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Jun 25, 2022
UFP Industries Q2 2022 Earnings Report
UFP Industries reported record results in Q2 2022, driven by strong performance in the construction and industrial segments, while successfully managing challenges in the retail segment due to falling lumber prices.
Key Takeaways
UFP Industries announced record net sales of $2.9 billion and net earnings attributable to controlling interests of $203 million for the second quarter of 2022. Earnings per diluted share reached a record $3.23, a 16 percent increase year-over-year.
Net sales increased by 7 percent to $2.9 billion, driven by higher lumber prices and increased unit sales.
Earnings from operations grew by 21 percent to $286 million, with acquisitions contributing $2.5 million.
New product sales increased by 37 percent to $181 million, excluding sunset products.
Adjusted EBITDA increased 22 percent to $318.5 million, with margin improving by 130 basis points to 11 percent.
UFP Industries
UFP Industries
UFP Industries Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comConstruction Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
UFP expects normalized demand in retail solutions but anticipates year-over-year improvement in Q3. The company monitors industrial activity and key economic indicators, expecting pricing to remain healthy. Continued activity is seen in commercial and infrastructure construction, with favorable demographic trends offsetting a softening housing market.
Positive Outlook
- Expect year-over-year improvement in the third quarter due to more favorable comparisons in retail solutions.
- Pricing remains healthy as inflationary costs are passed through and the company benefits from value-added products in the industrial segment.
- Continued activity in commercial and infrastructure end markets within the construction segment.
- Exposure to a projected softening in the housing market is expected to be somewhat offset by favorable demographic trends in the markets served and participation in more affordable housing in the construction segment.
- Diversified business and end markets give the confidence to successfully navigate various market environments, delivering good returns to shareholders.
Challenges Ahead
- Macroeconomic conditions and the impact on business are being monitored.
- Expect more normalized demand in the largest segment, retail solutions.
- Key economic indicators that drive the industrial business remain mixed.
- Potential softening in the housing market.
- Rising interest rates and historically high inflation are external challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income