GRAND RAPIDS, Mich.--(BUSINESS WIRE)--UFP Industries (Nasdaq: UFPI) will announce fourth quarter 2025 results after the market close on Monday, February 23, 2026. A conference call to discuss these results will take place on Tuesday, February 24, 2026, at 9:00 a.m. Eastern Time, hosted by Will Schwartz, President and Chief Executive Officer, and Mike Cole, Chief Financial Officer. A live audio webcast of the call along with supporting materials can be accessed using the following link (here) or. ...

Core Viewpoint - The wooden packaging industry is experiencing steady growth globally, driven by factors such as international trade, e-commerce, and sustainability trends, with significant opportunities for development in both global and Chinese markets [6][10][12]. Global Wooden Packaging Market Size and Forecast - The global wooden packaging market is projected to reach approximately $34.31 billion by 2024, with a compound annual growth rate (CAGR) of about 7.67% from 2020 to 2024, and is expected to approach $40.35 billion by 2031, with a future six-year CAGR of 1.88% [9]. - China's wooden packaging market holds about 16.38% of the global market share, with a forecasted market size of approximately $5.62 billion by 2024 and a CAGR of about 5.12% from 2020 to 2024, expected to grow to $7.31 billion by 2031, with a CAGR of 3.43% from 2025 to 2031 [10]. Driving Factors and Development Opportunities - The wooden packaging industry is significantly influenced by the growth of international trade and cross-border e-commerce, increasing the demand for wooden pallets and boxes due to their high strength and load-bearing capacity [12]. - The renewable and recyclable nature of wood aligns with global low-carbon trends, supported by sustainable packaging policies from international organizations and governments, enhancing industry demand [12]. - Technological advancements in automation, modular design, and functional treatments (e.g., moisture-proof, anti-corrosion) are improving manufacturing efficiency and product quality, creating new opportunities for customized solutions [13][14]. Industry Challenges - Fluctuations in raw material costs, particularly wood prices, are influenced by various factors, including supply, climate change, and international trade dynamics, which can increase manufacturing costs [15]. - Stricter environmental regulations and certification requirements, such as ISPM 15, raise production costs and compliance burdens for manufacturers [15]. - Competition from alternative materials like corrugated cardboard and plastic poses challenges to the wooden packaging sector [15]. Industry Trends - The industry is increasingly focusing on sustainability, promoting recyclable and biodegradable materials to meet global buyer demands for low-carbon packaging [16]. - The integration of smart technologies, such as IoT and RFID, is enhancing visibility and data management in the supply chain, providing added value to customers [16]. - The rise of rental and circular economy models for wooden pallets and boxes is transforming manufacturers into service-oriented providers [16]. Industry Chain Analysis - The wooden packaging industry chain consists of three main parts: upstream wood producers, midstream packaging manufacturers, and downstream users in various sectors such as food and beverage, machinery, and electronics [18][19]. - Key upstream players include major timber suppliers, while midstream manufacturers are concentrated in North America, Europe, and China, with a mix of companies producing new and recycled wooden packaging [19][20]. - The downstream market is diverse, with significant applications in food and beverage, machinery, electronics, and automotive industries, driven by the need for safe and efficient packaging solutions [23]. Policy Analysis in China - Recent policies aim to enhance logistics networks and promote standardized pallet transport, which will benefit the wooden packaging sector [25]. - The introduction of national standards for wooden pallets and encouragement of sustainable practices are expected to drive growth in the industry [25].

Core Viewpoint - UFP Industries reported disappointing Q3 2025 results, with earnings and sales missing estimates and showing year-over-year declines [3][5][12] Earnings & Sales Performance - Adjusted EPS was $1.29, missing the Zacks Consensus Estimate of $1.37 by 5.8% and declining 21.3% year over year [5] - Quarterly net sales were $1.56 billion, missing the consensus mark of $1.61 billion by 3.2% and declining 5.4% from $1.65 billion year over year [5] Margins & Profitability - Gross profit totaled $262.7 million, down from $298.4 million in the year-ago quarter, with gross margin contracting to 16.8% from 18.1% [6] - Adjusted EBITDA was $140 million, down from $164.9 million, with adjusted EBITDA margin contracting to 9% from 10% year over year [6] Segment Highlights - UFP Retail Solutions: Net sales of $594 million, down 6.5% year over year; adjusted EBITDA declined 21.8% to $39.9 million [7] - UFP Packaging: Sales declined 1.7% to $394.9 million; adjusted EBITDA contracted 0.2% to $34.3 million [7] - UFP Construction: Net sales of $496.5 million, down 7.1% year over year; adjusted EBITDA tumbled 17.7% to $41.9 million [8] Balance Sheet & Liquidity - Cash and cash equivalents were $1.01 billion, down from $1.19 billion at the end of 2024; current liquidity is sufficient to meet short-term obligations of $5.4 million [9] - Long-term debt was $229.1 million, slightly down from $232 million at the end of 2024 [9] Share Repurchase Activity - In the first nine months of 2025, the company repurchased 2.8 million shares for $291 million; an additional 0.61 million shares were repurchased in October for $56 million [10] Long-Term Outlook - Despite near-term challenges, UFP Industries aims for annual unit sales growth of 7-10% and targets EBITDA margins of 12.5% [11] Estimate Trends - Consensus estimates have trended downward, with a shift of -12.54% noted [12][14] VGM Scores - UFP Industries has a Growth Score of B, a Momentum Score of C, and a Value Score of B, resulting in an aggregate VGM Score of A [13]

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Company Overview - UFP Industries, Inc. (UFPI) is currently experiencing significant attention from investors due to high implied volatility in its options market, particularly the Jan 16, 2026 $65 Call option [1] - The company holds a Zacks Rank of 5 (Strong Sell) within the Building Products – Wood industry, which is positioned in the bottom 6% of the Zacks Industry Rank [3] Analyst Sentiment - Over the past 30 days, no analysts have increased their earnings estimates for UFP Industries for the current quarter, while two analysts have revised their estimates downward, leading to a decrease in the Zacks Consensus Estimate from $1.14 per share to $1.06 [3] Options Market Dynamics - The high implied volatility suggests that options traders are anticipating a significant price movement for UFP Industries shares, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [4]

Core Insights - Edge's EvoTrim has been awarded the Good Housekeeping 2026 Home Reno Awards in the Exterior Enhancements category, highlighting its recognition in the home renovation industry [1] Company Summary - EvoTrim is described as a high-performance engineered wood trim designed for durability, indicating a focus on quality and reliability in construction materials [1] - Dom Beaulieu, Managing Director at Edge, emphasized that the award validates the product's performance and the positive feedback received from the field [1]

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Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $1.56 billion, reflecting a 5% decline from $1.65 billion in the previous year due to modest declines in overall volumes and pricing [20][34] - Adjusted EBITDA decreased by 15% to $140 million, with the adjusted EBITDA margin falling to 9% from 10% a year ago [34] - Operating cash flow was $399 million, maintaining a robust cash position of over $1 billion, providing flexibility for strategic objectives [35][43] Business Line Data and Key Metrics Changes - Retail segment sales were $594 million, a 7% decline driven by softer repair and remodel demand and strategic exit from lower margin product lines [34] - ProWood volumes declined by 5%, while Deckorators achieved 5% unit growth and 8% net sales growth, including a 31% increase in SureStone decking [36] - Packaging sales were $395 million, down 2%, with a 3% organic unit decline offset by 1% growth from recent acquisitions [38] - Construction sales were $496 million, down 7%, primarily due to volume and pricing pressure in site-built units [39] Market Data and Key Metrics Changes - The company is experiencing cyclically soft demand, ongoing trade uncertainty, and competitive pricing pressures, creating a difficult operating environment [20][21] - The packaging segment is stabilizing, providing cautious optimism for 2026, while the construction market remains competitive with builders managing home inventories [29][30] Company Strategy and Development Direction - The company is focused on above-market growth with an emphasis on returns, introducing value-added products to improve margins and addressing underperforming operations through restructuring and divestitures [21][22] - A $1 billion capital expenditure program is in place, with $200 million earmarked for automation to improve throughput and lower costs [22] - M&A remains a key growth strategy, with three bolt-on acquisitions completed this year, and the company is actively exploring further transactions [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism heading into 2026, noting that while market headwinds persist, some business units are stabilizing [21][24] - The company aims for a 12.5% EBITDA margin and 7-10% unit sales growth, with a focus on driving ROIC in excess of 15% [32] - Management highlighted the importance of strategic investments and cost discipline to navigate the current environment and capitalize on future opportunities [30][31] Other Important Information - The company returned significant capital to shareholders, repurchasing nearly 6% of total outstanding shares through October [35][44] - A quarterly dividend of $0.35 per share was approved, representing a 6% increase from the previous year [44] Q&A Session Summary Question: Update on Deckorators and SureStone retail rollout - Management confirmed they are on pace for the 2026 selling season, with good sell-through and positive results despite a challenging market [48][49] Question: Impact of lumber prices on profitability - Management acknowledged that rising lumber prices could pressure profitability but emphasized their balanced pricing strategies to mitigate risks [53][54] Question: M&A opportunities versus share repurchases - The company is currently allocating more free cash flow towards share buybacks while remaining patient for meaningful M&A transactions [66][68] Question: Trends in site-built construction - Management noted that the site-built segment is facing the most significant headwinds, with unclear projections for 2026 due to consumer confidence and affordability challenges [62][63] Question: Strength of factory-built business - Management remains optimistic about the factory-built business, believing it has significant growth potential despite current market challenges [75][76] Question: Packaging business stabilization - Management feels they have found the bottom in the packaging segment and are optimistic about future growth driven by strategic sales efforts and automation investments [97][98]

Company Overview - UFP Industries converts 7% of North American softwood lumber, manufacturing value-added products for residential, commercial construction, outdoor living, packaging, and industrial applications[9] - The company's Q3 2025 TTM net sales reached $6.5 billion, with an adjusted EBITDA of $589 million[38] - UFP operates 213 facilities worldwide and employs approximately 14,000 people[38] Financial Performance & Goals - UFP aims for annual unit sales growth of 7-10%, with new product sales accounting for 10% of total net sales[58] - The company targets a 12.5% adjusted EBITDA margin and seeks incremental returns on new investments exceeding a 15% hurdle rate[58, 60] - UFP's Q3 2025 TTM adjusted EBITDA margin was 9.1%, exceeding 2019 levels by approximately 200 bps[126] Business Segments - UFP Retail Solutions had Q3 2025 TTM net sales of $2.514 billion, with new products representing 3.5% of net sales[86] - UFP Packaging's Q3 2025 TTM net sales were $1.6 billion, with new products accounting for 11.2% of net sales[86] - UFP Construction reported Q3 2025 TTM net sales of $2.051 billion, with new products contributing 8.3% of net sales[86] Capital Allocation - The company is committed to maintaining a conservative capital structure, with net debt to adjusted EBITDA below 1.5x[60] - UFP has a CapEx plan of $275 million to $300 million in 2025 and an ongoing share repurchase program[152] - The company is investing $100 million over 5 years through the UFP Venture Fund to spur external growth and innovation[82]