UFP Industries Q1 2022 Earnings Report
Key Takeaways
UFP Industries reported record first quarter results with net sales of $2.49 billion and net earnings of $190 million. Earnings per diluted share increased 80 percent to $3.00 compared to the first quarter of 2021. The company's balanced business model and reorganization in 2020 contributed to the impressive results.
Net sales increased 36 percent to $2.49 billion due to higher lumber prices and increased unit sales.
Earnings from operations increased 88 percent to $259 million, with acquisitions contributing $10 million.
Adjusted EBITDA increased 80 percent to $292.2 million, with adjusted EBITDA margin improving to 11.7 percent.
New product sales increased 58 percent to $151 million.
UFP Industries
UFP Industries
UFP Industries Revenue by Segment
Forward Guidance
UFP Industries will continue to invest in and build upon the successful transformation of UFP Industries into a value-added solutions provider to our customers, which has led to impressive operating results and returns on investment. They anticipate continuing to use cash for share buybacks, as we think UFP Industries is a great investment, while also rewarding shareholders with increased dividends.
Positive Outlook
- Targeting $175-225 million for capital expenditures in 2022.
- Increased share repurchase program up to 2.6 million shares.
- Purchased approximately 800,000 shares at an average price of $77.53 in March and April 2022.
- Increased quarterly dividend payment to $0.25 per share, an increase of 25 percent over the dividend paid on March 15, 2022, and 67 percent higher than the dividend paid on June 15, 2021.
- Seeking opportunities to invest in companies that represent a strong strategic fit.
Challenges Ahead
- Fluctuations in the price of lumber.
- Adverse or unusual weather conditions.
- Adverse economic conditions in the markets we serve.
- Government regulations, particularly involving environmental and safety regulations.
- Ability to make successful business acquisitions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income