UFP Industries, Inc. reported a decline in financial performance for the fiscal year ending December 28, 2024, with net sales of $6.65 billion, an 8% decrease from $7.22 billion in 2023. The decrease was attributed to a 7% drop in selling prices and a 1% decline in unit sales. Gross profits also fell by 13.5%, totaling $1.23 billion, while operating profits decreased by 24% to $492.2 million. The company's net earnings attributable to controlling interest were $414.6 million, down from $514.3 million in the previous year, resulting in earnings per share of $6.78 compared to $8.21 in 2023.
The company experienced significant changes across its business segments. The Retail Solutions segment saw a 12% decrease in net sales, primarily due to lower selling prices and unit sales. The Packaging segment's net sales decreased by 11%, driven by competitive pricing pressures and reduced demand. Conversely, the Construction segment reported a slight 2% decline in net sales, with a 4% increase in unit sales partially offsetting a 7% drop in selling prices. UFP Industries also made strategic moves, including the acquisition of C&L Wood Products for $30 million, contributing to a total of $17.9 million in net sales from acquisitions during the year.
Operationally, UFP Industries maintained a workforce of approximately 15,000 employees as of December 28, 2024. The company reported a cash flow from operations of $643 million, down from $960 million in 2023, largely due to a decrease in net earnings and changes in working capital. The company also returned $81 million to shareholders through dividends and repurchased approximately 1.4 million shares for $160 million. The total liquidity at year-end was approximately $2.5 billion, including cash and cash equivalents of $1.2 billion.
Looking ahead, UFP Industries anticipates continued challenges in the market, particularly due to macroeconomic pressures such as inflation and interest rate fluctuations. The company expects to implement cost and capacity reductions aimed at improving operating profits by approximately $60 million by 2026, with anticipated benefits of $30 to $35 million in 2025. The outlook for 2025 suggests a cautious approach, with expectations of slightly down market demand across its segments, particularly in retail and construction.
Overall, UFP Industries is navigating a complex market environment while focusing on strategic acquisitions, operational efficiencies, and maintaining a strong liquidity position to support future growth initiatives.
About UFP INDUSTRIES INC
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