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1. Company Snapshot

1.a. Company Description

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and wood-alternative products in North America, Europe, Asia, and Australia.It operates through Retail, Industrial, and Construction segments.The Retail segment offers preserved and unpreserved dimensional lumber; and outdoor living products, including wood and wood composite decking and related accessories, decorative lawn, garden, craft, and hobby products.


This segment serves national home center retailers, and retail-oriented regional and contractor-oriented lumberyards under the ProWood, ProWood FR, Deckorators, UFP-Edge, Outdoor Essentials, Dimensions, and Handprint trademarks.The Industrial segment provides pallets, specialty crates, wooden boxes, and other containers and products that are used for packaging, shipping, and material handling applications, as well as various other protective packaging applications.The construction segment offers roof trusses, cut and shaped lumbers, plywood, oriented strand boards, and dimensional lumbers; and engineered wood components, including roof and floor trusses, wall panels, I-joists, and lumber packages, as well as distributes siding, electrical, and plumbing products to factory-built housing and recreational vehicle customers.


This segment also engages in the manufacture of components; design, manufacture, and supply of wood forms and related products to set or form concrete for structures, such as parking garages, stadiums, and bridges, as well as provides farming services for builders.It also offers interior fixtures, millwork, and casework for retail, commercial, and other structures; and structural wood packaging, other packing materials, and original equipment manufacturer components for various industries.The company was formerly known as Universal Forest Products, Inc.


and changed its name to UFP Industries, Inc.in April 2020.UFP Industries, Inc.


was founded in 1955 and is headquartered in Grand Rapids, Michigan.

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1.b. Last Insights on UFPI

UFP Industries' recent performance was negatively impacted by its Q3 2025 earnings miss, with diluted EPS of $1.29, down from $1.64 a year ago. Net sales decreased 5% to $1.56 billion, driven by a 4% decline in organic units. D.A. Davidson & CO. reduced its stake in the company by 10.9%. The company's Q3 results were affected by a decrease in price and organic units. UFP Industries' earnings call highlighted these challenges. Institutional investors' actions and options market movements have been scrutinized.

1.c. Company Highlights

2. UFP Industries' Q3 2025 Earnings: A Mixed Bag with Caution on 2026

UFP Industries Inc. reported a steady net sales figure of $1.56 billion for Q3 2025, despite a 4% decline in units and 1% decline in price. Adjusted EBITDA declined 15% to $140 million, with a margin of 9%. The company's actual EPS came out at $1.29, slightly lower than the estimated $1.37. New product sales accounted for 7.2% of total sales, indicating some positive traction. The company's trailing 12-month return on invested capital stands at 14.5%, above its weighted average cost of capital.

Publication Date: Nov -03

📋 Highlights
  • Financial Resilience:: Maintained $1.56 billion in net sales and $1 billion+ cash position despite unit and pricing declines, with 14.5% trailing ROIC above WACC.
  • New Product Momentum:: 7.2% of total sales driven by new products like TrueFrame and Surestone, supported by $30 million in brand investment.
  • Capital Allocation Focus:: Spent $350 million on share repurchases (6% market cap) and authorized $300 million for buybacks through 2026, alongside $291 million in dividends.
  • Strategic Expansion:: Invested $206 million in CapEx (72% for expansion) and completed three acquisitions, targeting data center growth and automation-driven efficiency.
  • 2026 Growth Outlook:: Plans $275-300 million in CapEx for capacity expansion, with confidence in margin recovery (15% retail gross margin target) and market share gains.

Segment Performance

The Retail segment performed well, with ProWood introducing a new product, TrueFrame, and seeing strong demand for Surestone products. The Packaging segment is stabilizing, with sales down 2% but pricing remaining stable. The Construction segment saw a 7% decline in sales, primarily due to volume and pricing pressure in Site Built. Deckorators remains on pace to meet its targets, with sell-through and market share gains despite a challenging market.

Strategic Initiatives and Outlook

The company has completed three bolt-on acquisitions and remains active on the M&A front, with a focus on strategic and disciplined deal evaluation. UFP Industries has also repurchased $350 million of its shares, or 6% of its market cap, through October. The company is confident that its actions, cost reductions, and strategic investments position it well for above-market growth and margin expansion as business conditions normalize. Analysts estimate next year's revenue growth at 2.4%.

Valuation and Dividend Yield

With a P/E Ratio of 16.97 and an EV/EBITDA of 7.84, the company's valuation appears reasonable. The Dividend Yield stands at 1.5%, and the Free Cash Flow Yield is 4.99%. The company's ROIC is 8.25%, and ROE is 10.08%. The Net Debt / EBITDA ratio is -1.32, indicating a strong cash position. The Board approved a quarterly dividend of $0.35 per share, representing a 6% increase from the previous year.

Management's Confidence and Future Plans

William Schwartz discussed the company's performance, stating that they feel like they've found the bottom in the Packaging business and are optimistic about the future. The company is geared and ready to roll as business starts to come back, with near-shoring opportunities emerging in 2026 and beyond. They expect significant sales growth and margin improvement in 2026, driven by new capacity and market share gains.

3. NewsRoom

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Fisher Asset Management LLC Reduces Position in UFP Industries, Inc. $UFPI

Dec -03

Source: defenseworld.net

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American Century Companies Inc. Sells 27,867 Shares of UFP Industries, Inc. $UFPI

Dec -03

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Purchases Shares of NVIDIA Corporation (NASDAQ:NVDA)

Nov -24

Source: defenseworld.net

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StandardAero (NYSE:SARO) Stock Acquired Rep. Gilbert Ray Cisneros, Jr.

Nov -21

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Buys Skyward Specialty Insurance Group, Inc. (NASDAQ:SKWD) Shares

Nov -21

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Sells Off Shares of Baldwin Insurance Group, Inc. (NASDAQ:BWIN)

Nov -21

Source: defenseworld.net

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Bristol Myers Squibb (NYSE:BMY) Stock Unloaded Rep. Gilbert Ray Cisneros, Jr.

Nov -21

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Buys AeroVironment, Inc. (NASDAQ:AVAV) Shares

Nov -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.17%)

6. Segments

Retail

Expected Growth: 3.5%

UFP Industries' Retail segment growth of 3.5% is driven by increasing demand for home improvement and repair products, expansion of e-commerce platforms, and strategic acquisitions. Additionally, the company's focus on value-added products, such as outdoor living and DIY solutions, contributes to its growth momentum.

Construction

Expected Growth: 2.8%

UFP Industries' Construction segment growth of 2.8% is driven by increasing demand for single-family and multi-family housing, repair and remodeling activities, and infrastructure projects. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to the growth. Furthermore, the rising need for sustainable and energy-efficient building solutions has also boosted demand for UFP's construction products.

Packaging

Expected Growth: 3.2%

UFP Industries' packaging segment growth of 3.2% is driven by increasing demand for sustainable and eco-friendly packaging solutions, expansion in e-commerce, and rising consumer spending on packaged goods. Additionally, the company's strategic acquisitions and investments in new technologies have enhanced its production capabilities, further contributing to growth.

All Other

Expected Growth: 2.5%

UFP Industries' All Other segment growth of 2.5% is driven by increasing demand for specialty wood products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation and product diversification, as well as its ability to pass on raw material price increases to customers, contribute to its growth momentum.

Corporate

Expected Growth: 2.2%

UFP Industries, Inc.'s corporate segment growth of 2.2% is driven by increasing demand for industrial packaging products, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to the growth.

7. Detailed Products

Retail Solutions

UFP Industries, Inc. provides a wide range of retail solutions including shelving, fixtures, and displays for retailers to effectively merchandise their products.

Industrial Packaging

The company offers industrial packaging solutions, including crates, boxes, and pallets, designed to protect and transport goods safely and efficiently.

Construction Materials

UFP Industries, Inc. supplies a variety of construction materials, including lumber, roofing, and siding, for residential and commercial building projects.

Site-Built Construction

The company provides site-built construction services, including design, manufacturing, and installation of modular buildings and components.

Packaging and Specialty Products

UFP Industries, Inc. offers a range of packaging and specialty products, including boxes, bags, and other materials for industrial and consumer applications.

8. UFP Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for UFP Industries, Inc. is moderate due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the industry, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry in the industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the large number of competitors in the industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.08%
Debt Cost 4.36%
Equity Weight 90.92%
Equity Cost 11.25%
WACC 10.63%
Leverage 9.98%

11. Quality Control: UFP Industries, Inc. passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NewMarket

A-Score: 6.7/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 3.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Cabot

A-Score: 5.5/10

Value: 7.1

Growth: 6.4

Quality: 6.0

Yield: 5.0

Momentum: 1.0

Volatility: 7.7

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Boise Cascade

A-Score: 5.1/10

Value: 6.8

Growth: 5.8

Quality: 5.6

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
UFP Industries

A-Score: 5.0/10

Value: 5.8

Growth: 6.4

Quality: 6.0

Yield: 3.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Steel Dynamics

A-Score: 4.9/10

Value: 3.4

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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Sylvamo

A-Score: 4.7/10

Value: 8.3

Growth: 3.4

Quality: 5.6

Yield: 6.0

Momentum: 0.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

90.7$

Current Price

90.7$

Potential

-0.00%

Expected Cash-Flows