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]

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]

[First Quarter 2025 Financial Overview](index=1&type=section&id=First%20Quarter%202025%20Financial%20Overview) UFP Industries reported Q1 2025 net sales and earnings decline, emphasizing sequential improvement and strategic focus [Summary of Results and CEO Commentary](index=1&type=section&id=Summary%20of%20Results%20and%20CEO%20Commentary) UFP Industries announced first quarter 2025 results with net sales of $1.60 billion, net earnings attributable to controlling interests of $78.8 million, and earnings per diluted share of $1.30, with CEO Will Schwartz noting improving sequential business trends and a focus on profitability and strategic investments | Metric | Q1 2025 | Q1 2024 | | :----------------------------------- | :---------- | :---------- | | Net Sales | $1.60 billion | $1.64 billion | | Net Earnings Attributable to Controlling Interests | $78.8 million | $120.8 million | | Earnings Per Diluted Share | $1.30 | $1.96 | - CEO Will Schwartz stated that business activity improved sequentially each month during the quarter and continued into April, despite limited visibility. The company remains focused on improving profitability and streamlining costs, targeting **$60 million** in structural cost savings by year-end 2026[4](index=4&type=chunk) - The company plans to accelerate investments into higher-growth and higher-margin opportunities that meet return on capital targets, leveraging its scale, diversification, and culture as strategic advantages in tough economic climates[4](index=4&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) In Q1 2025, **Net sales decreased 2.7% year-over-year to $1.60 billion**, primarily due to a 0.7% decrease in selling prices and a 2% decrease in organic unit sales; **Net earnings attributable to controlling interests declined 35% to $78.8 million**; Adjusted EBITDA was **$142.2 million**, representing **8.9% of sales**, **down from 11.0% in the prior year** | Metric | Q1 2025 | Q1 2024 | YoY Change | | :----------------------------------- | :---------- | :---------- | :--------- | | Net Sales | $1.60 billion | $1.64 billion | -2.7% | | New Product Sales | $106 million | N/A | N/A | | New Product Sales as % of Total Sales | 6.7% | 7.2% | -0.5 pp | | Net Earnings Attributable to Controlling Interests | $78.8 million | $120.8 million | -35% | | Adjusted EBITDA | $142.2 million | $180.8 million | -21.4% | | Adjusted EBITDA as % of Sales | 8.9% | 11.0% | -2.1 pp | - The decrease in net sales was attributed to a **0.7% decrease in selling prices** and a **2% decrease in organic unit sales**[5](index=5&type=chunk) - Net earnings attributable to controlling interests in Q1 2024 included **$7.3 million of additional tax benefits** related to share-based compensation[5](index=5&type=chunk)[6](index=6&type=chunk) [Capital Allocation Strategy](index=3&type=section&id=Capital%20Allocation%20Strategy) The company maintains a strong balance sheet, prioritizing acquisitions, organic growth, increased dividends, and share repurchases [Capital Allocation](index=3&type=section&id=Capital%20Allocation) UFP Industries maintains a strong balance sheet with nearly $903.6 million in cash and approximately $2.2 billion of liquidity as of March 29, 2025, focusing its capital allocation strategy on strategic acquisitions, organic growth investments, increased quarterly dividends, and an expanded share repurchase authorization | Metric | As of March 29, 2025 | As of Q1 2024 | | :------------------- | :------------------- | :------------ | | Cash | $903.6 million | $979.7 million | | Total Liquidity | ~$2.2 billion | N/A | - The company seeks strategic acquisitions and invests in organic growth opportunities, with plans to invest approximately **$300 million to $350 million** in capital projects in 2025[10](index=10&type=chunk) - The Board of Directors approved a quarterly dividend payment of **$0.35 per share**, a **6% increase** over the **$0.33 per share** paid throughout 2024[10](index=10&type=chunk) - The share repurchase authorization was amended to up to **$300 million** through July 31, 2025. Since July 24, 2024, the company repurchased **1,624,069 shares** (**$172 million total**), including **649,060 shares** (**$70.1 million**) in Q1 2025 and **1,022,493 shares** (**$107 million**) in April[10](index=10&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance) All segments experienced Q1 2025 net sales and gross profit declines due to lower organic unit sales, competitive pricing, and higher material costs [UFP Retail Solutions](index=4&type=section&id=UFP%20Retail%20Solutions) UFP Retail Solutions reported a **3% decrease in net sales to $607 million** in Q1 2025, primarily due to a 4% decline in organic unit sales, partially offset by a 1% increase in selling prices, with **Gross profit decreased to $81 million (13.3% of sales) from $101 million (16.1% of sales)** in Q1 2024, impacted by volume decline and competitive pressure | Metric | Q1 2025 | Q1 2024 | YoY Change | | :------------------- | :---------- | :---------- | :--------- | | Net Sales | $607 million | $628.8 million | -3% | | Gross Profit | $81 million | $101.1 million | -19.9% | | Gross Profit as % of Sales | 13.3% | 16.1% | -2.8 pp | - Organic unit sales decreased **4%**, with Deckorators down **11% due to a strategic shift** and ProWood down **3% due to softer demand** and competitive price pressure[11](index=11&type=chunk) - Gross profit for ProWood declined primarily due to higher material costs on certain products sold with a fixed price, though price increases have recently been accepted to offset these costs[11](index=11&type=chunk) [UFP Packaging](index=4&type=section&id=UFP%20Packaging) UFP Packaging's **net sales decreased 3% to $410 million** in Q1 2025, driven by a 3% decline in organic unit sales and a 1% decline in selling prices, partially offset by a 1% increase from an acquisition, with **Gross profit was $70 million (17.0% of sales), down from $85 million (20.1% of sales)** in Q1 2024 due to softer demand, lower unit sales, competitive pricing, and higher material costs | Metric | Q1 2025 | Q1 2024 | YoY Change | | :------------------- | :---------- | :---------- | :--------- | | Net Sales | $410 million | $424.4 million | -3% | | Gross Profit | $70 million | $85.4 million | -18% | | Gross Profit as % of Sales | 17.0% | 20.1% | -3.1 pp | - Organic unit sales declined **5% for Structural Packaging** and **1% for PalletOne** due to softer demand, while Protective Packaging saw a **13% increase in organic unit sales** due to capacity increases[12](index=12&type=chunk) [UFP Construction](index=4&type=section&id=UFP%20Construction) UFP Construction's **net sales were flat at $516 million** in Q1 2025, as a 3% increase in organic unit sales was offset by a 3% decrease in selling prices, with **Gross profit declined to $91 million (17.6% of sales) from $114 million (22.1% of sales)** in Q1 2024, primarily due to more competitive pricing in the Site Built business unit | Metric | Q1 2025 | Q1 2024 | YoY Change | | :------------------- | :---------- | :---------- | :--------- | | Net Sales | $516 million | $517.9 million | 0% | | Gross Profit | $91 million | $114.3 million | -20.3% | | Gross Profit as % of Sales | 17.6% | 22.1% | -4.5 pp | - Organic unit sales increased **13% in Factory Built** due to industry production, **4% in Commercial**, and **3% in Concrete Forming**. Site Built organic unit sales decreased **5% due to softer demand**[13](index=13&type=chunk) [Outlook](index=4&type=section&id=Outlook) The company anticipates continued softer demand and competitive pricing short-term, maintaining long-term growth and profitability goals [Short-Term Outlook](index=4&type=section&id=Short-Term%20Outlook) UFP Industries anticipates continued softer demand and competitive pricing through the remainder of 2025, with overall demand slightly down in each segment, and believes it is well-equipped to adapt quickly to potential lumber tariffs - The company anticipates softer demand and competitive pricing to continue through 2025, with overall demand slightly down in each segment[16](index=16&type=chunk) - A decline in Site Built is anticipated to be partially offset by an increase in Factory Built[16](index=16&type=chunk) - UFP Industries believes it is in a strong position to adapt quickly to potential tariffs on raw materials without material adverse financial impact after a short adjustment period, due to its relationships with mill partners and lack of foreign sawmills[14](index=14&type=chunk)[15](index=15&type=chunk) [Long-Term Outlook](index=6&type=section&id=Long-Term%20Outlook) UFP Industries' long-term goals remain unchanged, focusing on annual unit sales growth, new product sales contribution, EBITDA margins, incremental returns on new investments, and maintaining a conservative capital structure - Long-term goals include: * Achieving **7-10% unit sales growth annually** (including bolt-on acquisitions) * At least **10% of all sales** coming from new products * Achieving **12.5% EBITDA margins** * Earning an **incremental return on new investments over the hurdle rate** * Maintaining a **conservative capital structure**[17](index=17&type=chunk) [Company Information & Disclosures](index=6&type=section&id=Company%20Information%20%26%20Disclosures) This section details conference call information, company overview, forward-looking statements, and non-GAAP financial definitions [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) UFP Industries will host a conference call on Tuesday, April 29, 2025, at 9:00 a.m. ET to discuss its outlook and Q1 2025 results, accessible via webcast at ufpinvestor.com with a replay available - A conference call to discuss the outlook and Q1 results will be held on **Tuesday, April 29, 2025**, at **9:00 a.m. ET**[18](index=18&type=chunk) - The call will be hosted by CEO Will Schwartz and CFO Michael Cole and will be available via webcast at https://www.ufpinvestor.com/news-filings-reportsevents---presentations, with a replay also available[18](index=18&type=chunk) [About UFP Industries, Inc.](index=6&type=section&id=About%20UFP%20Industries%2C%20Inc.) UFP Industries, Inc. is a holding company with operating subsidiaries that manufacture, distribute, and sell value-added products for residential and commercial construction, packaging, and other industrial applications globally, founded in 1955 and ranked 493 on the Fortune 500 - UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products[19](index=19&type=chunk) - Products are used in residential and commercial construction, packaging and other industrial applications worldwide[19](index=19&type=chunk) - Founded in 1955, headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. Ranked **493 on the Fortune 500** and **128 on Industry Week's list of America's Largest Manufacturers**[19](index=19&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements based on management's beliefs, assumptions, current expectations, estimates, and projections, which do not guarantee future performance and involve risks, uncertainties, and assumptions that are difficult to predict - The press release contains forward-looking statements based on management's beliefs, assumptions, current expectations, estimates, and projections[20](index=20&type=chunk) - These statements do not guarantee future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict[20](index=20&type=chunk) - Factors that could cause actual results to differ materially include fluctuations in currency and inflation, lumber prices, adverse economic conditions, changes in tariffs, and cybersecurity breaches[20](index=20&type=chunk)[21](index=21&type=chunk) [Non-GAAP Financial Information](index=8&type=section&id=Non-GAAP%20Financial%20Information) This release includes non-GAAP financial information, specifically Adjusted EBITDA, which management uses to evaluate historical and ongoing operations and enable meaningful comparisons of performance, intended to supplement rather than substitute GAAP financial results - The release includes non-GAAP financial information, specifically Adjusted EBITDA, which management uses to evaluate historical and ongoing operations[22](index=22&type=chunk) - Adjusted EBITDA is intended to supplement and should be read together with the financial results, not considered an alternative or substitute for GAAP results[22](index=22&type=chunk) - Net earnings refers to net earnings attributable to controlling interest unless specifically noted[23](index=23&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2025 financial statements detail decreased net sales and earnings, segment EBITDA, balance sheet, and cash flow [Statements of Earnings and Comprehensive Income](index=9&type=section&id=Statements%20of%20Earnings%20and%20Comprehensive%20Income) The unaudited condensed consolidated statements of earnings and comprehensive income for the three months ended March 2025 and 2024 show a decrease in net sales, gross profit, and net earnings attributable to controlling interest year-over-year | (In thousands, except per share data) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | NET SALES | $1,595,519 | $1,638,966 | | GROSS PROFIT | $268,196 | $326,078 | | EARNINGS FROM OPERATIONS | $92,252 | $133,823 | | NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $78,753 | $120,791 | | EARNINGS PER SHARE - DILUTED | $1.30 | $1.96 | [Reconciliation to Adjusted EBITDA by Segment](index=10&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA%20by%20Segment) This section provides a reconciliation of net earnings to Adjusted EBITDA by segment for the three months ended March 2025 and 2024, highlighting the contribution of each segment to the overall Adjusted EBITDA and its percentage of net sales | (In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | | :------------- | :----- | :-------- | :----------- | :-------- | :-------- | :---- | | **Adjusted EBITDA 2025** | $35,849 | $35,045 | $37,310 | $5,033 | $28,914 | $142,151 | | **Adjusted EBITDA 2024** | $55,359 | $44,349 | $53,892 | $6,486 | $20,684 | $180,770 | | **Adjusted EBITDA as a Percentage of Net Sales 2025** | 5.9% | 8.5% | 7.2% | 8.3% | * | 8.9% | | **Adjusted EBITDA as a Percentage of Net Sales 2024** | 8.8% | 10.4% | 10.4% | 9.7% | * | 11.0% | [Balance Sheets](index=12&type=section&id=Balance%20Sheets) The unaudited condensed consolidated balance sheets show an increase in total assets and shareholders' equity from March 2024 to March 2025, while cash and cash equivalents decreased | (In thousands) | March 2025 | March 2024 | | :------------------------------------ | :--------- | :--------- | | TOTAL ASSETS | $4,150,286 | $4,078,639 | | Cash and cash equivalents | $903,562 | $979,746 | | TOTAL CURRENT ASSETS | $2,464,391 | $2,514,415 | | TOTAL CURRENT LIABILITIES | $496,526 | $525,018 | | SHAREHOLDERS' EQUITY | $3,259,056 | $3,116,095 | | TOTAL LIABILITIES AND EQUITY | $4,150,286 | $4,078,639 | [Statements of Cash Flows](index=13&type=section&id=Statements%20of%20Cash%20Flows) The unaudited condensed consolidated statements of cash flows indicate that for the three months ended March 2025, the company experienced net cash outflows from operating, investing, and financing activities, resulting in a significant net decrease in cash and cash equivalents compared to the prior year | (In thousands) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | NET CASH USED IN OPERATING ACTIVITIES | $(108,807) | $(16,798) | | NET CASH USED IN INVESTING ACTIVITIES | $(75,550) | $(56,062) | | NET CASH USED IN FINANCING ACTIVITIES | $(90,926) | $(68,968) | | NET CHANGE IN CASH AND CASH EQUIVALENTS | $(274,971) | $(141,749) | | ALL CASH AND CASH EQUIVALENTS, END OF PERIOD | $904,623 | $980,507 |

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].