Simpson Manufacturing Co. (SSD) saw its stock soar 5.71% in pre-market trading on Tuesday, following the company's release of its Q4 2024 and full-year financial results. Despite a challenging housing market, SSD reported modest growth in net sales to $2.23 billion for the year, driven by continued market share gains across its product lines.

In the fourth quarter, SSD's net sales increased 3.1% year-over-year to $574.4 million, outpacing the broader housing market. The company's North American sales volumes exceeded U.S. housing starts by approximately 600 basis points, reflecting its ability to capture above-market growth through strategic investments and product innovation.

However, SSD's profitability was impacted by higher input costs, including labor, freight, and factory expenses. As a result, the company's gross margin declined to 46% from 47.1% in 2023, while its operating margin fell by 220 basis points to 19.3%. To address these challenges, SSD is evaluating pricing actions and cost control measures while continuing to invest in growth opportunities.

Looking ahead, SSD expects low single-digit growth in U.S. housing starts for 2025, weighted towards the second half of the year. The company has provided operating margin guidance of 18.5% to 20.5%, reflecting its commitment to maintaining strong profitability while supporting above-market growth through investments in sales, engineering, and digital solutions.