstanding $ 382,500 The Company was in compliance with its financial covenants under the Amended and Restated Credit Facility as of March 31, 2025. Certain of the Company's domestic subsidiaries are guarantors for a credit agreement between certain of its foreign subsidiaries and institutional lenders that is in addition to the Amended and Restated Credit Facility. As of March 31, 2025, all of the Company's credit facilities provide a total of $ 456.1 million in available borrowing capacity and an irrevocable standby letter of credit in support of various insurance deductibles. 12. Commitments and Contingencies Environmental The Company’s policy with regard to environmental liabilities is to accrue for future environmental assessments and remediation costs when information becomes available that indicates that it is probable that the Company is liable for any related claims and assessments and the amount of the liability is reasonably estimable. The Company does not believe that any such matters will have a material adverse effect on the Company’s financial condition, cash flows or results of operations. 20 Litigation and Potential Claims From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. Corrosion, hydrogen embrittlement, cracking, material hardness, wood pressure-treating chemicals, misinstallations, misuse, design and assembly flaws, manufacturing defects, labeling defects, product formula defects, inaccurate chemical mixes, adulteration, environmental conditions, or other factors can contribute to failure of fasteners, connectors, anchors, adhesives, specialty chemicals, such as fiber reinforced polymers, and tool products. In addition, inaccuracies may occur in product information, descriptions and instructions found in catalogs, packaging, data sheets, and the Company’s website. The resolution of any claim or litigation is subject to inherent uncertainty and could have a material adverse effect on the Company’s financial condition, cash flows or results of operations. 13. Segment Information The Company is organized into three reporting segments defined by the regions where the Company’s products are manufactured, marketed and distributed to the Company’s customers. The financial information of these segments is available and utilized by the Chief Executive Officer, the Company’s CODM, to assess the segments’ performance. The primary measurements used to measure the financial performance of the segments are revenue, gross margins, and operating margins to decide whether to reinvest the profits, make acquisitions, pay down debt or borrow, or to return capital to shareholders via dividends and share repurchases. The three regional segments are the North America segment (comprised primarily of the Company’s operations in the U.S. and Canada), the Europe segment and the Asia/Pacific segment (comprised of the Company’s operations in Asia, and the South Pacific). These segments are similar in several ways, including the types of materials used, the production processes, the distribution channels and the product applications. The Administrative & All Other column primarily includes expenses such as self-insured workers compensation claims for employees, stock-based compensation for certain members of management, interest expense, foreign exchange gains or losses and income tax expense, as well as revenues and expenses related to real estate activities. The following table presents financial information of each segment that is used by the CODM to assess the performance of segments for periods ended March 31, 2025 and March 31, 2024 , respectively: (in thousands) North America Europe Asia/ Pacific Administrative & All Other Total 2025 Net sales $ 420,699 $ 113,860 $ 4,336 $ — $ 538,895 Wood Products 361,926 93,875 3,641 — 459,442 Concrete Products 57,002 19,985 696 — 77,683 Cost of sales 210,407 73,838 2,611 ( 1 ) 286,855 Gross profit 210,292 40,022 1,725 1 252,040 Research and development, and other engineering expenses 17,508 2,132 199 — 19,839 Selling expenses 41,062 12,307 795 — 54,164 General and administrative expenses 47,491 16,277 371 11,527 75,666 Sales to other segments * 739 2,189 8,634 — 11,562 Income from operations 104,238 9,309 359 ( 11,587 ) 102,319 Depreciation and amortization 10,935 7,691 567 — 19,193 Significant non-cash charges 4,829 638 68 942 6,477 Provision for income taxes 23,170 2,942 363 121 26,596 Business Acquisition, net of cash acquired, capital expenditures and asset acquisitions, net of cash acquired 43,508 3,108 150 3,399 50,165 Total assets 2,150,075 730,238 48,668 ( 106,025 ) 2,822,956 21 (in thousands) North America Europe Asia/ Pacific Administrative & All Other Total 2024 Net sales $ 406,749 $ 119,938 $ 3,892 $ — $ 530,579 Wood Products 349,853 98,376 3,343 — 451,572 Concrete Products 56,619 21,562 549 — 78,730 Cost of sales 206,212 76,126 3,216 469 286,023 Gross profit 200,537 43,812 676 ( 469 ) 244,556 Research and development, and other engineering expenses 19,794 1,956 168 — 21,918 Selling expenses 40,791 12,951 757 — 54,499 General and administrative expenses 41,150 18,697 326 10,020 70,193 Sales to other segments * 841 1,251 6,852 — 8,944 Income from operations 98,904 8,258 ( 575 ) ( 10,489 ) 96,098 Depreciation and amortization 10,211 7,818 599 561 19,189 Significant non-cash charges 3,471 905 52 918 5,346 Provision for income taxes 21,754 2,943 ( 3 ) ( 1,706 ) 22,988 Business Acquisition, net of cash acquired, capital expenditures and asset acquisitions, net of cash acquired 32,343 2,843 619 3,607 39,412 Total assets 1,782,890 716,263 36,275 186,518 2,721,946 * Sales to other segments are eliminated upon consolidation. Cash collected by the Company’s U.S. subsidiaries is routinely transferred into the Company’s cash management accounts and, therefore is in the total assets of “Administrative and all other.” Cash and cash equivalent balances in the “Administrative and all other” segment were $ 60.8 million and $ 276.6 million, as of March 31, 2025 and 2024, respectively. As of March 31, 2025, the Company had $ 89.5 million or 59.5 %, of its cash and cash equivalents held outside the U.S. in accounts belonging to the Company’s various foreign operating entities. The majority of this balance is held in foreign currencies and could be subject to additional taxation if repatriated to the U.S. The Company's wood construction products are used in light-frame building applications and include connectors, truss plates, screw fastening systems, fasteners and pre-fabricated lateral-force resisting systems. Its concrete construction products are used in concrete, masonry and steel building applications and include adhesives, chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber reinforced materials, and other repair products used for protecting and strengthening structures. The following table shows the distribution of the Company’s net sales by product for the three months ended March 31, 2025, 2024, respectively: Three Months Ended March 31, (in thousands) 2025 2024 Wood Construction $ 459,442 $ 451,572 Concrete Construction 77,683 78,730 Other 1,770 277 Total $ 538,895 $ 530,579 14. Subsequent Events Dividend Declared On May 6, 2025, the Company’s Board of Directors (the "Board") declared a quarterly cash dividend of $ 0.29 per share, estimated to be $ 12.1 million in total. The dividend will be payable on July 24, 2025, to the Company's stockholders of record on July 3, 2025. 22