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Mar 31
UFP Industries Q1 2025 Earnings Report
Results for the first quarter ended March 2025
Key Takeaways
UFP Industries announced first quarter 2025 results with net sales of $1.60 billion, a 2.7% decrease year-over-year, and net earnings of $78.8 million, a 35% decrease. The CEO noted a challenging quarter with limited visibility but saw sequential business improvement and is focused on profitability, cost savings, and strategic investments.
Net sales decreased 2.7 percent to $1.60 billion, driven by lower selling prices and reduced organic unit sales.
Net earnings attributable to controlling interests fell 35 percent to $78.8 million.
Adjusted EBITDA was $142.2 million, representing 8.9 percent of sales.
The company maintained a strong balance sheet with $903.6 million in cash as of March 29, 2025.
UFP Industries
UFP Industries
UFP Industries Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comPackaging Revenue
CapyFin.comConstruction Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
Management anticipates softer demand and a competitive pricing environment to persist through 2025, resulting in a slight overall demand decrease across segments, with a decline in Site Built partially offset by growth in Factory Built. The company believes it is well-positioned to manage potential lumber tariffs.
Positive Outlook
- Sequential business activity improved throughout Q1 2025 and into April.
- Company remains on target to achieve $60 million of structural cost savings by year-end 2026.
- Accelerating investments into higher-growth and higher-margin opportunities.
- Strong balance sheet and free cash flow generation provide flexibility for investment and share repurchases.
- Diverse and balanced customer base is expected to help navigate market challenges.
Challenges Ahead
- First quarter proved more challenging than anticipated.
- Visibility remains limited.
- Softer demand and competitive pricing environment are expected to continue through the remainder of 2025.
- Overall demand is anticipated to be slightly down in each segment for the full year.
- A decline in the Site Built segment is anticipated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income