INVESTOR RELATIONS PRESENTATION Results through March 29, 2025 Deckorators Voyage Decking with Surestone Technology 1 UFP INDUSTRIES, INC. Please be aware that statements included in this presentation that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and are based on management's beliefs, assumptions, current expectations, estimates, and projections about the markets we serve, the economy, and the company itself. Words like " ...

UFP Industries (UFPI) Q1 2025 Earnings Call April 29, 2025 02:08 PM ET Speaker0 Good day, and welcome to the Q1 twenty twenty five UFP Industries, Inc. Earnings Conference Call and Webcast. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Stanley Elliott, Director of Investor Relations. Please go ...

UFP Industries (UFPI) Q1 2025 Earnings Call April 29, 2025 09:00 AM ET Company Participants Stanley Elliott - Director - Investor RelationsWill Schwartz - CEOMichael Cole - CFO & TreasurerKetan Mamtora - Director - Building Products Equity ResearchJay McCanless - SVP - Equity Research Conference Call Participants Kurt Yinger - Associate Vice President, Research AnalystReuben Garner - Equity Research Analyst Operator Good day, and welcome to the Q1 twenty twenty five UFP Industries, Inc. Earnings Conference ...

Core Insights - UFP Industries (UFPI) reported $1.6 billion in revenue for Q1 2025, a year-over-year decline of 2.7% and an EPS of $1.30 compared to $1.96 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $1.63 billion by 2.19%, and the EPS was 18.24% below the consensus estimate of $1.59 [1] Revenue Performance - Retail net sales were $607.38 million, below the estimated $644.47 million, reflecting a year-over-year decline of 3.4% [4] - Construction net sales reached $515.94 million, slightly above the average estimate of $508.43 million, showing a minimal decline of 0.4% year over year [4] - Packaging net sales were reported at $410.01 million, exceeding the estimated $405.32 million, with a year-over-year decline of 3.4% [4] Stock Performance - UFP Industries' shares returned +0.4% over the past month, contrasting with the Zacks S&P 500 composite's decline of -4.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - UFP Industries reported quarterly earnings of $1.30 per share, missing the Zacks Consensus Estimate of $1.59 per share, and down from $1.96 per share a year ago [1] - The earnings surprise was -18.24%, and the company has surpassed consensus EPS estimates only once in the last four quarters [2] - Revenues for the quarter were $1.6 billion, missing the Zacks Consensus Estimate by 2.19%, and down from $1.64 billion year-over-year [3] Market Context - UFP Industries shares have declined about 5.3% since the beginning of the year, compared to a decline of -6.1% for the S&P 500 [4] - The current consensus EPS estimate for the upcoming quarter is $2.17 on revenues of $1.9 billion, and for the current fiscal year, it is $7.05 on revenues of $6.77 billion [8] Industry Outlook - The Building Products - Wood industry is currently in the bottom 37% of over 250 Zacks industries, indicating a challenging environment [9] - Boise Cascade, a competitor in the same industry, is expected to report quarterly earnings of $1.36 per share, reflecting a year-over-year decline of -47.9% [10]

UFP Industries, Inc. Page 1 FOR IMMEDIATE RELEASE Monday, April 28, 2025 Exhibit 99(a) UFP Industries Announces First Quarter 2025 Results GRAND RAPIDS, Mich., Monday, April 28, 2025 – UFP Industries, Inc. (Nasdaq: UFPI) today announced first quarter 2025 results including net sales of $1.60 billion, net earnings attributable to controlling interests of $78.8 million, and earnings per diluted share of $1.30. "While our first quarter proved more challenging than anticipated and visibility remains limited, we ...

Core Viewpoint - Analysts expect UFP Industries (UFPI) to report quarterly earnings of $1.59 per share, reflecting an 18.9% year-over-year decline, with revenues projected at $1.63 billion, down 0.5% from the previous year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Key Metrics Estimates - Analysts project 'Net Sales- Retail' to reach $644.47 million, indicating a year-over-year increase of 2.5% [4] - The consensus estimate for 'Net Sales- Construction' is $508.43 million, reflecting a year-over-year decline of 1.8% [4] - 'Net Sales- Packaging' is expected to be $405.32 million, showing a year-over-year decrease of 4.5% [4] Stock Performance - UFP Industries shares have returned -3.6% over the past month, compared to a -6.6% change in the Zacks S&P 500 composite, with a Zacks Rank 4 (Sell) indicating expected underperformance relative to the overall market [5]

Core Viewpoint - UFP Industries has experienced a 6% decline in share price over the past month, although it has outperformed the S&P 500 during this period [1] Estimates Movement - Estimates for UFP Industries have trended downward, with a consensus estimate shift of -6.67% over the past month [2] VGM Scores - UFP Industries holds an average Growth Score of C and a Momentum Score of F, while achieving a Value Score of B, placing it in the top 40% for this investment strategy; the overall aggregate VGM Score is B [3] Outlook - The downward trend in estimates suggests a negative outlook for UFP Industries, currently holding a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [4] Industry Performance - UFP Industries is part of the Zacks Building Products - Wood industry; Rayonier, a competitor in the same sector, has seen a 7.9% increase in share price over the past month, reporting revenues of $726.3 million with a year-over-year growth of +222.5% [5] - Rayonier's expected earnings for the current quarter are $0.05 per share, reflecting no change from the previous year, with a Zacks Consensus Estimate revision of -30% over the last 30 days, also holding a Zacks Rank 3 (Hold) and a VGM Score of F [6]

Revenue and Growth - From 2011 to 2019, the company's revenues increased from $1.8 billion to $4.4 billion, reflecting significant growth[21]. - Net sales for 2024 were $6,652,309, a decrease of 7.8% compared to $7,218,384 in 2023[264]. - Point in time revenue decreased by 8.2% to $6,489,190 in 2024 from $7,069,690 in 2023, while over time revenue increased by 9.7% to $163,119[307]. Market Share and Production Estimates - The Retail Solutions segment estimates production of approximately 28% of all residential treated wood, 17% of all wood fencing, and 7% of all fire-retardant wood products in the U.S.[26]. - The company estimates it manufactures approximately 6-8% of all composite decking and railing in the U.S.[27]. - The Structural Packaging business unit estimates a domestic market share of 10-12%[33]. - PalletOne, as the largest supplier, manufactures approximately 8-10% of new machine-built pallets nationally[34]. - The company estimates it produces approximately 35% of all roof trusses used in factory-built housing in the U.S.[40]. - The site-built construction unit estimates it produces approximately 12% of all engineered wood components used in housing in the U.S.[42]. - The commercial construction business unit is recognized as one of the top five custom interior environment providers globally[43]. Financial Performance - Gross profit for 2024 was $1,226,742, down from $1,418,938 in 2023, reflecting a decline of 13.5%[264]. - Earnings before income taxes for 2024 were $540,155, a decrease of 19.5% compared to $671,241 in 2023[264]. - Net earnings for the year ended December 28, 2024, were $418.733 million, a decrease of 18.6% compared to $514.457 million in 2023[269]. - Net earnings attributable to controlling interest for the year ended December 28, 2024, were $414.56 million, a decrease of 19.4% from $514.31 million in 2023[311]. - The total income tax expense for 2024 was $121.4 million, a decrease of 22.4% from $156.8 million in 2023, driven by lower earnings before income taxes[354]. Assets and Liabilities - Total assets increased to $4,150,938 in 2024 from $4,017,797 in 2023, representing a growth of 3.3%[263]. - Current liabilities decreased to $512,448 in 2024, down 9.8% from $567,976 in 2023[263]. - Total liabilities decreased to $900,947 in 2024, down 6.9% from $967,577 in 2023[263]. - Long-term debt obligations decreased from $276.584 million in 2023 to $234.032 million in 2024, reflecting a reduction of approximately 15.3%[331]. Employee and Shareholder Information - The company had approximately 15,000 employees as of December 28, 2024, emphasizing a culture of career development and training[55]. - Cash dividends increased to $1.32 per share in 2023, up from $1.10 per share in 2022, reflecting a rise of approximately 20%[266]. - The company repurchased 1,409,266 shares of common stock in 2024 at an average price of $113.53, compared to 974,869 shares at an average price of $84.27 in 2023, representing an increase of 44.4% in shares repurchased[351]. Capital Expenditures and Investments - The company incurred $232.274 million in capital expenditures for property, plant, and equipment in 2024, compared to $180.382 million in 2023[269]. - The company made investments of $15.5 million and $10.5 million through its Innov8 Fund in 2024 and 2023, respectively, focusing on emerging projects and technologies[317]. Debt and Interest Rates - The estimated fair value of the company's long-term debt, including the current portion, was $201.2 million as of December 28, 2024[239]. - The average interest rate for variable rate debt is 3.32% as of December 28, 2024[240]. - The company does not enter into material interest rate swaps or other derivative financial instruments to mitigate market risks related to fluctuations in interest rates on variable rate debt[237]. Environmental and Regulatory Compliance - The company plans to disclose its 2024 Scope 1 and Scope 2 greenhouse gas emissions in 2025, following the quantification of 2023 emissions[57]. - The company is evaluating the impact of new accounting standards on financial statement disclosures, including ASU 2024-03 and ASU 2023-09[286][287]. Miscellaneous - The company recognized an expense of $2.0 million for the Director Compensation Plan in 2024, slightly up from $1.9 million in 2023[343]. - The company accrued approximately $16.9 million for retirement benefits for certain officers as of December 28, 2024, compared to $15.5 million in 2023[353].

Financial Data and Key Metrics Changes - The company reported sales of $6.7 billion and EBITDA of $682.3 million for the full year 2024, with an EBITDA margin of 10.3% [10][71] - In Q4, sales declined by 4% to $1.46 billion, driven by a 4% reduction in selling prices while unit sales remained flat [39][101] - Adjusted EBITDA for Q4 fell by 28% to $133 million, with an adjusted EBITDA margin of 9.1% [40][102] - The return on invested capital was 18.3%, nearly double the weighted average cost of capital [41][102] Business Line Data and Key Metrics Changes - Retail segment sales were flat at $525 million, with a 1% decline due to product transfers to packaging, but unit sales increased by 1% [42][104] - Packaging segment sales dropped 9% to $375 million, with an 8% decline in selling prices and a 2% decrease in units [44][106] - Construction segment sales decreased 5% to $487 million, with a 7% decline in selling prices partially offset by a 2% increase in units [46][108] Market Data and Key Metrics Changes - Fourth quarter unit sales were relatively unchanged, with 2% growth in construction and 1% growth in international operations, while retail sales remained flat [16][78] - The company expects existing home sales to remain depressed and housing affordability to be a challenge, impacting overall market conditions [95][96] - Industry forecasts for housing starts in 2025 are mixed, with estimates ranging from slightly down to slightly up [95][96] Company Strategy and Development Direction - The company aims to drive profitable growth and has identified runways across each business unit that meet high return thresholds [19][80] - The acquisition of C&L Wood Products was announced, which will operate under the UFP Packaging's PalletOne business unit [21][82] - A $1 billion multiyear capital plan is in place, focusing on automation, technology, and capacity expansion [23][84] Management's Comments on Operating Environment and Future Outlook - Management noted that the continued weak demand has decreased operating efficiency and increased competitive pressure, compressing operating profits [9][70] - The outlook for the first half of 2025 anticipates slightly down demand across segments, with competitive pricing expected to persist [60][61] - Despite uncertainties, the company is confident in its ability to navigate potential pricing impacts from tariffs and maintain market share [97][99] Other Important Information - The company has identified $60 million in structural cost savings from ongoing cost and capacity reductions [29][90] - Operating cash flow for the year totaled $643 million, with a strong balance sheet showing nearly $1.2 billion in surplus cash [52][118] - A quarterly dividend of $0.35 per share was approved, representing a 6% increase from the previous year [57][120] Q&A Session Summary Question: What are the expectations for unit sales in 2025? - Management expects modest unit declines across each business unit in the aggregate through the first half of the year [98][60] Question: How is the company addressing competitive pricing pressures? - The company is focused on reducing costs, eliminating excess capacity, and divesting underperforming assets while positioning for future market demand improvements [62][61]