UFP Industries, Inc. reported a decline in financial performance for the first quarter of 2025, with net sales totaling $1.60 billion, a decrease of 2.7% compared to $1.64 billion in the same period last year. The company's gross profit also fell to $268.2 million, down 18% from $326.1 million in the prior year. This decline in profitability was attributed to competitive pricing pressures, particularly in the Site-Built and Structural Packaging business units, as well as increased material costs affecting several product lines.
The company's earnings from operations decreased by 31% to $92.3 million, down from $133.8 million in the first quarter of 2024. UFP Industries experienced a significant drop in net earnings, which fell to $79.4 million, compared to $121.1 million in the previous year. The earnings per share (EPS) for the quarter was $1.30, down from $1.96 in the same quarter last year. The decrease in profitability was partially offset by a reduction in selling, general, and administrative expenses, which decreased by approximately $16 million.
In terms of operational developments, UFP Industries reported a 3% increase in unit sales within its construction segment, which helped mitigate some of the declines seen in retail and packaging. The company also completed the acquisition of C&L Wood Products, contributing approximately $6.1 million to net sales during the quarter. The company’s total assets remained stable at approximately $4.15 billion, with cash and cash equivalents at $903.6 million, down from $979.7 million a year earlier.
UFP Industries continues to focus on strategic growth initiatives, including geographic expansion and the introduction of new products. The company aims to achieve annual unit sales growth of 7% to 10% and maintain a conservative capital structure. Looking ahead, UFP Industries anticipates that demand in its markets may remain slightly down for the remainder of 2025, influenced by various economic factors, including fluctuations in lumber prices and competitive pressures. The company plans to implement cost-reduction strategies to improve operating profits by $60 million by the end of 2026, with an expected benefit of approximately $40 million by the end of 2025.