UFP Industries (UFPI) investor relations material

Executive summary

• Q2 2025 net sales were $1.84B, down 4% year-over-year due to a 1% price decrease and 3% unit decline, with retail units down 7% and construction up 2%.

• Adjusted EBITDA was $174.1M (9.5% margin), down from $203.9M (10.7%) last year; net earnings were $100.7M, EPS $1.70, both down year-over-year.

• Cost reduction, operational efficiency, and targeted investments in innovation and automation remain key priorities.

• Strategic initiatives include a $60M cost-out program, facility closures, divestitures, and real estate sales, with up to $15M in one-time gains expected in Q3.

• Market demand remains soft but stable, with limited visibility and ongoing tariff and pricing uncertainty.

Financial highlights

• Q2 2025 net sales: $1.84B (down from $1.90B in Q2 2024); six-month net sales: $3.43B (down from $3.54B year-over-year).

• Adjusted EBITDA for Q2 2025: $174.1M (9.5% margin), down from $203.9M (10.7%) last year.

• Q2 2025 net earnings: $100.7M (down from $125.9M in Q2 2024); diluted EPS: $1.70 (down from $2.05).

• Operating cash flow for the first half: $113M, down from $239M year-over-year.

• Cash and cash equivalents at quarter-end: $841.9M, with total liquidity of $2.1B.

Outlook and guidance

• 2025 outlook unchanged: expecting continued soft demand and competitive pricing for the remainder of the year.

• Planning for low single-digit unit declines in each segment for 2025.

• Long-term goals: 7–10% annual unit sales growth, 12.5% adjusted EBITDA margin, and at least 10% of sales from new products.

• Targeting $60M in structural cost savings by year-end 2026, with $43M in benefits anticipated by end of 2025.

• CapEx plan of $300–$325M for 2025, focused on automation, technology, and capacity expansion.