Core Insights - The article promotes a premium service called "Value in Corporate Events" that focuses on major corporate events such as earnings reports, mergers and acquisitions (M&A), and initial public offerings (IPOs) [1] - The service aims to provide actionable investment ideas and covers approximately 10 significant events each month to identify the best investment opportunities [1] Group 1 - The service offers members the chance to capitalize on various corporate events, including IPOs and changes in capital allocation [1] - The analyst expresses a potential interest in initiating a long position in UFPI within the next 72 hours [1]

Financial Data and Key Metrics Changes - The company reported net sales of $1.8 billion, a decline of 3.5% from $1.9 billion in the previous year, driven by a 3% decline in units and a 1% decline in pricing [22][24] - Adjusted EBITDA decreased by 15% to $174 million, with the adjusted EBITDA margin falling to 9.5% from 10.7% a year ago [22][23] - Earnings per share for the quarter were $1.7, reflecting ongoing pressures from weaker demand and competitive pricing [7][22] Business Line Data and Key Metrics Changes - Retail sales declined by 3% to $788 million, primarily due to a 7% decline in unit sales, offset by a 4% increase in pricing [24][14] - Packaging sales decreased by 2% to $429 million, with a 4% decrease in selling prices and 2% unit growth from recent acquisitions [29] - Construction sales fell by 4% to $552 million, with a 6% decline in selling prices partially offset by a 2% increase in units [30] Market Data and Key Metrics Changes - The company experienced low single-digit unit volume declines across each segment, with competitive pricing pressures and softer demand in several end markets [6][38] - The retail segment faced a 7% decline in pro wood volume due to higher interest rates and weaker consumer sentiment [24][14] - The construction segment's site-built business was impacted by weak builder sentiment and higher inventories of new and existing homes [18][31] Company Strategy and Development Direction - The company is committed to investing $1 billion in growth capital over the next five years, focusing on innovation, automation, and expanding value-added product offerings [10][36] - Strategic initiatives include managing manufacturing footprint, reducing SG&A costs, and exiting underperforming businesses [8][9] - The company aims for long-term targets of 7% to 10% unit growth and 12.5% EBITDA margins while maintaining a strong return on capital profile [20][36] Management's Comments on Operating Environment and Future Outlook - Management noted that the business conditions affecting the first half of the year are expected to persist through the remainder of 2025, with ongoing competitive pricing pressures [19][38] - The company remains confident in its ability to navigate potential tariff impacts and is well-positioned to take advantage of favorable trends across many growth runways [20][19] - Management emphasized the importance of maintaining cost discipline while advancing long-term objectives, including product innovation and market share expansion [32][38] Other Important Information - The company has made significant progress on a $60 million cost-out program, with plans to realize full savings by the end of 2026 [9][34] - The company completed the divestiture of a small industrial components business and is in the process of selling certain real estate assets, which could provide up to $15 million in one-time gains [9][10] - The company plans to spend approximately $300 million to $325 million on capital expenditures for the year, focusing on expanding capacity and achieving efficiencies [35][36] Q&A Session Summary Question: Can you unpack the sequential improvement in construction gross margins? - Management indicated that while site-built business faced challenges, improvements were seen in concrete forming and commercial sectors, contributing to overall margin stability [43][44] Question: Is the current environment posing more risk than in the past regarding lumber pricing? - Management acknowledged that the weak demand environment makes it harder to pass along pricing increases, indicating a more challenging landscape [45][46] Question: What are the expectations for market share gains in the Deckorators business? - Management expects modest market share gains in the back half of the year, with improvements in the decking market anticipated [46][50] Question: How is the company positioning itself regarding upcoming lumber duties? - Management noted that most purchases are domestic, and they are exploring alternatives to mitigate the impact of potential duties on Canadian lumber [75][76] Question: What is the company's approach to capital allocation moving forward? - Management emphasized a preference for growth investments and M&A opportunities, but will also consider share buybacks if suitable opportunities do not arise [78][80]

Financial Data and Key Metrics Changes - Net sales for June were $1.8 billion, down 3.5% from $1.9 billion last year, driven by a 3% decline in units and a 1% decline in pricing [21][22] - Adjusted EBITDA decreased by 15% to $174 million, with adjusted EBITDA margin falling to 9.5% from 10.7% a year ago [21][22] - Earnings per share for the quarter were $1.7, reflecting pressures from weaker demand and competitive pricing [7][21] Business Line Data and Key Metrics Changes - Retail sales declined 3% year-over-year to $788 million, primarily due to a 7% decline in unit sales, offset by a 4% increase in price [23][24] - Packaging sales decreased 2% to $429 million, with a 4% decrease in selling prices and 2% unit growth from recent acquisitions [28] - Construction sales fell 4% to $552 million, with a 6% decline in selling prices partially offset by a 2% increase in units [29][30] Market Data and Key Metrics Changes - The retail segment experienced a 7% unit decrease in pro wood and a 3% decline in decorators, attributed to softer demand and ongoing efforts to exit lower-margin product lines [23][24] - The construction market remains competitive, with site-built business facing significant pricing pressure due to weak builder sentiment and higher inventories [17][30] - The packaging market remains highly competitive, with customer demand softening but some share gains noted in specific business units [28][29] Company Strategy and Development Direction - The company is committed to investing $1 billion in growth capital over the next five years, focusing on innovation, automation, and expanding value-added product offerings [9][10] - Strategic initiatives include managing manufacturing footprint, reducing SG&A costs, and exiting underperforming businesses [7][8] - The company aims for long-term targets of 7% to 10% unit growth and 12.5% EBITDA margins while maintaining a conservative capital structure [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the business conditions affecting the first half of the year are expected to persist through the remainder of 2025, with ongoing competitive pricing pressures [18][38] - The company remains confident in its ability to navigate potential tariff impacts and is well-positioned to take advantage of favorable trends across growth runways [18][19] - Management emphasized the importance of maintaining cost discipline while advancing long-term objectives, including market share growth and product innovation [31][38] Other Important Information - The company has made significant progress on a $60 million cost-out program, with plans to realize full savings by the end of 2026 [8][32] - Operating cash flow was $113 million for the year, with expectations of converting seasonal net working capital into cash by the end of Q3 [22][33] - The company plans to spend approximately $300 million to $325 million on capital expenditures for the year, focusing on expanding capacity and achieving efficiencies [34][36] Q&A Session Summary Question: Can you unpack the sequential improvement in construction gross margins? - Management indicated that while site-built business faced challenges, improvements were seen in concrete forming and commercial sectors due to seasonal factors [44][45] Question: Is the current environment posing more risk than in the past regarding lumber pricing fluctuations? - Management acknowledged that the weak demand environment makes it harder to pass along pricing increases, indicating a more challenging landscape [46][47] Question: What does modest market share gain mean for overall sales perspective? - Management expects modest market growth and improved market share in the back half of the year, particularly in the decking market [48][49] Question: How is the marketing campaign focused this year? - The marketing campaign is primarily directed towards consumers to explain the value of new technology, aiming to enhance brand awareness [57][58] Question: Are there any signs of improvement in the packaging market? - Management noted stabilization in the packaging market but did not highlight any significant improvements [60][61] Question: How is the company positioning itself regarding upcoming lumber duties? - Management emphasized that most purchases are domestic and they are exploring alternatives to mitigate the impact of potential duties [73][74] Question: What are the options for capital allocation moving forward? - Management reiterated a preference for growth investments and M&A opportunities, but share buybacks remain a viable option if suitable opportunities do not arise [75][78]

INVESTOR RELATIONS PRESENTATION Results through June 28, 2025 Deckorators Voyage Decking with Surestone Technology 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 21E of the Securities Exchange Act, as amended, and are based on management's beliefs, assumptions, current expectations, estimates, and projections about the markets we serve, the economy, and the company itself. Words like "a ...

Core Insights - UFP Industries reported quarterly earnings of $1.7 per share, missing the Zacks Consensus Estimate of $1.95 per share, and down from $2.05 per share a year ago [1] - The company posted revenues of $1.84 billion for the quarter, missing the Zacks Consensus Estimate by 0.92%, and down from $1.9 billion year-over-year [3] - UFP Industries has not surpassed consensus EPS estimates over the last four quarters, with a recent earnings surprise of -12.82% [2] Earnings Performance - The earnings surprise for the latest quarter was -12.82%, following a previous quarter surprise of -18.24% [2] - The current consensus EPS estimate for the upcoming quarter is $1.64, with expected revenues of $1.67 billion, and for the current fiscal year, the estimate is $6.19 on $6.62 billion in revenues [8] Market Performance - UFP Industries shares have declined approximately 6.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [4] - The company has topped consensus revenue estimates only once in the last four quarters [3] Industry Outlook - The Building Products - Wood industry, to which UFP Industries belongs, is currently ranked in the bottom 12% of over 250 Zacks industries, indicating potential challenges ahead [9] - The performance of UFP Industries may be influenced by the overall outlook for the industry [9] Future Expectations - The company's earnings outlook is crucial for investors, with a favorable trend in estimate revisions noted prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock [7] - The upcoming earnings report from Louisiana-Pacific, a competitor in the same industry, is anticipated to show a significant year-over-year decline in earnings [10][11]

[Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) UFP Industries reported a decline in Q2 2025 key financial metrics, with net sales down 4% to $1.84 billion and net earnings falling to $100.7 million, reflecting soft but stable end market demand Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.84 billion | $1.90 billion | -4% | | Net Earnings | $100.7 million | $126.0 million | -20.1% | | Diluted EPS | $1.70 | $2.05 | -17.1% | | Adjusted EBITDA | $174.1 million | $203.9 million | -14.6% | | Adjusted EBITDA Margin | 9.5% | 10.7% | -120 bps | - Net sales decrease of **4%** was driven by a **1%** decrease in price and a **3%** decline in organic units[5](index=5&type=chunk) - New product sales were **$129.1 million**, representing **7.0%** of total net sales, an increase from **6.7%** in the prior year's quarter[5](index=5&type=chunk) [Management Commentary and Strategy](index=1&type=section&id=Management%20Commentary%20and%20Strategy) Management characterized the market as having limited visibility and soft but stable demand, with tariff uncertainty posing a challenge, while targeting $60 million in structural cost savings by year-end 2026 - The business environment is marked by limited visibility, tariff uncertainty, and soft but stable end market demand[4](index=4&type=chunk) - The company is on target to achieve approximately **$60 million** of structural cost savings by the end of 2026[4](index=4&type=chunk) - Future strategy centers on innovation, strategic investments for growth, pursuing complementary M&A, and leveraging a strong balance sheet for share repurchases and dividends[4](index=4&type=chunk) [Capital Allocation](index=3&type=section&id=Capital%20Allocation) UFP Industries maintains a strong liquidity position of approximately $2.1 billion, prioritizing strategic acquisitions, organic growth investments, increased dividend payments, and share repurchases - As of June 28, 2025, the company had approximately **$2.1 billion** of liquidity, including **$841.9 million** in cash[7](index=7&type=chunk) - The company plans to invest **$300 million to $325 million** in capital projects in 2025 as part of a larger plan to invest up to **$1 billion** through 2028 for automation, technology, and expansion[8](index=8&type=chunk) - The quarterly cash dividend was increased by **6%** year-over-year to **$0.35 per share**[8](index=8&type=chunk) - A new share repurchase authorization of **$300 million** through July 31, 2026, was approved, replacing the prior authorization under which **2.6 million shares** were bought back for **$269.6 million**[8](index=8&type=chunk) [Business Segment Performance](index=4&type=section&id=Business%20Segment%20Performance) In Q2 2025, all three business segments reported year-over-year declines in net sales, facing unique challenges including customer transitions, competitive pricing, and softer demand Q2 2025 Net Sales by Segment (vs. Q2 2024) | Business Segment | Q2 2025 Net Sales | Q2 2024 Net Sales | Change | | :--- | :--- | :--- | :--- | | UFP Retail Solutions | $788.2 million | $809.1 million | -3% | | UFP Packaging | $428.7 million | $435.2 million | -2% | | UFP Construction | $551.6 million | $574.5 million | -4% | [UFP Retail Solutions](index=4&type=section&id=UFP%20Retail%20Solutions) Net sales decreased 3% to $788.2 million, driven by a 7% drop in organic units due to a large retail customer loss, partially offset by market share gains and strong demand for Surestone decking UFP Retail Solutions Q2 Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $788.2 million | $809.1 million | | Gross Profit | $113.7 million | $126.7 million | | Gross Margin | 14.4% | 15.7% | - Within the Deckorators business, railing sales declined **25%** due to the loss of a large retail customer, while mineral-based Surestone composite decking sales increased over **45%** due to share gains with another retailer[9](index=9&type=chunk) - The company is adding capacity to supply Surestone decking to approximately **1,500 stores** by 2026, positioning it for a modest net market share gain in 2025[9](index=9&type=chunk) [UFP Packaging](index=4&type=section&id=UFP%20Packaging) Net sales declined 2% to $428.7 million, primarily due to a 4% drop in selling prices, with market share gains in PalletOne and Protective Packaging offsetting a decline in Structural Packaging UFP Packaging Q2 Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $428.7 million | $435.2 million | | Gross Profit | $70.6 million | $83.7 million | | Gross Margin | 16.5% | 19.2% | - Organic unit sales were flat, with a **2%** decline in Structural Packaging offset by a **5%** increase in PalletOne and an **8%** increase in Protective Packaging due to market share gains[11](index=11&type=chunk) [UFP Construction](index=4&type=section&id=UFP%20Construction) Net sales fell 4% to $551.6 million, as a 6% decrease in selling prices more than offset a 2% increase in organic unit sales, with strong growth in Factory Built, Commercial, and Concrete Forming counteracted by softer Site Built Housing demand UFP Construction Q2 Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $551.6 million | $574.5 million | | Gross Profit | $100.2 million | $125.6 million | | Gross Margin | 18.2% | 21.9% | - Organic unit sales increased in Factory Built (**+8%**), Commercial (**+6%**), and Concrete Forming (**+11%**), but decreased **7%** in Site Built Housing due to softer demand[14](index=14&type=chunk) [Outlook](index=6&type=section&id=Outlook) The company anticipates continued soft demand and competitive pricing for the remainder of 2025, while maintaining long-term goals for annual unit sales growth, adjusted EBITDA margins, and a conservative capital structure [Short-Term Outlook](index=6&type=section&id=Short-Term%20Outlook) UFP is navigating potential tariff impacts and expects to adapt without material adverse financial impact, with a restructuring plan including the closure of its Bonner, Montana facility and an unchanged 2025 outlook for low single-digit unit declines - The company is positioned to adapt to potential tariffs without material adverse financial impact after a short adjustment period[16](index=16&type=chunk) - The company plans to close its Bonner, Montana manufacturing facilities, expecting **$15-17 million** in Q3 2025 impairment charges, which will eliminate future annual operating losses of approximately **$16 million**[17](index=17&type=chunk) - The 2025 outlook remains unchanged, with expectations of low single-digit unit declines in each segment for the balance of the year[18](index=18&type=chunk) [Long-Term Outlook](index=6&type=section&id=Long-Term%20Outlook) UFP's long-term objectives remain unchanged, targeting 7-10% annual unit sales growth, with new products contributing at least 10% of sales, and aiming for 12.5% adjusted EBITDA margins while maintaining a conservative capital structure - Achieve **7-10 percent** annual unit sales growth, including bolt-on acquisitions[19](index=19&type=chunk) - Generate at least **10 percent** of all sales from new products[19](index=19&type=chunk) - Target **12.5 percent** adjusted EBITDA margins[20](index=20&type=chunk) [Financial Statements and Reconciliations](index=11&type=section&id=Financial%20Statements%20and%20Reconciliations) [Condensed Consolidated Statements of Earnings](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) For Q2 2025, UFP reported net sales of $1.84 billion and net earnings of $100.7 million, both declining year-over-year from $1.90 billion and $125.9 million in Q2 2024, respectively Consolidated Earnings Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,835,374 | $1,901,959 | $3,430,893 | $3,540,925 | | Gross Profit | $312,734 | $362,743 | $580,930 | $688,821 | | Earnings from Operations | $123,091 | $159,034 | $215,343 | $292,857 | | Net Earnings (Controlling Interest) | $100,734 | $125,930 | $179,487 | $246,721 | | Diluted EPS | $1.70 | $2.05 | $2.99 | $4.00 | [Condensed Consolidated Statements of Earnings by Segment](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20by%20Segment) In Q2 2025, all segments experienced a year-over-year decline in earnings from operations, with Retail falling to $53.5 million, Packaging to $26.2 million, and Construction to $36.1 million, reflecting similar downward trends for the six-month period Q2 Earnings from Operations by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Retail | $53,479 | $59,783 | | Packaging | $26,209 | $29,516 | | Construction | $36,060 | $52,011 | YTD Earnings from Operations by Segment (in thousands) | Segment | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Retail | $79,613 | $105,763 | | Packaging | $47,982 | $60,762 | | Construction | $63,876 | $97,353 | [Reconciliation of Net Earnings to Adjusted EBITDA](index=14&type=section&id=Reconciliation%20of%20Net%20Earnings%20to%20Adjusted%20EBITDA) Consolidated Adjusted EBITDA for Q2 2025 decreased to $174.1 million (9.5% of sales) from $203.9 million (10.7% of sales) in Q2 2024, with all operating segments reporting lower Adjusted EBITDA and margins due to challenging market conditions Q2 Adjusted EBITDA by Segment (in thousands) | Segment | Q2 2025 Adj. EBITDA | Q2 2024 Adj. EBITDA | Q2 2025 Margin | Q2 2024 Margin | | :--- | :--- | :--- | :--- | :--- | | Retail | $63,978 | $70,187 | 8.1% | 8.7% | | Packaging | $38,796 | $42,960 | 9.1% | 9.9% | | Construction | $45,480 | $58,615 | 8.2% | 10.2% | | **Total** | **$174,147** | **$203,914** | **9.5%** | **10.7%** | [Condensed Consolidated Balance Sheets](index=16&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, UFP's balance sheet remained strong with total assets of $4.10 billion, cash and cash equivalents at $841.9 million, total debt of approximately $234.3 million, and shareholders' equity increasing to $3.17 billion Key Balance Sheet Items (in thousands) | Account | June 2025 | June 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $841,930 | $1,041,341 | | Total Current Assets | $2,367,505 | $2,554,029 | | Total Assets | $4,097,388 | $4,138,494 | | Total Current Liabilities | $521,118 | $588,388 | | Total Debt & Finance Lease Obligations | $234,303 | $276,733 | | Shareholders' Equity | $3,168,463 | $3,117,510 | [Condensed Consolidated Statements of Cash Flows](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash from operating activities significantly decreased to $113.1 million, while investing activities used $149.6 million, and financing activities used $302.3 million, primarily for share repurchases and dividends Cash Flow Summary - Six Months Ended June (in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $113,138 | $239,078 | | Net Cash Used in Investing Activities | ($149,579) | ($119,038) | | Net Cash Used in Financing Activities | ($302,338) | ($196,468) | | **Net Change in Cash** | **($336,603)** | **($80,154)** | - Major uses of cash in financing activities for the first six months of 2025 included **$251.9 million** for common stock repurchases and **$42.0 million** for dividend payments[37](index=37&type=chunk)

Core Viewpoint - UFP Industries has experienced a decline of approximately 0.6% in share price over the past month, underperforming the S&P 500, raising questions about its future performance leading up to the next earnings release [1] Estimates Movement - Estimates for UFP Industries have trended downward over the past month, with the consensus estimate shifting down by 10.29% [2] VGM Scores - UFP Industries currently holds a subpar Growth Score of D, a Momentum Score of D, and a Value Score of D, placing it in the bottom 40% for investment strategies, resulting in an aggregate VGM Score of D [3] Outlook - The downward trend in estimates suggests a negative outlook for UFP Industries, reflected in its Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [4] Industry Performance - UFP Industries is part of the Zacks Building Products - Wood industry, where Weyerhaeuser has gained 0.2% over the past month, reporting revenues of $1.76 billion, a year-over-year decline of 1.8% [5] - Weyerhaeuser is expected to report earnings of $0.19 per share for the current quarter, reflecting a year-over-year change of -9.5%, with a Zacks Rank of 4 (Sell) and a VGM Score of F [6]

INVESTOR RELATIONS PRESENTATION Results through March 29, 2025 Deckorators Voyage Decking with Surestone Technology 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 21E of the Securities Exchange Act, as amended, and are based on management's beliefs, assumptions, current expectations, estimates, and projections about the markets we serve, the economy, and the company itself. Words like " ...

Core Viewpoint - UFP Industries, Inc. reported disappointing first-quarter results for 2025, with both earnings and net sales falling short of expectations and declining year over year due to softer demand and pricing pressures [1][3]. Financial Performance - Earnings per share were $1.30, missing the Zacks Consensus Estimate of $1.59 by 18.2% and down 33.7% from the previous year [3]. - Net sales totaled $1.60 billion, below the consensus mark of $1.63 billion, representing a 2.7% year-over-year decline [3]. - The decline in sales was attributed to a 0.7% decrease in selling prices and a 2% drop in organic unit sales [3]. Segment Performance - **UFP Retail Solutions**: Reported net sales of $607 million, down 3% year over year, with organic unit sales decreasing by 4% [4]. Adjusted EBITDA margin contracted by 290 basis points to 5.9% [4]. - **UFP Packaging**: Net sales were $410 million, down 3% from the previous year, with a 1% decline in selling prices and a 3% drop in organic unit sales [5]. Adjusted EBITDA margin decreased by 190 basis points to 8.5% [5]. - **UFP Construction**: Net sales were $516 million, flat year over year, with organic unit sales growing by 3% but offset by a 3% decline in selling prices [6]. Adjusted EBITDA margin contracted by 320 basis points to 7.2% [7]. Operating Highlights - Selling, general and administrative expenses accounted for 11% of net sales, decreasing by 70 basis points year over year [8]. - Adjusted EBITDA was $142.2 million, down from $180.8 million year over year, with the adjusted EBITDA margin contracting by 210 basis points to 8.9% [8]. Balance Sheet & Cash Flow - As of March 29, 2025, the company had nearly $2.2 billion in liquidity, with cash and cash equivalents at $903.6 million, down from $1.17 billion at the end of 2024 [10]. - Long-term debt was $229.9 million, slightly up from $229.8 million at the end of 2024 [10]. - Net cash used in operating activities was $108.8 million, compared to $16.8 million in the same period last year [10]. Dividend and Share Repurchase - The board approved a quarterly dividend payment of 35 cents per share, a 6% increase from the previous dividend of 33 cents [11]. - The share repurchase program was amended to increase authorization from $200 million to $300 million, with $122 million remaining under the program as of April 28, 2025 [12]. Short-Term Outlook - The company anticipates subdued demand through the remainder of 2025, with a competitive pricing environment across all segments [14]. - UFPI is managing potential impacts from proposed tariffs on raw materials, believing it is well-positioned to adapt with minimal disruption [13]. Long-Term Outlook - Despite near-term challenges, UFPI aims for annual unit sales growth of 7-10% and targets EBITDA margins of 12.5% [15].

Financial Data and Key Metrics Changes - Total sales declined 3% year-over-year to $1,600,000,000, driven by a 2% reduction in volumes and a 1% reduction in selling prices [24][25] - Adjusted EBITDA decreased 21% to $142,000,000, with adjusted EBITDA margin falling to 8.9% [24][25] - Earnings per share for the quarter were reported at $1.30 [8] Business Line Data and Key Metrics Changes - Retail sales fell 3% to $607,000,000, with a 4% decline in volume partially offset by a 1% increase in price [25][26] - Packaging segment sales dropped 3% to $410,000,000, consisting of a 3% decrease in organic units and a 1% decrease in selling prices [27] - Construction segment sales were largely flat at $516,000,000, with a 3% increase in units offset by a 3% decline in selling prices [28][29] Market Data and Key Metrics Changes - The retail segment experienced a 4% decline in volume with big box customers, while independent retailers saw a 7% decline [25] - The construction market outlook remains downgraded, with many homebuilders lowering their full-year forecasts [20][22] - The company imports less than 15% of its lumber from Canada, with Southern Yellow Pine representing over 70% of lumber purchases [21] Company Strategy and Development Direction - The company plans to invest $1,000,000,000 in growth capital over the next five years, with a preference for M&A over greenfield expansion when valuations align with return expectations [14][15] - The focus remains on expanding value-added products and innovation while reducing underperforming operations [10][14] - The company aims for 7% to 10% unit growth and 12.5% EBITDA margins while maintaining a strong return on capital profile [22] Management's Comments on Operating Environment and Future Outlook - The management noted that the macro environment has become increasingly uncertain, with visibility remaining limited [5][6] - Despite ongoing market volatility, the company remains confident in its ability to navigate challenges and is focused on cost management and operational efficiency [9][22] - The outlook for the remainder of 2025 anticipates continued demand challenges across segments, with competitive pricing pressures expected to persist [20][37] Other Important Information - The company finished the quarter with $9,500,000 in cash, providing flexibility for future investments [7] - Share repurchases have been active, with an additional $100,000,000 authorization from the Board, and the company plans to remain active in Q2 [16][35] - The company is committed to maintaining a conservative capital structure while pursuing growth opportunities [34] Q&A Session Summary Question: Outlook on demand and competitive dynamics - Management expects current challenges to continue in future quarters, particularly in the packaging and construction segments, while retail may see improvements [42][44] Question: Managing lumber price fluctuations - The company aims to retain market share while managing margins, indicating a focus on mitigating cost increases without sacrificing volume [48][49] Question: Impact of customer shifts on Decorators - Management confirmed that the transition period affecting Decorators is largely behind them, with expectations for improved performance in Q2 [52][59] Question: M&A opportunities - The company sees opportunities across all business units and is open to both tuck-in and larger transactions, emphasizing disciplined valuation [76][78] Question: Pricing mechanisms in ProWood - Management clarified that recent price increases have been successfully passed along to customers, with expectations for normalized margins moving forward [82] Question: Concrete forming business outlook - No significant cancellations or slowdowns have been observed, with continued market share gains in value-added products [91]