UFP Industries (UFPI) investor relations material

Executive summary

• Q3 2025 net sales were $1.56 billion, down 5% year-over-year due to lower prices and volumes, with all major segments affected.

• Adjusted EBITDA was $140 million (9% margin), down from $165 million (10%) last year, while net earnings attributable to controlling interest fell to $75.3 million.

• Gross profit declined 12% to $263 million, and operating profit dropped 25% year-over-year, reflecting weaker demand and competitive pricing.

• Despite market headwinds, structural improvements since 2019 have led to a 200 basis point margin gain, and the business remains focused on value-added products, innovation, and operational efficiency.

• Share repurchases and increased dividends, along with targeted M&A and investments in automation, support margin expansion and above-market growth.

Financial highlights

• Q3 2025 net sales: $1.56 billion (down 5% year-over-year); adjusted EBITDA: $140 million (9% margin); diluted EPS: $1.29.

• Year-to-date net sales: $4.99 billion; net earnings: $254.8 million; operating cash flow: $399 million.

• Cash and cash equivalents at quarter-end were $1.0 billion, with total liquidity of $2.3 billion.

• Dividend increased 6% to $0.35 per share; nearly 6% of outstanding shares repurchased by October, totaling about $350 million.

• Gross margin for Q3 2025 was 16.8%, down from 18.1% a year ago.

Outlook and guidance

• Expect low single-digit unit declines across all segments through year-end, with continued soft demand and competitive pricing.

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

• Cost reduction and capacity rationalization initiatives are expected to improve operating profits by $60 million by end of 2026.

• Capital expenditures for 2025 targeted at $275–$300 million.