Why Is UFP Industries (UFPI) Up 1.9% Since Last Earnings Report?

Core Viewpoint - UFP Industries reported disappointing Q3 2025 results, with earnings and sales missing estimates and showing year-over-year declines [3][5][12] Earnings & Sales Performance - Adjusted EPS was $1.29, missing the Zacks Consensus Estimate of $1.37 by 5.8% and declining 21.3% year over year [5] - Quarterly net sales were $1.56 billion, missing the consensus mark of $1.61 billion by 3.2% and declining 5.4% from $1.65 billion year over year [5] Margins & Profitability - Gross profit totaled $262.7 million, down from $298.4 million in the year-ago quarter, with gross margin contracting to 16.8% from 18.1% [6] - Adjusted EBITDA was $140 million, down from $164.9 million, with adjusted EBITDA margin contracting to 9% from 10% year over year [6] Segment Highlights - UFP Retail Solutions: Net sales of $594 million, down 6.5% year over year; adjusted EBITDA declined 21.8% to $39.9 million [7] - UFP Packaging: Sales declined 1.7% to $394.9 million; adjusted EBITDA contracted 0.2% to $34.3 million [7] - UFP Construction: Net sales of $496.5 million, down 7.1% year over year; adjusted EBITDA tumbled 17.7% to $41.9 million [8] Balance Sheet & Liquidity - Cash and cash equivalents were $1.01 billion, down from $1.19 billion at the end of 2024; current liquidity is sufficient to meet short-term obligations of $5.4 million [9] - Long-term debt was $229.1 million, slightly down from $232 million at the end of 2024 [9] Share Repurchase Activity - In the first nine months of 2025, the company repurchased 2.8 million shares for $291 million; an additional 0.61 million shares were repurchased in October for $56 million [10] Long-Term Outlook - Despite near-term challenges, UFP Industries aims for annual unit sales growth of 7-10% and targets EBITDA margins of 12.5% [11] Estimate Trends - Consensus estimates have trended downward, with a shift of -12.54% noted [12][14] VGM Scores - UFP Industries has a Growth Score of B, a Momentum Score of C, and a Value Score of B, resulting in an aggregate VGM Score of A [13]