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][26] - Adjusted EBITDA decreased 21% to $142,000,000, with an 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 segment sales were $607,000,000, a 3% decline due to a 4% decrease in units, partially offset by a 1% increase in price [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 [28] - Construction segment sales were largely flat at $516,000,000, with a 3% increase in units offset by a 3% decline in selling prices [30] Market Data and Key Metrics Changes - Retail sales experienced a 3% decline, primarily due to a 4% decline in volume, with a positive pricing impact of 1% [17] - The construction market outlook remains cautious, 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 investments over the next five years, with a focus on organic and inorganic growth [13] - The strategy includes expanding value-added products and innovation while deemphasizing underperforming products [9] - The company aims for 7% to 10% unit growth and 12.5% EBITDA margins in the long term [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has become increasingly uncertain, but recent business trends have shown improvement [5][6] - The company expects demand to remain slightly down across segments for the remainder of 2025, with competitive pricing pressures continuing [38] - Management remains confident in navigating potential tariff impacts and leveraging favorable demographic trends in an underbuilt housing market [22] Other Important Information - The company has a strong balance sheet with nearly $955,000,000 in cash and total liquidity of $2,200,000,000 [35] - A quarterly dividend of $0.35 per share was approved, representing a 6% increase from the previous year [35] - The company repurchased 649,000 shares for $70,000,000 during the quarter, with additional repurchases planned [36] 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 [43][44] Question: Impact of lumber prices and market share - The company aims to retain and grow market share while managing margins, with a focus on mitigating cost increases [50][51] Question: Decorators business and growth expectations - Management anticipates that the transition period affecting decorators is largely behind them, with expectations for year-over-year volume gains by the end of the year [55][61] Question: M&A opportunities and growth strategy - The company sees opportunities across all business units for M&A, with a preference for tuck-in acquisitions but open to larger transactions if the right opportunity arises [78][79] Question: Pricing mechanisms in ProWood and market conditions - Management indicated that pricing increases have been successfully passed along, and more normalized margins are expected moving forward [83][84]

Core Insights - UFP Industries (UFPI) reported $1.6 billion in revenue for Q1 2025, a year-over-year decline of 2.7% and an EPS of $1.30 compared to $1.96 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $1.63 billion by 2.19%, and the EPS was 18.24% below the consensus estimate of $1.59 [1] Revenue Performance - Retail net sales were $607.38 million, below the estimated $644.47 million, reflecting a year-over-year decline of 3.4% [4] - Construction net sales reached $515.94 million, slightly above the average estimate of $508.43 million, showing a minimal decline of 0.4% year over year [4] - Packaging net sales were reported at $410.01 million, exceeding the estimated $405.32 million, with a year-over-year decline of 3.4% [4] Stock Performance - UFP Industries' shares returned +0.4% over the past month, contrasting with the Zacks S&P 500 composite's decline of -4.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - UFP Industries reported quarterly earnings of $1.30 per share, missing the Zacks Consensus Estimate of $1.59 per share, and down from $1.96 per share a year ago [1] - The earnings surprise was -18.24%, and the company has surpassed consensus EPS estimates only once in the last four quarters [2] - Revenues for the quarter were $1.6 billion, missing the Zacks Consensus Estimate by 2.19%, and down from $1.64 billion year-over-year [3] Market Context - UFP Industries shares have declined about 5.3% since the beginning of the year, compared to a decline of -6.1% for the S&P 500 [4] - The current consensus EPS estimate for the upcoming quarter is $2.17 on revenues of $1.9 billion, and for the current fiscal year, it is $7.05 on revenues of $6.77 billion [8] Industry Outlook - The Building Products - Wood industry is currently in the bottom 37% of over 250 Zacks industries, indicating a challenging environment [9] - Boise Cascade, a competitor in the same industry, is expected to report quarterly earnings of $1.36 per share, reflecting a year-over-year decline of -47.9% [10]

UFP Industries, Inc. Page 1 FOR IMMEDIATE RELEASE Monday, April 28, 2025 Exhibit 99(a) UFP Industries Announces First Quarter 2025 Results GRAND RAPIDS, Mich., Monday, April 28, 2025 – UFP Industries, Inc. (Nasdaq: UFPI) today announced first quarter 2025 results including net sales of $1.60 billion, net earnings attributable to controlling interests of $78.8 million, and earnings per diluted share of $1.30. "While our first quarter proved more challenging than anticipated and visibility remains limited, we ...

Core Viewpoint - Analysts expect UFP Industries (UFPI) to report quarterly earnings of $1.59 per share, reflecting an 18.9% year-over-year decline, with revenues projected at $1.63 billion, down 0.5% from the previous year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Key Metrics Estimates - Analysts project 'Net Sales- Retail' to reach $644.47 million, indicating a year-over-year increase of 2.5% [4] - The consensus estimate for 'Net Sales- Construction' is $508.43 million, reflecting a year-over-year decline of 1.8% [4] - 'Net Sales- Packaging' is expected to be $405.32 million, showing a year-over-year decrease of 4.5% [4] Stock Performance - UFP Industries shares have returned -3.6% over the past month, compared to a -6.6% change in the Zacks S&P 500 composite, with a Zacks Rank 4 (Sell) indicating expected underperformance relative to the overall market [5]

What Does UFPI's Deckorators Strategic Move Offer? With the acquisition of the new site, Deckorators aims to increase the production capacity for its industry- leading Surestone composite-decking product. The 30-acre site is expected to be transformed into a top-tier facility with approximately 240,000 square feet of manufacturing and warehousing space. UFP Industries, Inc.'s (UFPI) brand, Deckorators, has announced its market presence expansion in New York by acquiring a 30-acre site in Lackawanna, a subur ...

Core Viewpoint - UFP Industries has experienced a 6% decline in share price over the past month, although it has outperformed the S&P 500 during this period [1] Estimates Movement - Estimates for UFP Industries have trended downward, with a consensus estimate shift of -6.67% over the past month [2] VGM Scores - UFP Industries holds an average Growth Score of C and a Momentum Score of F, while achieving a Value Score of B, placing it in the top 40% for this investment strategy; the overall aggregate VGM Score is B [3] Outlook - The downward trend in estimates suggests a negative outlook for UFP Industries, currently holding a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [4] Industry Performance - UFP Industries is part of the Zacks Building Products - Wood industry; Rayonier, a competitor in the same sector, has seen a 7.9% increase in share price over the past month, reporting revenues of $726.3 million with a year-over-year growth of +222.5% [5] - Rayonier's expected earnings for the current quarter are $0.05 per share, reflecting no change from the previous year, with a Zacks Consensus Estimate revision of -30% over the last 30 days, also holding a Zacks Rank 3 (Hold) and a VGM Score of F [6]

Revenue and Growth - From 2011 to 2019, the company's revenues increased from $1.8 billion to $4.4 billion, reflecting significant growth[21]. - Net sales for 2024 were $6,652,309, a decrease of 7.8% compared to $7,218,384 in 2023[264]. - Point in time revenue decreased by 8.2% to $6,489,190 in 2024 from $7,069,690 in 2023, while over time revenue increased by 9.7% to $163,119[307]. Market Share and Production Estimates - The Retail Solutions segment estimates production of approximately 28% of all residential treated wood, 17% of all wood fencing, and 7% of all fire-retardant wood products in the U.S.[26]. - The company estimates it manufactures approximately 6-8% of all composite decking and railing in the U.S.[27]. - The Structural Packaging business unit estimates a domestic market share of 10-12%[33]. - PalletOne, as the largest supplier, manufactures approximately 8-10% of new machine-built pallets nationally[34]. - The company estimates it produces approximately 35% of all roof trusses used in factory-built housing in the U.S.[40]. - The site-built construction unit estimates it produces approximately 12% of all engineered wood components used in housing in the U.S.[42]. - The commercial construction business unit is recognized as one of the top five custom interior environment providers globally[43]. Financial Performance - Gross profit for 2024 was $1,226,742, down from $1,418,938 in 2023, reflecting a decline of 13.5%[264]. - Earnings before income taxes for 2024 were $540,155, a decrease of 19.5% compared to $671,241 in 2023[264]. - Net earnings for the year ended December 28, 2024, were $418.733 million, a decrease of 18.6% compared to $514.457 million in 2023[269]. - Net earnings attributable to controlling interest for the year ended December 28, 2024, were $414.56 million, a decrease of 19.4% from $514.31 million in 2023[311]. - The total income tax expense for 2024 was $121.4 million, a decrease of 22.4% from $156.8 million in 2023, driven by lower earnings before income taxes[354]. Assets and Liabilities - Total assets increased to $4,150,938 in 2024 from $4,017,797 in 2023, representing a growth of 3.3%[263]. - Current liabilities decreased to $512,448 in 2024, down 9.8% from $567,976 in 2023[263]. - Total liabilities decreased to $900,947 in 2024, down 6.9% from $967,577 in 2023[263]. - Long-term debt obligations decreased from $276.584 million in 2023 to $234.032 million in 2024, reflecting a reduction of approximately 15.3%[331]. Employee and Shareholder Information - The company had approximately 15,000 employees as of December 28, 2024, emphasizing a culture of career development and training[55]. - Cash dividends increased to $1.32 per share in 2023, up from $1.10 per share in 2022, reflecting a rise of approximately 20%[266]. - The company repurchased 1,409,266 shares of common stock in 2024 at an average price of $113.53, compared to 974,869 shares at an average price of $84.27 in 2023, representing an increase of 44.4% in shares repurchased[351]. Capital Expenditures and Investments - The company incurred $232.274 million in capital expenditures for property, plant, and equipment in 2024, compared to $180.382 million in 2023[269]. - The company made investments of $15.5 million and $10.5 million through its Innov8 Fund in 2024 and 2023, respectively, focusing on emerging projects and technologies[317]. Debt and Interest Rates - The estimated fair value of the company's long-term debt, including the current portion, was $201.2 million as of December 28, 2024[239]. - The average interest rate for variable rate debt is 3.32% as of December 28, 2024[240]. - The company does not enter into material interest rate swaps or other derivative financial instruments to mitigate market risks related to fluctuations in interest rates on variable rate debt[237]. Environmental and Regulatory Compliance - The company plans to disclose its 2024 Scope 1 and Scope 2 greenhouse gas emissions in 2025, following the quantification of 2023 emissions[57]. - The company is evaluating the impact of new accounting standards on financial statement disclosures, including ASU 2024-03 and ASU 2023-09[286][287]. Miscellaneous - The company recognized an expense of $2.0 million for the Director Compensation Plan in 2024, slightly up from $1.9 million in 2023[343]. - The company accrued approximately $16.9 million for retirement benefits for certain officers as of December 28, 2024, compared to $15.5 million in 2023[353].

Core Insights - UFP Industries reported revenue of $1.46 billion for the quarter ended December 2024, a decrease of 4.1% year-over-year, with EPS at $1.20 compared to $1.62 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.44 billion by 1.51%, while the EPS fell short of the consensus estimate of $1.23 by 2.44% [1] Financial Performance - Retail net sales were reported at $524.59 million, surpassing the average estimate of $480.17 million by two analysts, reflecting a year-over-year increase of 3.8% [4] - Construction net sales amounted to $486.78 million, slightly below the average estimate of $488.31 million, indicating a year-over-year decline of 4.8% [4] - Packaging net sales were reported at $375.32 million, exceeding the average estimate of $374.78 million, but showing a significant year-over-year decrease of 9.3% [4] Stock Performance - UFP Industries' shares have returned -0.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of 4.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Financial Performance - Fourth quarter 2024 net sales were $1.46 billion, a 4% decrease year-over-year, with net earnings attributable to controlling interest of $68.0 million, representing a 34% decrease[3]. - Fiscal 2024 net sales totaled $6.7 billion, down 8% from the previous year, with net earnings attributable to controlling interests of $414.6 million, a 19% decrease[8]. - Q4 2024 net sales decreased to $1,462,001 thousand, down 4.1% from $1,524,353 thousand in Q4 2023[27]. - Total net sales for 2024 reached $6,652,309, a decrease from $7,218,384 in 2023, representing a decline of approximately 7.8%[30]. - Net earnings for 2024 were $418,733,000, a decrease of 18.6% from $514,457,000 in 2023[33]. Profitability Metrics - Adjusted EBITDA for Q4 2024 was $132.7 million, or 9.1% of sales, compared to $165.6 million, or 10.9% of sales, in Q4 2023[8]. - Adjusted EBITDA for 2024 was $682,264, which is a decrease from $809,886 in 2023, reflecting a decline of about 15.8%[31]. - The gross profit margin for 2024 was approximately 18.4%, compared to 19.6% in 2023, indicating a slight decrease in profitability[30]. - Gross profit for Q4 2024 was $239,509 thousand, representing a gross margin of 16.4%, compared to 19.4% in Q4 2023[27]. - The packaging segment's adjusted EBITDA margin improved to 9.7% in 2024 from 7.0% in 2023, indicating enhanced operational efficiency[31]. Cash Flow and Liquidity - UFP Industries has nearly $1.2 billion in cash as of December 28, 2024, up from $1.1 billion at the end of 2023, with total liquidity of approximately $2.5 billion[8]. - Cash and cash equivalents rose to $1,171,828 in 2024, up from $1,118,329 in 2023, indicating improved liquidity[32]. - Net cash from operating activities decreased to $642,571,000 in 2024 from $959,890,000 in 2023, reflecting a decline of 33.1%[33]. - Total cash and cash equivalents at the end of the period increased to $1,179,594,000 in 2024 from $1,122,256,000 in 2023, a growth of 5.1%[33]. - The company experienced a net change in cash and cash equivalents of $57,338,000 in 2024, a significant decrease from $562,633,000 in 2023[33]. Expenses and Cost Management - Selling, general and administrative expenses for Q4 2024 totaled $156,491 thousand, compared to $171,598 thousand in Q4 2023[27]. - The company’s selling, general, and administrative expenses totaled $735,046 in 2024, compared to $766,633 in 2023, showing a reduction of about 4.1%[30]. - The company plans to achieve cost savings of $60 million by the end of 2026 through investments in automation and plant optimization[5]. Dividends and Shareholder Returns - A quarterly dividend of $0.35 per share was approved, reflecting a 6% increase from the previous dividend of $0.33[12]. - Dividends paid to shareholders increased to $80,782,000 in 2024 from $68,238,000 in 2023, an increase of 18.4%[33]. Market Conditions and Future Outlook - The company anticipates continued softer demand and a competitive pricing environment through the first half of 2025[19]. - Long-term goals include achieving 7-10% unit sales growth annually and maintaining a conservative capital structure[20]. Segment Performance - The retail segment reported net sales of $524,591 thousand in Q4 2024, a slight decrease from $525,730 thousand in Q4 2023[28]. - The construction segment's net sales were $486,776 thousand in Q4 2024, down from $511,042 thousand in Q4 2023[29]. - The construction segment generated net sales of $2,113,844 in 2024, slightly down from $2,161,059 in 2023, a decrease of approximately 2.2%[30]. Acquisitions and Investments - The company acquired C&L Wood Products, expanding its geographic footprint into northern Alabama and central Tennessee[12]. - The company made acquisitions totaling $29,830,000 in 2024, down from $52,383,000 in 2023, indicating a decrease of 43.0%[33].