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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]

Core Insights - UFP Industries reported a revenue of $1.56 billion for the quarter ended September 2025, reflecting a decline of 5.4% year-over-year and a surprise of -3.19% compared to the Zacks Consensus Estimate of $1.61 billion [1] - The earnings per share (EPS) for the quarter was $1.29, down from $1.64 in the same quarter last year, with an EPS surprise of -5.84% against the consensus estimate of $1.37 [1] Revenue Performance - Net Sales in the Construction segment were reported at $496.47 million, which is a decrease of 7.1% compared to the year-ago quarter and below the average estimate of $513.79 million [4] - Net Sales in the Packaging segment amounted to $394.95 million, representing a year-over-year decline of 1.7% and slightly below the average estimate of $398.79 million [4] - Net Sales in the Retail segment were $593.99 million, down 6.5% year-over-year and also below the average estimate of $625.73 million [4] Stock Performance - Over the past month, UFP Industries' shares have returned -1.6%, contrasting with a +3.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - UFP Industries reported quarterly earnings of $1.29 per share, missing the Zacks Consensus Estimate of $1.37 per share, and down from $1.64 per share a year ago [1] - The earnings surprise for the quarter was -5.84%, and the company has not surpassed consensus EPS estimates in the last four quarters [2] - Revenues for the quarter were $1.56 billion, missing the Zacks Consensus Estimate by 3.19%, and down from $1.65 billion year-over-year [3] Stock Movement and Outlook - UFP Industries shares have declined approximately 18.4% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [4] - The company's earnings outlook is mixed, with current consensus EPS estimates of $1.14 on $1.43 billion in revenues for the coming quarter, and $5.51 on $6.47 billion in revenues for the current fiscal year [8] Industry Context - The Building Products - Wood industry, to which UFP Industries belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, indicating potential challenges ahead [9] - JELD-WEN, another company in the same industry, is expected to report a significant decline in earnings and revenues, further highlighting the industry's struggles [10]

Core Insights - UFP Industries, Inc. reported third quarter 2025 net sales of $1.56 billion, reflecting a 5 percent decrease compared to the previous year [1] - The decline in net sales was attributed to a 1 percent decrease in price and a 4 percent decline in organic units [1] - Diluted earnings per share for the quarter were $1.29, down from $1.64 in the same period last year [1] - Net earnings attributable to controlling interest amounted to $76 million [1]

Financial Performance - Net sales for Q3 2025 were $1.56 billion, a decrease of 5.4% compared to Q3 2024, driven by a 1% decrease in price and a 4% decline in organic units [3]. - Adjusted EBITDA for the quarter was $140 million, representing 9.0% of net sales, down from 10.0% in the previous year [4]. - Net earnings attributable to controlling interests were $75 million, a decline of 25.7% from $101 million in Q3 2024 [4]. - Total net sales for Year to Date 2025 reached $4,990,520, a decrease from $5,190,308 in Year to Date 2024, representing a decline of approximately 3.8% [24]. - Gross profit for Year to Date 2025 was $843,611, compared to $987,233 in Year to Date 2024, indicating a decrease of about 14.6% [24]. - Net earnings for Year to Date 2025 were $255,836, down from $348,950 in Year to Date 2024, reflecting a decline of approximately 26.7% [24]. - Adjusted EBITDA for the quarter ended September 2025 was $140,019, compared to $164,915 in the same quarter of 2024, a decrease of about 15.1% [26]. - Net earnings as a percentage of net sales for the quarter ended September 2025 was 4.8%, down from 6.2% in the same quarter of 2024 [26]. - Earnings from operations for Year to Date 2025 were $304,814, down from $412,783 in Year to Date 2024, a decline of about 26.2% [24]. Cost Management - The company plans to reduce structural costs by $60 million from 2024 levels by the end of 2026 [2]. - Selling, general and administrative expenses for Q3 2025 were $170,030, down from $183,341 in Q3 2024, a reduction of 7.2% [20]. - Selling, general and administrative expenses for Year to Date 2025 totaled $531,279, an increase from $578,555 in Year to Date 2024, indicating a decrease of approximately 8.2% [24]. - Depreciation expense increased to $101,574,000 in 2025 from $92,130,000 in 2024, an increase of 10.2% [30]. - The company incurred share-based compensation expenses of $27,906,000 in 2025, slightly up from $27,345,000 in 2024 [30]. Sales and Market Trends - New product sales accounted for 7.6% of total sales in the quarter [4]. - The company aims for 7-10% annual unit sales growth, with at least 10% of sales coming from new products [14]. - The company anticipates low single-digit unit declines across all segments for the remainder of 2025, with a more significant decline in residential construction markets [11]. - The Retail segment reported net sales of $593,985 in Q3 2025, down from $635,571 in Q3 2024, a decline of 6.0% [22]. - The Packaging segment's net sales were $394,949 in Q3 2025, slightly down from $401,626 in Q3 2024 [22]. - The Construction segment experienced a decrease in net sales to $496,465 in Q3 2025 from $534,625 in Q3 2024, a drop of 7.1% [22]. Profitability Metrics - Gross profit margin for Q3 2025 was 16.8%, down from 18.1% in Q3 2024, reflecting increased cost of goods sold [20]. - The company reported a gross profit margin of 16.6% for Year to Date 2025, compared to 19.0% for Year to Date 2024 [24]. - Interest and other expenses for the quarter ended September 2025 amounted to $(36,353), compared to $(14,184) in the same quarter of 2024, indicating an increase in expenses [26]. Shareholder Returns - UFP Industries repurchased approximately $350 million in company shares year to date in 2025 [4]. - The Board of Directors approved a quarterly cash dividend of $0.35 per share, reflecting a 6% year-over-year increase [13]. Asset and Liability Management - Total current assets decreased to $2,387,084,000 in 2025 from $2,613,525,000 in 2024, a decline of 8.6% [29]. - Cash and cash equivalents at the end of the period were $1,011,694,000, down from $1,191,568,000 in 2024, reflecting a decrease of 15.1% [30]. - Total liabilities and equity remained stable at $4,135,551,000 in 2025 compared to $4,217,885,000 in 2024 [29]. - The company reported a net cash from operating activities of $399,122,000 for 2025, down from $497,662,000 in 2024, a decrease of 19.8% [30]. - Inventories increased to $667,418,000 in 2025 from $645,429,000 in 2024, an increase of 3.8% [29]. - The company reported a net loss on sale, disposition, and impairment of assets of $3,812,000 in 2025, compared to a gain of $1,538,000 in 2024 [30]. Risk Factors - The company anticipates potential risks including fluctuations in currency, inflation, and supply chain challenges that could impact future performance [20].

Core Points - UFP Industries will announce its third quarter 2025 financial results after the market closes on October 29, 2025 [1] - A conference call to discuss the results will be held on October 30, 2025, at 10 a.m. Eastern Time, hosted by the CEO and CFO [1] - A live audio webcast of the call will be available on the UFP Industries Investor Relations website, with a replay accessible for at least 90 days [2] Company Information - UFP Industries is headquartered in Grand Rapids, Michigan, and is listed on NASDAQ under the ticker symbol UFPI [3][7] - The company employs approximately 15,000 people [3][7] - The current CEO of UFP Industries is Will Schwartz [3][7]

Core Points - UFP Industries will announce its third quarter 2025 financial results after the market closes on October 29, 2025 [1] - A conference call to discuss the results will be held on October 30, 2025, at 10 a.m. Eastern Time, hosted by the CEO and CFO [1] - A live audio webcast of the call will be available on the UFP Industries Investor Relations website, with a replay accessible for at least 90 days [2] Company Information - UFP Industries is headquartered in Grand Rapids, Michigan, and is listed on NASDAQ under the ticker symbol UFPI [3][7] - The company employs approximately 15,000 people [3][7] - The current CEO of UFP Industries is Will Schwartz [3][7]

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]