Core Insights - UFP Industries reported revenue of $1.46 billion for the quarter ended December 2024, a decrease of 4.1% year-over-year, with EPS at $1.20 compared to $1.62 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.44 billion by 1.51%, while the EPS fell short of the consensus estimate of $1.23 by 2.44% [1] Financial Performance - Retail net sales were reported at $524.59 million, surpassing the average estimate of $480.17 million by two analysts, reflecting a year-over-year increase of 3.8% [4] - Construction net sales amounted to $486.78 million, slightly below the average estimate of $488.31 million, indicating a year-over-year decline of 4.8% [4] - Packaging net sales were reported at $375.32 million, exceeding the average estimate of $374.78 million, but showing a significant year-over-year decrease of 9.3% [4] Stock Performance - UFP Industries' shares have returned -0.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of 4.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Financial Performance - Fourth quarter 2024 net sales were $1.46 billion, a 4% decrease year-over-year, with net earnings attributable to controlling interest of $68.0 million, representing a 34% decrease[3]. - Fiscal 2024 net sales totaled $6.7 billion, down 8% from the previous year, with net earnings attributable to controlling interests of $414.6 million, a 19% decrease[8]. - Q4 2024 net sales decreased to $1,462,001 thousand, down 4.1% from $1,524,353 thousand in Q4 2023[27]. - Total net sales for 2024 reached $6,652,309, a decrease from $7,218,384 in 2023, representing a decline of approximately 7.8%[30]. - Net earnings for 2024 were $418,733,000, a decrease of 18.6% from $514,457,000 in 2023[33]. Profitability Metrics - Adjusted EBITDA for Q4 2024 was $132.7 million, or 9.1% of sales, compared to $165.6 million, or 10.9% of sales, in Q4 2023[8]. - Adjusted EBITDA for 2024 was $682,264, which is a decrease from $809,886 in 2023, reflecting a decline of about 15.8%[31]. - The gross profit margin for 2024 was approximately 18.4%, compared to 19.6% in 2023, indicating a slight decrease in profitability[30]. - Gross profit for Q4 2024 was $239,509 thousand, representing a gross margin of 16.4%, compared to 19.4% in Q4 2023[27]. - The packaging segment's adjusted EBITDA margin improved to 9.7% in 2024 from 7.0% in 2023, indicating enhanced operational efficiency[31]. Cash Flow and Liquidity - UFP Industries has nearly $1.2 billion in cash as of December 28, 2024, up from $1.1 billion at the end of 2023, with total liquidity of approximately $2.5 billion[8]. - Cash and cash equivalents rose to $1,171,828 in 2024, up from $1,118,329 in 2023, indicating improved liquidity[32]. - Net cash from operating activities decreased to $642,571,000 in 2024 from $959,890,000 in 2023, reflecting a decline of 33.1%[33]. - Total cash and cash equivalents at the end of the period increased to $1,179,594,000 in 2024 from $1,122,256,000 in 2023, a growth of 5.1%[33]. - The company experienced a net change in cash and cash equivalents of $57,338,000 in 2024, a significant decrease from $562,633,000 in 2023[33]. Expenses and Cost Management - Selling, general and administrative expenses for Q4 2024 totaled $156,491 thousand, compared to $171,598 thousand in Q4 2023[27]. - The company’s selling, general, and administrative expenses totaled $735,046 in 2024, compared to $766,633 in 2023, showing a reduction of about 4.1%[30]. - The company plans to achieve cost savings of $60 million by the end of 2026 through investments in automation and plant optimization[5]. Dividends and Shareholder Returns - A quarterly dividend of $0.35 per share was approved, reflecting a 6% increase from the previous dividend of $0.33[12]. - Dividends paid to shareholders increased to $80,782,000 in 2024 from $68,238,000 in 2023, an increase of 18.4%[33]. Market Conditions and Future Outlook - The company anticipates continued softer demand and a competitive pricing environment through the first half of 2025[19]. - Long-term goals include achieving 7-10% unit sales growth annually and maintaining a conservative capital structure[20]. Segment Performance - The retail segment reported net sales of $524,591 thousand in Q4 2024, a slight decrease from $525,730 thousand in Q4 2023[28]. - The construction segment's net sales were $486,776 thousand in Q4 2024, down from $511,042 thousand in Q4 2023[29]. - The construction segment generated net sales of $2,113,844 in 2024, slightly down from $2,161,059 in 2023, a decrease of approximately 2.2%[30]. Acquisitions and Investments - The company acquired C&L Wood Products, expanding its geographic footprint into northern Alabama and central Tennessee[12]. - The company made acquisitions totaling $29,830,000 in 2024, down from $52,383,000 in 2023, indicating a decrease of 43.0%[33].

Core Viewpoint - The article emphasizes the importance of value investing and highlights UFP Industries (UFPI) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][8]. Valuation Metrics - UFP Industries (UFPI) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The stock's P/E ratio is 15.56, significantly lower than the industry average of 23.55, suggesting it may be undervalued [4]. - UFPI's P/B ratio stands at 2.21, compared to the industry's average of 2.99, indicating solid valuation relative to its book value [5]. - The P/S ratio for UFPI is 1.05, which is much lower than the industry average of 2.3, further supporting its undervaluation [6]. - The P/CF ratio for UFPI is 11.89, well below the industry's average of 22.95, highlighting its attractive cash flow position [7]. Earnings Outlook - The combination of UFPI's strong valuation metrics and positive earnings outlook positions it as an impressive value stock at the moment [8].

Core Viewpoint - UFP Industries (UFPI) is expected to report a quarterly earnings decline of 24.1% year over year, with earnings projected at $1.23 per share and revenues at $1.44 billion, a decrease of 5.5% compared to the previous year [1]. Group 1: Earnings and Revenue Estimates - The consensus EPS estimate for the upcoming quarter has remained unchanged over the last 30 days, indicating analysts' reassessment of their initial forecasts [1]. - Analysts predict 'Net Sales- Retail' to reach $480.17 million, reflecting a year-over-year decline of 5% [4]. - 'Net Sales- Construction' is estimated to be $488.31 million, indicating a decrease of 4.5% from the prior year [4]. - The combined estimate for 'Net Sales- Packaging' is projected at $374.78 million, showing a decline of 9.4% year over year [4]. Group 2: Market Performance - UFP Industries shares have returned +3% over the past month, compared to a +4.2% change in the Zacks S&P 500 composite [5]. - The company holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the overall market in the near future [5].

Core Viewpoint - The article emphasizes the importance of value investing and highlights UFP Industries (UFPI) as a strong candidate for value investors due to its attractive valuation metrics and strong earnings outlook [2][8]. Company Summary - UFP Industries (UFPI) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock's Forward P/E ratio is 15.78, significantly lower than the industry's average of 23.40, suggesting it may be undervalued [4]. - UFPI's P/B ratio stands at 2.24, compared to the industry's average of 2.90, further indicating its attractive valuation [5]. - The P/S ratio for UFPI is 1.06, while the industry average is 2.41, reinforcing the notion of undervaluation [6]. - The P/CF ratio for UFPI is 12.01, compared to the industry's average of 22.18, highlighting its solid cash outlook [7]. - Overall, these metrics suggest that UFPI is likely undervalued and presents an impressive value stock opportunity at the moment [8].

A month has gone by since the last earnings report for UFP Industries (UFPI) . Shares have added about 11.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is UFP Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. UFP Industries Q3 Earnings & Sales Miss Estima ...

Financial Data and Key Metrics Changes - The company reported a 10% decline in sales to $1.65 billion, driven by a 7% reduction in selling prices and a 3% decline in unit sales [28] - Adjusted EBITDA decreased by 21% to $165 million, with an adjusted EBITDA margin of 10%, remaining above historical levels [28][29] - The cash surplus grew to almost $1.2 billion, providing flexibility for financial and strategic objectives [29][43] Business Line Data and Key Metrics Changes - **Retail Segment**: Sales dropped 13% to $636 million, with a 7% decline in selling prices and a 4% decline in units [30] - **Packaging Segment**: Sales decreased 11% to $402 million, with an 8% decline in selling prices and a 5% decrease in units [34] - **Construction Segment**: Sales fell 8% to $535 million, with a 7% decline in selling prices and a 2% decline in units [35] Market Data and Key Metrics Changes - The company noted a slowing economy in many markets, likely continuing through mid-2025, with mortgage rates needing to drop below 6% to boost housing [8][10] - Demand in retail is expected to remain mid-single digits lower, while packaging demand is anticipated to be mid to high single digits lower [50] Company Strategy and Development Direction - The company is focusing on facility consolidations to leverage capacity utilization and reduce operating costs, targeting over $70 million in annualized cost reductions [10][39] - Strategic alternatives are being explored for businesses that are EBITDA positive but do not fit long-term strategy or ROI targets [10][27] - The company aims to maintain a strong balance sheet while pursuing growth through acquisitions and new product development [12][48] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with current results but remains optimistic about future prospects, emphasizing a strong balance sheet and growth opportunities [6][11] - The outlook for the remainder of the year is challenging, with expectations of continued soft demand and competitive pricing [49] Other Important Information - The company declared a cash dividend of $0.33 per share, payable on December 16, representing a 10% increase from the previous year [13][45] - New product sales for the quarter reached $118.7 million, tracking close to the 2024 target of $510 million [24] Q&A Session Summary Question: Breakdown of $70 million in cost reductions - Management indicated that the cost reductions are interconnected and do not have a specific breakdown among the three areas [53][54] Question: Competitive pressures in the packaging industry - Management noted increased competitive pressure in site-built construction and other markets as demand wanes [55] Question: M&A pipeline opportunities - Management is looking for the best values in each strategic runway without favoring one segment over another [58] Question: Capital investment program adjustments - The cadence of capital investments is expected to remain consistent with previous plans, focusing on long-term growth and margin improvement [60] Question: Strategic criteria for business units - Management is evaluating underperforming operations and those not aligned with long-term strategic goals for potential divestiture [66][68] Question: Impact of lumber pricing on earnings - Management indicated that while lumber pricing affects sales, efficiencies could be gained in a stronger lumber pricing environment [70][72]

UFP Industries (UFPI) reported $1.65 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 9.8%. EPS of $1.64 for the same period compares to $2.10 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.78 billion, representing a surprise of -7.19%. The company delivered an EPS surprise of -9.39%, with the consensus EPS estimate being $1.81. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

UFP Industries (UFPI) came out with quarterly earnings of $1.64 per share, missing the Zacks Consensus Estimate of $1.81 per share. This compares to earnings of $2.10 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -9.39%. A quarter ago, it was expected that this wood and materials provider for the construction industry would post earnings of $2 per share when it actually produced earnings of $2.05, delivering a surprise of 2 ...

UFP Industries, Inc. Page 1 Exhibit 99(a) News release ---------------AT THE COMPANY--------------- Dick Gauthier VP of Investor Relations (616) 365-1555 FOR IMMEDIATE RELEASE Monday, October 28, 2024 UFP Industries Announces Third Quarter Results GRAND RAPIDS, Mich., Monday, October 28, 2024 – UFP Industries, Inc. (Nasdaq: UFPI) today announced third quarter 2024 results including net sales of $1.65 billion, net earnings attributable to controlling interest of $100 million, and earnings per diluted share o ...