UFP Packaging Announces Nail-Gun-Free Crate Line for Safer Assembly Accessibility StatementSkip Navigation GRAND RAPIDS, Mich., March 24, 2026 /PRNewswire/ -- UFP Packagingdebuted Slot-Lock and Clamp-Lock 100, two new industrial crate systems engineered for nail-gun-free assembly. The additions expand its pneumatic-free product portfolio alongside U-Loc 200, introduced in 2025. The new systems improve workplace safety and efficiency by eliminating the need for nail and staple guns, providing safer alternati ...

Core Insights - ProWood has announced a strategic partnership with the National Hispanic Construction Alliance (NHCA) to enhance career pathways for Hispanic builders and trade workers in the U.S. [1][2] - The collaboration includes support for NHCA's 2026 initiative, Build the Builder, aimed at preparing builders and developers to reinvest in their communities [1][3] Industry Context - Hispanic builders constitute nearly one-third of the U.S. construction workforce and were responsible for 59% of industry growth from 2018 to 2023 [2] - The NHCA, founded in 2023, focuses on providing culturally relevant training and professional development for Hispanic tradespeople and developers [2][7] ProWood's Commitment - ProWood will support NHCA by translating program materials for Spanish-speaking members, providing executive guidance through representation on the NHCA Corporate Advisory Council, and participating in NHCA-led webinars [5][6] - The inaugural Build the Builder event is scheduled for May 6–10, 2026, in Los Angeles, California [3]

Core Insights - UFP Industries, Inc. (UFPI) is experiencing growth driven by its Deckorators brand and Surestone technology, alongside a successful cost-containment program that saved $35 million in SG&A expenses [1][6][10] Growth Factors - The Deckorators brand has shown exceptional growth, with sales of Surestone mineral-based decking increasing by 44% and wood-plastic composite sales rising by 35% in 2025 [5][6] - The company has operationalized new capacity at its Selma and Buffalo facilities to support an aggressive goal of doubling its composite decking market share [7] - UFP Industries is pursuing acquisitions to complement organic growth, having completed two acquisitions in 2025 with approximately $24 million in historical sales [8][9] - The company maintains a strong balance sheet with $2.2 billion in liquidity, supporting a capital investment plan of $300 million to $325 million for 2026 [11] Challenges - UFP Industries faces headwinds from weak residential construction, which is impacting its Site-Built segment due to affordability challenges and elevated interest rates [12] - The company reported a gross margin contraction of 160 basis points to 16.8% in 2025, with adjusted EBITDA declining by 17.4% year over year [13] - Increased competitive pricing and softer demand in several end markets are creating pressure on sales volumes and margins [13]

Core Insights - ProWood's 2026 State of the Industry Report highlights how shifting homeowner expectations are transforming the construction landscape, focusing on supply chain strategies, product innovation, workforce dynamics, and purchasing priorities [1] Group 1: Key Trends in the Industry - Improved Innovation and Performance: Advancements in wood preservation and pressure-treatment standards are extending the lifespan of lumber, which is a significant measure of sustainability [1] - An Evolving Workforce: The construction workforce is diversifying, with women holding over 1.3 million jobs, marking a 53% increase over the past decade. Additionally, Hispanic builders represent nearly one-third of the workforce and have driven 59% of industry growth from 2018 to 2023 [1] - Changing Consumer Priorities: Homeowners are prioritizing durability, longevity, craftsmanship, and trusted brands over mere availability in their purchasing decisions [1] Group 2: Supply Chain and Product Developments - Supply Chain Realignment: Manufacturers and distributors are shifting towards regional sourcing and localized distribution models to enhance reliability, reduce lead times, and better align inventory with jobsite demand [1] - New Product Innovations: The report discusses new products like ProWood's TrueFrame™ Joist, which provide confidence in structural integrity and long-lasting performance for outdoor construction [1]

Revenue Growth - From 2011 to 2019, the company's revenues increased from $1.8 billion to $4.4 billion, reflecting significant revenue growth[20]. Market Share and Production Estimates - The Retail Solutions segment estimates it produces approximately 28% of all residential treated wood, 17% of all wood fencing, and 7% of all fire-retardant wood products within the U.S.[25]. - The Packaging segment estimates a domestic market share of 10-12% in Structural Packaging and approximately 8-10% of new machine-built pallets nationally[32][33]. - The Construction segment estimates it produces approximately 35% of all roof trusses used in factory-built housing and 12% of all engineered wood components used in housing in the United States[39][41]. Supplier Relationships and Purchases - The company purchased approximately 6.4% of the 56 billion board feet of North America softwood lumber production in 2025, maintaining long-term relationships with suppliers[46]. - In 2025, the company's total lumber purchases amounted to approximately $1.7 billion, with southern yellow pine constituting 75% of these purchases[47]. - The company purchased approximately $545 million in plywood and $464 million in other panel products in 2025[47]. Customer Base - The Retail segment's largest customers, The Home Depot and Lowes, accounted for approximately 17% and 11% of total net sales in fiscal 2025, respectively[29]. Strategic Plans and Investments - The company plans to acquire companies across the industrial packaging spectrum to fill geographical gaps and enhance packaging solutions[36]. - The company continues to invest in automation and best practices to improve manufacturing efficiency across all segments[22]. Market Dynamics and Backlog Orders - The diversification of end markets in the Construction segment provides competitive advantages and mitigates the impact of market volatility[45]. - The backlog orders for customized interior fixture businesses were estimated at $56.6 million as of December 27, 2025, compared to $41.9 million in the previous year[50]. - The backlog orders for site-built construction businesses decreased to approximately $45.9 million in 2025 from $74.4 million in 2024, attributed to decreased demand and tariff policy impacts[50]. Financial Position and Debt - The estimated fair value of the company's long-term debt, including the current portion, was $210.1 million as of December 27, 2025[231]. - Expected cash flows related to fixed-rate long-term debt total approximately $226 million over the next five years, with an average interest rate of 4.29%[232]. - The company does not enter into material interest rate swaps or derivatives to mitigate market risks related to variable rate debt[229]. Employee and Corporate Culture - The company had approximately 13,800 employees as of December 27, 2025, emphasizing a culture of career development and training[52]. Environmental Commitment - The company plans to disclose its 2025 Scope 1 and Scope 2 greenhouse gas emissions in 2026, continuing its commitment to environmental stewardship[54]. - The company anticipates publishing its fiscal year 2025 Governance Report during 2026, detailing responsible practices and future outlook[53].

Financial Data and Key Metrics Changes - Net sales for Q4 totaled $1.33 billion, reflecting a 7% decline in units and a 2% decline in price compared to the previous year [4][19] - Gross profits decreased by 10% to $217 million from $240 million year-over-year, primarily due to challenges in the Site Built and ProWood business units [19][27] - Adjusted EBITDA for the quarter was $124 million, an 8% decline from $135 million the previous year, influenced by reduced gross profit and changes in bonus expenses [22][27] - Free cash flow for the year was strong at $451 million, down only 5% from 2024, allowing for significant share repurchases [23][33] Business Line Data and Key Metrics Changes - Retail segment sales were $444 million, a 15% decline, driven by a 13% decrease in unit sales and a 2% decrease in prices [23] - ProWood experienced a 13% unit decrease, while Deckorators saw a 17% increase in sales, driven by strong demand for wood-plastic composite decking, which increased by 35%, and SureStone composite decking, which increased by 44% [24][11] - Packaging segment sales declined 1% to $370 million, with a 1% decline in units and flat pricing, although Structural Packaging's volume increased by 1% [25][14] - Construction segment sales declined 10% to $440 million, with a 5% decline in both selling prices and units, particularly impacted by the Site-Built business [26] Market Data and Key Metrics Changes - The overall market environment in 2025 was challenging, with cyclical and competitive pricing pressures affecting key markets [4][5] - Demand for housing remained weak due to affordability issues and consumer sentiment, particularly impacting the Site-Built business [15][26] - The company noted that while the packaging business showed signs of stabilization, pricing remained competitive due to market softness [14][25] Company Strategy and Development Direction - The company plans to use its strong balance sheet to pursue meaningful M&A opportunities while continuing to return capital to shareholders through share repurchases and dividends [6][33] - A focus on innovation and the introduction of higher-margin products is central to the company's strategy, with new product sales accounting for 7.6% of total sales [7][10] - The company aims to achieve a 12.5% EBITDA margin and 7%-10% unit sales growth, with a commitment to maintaining a conservative capital structure [17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating market share gains and cost reduction initiatives to offset headwinds in new residential construction [35][36] - The company is entering 2026 in a stronger position, having made significant progress in cost reduction and operational efficiency [6][17] - Management highlighted the importance of maintaining a balanced approach to capital allocation, focusing on organic and inorganic growth opportunities [33][34] Other Important Information - The company executed share repurchases totaling $443 million, representing 7% of outstanding shares, and paid $82 million in dividends, with a 3% dividend increase announced for 2026 [5][34] - The company has a liquidity position of $2.2 billion, providing flexibility for future investments and M&A activities [33] Q&A Session Summary Question: Update on Deckorators and cost opportunities - Management expects $100 million increase in Deckorators sales in 2026, heavily weighted towards decking, with significant margin growth opportunities as new capacity comes online [41][43] Question: SG&A and facility consolidation opportunities - Management indicated that the heavy lifting for cost reductions has been completed, but ongoing efforts to control capacity will continue [45][46] Question: M&A pipeline and opportunities - The M&A pipeline is more active than in the past three years, with a focus on strategic priorities and outreach to potential targets [51][83] Question: Trends in the packaging business - Management noted early signs of stabilization in the packaging segment, with ongoing efforts to capture growth opportunities [65] Question: Expectations for the construction segment - Management anticipates continued challenges in the Site-Built business, particularly in the first half of the year, but expects improvements in the back half [76][98]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 totaled $1.33 billion, reflecting a 7% decline in units and a 2% decline in price compared to the previous year [4][19] - Gross profits decreased by 10% to $217 million from $240 million in the prior year, primarily due to challenges in the Site Built and ProWood business units [19][27] - Adjusted EBITDA for the quarter was $124 million, an 8% decline from $135 million last year, influenced by the decline in gross profit [22] - Free cash flow for the year was strong at $451 million, down only 5% from 2024, allowing for significant shareholder returns [23][33] Business Line Data and Key Metrics Changes - Retail segment sales were $444 million, a 15% decline, with a 13% decrease in unit sales and a 2% decrease in prices [23] - ProWood experienced a 13% unit decrease, while Deckorators saw a 17% increase in sales, driven by strong demand for wood-plastic composite and SureStone products [24] - Packaging segment sales declined 1% to $370 million, with consistent customer demand but competitive pricing [25] - Construction segment sales fell 10% to $440 million, driven by a 5% decline in both selling prices and units, particularly in the Site-Built business [26] Market Data and Key Metrics Changes - The overall market environment in 2025 was challenging, with cyclical and competitive pricing pressures affecting key markets [4][6] - Demand for housing remained weak due to affordability issues and consumer sentiment, particularly impacting the Site-Built business [15][26] - The packaging business showed signs of stabilization, but pricing remained competitive due to market softness [14][25] Company Strategy and Development Direction - The company plans to use its strong balance sheet to pursue meaningful M&A opportunities while continuing to return capital to shareholders [6][9] - A focus on innovation and the introduction of higher-margin products is central to the company's strategy, with new product sales accounting for 7.6% of total sales [7][8] - The company aims to achieve a 12.5% EBITDA margin and 7%-10% unit sales growth, with a commitment to maintaining a conservative capital structure [17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating market share gains and cost-saving initiatives to offset headwinds in new residential construction [35] - The company is entering 2026 in a stronger position, having made significant progress in cost reduction and operational efficiency [6][36] - Management highlighted the importance of maintaining a balanced approach to capital allocation, focusing on organic and inorganic growth opportunities [33][34] Other Important Information - The company executed share repurchases of $443 million, representing 7% of outstanding shares, and paid $82 million in dividends, with a 3% dividend increase announced for 2026 [5][34] - The company has $2.2 billion in liquidity, providing flexibility for future investments and M&A activities [9][33] Q&A Session Summary Question: Update on Deckorators and cost opportunities - Management expects $100 million increase in Deckorators sales in 2026, heavily weighted towards decking, with significant margin growth opportunities as new capacities come online [41][43] Question: SG&A and facility consolidation opportunities - The heavy lifting for cost reductions has been completed, but management continues to seek opportunities for further efficiency [45][46] Question: M&A pipeline and opportunities - The M&A pipeline is more active than in the past three years, with a focus on strategic priorities and outreach to potential targets [52][83] Question: Trends in the packaging business - Management sees early signs of stabilization in the packaging segment, particularly in Structural Packaging, but remains cautious about overall growth [66] Question: Expectations for Site-Built and pricing stabilization - The first half of 2026 is expected to be challenging for Site-Built, but management is optimistic about potential improvements in the back half of the year [76][98]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 totaled $1.33 billion, reflecting a 7% decline in units and a 2% decline in price compared to the previous year [4][20] - Gross profits decreased by 10% to $217 million from $240 million in the prior year, primarily due to challenges in the Site Built and ProWood business units [20][28] - Adjusted EBITDA for the quarter was $124 million, an 8% decline from $135 million in the previous year, influenced by lower gross profits despite reductions in core SG&A [22][28] - Free cash flow for the year was strong at $451 million, down only 5% from 2024, allowing for significant share repurchases [23][33] Business Line Data and Key Metrics Changes - Retail segment sales were $444 million, a 15% decline year-over-year, driven by a 13% decrease in unit sales and a 2% decrease in prices [24] - ProWood experienced a 13% unit decrease, while Deckorators saw a 17% increase, with SureStone sales up 44% and wood-plastic composite sales up 35% [25][12] - Packaging segment sales declined 1% to $370 million, with a 1% decline in units and flat pricing, although Structural Packaging showed a 1% volume increase [26][14] - Construction segment sales declined 10% to $440 million, driven by a 5% decline in both selling prices and units, particularly in the Site-Built business [27] Market Data and Key Metrics Changes - The overall market environment in 2025 was challenging, with cyclical and competitive pricing pressures affecting key markets [4][6] - Demand for housing remained weak due to affordability issues and consumer sentiment, particularly impacting the Site-Built business [16][27] - The company anticipates that many of the trends from 2025 will continue into 2026, with organic volumes expected to be flat to down low single digits [35] Company Strategy and Development Direction - The company is focused on innovation and expanding its portfolio with value-added, higher-margin products, with new product sales accounting for 7.6% of total sales [7][10] - M&A remains a key part of the growth strategy, with a more active pipeline than in the past 36 months, targeting opportunities that complement the core business [10][35] - The company aims to achieve a 12.5% EBITDA margin and 7%-10% unit sales growth, with a focus on maintaining a conservative capital structure [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the difficult operating environment in 2025 but expressed optimism about entering 2026 in a stronger position to drive improved results [6][35] - The company is committed to cost reduction initiatives, with a $60 million cost out program expected to yield savings throughout 2026 [6][30] - Management remains cautiously optimistic about market share gains and believes that cost initiatives will help offset headwinds related to new residential construction [35] Other Important Information - The company executed share repurchases of $443 million, representing 7% of outstanding shares, and paid $82 million in dividends, with a 3% dividend increase announced for 2026 [5][34] - Capital expenditures for 2025 were below the target due to longer lead times and postponements in adding new capacity in weak markets [31] Q&A Session Summary Question: Update on Deckorators store rollout and margin opportunities - Management expects $100 million increase in Deckorators sales in 2026, heavily weighted towards decking, with significant margin growth opportunities as new capacities come online [41][43] Question: Additional facility consolidation opportunities - Management indicated that the heavy lifting for cost reductions has been done, but they are continuously looking for opportunities to control capacity [45][48] Question: M&A pipeline and opportunities - The M&A pipeline is more active than in the past three years, with a focus on strategic priorities and outreach to potential targets [51][82] Question: Trends in ProWood and repair and remodeling - The market remains soft, with consumer confidence and affordability challenges impacting demand, but the company believes it can capture opportunities as they arise [84] Question: Expectations for Factory-Built segment - Management sees potential in Factory-Built to address affordability challenges in housing, with new products enhancing visual appeal [88]

INVESTOR RELATIONS PRESENTATION Results through December 27, 2025 Deckorators Voyage Decking with Surestone Technology This presentation is the property of UFP Industries, Inc. Any redistribution, retransmission, or reprinting of this presentation in any form without the express written consent of UFP Industries is strictly prohibited. 2 1 UFP INDUSTRIES, INC. Please be aware that statements included in this presentation that are not historical are forward-looking statements within the meaning of Section 21 ...

Core Insights - The company's performance was negatively impacted by a 7% decline in unit sales and a 2% price compression, primarily due to cyclical pressures in new home construction and reduced storm-related demand compared to the previous year [1] Group 1: Business Segments - The Deckorators business has emerged as a primary growth engine, with Surestone and wood plastic composite sales increasing by 44% and 35% respectively, significantly outperforming the broader industry [1] - The Packaging segment showed signs of stabilization, with structural packaging volume turning positive for the first time since 2021, supported by a shift toward serving multinational strategic customers [1] Group 2: Operational Challenges - Management attributed margin pressure to under-optimized capacity and high start-up costs for new facilities, which masked structural improvements and cost-out progress [1] - Strategic positioning in the Construction segment faced challenges due to heavy geographic concentration in the West and Texas, where large builders aggressively reduced inventory to manage affordability concerns [1] Group 3: Cost Management and Investments - The company is on track to achieve its $60 million cost-reduction goal by the end of 2026, having already surpassed its 2025 SG&A reduction target with $35 million in cuts [1] - Simultaneously, the company is reinvesting $20 million into brand marketing for Deckorators [1]