UFP Industries Reports 3.5% Decline in Net Sales for Q2 2025

UFP Industries, Inc. reported a decline in financial performance for the second quarter of 2025, with net sales totaling $1.84 billion, a decrease of 3.5% compared to $1.90 billion in the same period last year. The company's gross profit also fell to $312.7 million, down 14% from $362.7 million in the prior year. This decline in profitability was attributed to competitive pricing pressures and a decrease in unit sales, particularly in the retail segment, which saw a 7% drop in units sold. The company’s earnings from operations decreased by 23% to $123.1 million, reflecting the impact of reduced gross profits despite a decrease in selling, general, and administrative expenses.

In terms of strategic developments, UFP Industries completed two acquisitions in the past year, including RWP West, LLC, which serves the manufactured housing market, and C&L Wood Products, a manufacturer of wood products. These acquisitions contributed approximately $13 million to net sales in the first half of 2025. The company also reported a significant reduction in its cash and cash equivalents, which stood at $842 million at the end of June 2025, down from $1.04 billion a year earlier. This decrease was primarily due to cash used in financing activities, including share repurchases totaling $262 million during the first half of 2025.

Operationally, UFP Industries experienced a decline in customer engagement, with overall unit sales down 3% in the second quarter. The retail segment was particularly affected, with a 7% decrease in unit sales, while the construction segment saw a slight increase of 2%. The company reported a cash flow from operations of $113 million for the first six months of 2025, a significant decline from $239 million in the same period of 2024, largely due to increased working capital requirements. The company anticipates that the seasonal increase in working capital will convert to cash by the end of the third quarter.

Looking ahead, UFP Industries has outlined a cautious outlook, anticipating continued challenges in demand across its markets due to various economic factors. The company aims to improve its operating profits by $60 million by the end of 2026 through cost reductions and divesting underperforming assets. Additionally, UFP Industries plans to maintain a conservative capital structure while pursuing growth opportunities, including a targeted capital expenditure range of $300-$325 million for 2025. The company remains focused on enhancing its product offerings and expanding its market share, particularly in the composite decking segment, where it aims to double its market share over the next five years.