Universal Forest Products Stock Earnings Reports

UFP Industries reported Q3 FY2025 net sales of $1.56 billion (down ~5% YoY) driven by declines in volumes and modest pricing pressure. Adjusted EBITDA fell ~15% to $140 million and adjusted EBITDA margin declined to ~9%. Management described continued cyclical softness—most pronounced in Site Built residential—while noting stabilization in Packaging and strength in certain Factory Built, Deckorators (composite decking), and protective packaging businesses. Key strategic priorities: (1) product innovation and brand-building (notably the Surestone Deckorators rollout targeting 2026 retail selling season), (2) ongoing cost reductions and capacity rationalization (including Edge facility wind-down and expected elimination of Bonner losses), and (3) disciplined capital allocation combining organic CapEx, M&A and share repurchases. The company highlighted a multi-year capital plan (referenced $1.0 billion program overall; ~ $275–300 million expected CapEx in the year, with ~$200 million earmarked for automation) aimed at improving throughput and margins. Financial flexibility remains strong: operating cash flow for the year was $399 million, cash on hand >$1 billion and total liquidity ~$2.3 billion. Capital return actions in 2025 include nearly $347 million of buybacks (~6–6.5% of market cap) and a 6% dividend increase; management said it will remain patient on larger M&A but is actively pursuing targets that fit growth/margin/return criteria. Targets reiterated: 12.5% EBITDA margin, 7–10% unit sales growth (organic + M&A), and ROIC >15%. Management expects temporary causes for some margin weakness to abate as new capacity ramps in early 2026 and cost-savings actions (targeting ~$60 million of annual EBITDA improvement by end of 2026) take hold.