GRAND RAPIDS, Mich., April 29, 2026 /PRNewswire/ -- UFP Industries, Inc. (Nasdaq: UFPI) a leading manufacturer focused on delivering value-added products across its Retail, Packaging, and Construction segments reported results for the first quarter 2026.
-- Net Sales of $1.46 billion decreased by 8 percent compared to $1.6
billion a year ago due to a 1 percent decrease in price and a 7 percent
decline in organic units.
-- Diluted earnings per share of $0.89 compared to $1.30 a year ago, and Net
Earnings Attributable to Controlling Interests of $51 million compared to
$79 million a year ago. Earnings were primarily impacted by a weaker
residential construction market, adverse weather, and higher healthcare
and fuel costs.
-- Adjusted EBITDA1 was $111.4 million in the quarter, or 7.6 percent of net
sales compared to 8.9 percent a year ago.
-- New product sales were 7.8 percent of total net sales.
-- Cash flows used in operating activities in 2026 was $104 million. Free
cash flow1 of $87 million was used to repurchase nearly $30 million of
our shares.
Will Schwartz, President and CEO of UFP Industries, commented, "After seeing stabilization earlier in the quarter, geopolitical tensions, unfavorable weather, and rising input costs added volatility to our operations in March, which accounted for more than half of the year-over-year decline in profits in the quarter. While we believe these headwinds will be temporary, we are actively working to offset these higher costs, particularly transportation. Despite the current backdrop, we have made considerable progress managing the things under our control and executing our strategies to position the business for long-term success. We are on track to deliver the remaining $25 million or more from our initial $60 million cost out program by year end. At the same time, we have continued to invest through the cycle. By combining greenfield expansion with disciplined M&A, we are strengthening our core businesses, introducing innovative products, and structurally lowering our cost base. I'm incredibly proud of our team for their continued hard work. Our scale, diversified portfolio, and deep customer relationships have consistently positioned us well during periods like these and we continue to strengthen our position to drive above market growth and returns when markets recover."
Schwartz continued, "We have maintained a patient and disciplined approach to deploying capital this cycle while staying focused on finding the best and highest returns for our capital. This remains central to how we operate. After the quarter closed, we completed one transaction that strengthens our core businesses and supports our strategy to expand our footprint and drive higher-margin growth, and we expect to close an additional transaction in May. Our M&A pipeline remains active, and we continue to pursue strategic targets and organic investments, while opportunistically returning cash to our shareholders given our robust financial position. Following $56 million in a recent acquisition, $30 million in share repurchases, and a 3% dividend increase, we continue to maintain ample liquidity and financial flexibility. We are confident in our diversified business model and balanced capital allocation approach, which we believe puts us in a strong position to continue to drive shareholder value."
(1) Represents a non-GAAP measurement; see the reconciliation of non-GAAP
financial measures and related explanations below.
First Quarter 2026 Highlights
UFP Consolidated
(In thousands) Quarter Period and Year to Date
--------------------------- ------------------------------------------
2026 2025 % Change
---------- ---------- ----------
Net sales $1,461,267 $1,595,519 (8.4)%
Net earnings 51,097 79,423 (35.7)
Net margin 3.5% 5.0%
Adjusted EBITDA 111,356 142,151 (21.7)
Adjusted EBITDA margin 7.6% 8.9%
Percentage change in net
sales:
Organic units (7)%
Acquisitions --
Selling prices (1)
---------------------------- --------- --------- ------
UFP Retail
(In thousands) Quarter Period and Year to Date
---------------------------- -------------------------------------------
2026 2025 % Change
------------ -------- ----------
Net sales $ 531,176 $607,383 (12.5)%
Net earnings 18,672 20,663 (9.6)
Net margin 3.5% 3.4%
Adjusted EBITDA 34,832 35,849 (2.8)
Adjusted EBITDA margin 6.6% 5.9%
Percentage change in net
sales:
Organic units (13)%
Acquisitions --
Selling prices 1
----------------------------- -------- --- ------- ------
-- ProWood organic unit sales declined 15 percent in the quarter from year
ago levels due to unfavorable winter weather, the absence of
storm-related demand which carried over from the fall of 2024 into early
2025, the loss of low margin commodity sales which commenced in the
second quarter of 2025, and generally weaker consumer sentiment.
-- Deckorators' organic unit sales grew 2 percent in the quarter from year
ago levels. Our Surestone decking sales increased 27 percent and our
traditional wood plastic composite decking increased 4 percent, both from
the same quarter a year ago.
-- UFP Edge organic unit sales declined 20 percent due to the closure of the
Bonner facilities at the end of 2025 and rationalizing the product
portfolio to those that can achieve profitability targets.
UFP Packaging
(In thousands) Quarter Period and Year to Date
---------------------------- -------------------------------------------
2026 2025 % Change
------------ -------- ----------
Net sales $ 394,093 $410,008 (3.9)%
Net earnings 11,659 16,917 (31.1)
Net margin 3.0% 4.1%
Adjusted EBITDA 27,790 35,045 (20.7)
Adjusted EBITDA margin 7.1% 8.5%
Percentage change in net
sales:
Organic units (3)%
Acquisitions 1
Selling prices (2)
----------------------------- -------- --- ------- ------
-- Structural Packaging organic unit sales were flat in the quarter compared
to year ago levels.
-- PalletOne organic unit sales declined 11 percent in the quarter from year
ago levels due to weaker demand, which was partially offset by a 4
percent contribution from acquisitions.
-- Protective Packaging organic unit sales increased 5 percent in the
quarter from a year ago levels as a result of the Jeffersonville, Indiana
facility, which became fully operational in the third quarter of 2025.
UFP Construction
(In thousands) Quarter Period and Year to Date
---------------------------- -------------------------------------------
2026 2025 % Change
------------ -------- ----------
Net sales $ 465,513 $515,940 (9.8)%
Net earnings 11,723 21,944 (46.6)
Net margin 2.5% 4.3%
Adjusted EBITDA 25,687 37,310 (31.2)
Adjusted EBITDA margin 5.5% 7.2%
Percentage change in net
sales:
Organic units (5)%
Acquisitions --
Selling prices (5)
----------------------------- -------- --- ------- ------
-- Site Built organic unit sales declined 14 percent in the quarter from
year ago levels due to soft demand caused by economic uncertainty,
housing affordability challenges, and unfavorable weather.
-- Factory Built organic unit sales declined 8 percent in the quarter from
year ago levels due to the loss of low margin commodity sales, partially
offset by a 1 percent contribution from acquisitions. Despite the decline,
gross profits improved.
-- Concrete Forming Solutions' organic unit sales grew 14 percent in the
quarter from year ago levels driven by market share gains associated with
value-added product sales.
-- Commercial organic sales grew 15 percent in the quarter from year ago
levels as overall demand has improved.
Capital Structure, Leverage and Liquidity Information
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