UFP Industries Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 29 April 2026: press release. Guidance figures: 1 lowered, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Sales fell 8 percent: Net sales were $1.46 billion, down from $1.6 billion, with price down 1 percent and organic units down 7 percent. Acquisitions contributed nothing to the change. Source
• Diluted EPS fell to $0.89: Diluted EPS was $0.89 against $1.30 a year earlier. Net earnings attributable to controlling interests were $51 million, against $79 million. Source
• March headwinds drove over half the decline: Management said geopolitical tensions, unfavorable weather and rising input costs added volatility in March, which accounted for more than half of the year-over-year profit decline. Source
• Adjusted EBITDA margin fell to 7.6%: Adjusted EBITDA was $111.4 million, or 7.6 percent of net sales, against 8.9 percent a year earlier. The prior-year figure was $142.2 million. Source
• Residential market expected to stay challenged: Management expects markets tied to new residential construction to remain more challenging, with stabilization in other end markets acting as an offset. Source
• Transport costs being offset: Management said it is actively working to offset higher costs, particularly transportation, and that these headwinds are expected to be temporary. Source
• MoistureShield plant bought for $56 million: The company bought the MoistureShield composite decking facility on April 6, 2026, for $56 million in cash, to expand Deckorators capacity. MoistureShield had about $50 million of 2025 sales. Source
• Berry Pallets deal planned for May: The company plans to acquire Berry Pallets for about $20 million in cash in May 2026. Berry Pallets had about $23 million of 2025 sales. Source

“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.”

Will Schwartz, President and CEO of UFP Industries

Guidance

What changed from last quarter

• Guidance lowered: Demand for the balance of 2026 is now expected towards the lower end of prior guidance, which had been flat to slightly down by segment. Source
• Guidance lowered: The 2026 capital project range is $250 million to $275 million, against the prior $300 million to $325 million. Source
• New: The company acquired the composite decking facility of MoistureShield, Inc. on April 6, 2026, after the prior quarter closed. Source
• New: Acquisition of Berry Pallets, Inc. announced April 28, 2026, planned to close in May 2026 for about $20 million in cash. Source
• Guidance kept: Long-term goals are stated as unchanged from the prior release, covering unit growth, new product share, adjusted EBITDA margin and return on investment. Source

Sales and earnings decline

• Sales fell 8 percent: Net sales were $1.46 billion, down from $1.6 billion, with price down 1 percent and organic units down 7 percent. Acquisitions contributed nothing to the change. Source
• Diluted EPS fell to $0.89: Diluted EPS was $0.89 against $1.30 a year earlier. Net earnings attributable to controlling interests were $51 million, against $79 million. Source
• March headwinds drove over half the decline: Management said geopolitical tensions, unfavorable weather and rising input costs added volatility in March, which accounted for more than half of the year-over-year profit decline. Source
• Adjusted EBITDA margin fell to 7.6%: Adjusted EBITDA was $111.4 million, or 7.6 percent of net sales, against 8.9 percent a year earlier. The prior-year figure was $142.2 million. Source

Segment results

• Retail sales down 12.5 percent: Retail net sales were $531.2 million, down 12.5 percent. Retail adjusted EBITDA was $34.8 million, a 6.6 percent margin against 5.9 percent a year earlier. Source
• Packaging sales slipped 3.9 percent: Packaging net sales were $394.1 million, down 3.9 percent. Adjusted EBITDA was $27.8 million, a 7.1 percent margin against 8.5 percent, with PalletOne units down 11 percent. Source
• Construction margin fell to 5.5%: Construction net sales were $465.5 million, down 9.8 percent. Adjusted EBITDA was $25.7 million, a 5.5 percent margin against 7.2 percent. Factory Built gross profit rose despite lower units. Source

“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.”

Will Schwartz, President and CEO of UFP Industries

Products and customers

• Surestone decking sales rose 27%: Surestone decking sales rose 27 percent and traditional wood plastic composite decking rose 4 percent. Deckorators organic units grew 2 percent overall. Source
• New products 7.8% of sales: New product sales were 7.8 percent of total net sales, up from 7.6 percent in the fourth quarter of 2025. Source
• Concrete forming units up 14%: Concrete Forming Solutions organic units grew 14 percent, which management attributed to market share gains tied to value-added product sales. Source
• Protective Packaging units up 5%: Protective Packaging organic units rose 5 percent, reflecting the Jeffersonville, Indiana facility, which became fully operational in the third quarter of 2025. Source
• Edge units fell after Bonner closure: UFP Edge organic units fell 20 percent after the Bonner facilities closed at year-end 2025. The product portfolio was also rationalized toward profitability targets. Source

Demand and end markets

• Site built units down 14%: Site Built organic units fell 14 percent, which management attributed to soft demand, housing affordability and unfavorable weather. Source
• Residential market expected to stay challenged: Management expects markets tied to new residential construction to remain more challenging, with stabilization in other end markets acting as an offset. Source
• Commercial demand improved: Commercial organic sales grew 15 percent, and management said overall demand has improved. Source

“we continue to strengthen our position to drive above market growth and returns when markets recover”

Will Schwartz, President and CEO of UFP Industries

Costs, margins and pricing

• Fuel and healthcare costs added pressure: Management attributed earnings mainly to the residential construction market, adverse weather, and higher healthcare and fuel costs. Gross margin was 16.1 percent, against 16.8 percent. Source
• Transport costs being offset: Management said it is actively working to offset higher costs, particularly transportation, and that these headwinds are expected to be temporary. Source

Cash, capital and shareholder returns

• Liquidity about $2.0 billion: At March 28, 2026, liquidity was about $2.0 billion, including over $715 million of cash and $1.3 billion of remaining revolver and shelf availability. Source
• Operating cash use of $104 million: Cash used in operating activities was $104 million in the quarter. Free cash flow was $87 million, and management used it to repurchase nearly $30 million of shares. Source
• Share repurchases of $30 million: The company repurchased 334,541 shares for $30 million, at an average price of $89.76 per share during the quarter. Source
• Quarterly dividend set at $0.36: The Board declared a $0.36 quarterly dividend, a 3 percent increase on the 2025 rate. Management said it weighs payout ratio and yield when setting the rate. Source

Strategy and acquisitions

• MoistureShield plant bought for $56 million: The company bought the MoistureShield composite decking facility on April 6, 2026, for $56 million in cash, to expand Deckorators capacity. MoistureShield had about $50 million of 2025 sales. Source
• Berry Pallets deal planned for May: The company plans to acquire Berry Pallets for about $20 million in cash in May 2026. Berry Pallets had about $23 million of 2025 sales. Source
• Greenfield and M&A combined: Management said it combines greenfield expansion with disciplined M&A to strengthen core businesses, introduce products, and lower the cost base. Source
• M&A pipeline remains active: Management said the M&A pipeline remains active, alongside organic investments and opportunistic cash returns to shareholders. Source

Targets, positioning and capital discipline

• Patient, disciplined capital deployment: Management said it has kept a patient and disciplined approach to deploying capital through the cycle, focused on the highest returns. Source

Coming up, as management said on 29 April 2026

• Berry Pallets deal to close in May: Management expects to close an additional transaction in May 2026, which it had said is pending. Source
• Dividend payable June 15: The $0.36 quarterly dividend is payable June 15, 2026, to shareholders of record on June 1, 2026. Source

Figures management reported

Risks management discussed

• Demand: Management said residential construction markets are expected to remain more challenging than other end markets. Source
• External: Management expects energy and transportation input costs to remain a headwind, with progress expected gradually through the rest of the year. Source
• Demand: Management cited consumer sentiment and the loss of low-margin commodity sales as pressures on ProWood. Source

Earlier plans management reported on

• On track: Management said it is on track to deliver the remaining cost-out savings by year end 2026. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.