UFP Industries Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 29 October 2025: press release. Guidance figures: 1 lowered, 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales fell 5 percent: Net sales were $1.56 billion, down 5.4 percent, on a 1 percent price decline and a 4 percent organic unit decline. Year-to-date net sales were $4.99 billion, down 3.8 percent. Source
• Adjusted EBITDA margin 9.0 percent: Adjusted EBITDA was $140.0 million, or 9.0 percent of net sales, against 10.0 percent a year earlier. Year to date it was $456.3 million, or 9.1 percent, against 10.6 percent. Source
• Retail profit fell 22 percent: Retail net sales were $594.0 million, down 6.5 percent. Adjusted EBITDA was $40.0 million, or 6.7 percent of sales, against $51.2 million a year earlier. Source
• Construction profit fell 18 percent: Construction net sales were $496.5 million, down 7.1 percent. Adjusted EBITDA was $41.9 million, or 8.4 percent of sales, against 9.5 percent a year earlier. Source
• Margin about 200 basis points above 2019: Management said the adjusted EBITDA margin remains about 200 basis points above 2019 levels, despite competitive pricing and softer demand. Source
• Surestone and Deckorators momentum: Initial stocking orders and expanded manufacturing and distribution are expected to support Deckorators and Surestone through the rest of 2025 and into 2026. Source
• Visibility remains limited: Management said visibility is limited, particularly in residential-construction markets, while most business units show signs of stabilizing. Source

“Our third quarter played out largely as anticipated and reflective of the competitive environment we are seeing across our end markets.”

Will Schwartz, President and CEO of UFP Industries

Guidance

What changed from last quarter

• Guidance lowered: The 2025 capital project range was lowered to $275 million to $300 million from $300 million to $325 million. Source

Results and growth drivers

• Net sales fell 5 percent: Net sales were $1.56 billion, down 5.4 percent, on a 1 percent price decline and a 4 percent organic unit decline. Year-to-date net sales were $4.99 billion, down 3.8 percent. Source
• Diluted EPS $1.29 versus $1.64: Diluted EPS was $1.29 against $1.64 a year earlier, and $4.28 year to date against $5.65. Source
• Net earnings fell to $75 million: Net earnings attributable to controlling interests were $75 million, compared with $100 million a year earlier. Source
• Adjusted EBITDA margin 9.0 percent: Adjusted EBITDA was $140.0 million, or 9.0 percent of net sales, against 10.0 percent a year earlier. Year to date it was $456.3 million, or 9.1 percent, against 10.6 percent. Source

Segment results

• Retail profit fell 22 percent: Retail net sales were $594.0 million, down 6.5 percent. Adjusted EBITDA was $40.0 million, or 6.7 percent of sales, against $51.2 million a year earlier. Source
• Packaging profit held flat: Packaging net sales were $394.9 million, down 1.7 percent. Adjusted EBITDA was $34.3 million, or 8.7 percent of sales, compared with 8.6 percent a year earlier. Source
• Construction profit fell 18 percent: Construction net sales were $496.5 million, down 7.1 percent. Adjusted EBITDA was $41.9 million, or 8.4 percent of sales, against 9.5 percent a year earlier. Source

“We are confident in our ability to continue executing as we move into next year”

Will Schwartz, President and CEO of UFP Industries

Costs, margins and pricing

• Retail hit by lumber and startup costs: Falling lumber prices, Surestone launch startup costs, Edge restructuring inefficiencies and higher marketing spend drove Retail declines in the quarter. Source
• PalletOne price competition cut gross profit: Packaging gross profit declined mainly because of price competition at PalletOne, as the company works to increase market share. Source
• Site Built volumes and pricing weighed: Site Built volume declines and competitive pricing led the Construction decline, while the company's other Construction businesses reported profit growth. Source
• SG&A fell in Retail: Retail SG&A decreased, offsetting part of the gross profit decline. Consolidated SG&A was $170.0 million, or 10.9 percent of sales, against $183.3 million. Source
• Margin about 200 basis points above 2019: Management said the adjusted EBITDA margin remains about 200 basis points above 2019 levels, despite competitive pricing and softer demand. Source

Products and demand

• Surestone and Deckorators momentum: Initial stocking orders and expanded manufacturing and distribution are expected to support Deckorators and Surestone through the rest of 2025 and into 2026. Source
• New products reached 7.6 percent of sales: New product sales were 7.6 percent of total sales in the quarter. Source
• Visibility remains limited: Management said visibility is limited, particularly in residential-construction markets, while most business units show signs of stabilizing. Source
• Softer demand expected through 2025: Management expects softer demand and competitive pricing to persist through the balance of 2025. Source
• Other business units expected to stabilize: Management expects a more significant decline in residential-tied markets, offset by some stabilization in most other business units. Source

“Our robust financial position remains a competitive advantage enabling us to repurchase approximately $350 million of our shares through the end of October”

Will Schwartz, President and CEO of UFP Industries

Capital, cash and shareholder returns

• Liquidity near $2.3 billion: At September 27, 2025, liquidity was about $2.3 billion: $1.0 billion of cash and $1.3 billion of revolver and shelf availability. Source
• Shares repurchased through September: Through September 27, 2025, the company repurchased 2.8 million shares for $291 million, at an average of $103.04 a share for the year. Source
• October share repurchases: In October the company repurchased a further 615,000 shares for $56 million, at an average of $91.03 a share. Source
• Quarterly dividend of $0.35 per share: The board approved a quarterly cash dividend of $0.35 per share on October 23, 2025, a 6 percent year-over-year increase. Source

Strategy and investment

• Up to $1 billion investment through 2028: The company announced in 2024 up to $1 billion of capital investment through 2028 for automation, technology, geographic expansion and capacity at existing facilities. Source
• M&A central to capital allocation: Management said M&A remains a key part of capital allocation, with targets identified in each business unit that complement core strengths. Source
• Share gains, return and margin plan: Management said the plan is to gain market share, strengthen return on capital and improve margins. Source
• Growing core, higher-margin businesses: Focus remains on growing core higher-margin businesses, developing new products and driving operational efficiencies across the plant network. Source

Coming up, as management said on 29 October 2025

• Dividend payment on December 15: The $0.35 dividend is payable on December 15, 2025, to holders of record on December 1, 2025. Source

Figures management reported

Risks management discussed

• Demand: Management anticipates a more significant decline in markets tied to new residential construction. Source
• External: Competitive pricing at PalletOne reduced Packaging gross profit as the company pursues share. Source
• Operational: Edge restructuring inefficiencies and Surestone launch startup costs weighed on Retail results. Source

Earlier plans management reported on

• Not stated: Management says the reduction is part of the plan, with completion by the end of 2026. Source
• Not stated: Long-term goals of 7-10 percent unit growth and 12.5 percent adjusted EBITDA margin are stated as unchanged. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.