In This Article:
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Revenue: Declined 3% to $1.6 billion.
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Earnings Per Share (EPS): $1.30 for the quarter.
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Adjusted EBITDA: $142 million, a 21% decline.
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Adjusted EBITDA Margin: 8.9%.
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Cash Position: $905 million at quarter end.
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Retail Segment Sales: $607 million, a 3% decline.
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Packaging Segment Sales: $410 million, a 3% decline.
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Construction Segment Sales: Largely flat at $516 million.
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New Product Sales: $106 million, 6.7% of total sales.
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Capital Expenditures: $67 million, with $19 million in maintenance and $48 million in expansionary CapEx.
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Share Repurchases: $70 million during the quarter, with an additional $107 million in April.
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Dividend: Quarterly dividend of $0.35 per share, a 6% increase from the previous year.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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UFP Industries Inc (NASDAQ:UFPI) reported a sequential improvement in business activity each month during the quarter, with positive trends continuing into April.
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The company finished the quarter with $905 million in cash, providing ample flexibility for future investments while maintaining a conservative capital structure.
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UFP Industries Inc (NASDAQ:UFPI) is on track to realize $60 million in structural cost savings by 2026 through cost reduction and capacity adjustments.
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New product sales totaled $106 million in the quarter, with a pathway to reach 10% of total sales over time, highlighting growth potential.
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The company is actively expanding its manufacturing capacity and geographic reach, including plans for a new facility in the Northeast to support market share growth.
Negative Points
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Total sales declined by 3% from the previous year, with a 2% reduction in volumes and a 1% reduction in selling prices.
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Margins remain pressured due to unfavorable manufacturing variances, competitive pricing, higher input and transportation costs, and unfavorable product mix shifts.
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Visibility into the second half of the year remains limited, with ongoing macroeconomic uncertainties and potential tariff impacts on Canadian lumber.
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The construction segment faced challenges, particularly in the site-built area, with a significant decline in margins due to pricing challenges and higher material costs.
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The packaging segment experienced a 3% decline in sales, with competitive headwinds and increased material costs further pressuring margins.
Q & A Highlights
Q: Can you elaborate on the competitive dynamics and pricing pressures in the current market environment? A: Mike Cole, Chief Financial Officer, explained that the current challenges are expected to continue in future quarters. Margins in the packaging segment have stabilized, but cost increases have been difficult to pass along fully. The construction segment, particularly site-built, faces pricing challenges and material cost increases. Retail, however, is expected to benefit from more efficient capacity and price increases on fixed-price products.