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1. Company Snapshot

1.a. Company Description

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and wood-alternative products in North America, Europe, Asia, and Australia.It operates through Retail, Industrial, and Construction segments.The Retail segment offers preserved and unpreserved dimensional lumber; and outdoor living products, including wood and wood composite decking and related accessories, decorative lawn, garden, craft, and hobby products.


This segment serves national home center retailers, and retail-oriented regional and contractor-oriented lumberyards under the ProWood, ProWood FR, Deckorators, UFP-Edge, Outdoor Essentials, Dimensions, and Handprint trademarks.The Industrial segment provides pallets, specialty crates, wooden boxes, and other containers and products that are used for packaging, shipping, and material handling applications, as well as various other protective packaging applications.The construction segment offers roof trusses, cut and shaped lumbers, plywood, oriented strand boards, and dimensional lumbers; and engineered wood components, including roof and floor trusses, wall panels, I-joists, and lumber packages, as well as distributes siding, electrical, and plumbing products to factory-built housing and recreational vehicle customers.


This segment also engages in the manufacture of components; design, manufacture, and supply of wood forms and related products to set or form concrete for structures, such as parking garages, stadiums, and bridges, as well as provides farming services for builders.It also offers interior fixtures, millwork, and casework for retail, commercial, and other structures; and structural wood packaging, other packing materials, and original equipment manufacturer components for various industries.The company was formerly known as Universal Forest Products, Inc.


and changed its name to UFP Industries, Inc.in April 2020.UFP Industries, Inc.


was founded in 1955 and is headquartered in Grand Rapids, Michigan.

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1.b. Last Insights on UFPI

UFP Industries' recent performance was negatively impacted by its Q4 2025 earnings miss, with quarterly earnings of $0.7 per share, falling short of the Zacks Consensus Estimate of $1.03 per share. Institutional investors, including Victory Capital Management Inc. and Dimensional Fund Advisors LP, have reduced their stakes in the company. Additionally, the company's Q4 earnings call transcript and results announcement revealed a decline in performance. Analysts have a "Hold" rating on the stock, with an average target price of $114.25.

1.c. Company Highlights

2. Disappointing EPS, But Revenue and Cash Flow Resilience

The company's fourth quarter financial results for fiscal year 2025 revealed a mixed bag, with net sales totaling $1.33 billion, representing a 7% decline in units and a 2% decline in price. Despite generally soft end market demand, sales and profits were in line with internal expectations. Earnings per share (EPS) came in at $0.7, missing analyst estimates of $1.03. The company's return on invested capital for the year remained resilient at 13.2%, well above its weighted average cost of capital.

Publication Date: Feb -25

📋 Highlights
  • Sales Decline: Q4 net sales fell to $1.33 billion (-9% YoY), driven by 7% unit decline and 2% price drop.
  • Shareholder Returns: $443 million spent on share repurchases (7% of shares), $82 million in dividends, and a 3% 2026 dividend increase.
  • New Product Growth: 7.6% of sales from new products; Deckorators sales rose 17%, led by 35% (wood-plastic composite) and 44% (Surestone) decking growth.
  • Cost Efficiency: Achieved $11 million core SG&A reduction in 2025 (-21% YoY), with $25M+ cost-out progress toward $60M annual target.
  • Balance Sheet Strength: $2.2 billion liquidity and $451 million free cash flow (2025), funding $300M+ M&A pipeline and $300–325M 2026 CapEx.

Segment Performance

The Retail segment sales were $444 million, a 15% decline compared to last year, consisting of a 13% decline in unit sales and a 2% decrease in prices. In contrast, the Deckorators unit saw a 17% increase in sales, driven by its wood plastic composite decking and Surestone composite decking, which increased 35% and 44%, respectively. The Packaging segment sales declined 1% to $370 million, while the Construction segment sales declined 10% to $440 million.

Cash Flow and Balance Sheet

The company's free cash flow for the year was strong at $451 million, providing ample resources to complete $443 million of share repurchases this year. The balance sheet remains strong, with $2.2 billion in liquidity, and recurring free cash flow providing flexibility to pursue meaningful M&A opportunities and continue returning capital to shareholders.

Valuation and Outlook

Given the current valuation metrics, with a P/E Ratio of 21.26, P/B Ratio of 2.01, and EV/EBITDA of 10.95, the market seems to be pricing in a certain level of growth. Analysts estimate next year's revenue growth at 6.1%. The company's guidance on Deckorators, expecting $100 million of increase in sales in 2026, heavily weighted towards decking, is a positive sign. However, the company's EPS miss and soft demand may temper expectations.

Management's Strategy

Management has taken disciplined steps to invest in the future success of the business while returning capital to shareholders. The company executed on share repurchases, paid dividends, and spent on maintenance and growth CapEx. The team has made progress navigating a tough environment and executing on its strategy to manage things within its control, including exiting underperforming businesses and reducing excess capacity.

3. NewsRoom

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UFP Packaging Announces Nail-Gun-Free Crate Line for Safer Assembly

Mar -24

Source: prnewswire.com

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UFP Industries (NASDAQ:UFPI) Hits New 52-Week Low – Here’s Why

Mar -22

Source: defenseworld.net

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ProWood Backs the Next Generation of Home Developers, Commits to Filling Critical Knowledge and Training Gaps with NHCA Alliance

Mar -19

Source: prnewswire.com

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ProWood apoya a la próxima generación de desarrolladores de vivienda y se compromete a cerrar brechas clave en conocimientos y capacitación a través de una alianza con la NHCA

Mar -19

Source: prnewswire.com

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UFP Industries: Even With Weak Conditions, Shares Are Too Cheap To Pass Up

Mar -17

Source: seekingalpha.com

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UFP Industries Banks on Business Initiatives Amid Residential Weakness

Mar -11

Source: zacks.com

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Dimensional Fund Advisors LP Has $174.31 Million Stock Position in UFP Industries, Inc. $UFPI

Mar -10

Source: defenseworld.net

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Victory Capital Management Inc. Cuts Stake in UFP Industries, Inc. $UFPI

Mar -10

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.17%)

6. Segments

Retail

Expected Growth: 3.5%

UFP Industries' Retail segment growth of 3.5% is driven by increasing demand for home improvement and repair products, expansion of e-commerce platforms, and strategic acquisitions. Additionally, the company's focus on value-added products, such as outdoor living and DIY solutions, contributes to its growth momentum.

Construction

Expected Growth: 2.8%

UFP Industries' Construction segment growth of 2.8% is driven by increasing demand for single-family and multi-family housing, repair and remodeling activities, and infrastructure projects. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to the growth. Furthermore, the rising need for sustainable and energy-efficient building solutions has also boosted demand for UFP's construction products.

Packaging

Expected Growth: 3.2%

UFP Industries' packaging segment growth of 3.2% is driven by increasing demand for sustainable and eco-friendly packaging solutions, expansion in e-commerce, and rising consumer spending on packaged goods. Additionally, the company's strategic acquisitions and investments in new technologies have enhanced its production capabilities, further contributing to growth.

All Other

Expected Growth: 2.5%

UFP Industries' All Other segment growth of 2.5% is driven by increasing demand for specialty wood products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation and product diversification, as well as its ability to pass on raw material price increases to customers, contribute to its growth momentum.

Corporate

Expected Growth: 2.2%

UFP Industries, Inc.'s corporate segment growth of 2.2% is driven by increasing demand for industrial packaging products, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to the growth.

7. Detailed Products

Retail Solutions

UFP Industries, Inc. provides a wide range of retail solutions including shelving, fixtures, and displays for retailers to effectively merchandise their products.

Industrial Packaging

The company offers industrial packaging solutions, including crates, boxes, and pallets, designed to protect and transport goods safely and efficiently.

Construction Materials

UFP Industries, Inc. supplies a variety of construction materials, including lumber, roofing, and siding, for residential and commercial building projects.

Site-Built Construction

The company provides site-built construction services, including design, manufacturing, and installation of modular buildings and components.

Packaging and Specialty Products

UFP Industries, Inc. offers a range of packaging and specialty products, including boxes, bags, and other materials for industrial and consumer applications.

8. UFP Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for UFP Industries, Inc. is moderate due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the industry, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry in the industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the large number of competitors in the industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.08%
Debt Cost 4.36%
Equity Weight 90.92%
Equity Cost 11.25%
WACC 10.63%
Leverage 9.98%

11. Quality Control: UFP Industries, Inc. passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NewMarket

A-Score: 6.9/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 4.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Cabot

A-Score: 5.4/10

Value: 6.9

Growth: 6.4

Quality: 5.7

Yield: 5.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
UFP Industries

A-Score: 5.3/10

Value: 6.2

Growth: 6.4

Quality: 5.8

Yield: 3.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Steel Dynamics

A-Score: 5.2/10

Value: 3.5

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Boise Cascade

A-Score: 5.1/10

Value: 6.9

Growth: 5.8

Quality: 5.4

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Sylvamo

A-Score: 4.7/10

Value: 7.9

Growth: 3.4

Quality: 5.6

Yield: 6.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

92.09$

Current Price

92.09$

Potential

-0.00%

Expected Cash-Flows