UFP Industries (UFPI) investor relations material

Executive summary

• Q3 net sales rose 11.1% to $1.733B, driven by 4% organic unit growth, 2% from acquisitions and 5% higher selling prices.

• Adjusted EBITDA fell to $119.3M from $140.0M, with margin declining to 6.9% from 9.0%; higher freight and material costs pressured results.

• New-product sales grew 43% in Q3, supported by contributions across segments.

Financial highlights

• Q3 gross profit was $244.9M versus $262.7M; operating earnings were $70.2M versus $89.5M, and net earnings were $58.6M versus $75.5M.

• Diluted EPS was $1.05 versus $1.29; Q3 gross, operating and net margins were 14.1%, 4.0% and 3.4%, respectively.

• 9M net sales increased 1.7% to $5.08B; net earnings were $192.9M and adjusted EBITDA was $385.1M, down 15.6%.

• Q3 2026 TTM net sales were $6.407B, adjusted EBITDA $492M and free cash flow $232M.

• 9M operating cash flow was $234.5M; free cash flow was $287.2M, including a $100M increase in net working capital investment.

Outlook and guidance

• FY 2026 outlook remained unchanged; demand is expected to be slightly down in each segment, with no meaningful underlying market recovery assumed through year-end.

• Energy and transportation costs are expected to remain elevated; low-single-digit demand declines are expected in Retail and Packaging, while Commercial and Concrete Forming may see modest growth.

• Cost savings are expected to meet or exceed the initial $60M objective by year-end; share gains, value-added products, acquisition integration and facility utilization are expected to support results.

• Long-term targets include 7–10% annual unit-sales growth, at least 10% of sales from new products, a 12.5% adjusted EBITDA margin and conservative leverage.

• 2026 capital expenditure guidance is $150M–$175M; core SG&A is projected at ~$572M and the effective tax rate at 25–26%.