UFP Industries(US:UFPI)2025-02-18 11:02Financial 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].