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 stockholders 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, the South Pacific, and the Middle East). 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 December 31, 2025, 2024 and 2023, respectively:


(in thousands)	North America		Europe		Asia/ Pacific		Administrative & All Other		Total
2025
Net sales	$	1,813,856	$	499,559	$	19,393	$	—	$	2,332,808
Wood Products	1,555,515		396,229		15,997		—		1,967,741
Concrete Products	254,061		103,329		3,223		—		360,613
Cost of sales	928,828		320,626		12,944		805		1,263,203
Gross profit	885,028		178,933		6,449		(805)		1,069,605
Research and development, and other engineering expenses	72,063		9,573		847		—		82,483
Selling expenses	167,899		51,252		3,657		—		222,808
General and administrative expenses	200,656		73,483		1,558		45,989		321,686
Sales to other segments *	3,763		6,406		30,904		—		41,073
Income from operations	448,807		43,862		595		(35,199)		458,065
Depreciation and amortization	52,969		32,801		2,166		2,015		89,951
Significant non-cash charges	14,341		2,119		459		5,972		22,891
Provision for income taxes	104,475		8,630		1,154		3,131		117,390
Business acquisitions, net of cash acquired; capital expenditures; asset acquisitions; and equity investments	140,106		13,036		1,356		10,167		164,665
Total assets	$	2,390,907	$	802,054	$	48,333	$	(167,668)	$	3,073,626


(in thousands)	North America		Europe		Asia/ Pacific		Administrative & All Other		Total
2024
Net sales	$	1,735,879	$	479,055	$	17,205	$	—	$	2,232,139
Wood Products	1,499,889		384,494		15,141		—		1,899,524
Concrete Products	233,936		94,561		2,060		—		330,557
Cost of sales	887,338		310,073		11,407		(567)		1,208,251
Gross profit	848,541		168,982		5,798		567		1,023,888
Research and development, and other engineering expenses	72,586		8,514		816		—		81,916
Selling expenses	159,077		51,005		3,450		—		213,532
General and administrative expenses	177,525		72,181		1,851		41,542		293,099
Sales to other segments *	3,263		4,764		33,407		—		41,434
Income from operations	439,567		33,806		(294)		(43,104)		429,975
Depreciation and amortization	49,139		31,747		2,630		1,883		85,399

Significant non-cash charges	12,895		1,607		275		4,245		19,022
Provision for income taxes	98,960		9,332		1,271		2,256		111,819
Business acquisitions, net of cash acquired; capital expenditures; asset acquisitions; and equity investments	243,728		13,863		3,280		273		261,144
Total assets	$	2,062,552	$	687,955	$	48,769	$	(63,108)	$	2,736,168


(in thousands)	North America		Europe		Asia/ Pacific		Administrative & All Other		Total
2023
Net sales	$	1,716,422	$	480,756	$	16,625	$	—	$	2,213,803
Wood Products	1,491,848		385,134		14,467		—		1,891,449
Concrete Products	222,720		95,621		2,159		—		320,500
Cost of sales	856,019		303,708		10,946		1,530		1,172,203
Gross profit	860,403		177,048		5,679		(1,530)		1,041,600
Research and development, and other engineering expenses	78,335		7,523		105		—		85,963
Selling expenses	150,616		50,553		2,811		—		203,980
General and administrative expenses	158,290		68,578		2,229		43,055		272,152
Sales to other segments *	4,718		5,900		29,040		—		39,658
Income from operations	473,229		45,998		535		(44,613)		475,149
Depreciation and amortization	40,883		29,668		2,226		1,930		74,707

Significant non-cash charges	13,344		2,379		515		7,658		23,896
Provision for income taxes	109,722		11,435		1,313		90		122,560
Business acquisitions, net of cash acquired; capital expenditures; asset acquisitions; and equity investments	92,725		21,975		6,402		(7,605)		113,497
Total assets	$	1,745,341	$	716,396	$	38,719	$	204,268	$	2,704,724

* 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 & All Other.” Cash and cash equivalent balances in “Administrative & All Other” were $225.3 million, $126.1 million and $386.6 million as of December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the Company had $152.1 million, or 39.6%, 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 significant non-cash charges comprise compensation related to equity awards under the Company’s stock-based incentive plans, the Company’s employee stock bonus plan, and the Company's non-qualified deferred compensation plan. The Company’s measure of profit or loss for its reportable segments is income (loss) from operations. The reconciling amounts

between consolidated income before tax and consolidated income from operations are net interest income (expense), net and other, and foreign exchange gain (loss). Interest income (expense) is primarily attributed to “Administrative & All Other.”

The following table shows the geographic distribution of the Company’s net sales and long-lived assets as of December 31, 2025, 2024 and 2023, respectively:


	2025				2024				2023
(in thousands)	Net Sales		Long-Lived Assets		Net Sales		Long-Lived Assets		Net Sales		Long-Lived Assets
United States	$	1,713,833	$	505,223	$	1,640,669	$	439,326	$	1,630,359	$	305,564
France	185,861		64,126		225,336		54,807		223,562		62,547
Canada	95,467		2,527		90,220		2,799		81,404		2,722
Italy	52,512		28,159		56,042		24,869		62,428		25,245
Germany	50,785		13,893		48,134		12,273		45,319		12,077
Poland	53,441		12,437		45,528		11,452		39,978		10,836
United Kingdom	26,021		2,371		29,310		2,286		32,058		2,352
Belgium	65,771		2,053		17,549		1,723		18,802		2,297
Sweden	17,130		2,023		13,946		2,192		15,342		2,579
Denmark	19,330		4,133		12,746		4,614		12,318		3,734
Australia	12,813		1,523		12,196		1,181		11,351		800
Norway	8,466		—		8,391		—		9,635		852
Other countries	31,378		17,381		32,072		17,461		31,247		19,487
	$	2,332,808	$	655,849	$	2,232,139	$	574,983	$	2,213,803	$	451,092

Net sales and long-lived assets, excluding intangible assets and goodwill, are attributable to the country where the sales or manufacturing operations are located.

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 years ended December 31, 2025, 2024 and 2023, respectively:


(in thousands)	2025		2024		2023
Wood Construction	$	1,967,741	$	1,899,524	$	1,891,449
Concrete Construction	360,613		330,557		320,500
Other	4,454		2,058		1,854
Total	$	2,332,808	$	2,232,139	$	2,213,803

No customers accounted for more than 10.0% of net sales for the years ended 2025, 2024 and 2023.

Historical Timeline

Fiscal Year	Filed
2025	Feb 27, 2026	Showing above
2024	Mar 3, 2025

2023	Feb 28, 2024

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Simpson Manufacturing Co., Inc. Segments Disclosure

Historical Timeline

About Segments Disclosures

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