UFP Industries(US:UFPI)2025-10-29 20:09Financial 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].