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Dec 31, 2022
UFP Industries Q4 2022 Earnings Report
UFP Industries reported a decrease in net sales but remained optimistic due to a strong balance sheet and strategic investments.
Key Takeaways
UFP Industries announced net sales of $1.9 billion, net earnings attributable to controlling interest of $133 million, and earnings per diluted share of $2.10 for the fourth quarter of 2022. While net sales decreased by 5 percent, the company emphasized its strong financial position and plans to capitalize on opportunities in a softening economy.
Net sales decreased 5 percent to $1.91 billion due to a 10 percent decrease in organic unit sales.
New product sales increased 36 percent to $164 million.
Earnings from operations decreased 14 percent to $169 million.
Adjusted EBITDA decreased 5 percent to $213 million, while adjusted EBITDA margin remained unchanged at 11.1 percent.
UFP Industries
UFP Industries
UFP Industries Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comPackaging Revenue
CapyFin.comConstruction Revenue
CapyFin.com Forward Guidance
UFP Industries anticipates more normalized demand in retail solutions and expects lumber prices to normalize, with flat unit sales in the retail segment for 2023. They also expect unit sales to be flat to slightly down in the packaging segment, and a 15-20% decline in housing starts could impact the construction segment.
Challenges Ahead
- Anticipates more normalized demand in the retail solutions segment in 2023.
- Expects lumber prices will normalize and follow more seasonal historical trends in 2023.
- The retail segment will experience flat unit sales.
- Metrics indicating unit sales will be flat to slightly down in 2023 for the Packaging segment.
- Consensus estimates indicate a 15-20 percent decline in housing starts in 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income