UFP Industries, Inc. reported a decline in financial performance for the third quarter of 2025, with net sales totaling $1.56 billion, a decrease of 5.4% compared to $1.65 billion in the same period last year. The company's gross profit also fell to $262.7 million, down 12% from $298.4 million in the prior year. This decline in revenue and profitability was attributed to a combination of competitive pricing pressures, particularly in the Site Built business unit, and a decrease in unit sales across all segments, with a notable 6% drop in the retail segment.
In the nine months ending September 27, 2025, UFP Industries reported net sales of $4.99 billion, down 3.8% from $5.19 billion in the same period of 2024. The decrease was driven by a 3% decline in unit sales and a 0.8% decrease in selling prices. The company’s net earnings attributable to controlling interest for the nine-month period were $254.8 million, down from $346.5 million in the previous year, reflecting a 26.5% decrease. Earnings per share for the nine months were $4.29, compared to $5.66 in the prior year.
Strategically, UFP Industries has made several acquisitions, including National Supply, LLC and RWP West, LLC, which contributed approximately $23.8 million to net sales in the first nine months of 2025. The company has also focused on expanding its product offerings and enhancing its manufacturing capabilities, particularly in the Packaging segment. However, the company faced challenges with inventory management, leading to an increase in working capital requirements, which impacted cash flows from operations, which totaled $399.1 million for the first nine months of 2025, down from $497.7 million in the same period of 2024.
Operationally, UFP Industries reported a decrease in gross profit across all segments, with the Retail segment experiencing a $46 million decline in gross profits due to lower demand and competitive pricing. The Packaging segment saw a $33 million decrease in gross profits, while the Construction segment's gross profits fell by $69 million. The company has implemented cost reduction measures, including a $12 million decrease in selling, general, and administrative expenses in the first nine months of 2025 compared to the previous year.
Looking ahead, UFP Industries anticipates continued challenges in demand across its markets, particularly in the retail and construction segments, which are expected to see low single-digit declines for the remainder of 2025. The company aims to improve its operating profits by $60 million by the end of 2026 through cost reductions and operational efficiencies. UFP Industries remains committed to its long-term financial goals, including growing annual unit sales by 7-10% and achieving a 12.5% EBITDA margin.
About UFP INDUSTRIES INC
UFP Industries, Inc. is a diversified holding company that designs, manufactures, and supplies wood, composite, and other building materials across retail, packaging, and construction markets worldwide. Its core segments include retail solutions, industrial packaging, and construction products, serving major customers like Home Depot and Lowe’s. The company emphasizes innovation, operational efficiency, and sustainable practices to deliver value and stable cash flows.
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