PR Newswire
GRAND RAPIDS, Mich., July 29, 2026
GRAND RAPIDS, Mich., July 29, 2026 /PRNewswire/ -- UFP Industries, Inc. (Nasdaq: UFPI) a leading manufacturer focused on delivering value-added products across its Retail, Packaging, and Construction segments reported results for the second quarter 2026.
Will Schwartz, President and CEO of UFP Industries, commented, "As we've discussed in prior quarters, we are seeing stabilization across the majority of our portfolio, and we believe our second quarter results reflect the progress we have made to strengthen our business and structurally improve our operations. The business environment remains challenging with geopolitical tensions, a weak housing market, rising input costs, and most recently, elevated transportation costs. We are actively managing these short-term disruptions while investing in initiatives that will improve our margin profile and drive above-market growth over the long term. We remain focused on the factors under our control and we are on track to deliver the remaining $25 million or more from our initial $60 million cost out program by year end. We also continue to strengthen our core businesses through organic investments and strategic M&A, positioning the company for long-term growth and returns as markets recover."
Schwartz continued, "Our balanced approach to our business has helped us navigate this uncertain environment while driving strong performance relative to market conditions. We continue to invest strategically by expanding geographically, improving operational efficiencies, and introducing innovative value-added products. To that point, the investments we've made to grow our Surestone products helped sales increase 37 percent from year ago levels, and our backlog remains robust. We also completed three acquisitions in the quarter that complement our core business and our M&A pipeline remains active. We will continue to make these investments in a targeted manner, while returning more of our free cash flow to shareholders through dividends and share repurchases. With $1.9 billion in liquidity at quarter end, we are confident in our ability to create shareholder value through prudent capital allocation."
1 | Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below. | ||||
Second Quarter 2026 Highlights
UFP Consolidated
(In thousands) | Quarter Period | Year to Date | |||||||||||||||
2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||
Net sales | $ | 1,882,937 | $ | 1,835,374 | 2.6 | % | $ | 3,344,204 | $ | 3,430,893 | (2.5) | % | |||||
Net earnings | 83,171 | 100,871 | (17.5) | 134,268 | 180,294 | (25.5) | |||||||||||
Net margin | 4.4 | % | 5.5 | % | 4.0 | % | 5.3 | % | |||||||||
Adjusted EBITDA | 154,480 | 174,147 | (11.3) | 265,836 | 316,298 | (16.0) | |||||||||||
Adjusted EBITDA margin | 8.2 | % | 9.5 | % | 7.9 | % | 9.2 | % | |||||||||
Percentage change in net sales: | |||||||||||||||||
Organic units | 1 | % | (3) | % | |||||||||||||
Acquisitions | 2 | 1 | |||||||||||||||
Selling prices | — | — | |||||||||||||||
UFP Retail
(In thousands) | Quarter Period | Year to Date | |||||||||||||||
2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||
Net sales | $ | 818,743 | $ | 788,224 | 3.9 | % | $ | 1,349,919 | $ | 1,395,607 | (3.3) | % | |||||
Net earnings | 37,018 | 41,128 | (10.0) | 55,690 | 61,791 | (9.9) | |||||||||||
Net margin | 4.5 | % | 5.2 | % | 4.1 | % | 4.4 | % | |||||||||
Adjusted EBITDA | 63,934 | 63,978 | (0.1) | 98,766 | 99,827 | (1.1) | |||||||||||
Adjusted EBITDA margin | 7.8 | % | 8.1 | % | 7.3 | % | 7.2 | % | |||||||||
Percentage change in net sales: | |||||||||||||||||
Organic units | (1) | % | (6) | % | |||||||||||||
Acquisitions | 2 | 1 | |||||||||||||||
Selling prices | 3 | 2 | |||||||||||||||
UFP Packaging
(In thousands) | Quarter Period | Year to Date | |||||||||||||||
2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||
Net sales | $ | 458,245 | $ | 428,669 | 6.9 | % | $ | 852,338 | $ | 838,677 | 1.6 | % | |||||
Net earnings | 11,315 | 20,633 | (45.2) | 22,974 | 37,550 | (38.8) | |||||||||||
Net margin | 2.5 | % | 4.8 | % | 2.7 | % | 4.5 | % | |||||||||
Adjusted EBITDA | 27,933 | 38,796 | (28.0) | 55,723 | 73,841 | (24.5) | |||||||||||
Adjusted EBITDA margin | 6.1 | % | 9.1 | % | 6.5 | % | 8.8 | % | |||||||||
Percentage change in net sales: | |||||||||||||||||
Organic units | 4 | % | - | % | |||||||||||||
Acquisitions | 4 | 3 | |||||||||||||||
Selling prices | (1) | (1) | |||||||||||||||
UFP Construction
(In thousands) | Quarter Period | Year to Date | |||||||||||||||
2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||
Net sales | $ | 526,777 | $ | 551,590 | (4.5) | % | $ | 992,290 | $ | 1,067,530 | (7.0) | % | |||||
Net earnings | 19,631 | 27,563 | (28.8) | 31,354 | 49,507 | (36.7) | |||||||||||
Net margin | 3.7 | % | 5.0 | % | 3.2 | % | 4.6 | % | |||||||||
Adjusted EBITDA | 36,045 | 45,480 | (20.7) | 61,732 | 82,790 | (25.4) | |||||||||||
Adjusted EBITDA margin | 6.8 | % | 8.2 | % | 6.2 | % | 7.8 | % | |||||||||
Percentage change in net sales: | |||||||||||||||||
Organic units | (2) | % | (4) | % | |||||||||||||
Acquisitions | 1 | 1 | |||||||||||||||
Selling prices | (3) | (4) | |||||||||||||||
Capital Structure, Leverage and Liquidity Information
UFP Industries maintains a strong balance sheet and as of June 27, 2026, had liquidity of approximately $1.9 billion consisting of over $597 million of Cash and cash equivalents and $1.3 billion of remaining availability under its revolving credit facility and a shelf agreement with certain lenders. The company's return-focused approach to capital allocation includes the following:
2026 Outlook and Long-Term Targets
Our full year 2026 outlook remains unchanged. We continue to expect overall demand for the balance of the year to be toward the lower end of our prior guidance of flat to slightly down unit expectations in each of our segments based on our sales mix. Input costs, primarily energy and transportation, are expected to remain elevated, and while we have mechanisms to offset these costs, we expect recovery to be gradual through the remainder of the year. Demand tied to new residential construction is expected to remain challenging, while stabilization across most other end markets should partially offset that pressure. Despite these conditions, we believe we are positioned to perform better than our markets through share gains across our portfolio and continued execution of our cost-out program. In addition, initial stocking orders, upgraded manufacturing capacity, and expanded distribution are expected to support continued momentum in our Deckorators' Surestone business.
The company's long-term goals remain unchanged and include: 1) achieving 7-10 percent unit sales growth annually (including bolt-on acquisitions) with at least 10 percent of all sales coming from new products; 2) achieving 12.5 percent adjusted EBITDA margins; 3) earning an incremental return on new investments over our hurdle rate; and 4) maintaining a conservative capital structure.
Conference Call
UFP Industries will host a conference call on Thursday, July 30, 2026, to discuss these results and outlook. The conference call will begin at 10:00 a.m. Eastern Time and will be hosted by CEO Will Schwartz and CFO Michael Cole. Interested investors can access the webcast directly with this link (here). A replay of the call will be available through the UFP Investor Relations website at www.ufpinvestor.com for at least 90 days following the call.
UFP Industries, Inc.
UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. For more about UFP Industries, go to www.ufpi.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "likely," "plans," "projects," "should," variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in currency and inflation; fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; changes in tariffs, import/export regulations, and other trade policies; concentration of sales to customers; the success of vertical integration strategies; excess capacity or supply chain challenges; inbound and outbound transportation costs; alternatives to replace treated wood products; government regulations, particularly involving environmental and safety regulations; our ability to make successful business acquisitions; cybersecurity breaches; and potential pandemics. Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.
Non-GAAP Financial Information
This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management uses Adjusted EBITDA and Free cash flow, non-GAAP financial measures, in order to evaluate historical and ongoing operations. Management believes that these non-GAAP financial measures are useful in order to enable investors to perform meaningful comparisons of historical and current performance. Adjusted EBITDA and Free cash flow are intended to supplement and should be read together with the financial results. Adjusted EBITDA and Free cash flow should not be considered alternatives or substitutes for, and should not be considered superior to, the reported financial results. Accordingly, users of this financial information should not place undue reliance on the non-GAAP financial measures. See the table below for a reconciliation of Net earnings to Adjusted EBITDA and a reconciliation of Cash flow from operations to Free cash flow.
Adjusted EBITDA margin is a non-GAAP financial measure. In calculating adjusted EBITDA, we make certain adjustments, including for share-based compensation expense, net gains or losses on the disposition and impairment of assets, and impairment of intangible assets. The most directly comparable GAAP financial measure is net earnings as a percentage of net sales (net margin). For the six months ended June 27, 2026, our net margin was 4.0 percent, and our adjusted EBITDA margin, calculated as described above, was 7.9 percent. We have not provided a quantitative reconciliation of the forward-looking adjusted EBITDA margin target to the most directly comparable GAAP measure because certain reconciling items and certain discrete tax items cannot be reasonably predicted due to the long-term nature of this target and the inherent variability and uncertainty of such items. These items could individually or in the aggregate be significant to the difference between adjusted EBITDA margin and the comparable GAAP measure.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND | |||||||||||||||||||||
COMPREHENSIVE INCOME (UNAUDITED) | |||||||||||||||||||||
FOR THE THREE AND SIX MONTHS ENDED | |||||||||||||||||||||
JUNE 2026/2025 | |||||||||||||||||||||
Quarter Period | Year to Date | ||||||||||||||||||||
(In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
Net sales | $ | 1,882,937 | 100.0 | % | $ | 1,835,374 | 100.0 | % | $ | 3,344,204 | 100.0 | % | $ | 3,430,893 | 100.0 | % | |||||
Cost of sales | 1,592,702 | 84.6 | 1,522,640 | 83.0 | 2,818,080 | 84.3 | 2,849,963 | 83.1 | |||||||||||||
Gross profit | 290,235 | 15.4 | 312,734 | 17.0 | 526,124 | 15.7 | 580,930 | 16.9 | |||||||||||||
Operating expenses | |||||||||||||||||||||
Selling, general and administrative expenses | 185,720 | 9.9 | 184,995 | 10.1 | 358,603 | 10.7 | 361,249 | 10.5 | |||||||||||||
Net loss (gain) on disposition and impairments of assets | 302 | — | 3,830 | 0.2 | (1,350) | — | 3,754 | 0.1 | |||||||||||||
Other losses, net | 797 | — | 818 | — | 1,374 | — | 584 | — | |||||||||||||
Total operating expenses | 186,819 | 9.9 | 189,643 | 10.3 | 358,627 | 365,587 | |||||||||||||||
Earnings from operations | 103,416 | 5.5 | 123,091 | 6.7 | 167,497 | 5.0 | 215,343 | 6.3 | |||||||||||||
Interest and other | (9,446) | (0.5) | (8,854) | (0.5) | (12,309) | (0.4) | (17,283) | (0.5) | |||||||||||||
Earnings before income taxes | 112,862 | 6.0 | 131,945 | 7.2 | 179,806 | 5.4 | 232,626 | 6.8 | |||||||||||||
Income taxes | 29,691 | 1.6 | 31,074 | 1.7 | 45,538 | 1.4 | 52,332 | 1.5 | |||||||||||||
Net earnings | 83,171 | 4.4 | 100,871 | 5.5 | 134,268 | 4.0 | 180,294 | 5.3 | |||||||||||||
Less net earnings attributable to noncontrolling interest | (299) | — | (137) | — | (622) | — | (807) | — | |||||||||||||
Net earnings attributable to controlling interest | $ | 82,872 | 4.4 | $ | 100,734 | 5.5 | $ | 133,646 | 4.0 | $ | 179,487 | 5.2 | |||||||||
Earnings per share - basic | $ | 1.48 | $ | 1.70 | $ | 2.38 | $ | 2.99 | |||||||||||||
Earnings per share - diluted | $ | 1.48 | $ | 1.70 | $ | 2.37 | $ | 2.99 | |||||||||||||
Comprehensive income | $ | 82,922 | $ | 112,609 | $ | 133,116 | $ | 195,213 | |||||||||||||
Less comprehensive income attributable to noncontrolling interest | (825) | (1,754) | (1,083) | (2,391) | |||||||||||||||||
Comprehensive income attributable to controlling interest | $ | 82,097 | $ | 110,855 | $ | 132,033 | $ | 192,822 | |||||||||||||
CONDENSED CONSOLIDATED STATEMENTS | ||||||||||||||||||
OF EARNINGS BY SEGMENT (UNAUDITED) | ||||||||||||||||||
FOR THE THREE MONTHS ENDED JUNE 2026/2025 | ||||||||||||||||||
Quarter Period 2026 | ||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||
Net sales | $ | 818,743 | $ | 458,245 | $ | 526,777 | $ | 76,927 | $ | 2,245 | $ | 1,882,937 | ||||||
Cost of sales | 704,096 | 397,886 | 436,449 | 64,058 | (9,787) | 1,592,702 | ||||||||||||
Gross profit | 114,647 | 60,359 | 90,328 | 12,869 | 12,032 | 290,235 | ||||||||||||
Selling, general and administrative expenses | 62,717 | 45,580 | 63,930 | 10,088 | 3,405 | 185,720 | ||||||||||||
Net loss (gain) on disposition and impairments of assets | 1,780 | 106 | 37 | 74 | (1,695) | 302 | ||||||||||||
Other losses, net | 404 | — | 129 | 243 | 21 | 797 | ||||||||||||
Earnings from operations | 49,746 | 14,673 | 26,232 | 2,464 | 10,301 | 103,416 | ||||||||||||
Interest and other | (368) | (818) | (397) | (5,413) | (2,450) | (9,446) | ||||||||||||
Earnings before income taxes | 50,114 | 15,491 | 26,629 | 7,877 | 12,751 | 112,862 | ||||||||||||
Income taxes | 13,096 | 4,176 | 6,998 | 1,663 | 3,758 | 29,691 | ||||||||||||
Net earnings | $ | 37,018 | $ | 11,315 | $ | 19,631 | $ | 6,214 | $ | 8,993 | $ | 83,171 | ||||||
Quarter Period 2025 | ||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||
Net sales | $ | 788,224 | $ | 428,669 | $ | 551,590 | $ | 65,026 | $ | 1,865 | $ | 1,835,374 | ||||||
Cost of sales | 674,484 | 358,087 | 451,401 | 51,789 | (13,121) | 1,522,640 | ||||||||||||
Gross profit | 113,740 | 70,582 | 100,189 | 13,237 | 14,986 | 312,734 | ||||||||||||
Selling, general and administrative expenses | 58,642 | 43,148 | 63,727 | 10,398 | 9,080 | 184,995 | ||||||||||||
Net loss (gain) on disposition and impairments of assets | 1,083 | 1,225 | 211 | 2,616 | (1,305) | 3,830 | ||||||||||||
Other losses (gains), net | 536 | — | 191 | 302 | (211) | 818 | ||||||||||||
Earnings from operations | 53,479 | 26,209 | 36,060 | (79) | 7,422 | 123,091 | ||||||||||||
Interest and other | (54) | (795) | — | (2,512) | (5,493) | (8,854) | ||||||||||||
Earnings before income taxes | 53,533 | 27,004 | 36,060 | 2,433 | 12,915 | 131,945 | ||||||||||||
Income taxes | 12,405 | 6,371 | 8,497 | 419 | 3,382 | 31,074 | ||||||||||||
Net earnings | $ | 41,128 | $ | 20,633 | $ | 27,563 | $ | 2,014 | $ | 9,533 | $ | 100,871 | ||||||
CONDENSED CONSOLIDATED STATEMENTS | ||||||||||||||||||
OF EARNINGS BY SEGMENT (UNAUDITED) | ||||||||||||||||||
FOR THE SIX MONTHS ENDED JUNE 2026/2025 | ||||||||||||||||||
Year to Date 2026 | ||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||
Net sales | $ | 1,349,919 | $ | 852,338 | $ | 992,290 | $ | 145,432 | $ | 4,225 | $ | 3,344,204 | ||||||
Cost of sales | 1,154,710 | 731,631 | 824,345 | 120,840 | (13,446) | 2,818,080 | ||||||||||||
Gross profit | 195,209 | 120,707 | 167,945 | 24,592 | 17,671 | 526,124 | ||||||||||||
Selling, general and administrative expenses | 118,763 | 90,783 | 125,756 | 19,066 | 4,235 | 358,603 | ||||||||||||
Net loss (gain) on disposition and impairments of assets | 1,848 | (64) | 50 | 75 | (3,259) | (1,350) | ||||||||||||
Other losses, net | 459 | — | 552 | 349 | 14 | 1,374 | ||||||||||||
Earnings from operations | 74,139 | 29,988 | 41,587 | 5,102 | 16,681 | 167,497 | ||||||||||||
Interest and other | (438) | (778) | (400) | (7,233) | (3,460) | (12,309) | ||||||||||||
Earnings before income taxes | 74,577 | 30,766 | 41,987 | 12,335 | 20,141 | 179,806 | ||||||||||||
Income taxes | 18,887 | 7,792 | 10,633 | 2,567 | 5,659 | 45,538 | ||||||||||||
Net earnings | $ | 55,690 | $ | 22,974 | $ | 31,354 | $ | 9,768 | $ | 14,482 | $ | 134,268 | ||||||
Year to Date 2025 | ||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||
Net sales | $ | 1,395,607 | $ | 838,677 | $ | 1,067,530 | $ | 125,324 | $ | 3,755 | $ | 3,430,893 | ||||||
Cost of sales | 1,200,572 | 698,521 | 876,541 | 101,455 | (27,126) | 2,849,963 | ||||||||||||
Gross profit | 195,035 | 140,156 | 190,989 | 23,869 | 30,881 | 580,930 | ||||||||||||
Selling, general and administrative expenses | 113,997 | 90,917 | 126,511 | 18,860 | 10,964 | 361,249 | ||||||||||||
Net loss (gain) on disposition and impairments of assets | 1,107 | 1,257 | 331 | 2,616 | (1,557) | 3,754 | ||||||||||||
Other losses (gains), net | 318 | — | 271 | 248 | (253) | 584 | ||||||||||||
Earnings from operations | 79,613 | 47,982 | 63,876 | 2,145 | 21,727 | 215,343 | ||||||||||||
Interest and other | (114) | (467) | (1) | (3,459) | (13,242) | (17,283) | ||||||||||||
Earnings before income taxes | 79,727 | 48,449 | 63,877 | 5,604 | 34,969 | 232,626 | ||||||||||||
Income taxes | 17,936 | 10,899 | 14,370 | 1,088 | 8,039 | 52,332 | ||||||||||||
Net earnings | $ | 61,791 | $ | 37,550 | $ | 49,507 | $ | 4,516 | $ | 26,930 | $ | 180,294 | ||||||
RECONCILIATION OF NET EARNINGS TO | ||||||||||||||||||
ADJUSTED EBITDA BY SEGMENT (UNAUDITED) | ||||||||||||||||||
FOR THE THREE MONTHS ENDED JUNE 2026/2025 | ||||||||||||||||||
Quarter Period 2026 | ||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||
Net earnings | $ | 37,018 | $ | 11,315 | $ | 19,631 | $ | 6,214 | $ | 8,993 | $ | 83,171 | ||||||
Interest and other | (368) | (818) | (397) | (5,413) | (2,450) | (9,446) | ||||||||||||
Income taxes | 13,096 | 4,176 | 6,998 | 1,663 | 3,758 | 29,691 | ||||||||||||
Expenses associated with share-based compensation arrangements | 1,582 | 1,745 | 2,462 | 117 | 1,092 | 6,998 | ||||||||||||
Net loss (gain) on disposition and impairments of assets | 1,780 | 106 | (14) | 74 | (1,695) | 251 | ||||||||||||
Impairment of intangibles | — | — | 51 | — | — | 51 | ||||||||||||
Depreciation expense | 9,907 | 9,308 | 6,640 | 853 | 11,573 | 38,281 | ||||||||||||
Amortization of intangibles | 919 | 2,101 | 674 | 1,673 | 116 | 5,483 | ||||||||||||
Adjusted EBITDA | $ | 63,934 | $ | 27,933 | $ | 36,045 | $ | 5,181 | $ | 21,387 | $ | 154,480 | ||||||
Net earnings as a percentage of net sales | 4.5 % | 2.5 % | 3.7 % | 8.1 % | * | 4.4 % | ||||||||||||
Adjusted EBITDA as a percentage of net sales | 7.8 % | 6.1 % | 6.8 % | 6.7 % | * | 8.2 % | ||||||||||||
* Not meaningful | ||||||||||||||||||
Quarter Period 2025 | ||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||
Net earnings | $ | 41,128 | $ | 20,633 | $ | 27,563 | $ | 2,014 | $ | 9,533 | $ | 100,871 | ||||||
Interest and other | (54) | (795) | — | (2,512) | (5,493) | (8,854) | ||||||||||||
Income taxes | 12,405 | 6,371 | 8,497 | 419 | 3,382 | 31,074 | ||||||||||||
Expenses associated with share-based compensation arrangements | 867 | 1,617 | 2,175 | 174 | 3,976 | 8,809 | ||||||||||||
Net loss (gain) on disposition and impairments of assets | 1,083 | 1,225 | 211 | 2,616 | (1,305) | 3,830 | ||||||||||||
Gain from reduction of estimated earnout liability | — | (1,511) | — | — | — | (1,511) | ||||||||||||
Depreciation expense | 7,592 | 9,090 | 6,330 | 1,109 | 9,879 | 34,000 | ||||||||||||
Amortization of intangibles | 957 | 2,166 | 704 | 1,671 | 430 | 5,928 | ||||||||||||
Adjusted EBITDA | $ | 63,978 | $ | 38,796 | $ | 45,480 | $ | 5,491 | $ | 20,402 | $ | 174,147 | ||||||
Net earnings as a percentage of net sales | 5.2 % | 4.8 % | 5.0 % | 3.1 % | * | 5.5 % | ||||||||||||
Adjusted EBITDA as a percentage of net sales | 8.1 % | 9.1 % | 8.2 % | 8.4 % | * | 9.5 % | ||||||||||||
* Not meaningful | ||||||||||||||||||
RECONCILIATION OF NET EARNINGS TO | ||||||||||||||||||
ADJUSTED EBITDA BY SEGMENT (UNAUDITED) | ||||||||||||||||||
FOR THE SIX MONTHS ENDED JUNE 2026/2025 | ||||||||||||||||||
Year to Date 2026 | ||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||
Net earnings | $ | 55,690 | $ | 22,974 | $ | 31,354 | $ | 9,768 | $ | 14,482 | $ | 134,268 | ||||||
Interest and other | (438) | (778) | (400) | (7,233) | (3,460) | (12,309) | ||||||||||||
Income taxes | 18,887 | 7,792 | 10,633 | 2,567 | 5,659 | 45,538 | ||||||||||||
Expenses associated with share-based compensation arrangements | 3,360 | 3,971 | 5,332 | 229 | 2,578 | 15,470 | ||||||||||||
Net loss (gain) on disposition and impairments of assets | 1,848 | (64) | (1) | 75 | (3,259) | (1,401) | ||||||||||||
Impairment of intangibles | — | — | 51 | — | — | 51 | ||||||||||||
Depreciation expense | 17,664 | 17,624 | 13,414 | 1,863 | 22,801 | 73,366 | ||||||||||||
Amortization of intangibles | 1,755 | 4,204 | 1,349 | 3,313 | 232 | 10,853 | ||||||||||||
Adjusted EBITDA | $ | 98,766 | $ | 55,723 | $ | 61,732 | $ | 10,582 | $ | 39,033 | $ | 265,836 | ||||||
Net earnings as a percentage of net sales | 4.1 % | 2.7 % | 3.2 % | 6.7 % | * | 4.0 % | ||||||||||||
Adjusted EBITDA as a percentage of net sales | 7.3 % | 6.5 % | 6.2 % | 7.3 % | * | 7.9 % | ||||||||||||
* Not meaningful | ||||||||||||||||||
Year to Date 2025 | ||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||
Net earnings | $ | 61,791 | $ | 37,550 | $ | 49,507 | $ | 4,516 | $ | 26,930 | $ | 180,294 | ||||||
Interest and other | (114) | (467) | (1) | (3,459) | (13,242) | (17,283) | ||||||||||||
Income taxes | 17,936 | 10,899 | 14,370 | 1,088 | 8,039 | 52,332 | ||||||||||||
Expenses associated with share-based compensation arrangements | 2,291 | 3,781 | 5,000 | 438 | 8,860 | 20,370 | ||||||||||||
Net loss (gain) on disposition and impairments of assets | 1,107 | 1,257 | 331 | 2,616 | (1,557) | 3,754 | ||||||||||||
Gain from reduction of estimated earnout liability | — | (1,511) | (344) | — | — | (1,855) | ||||||||||||
Depreciation expense | 14,902 | 17,987 | 12,521 | 2,053 | 19,478 | 66,941 | ||||||||||||
Amortization of intangibles | 1,914 | 4,345 | 1,406 | 3,272 | 808 | 11,745 | ||||||||||||
Adjusted EBITDA | $ | 99,827 | $ | 73,841 | $ | 82,790 | $ | 10,524 | $ | 49,316 | $ | 316,298 | ||||||
Net earnings as a percentage of net sales | 4.4 % | 4.5 % | 4.6 % | 3.6 % | * | 5.3 % | ||||||||||||
Adjusted EBITDA as a percentage of net sales | 7.2 % | 8.8 % | 7.8 % | 8.4 % | * | 9.2 % | ||||||||||||
* Not meaningful | ||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||
JUNE 2026/2025 | |||||||||||||||
(In thousands) | |||||||||||||||
Assets | 2026 | 2025 | Liabilities and equity | 2026 | 2025 | ||||||||||
Current assets | Current liabilities | ||||||||||||||
Cash and cash equivalents | $ | 597,263 | $ | 841,930 | Accounts payable | $ | 292,979 | $ | 258,784 | ||||||
Restricted cash | 1,604 | 1,061 | Accrued liabilities and other | 259,004 | 257,212 | ||||||||||
Investments | 46,330 | 32,021 | Current portion of debt | 5,493 | 5,122 | ||||||||||
Accounts receivable | 731,092 | 687,332 | |||||||||||||
Inventories | 748,504 | 722,232 | Total current liabilities | 557,476 | 521,118 | ||||||||||
Other current assets | 94,349 | 82,929 | |||||||||||||
Long-term debt and finance lease obligations | 228,758 | 229,181 | |||||||||||||
Total current assets | 2,219,142 | 2,367,505 | Other liabilities | 258,702 | 173,373 | ||||||||||
Other assets | 323,382 | 289,347 | Temporary equity | 485 | 5,253 | ||||||||||
Intangible assets, net | 481,563 | 494,495 | |||||||||||||
Property, plant and equipment, net | 1,080,777 | 946,041 | Shareholders' equity | 3,059,443 | 3,168,463 | ||||||||||
Total assets | $ | 4,104,864 | $ | 4,097,388 | Total liabilities and equity | $ | 4,104,864 | $ | 4,097,388 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
FOR THE SIX MONTHS ENDED | |||||||
JUNE 2026/2025 | |||||||
(In thousands) | 2026 | 2025 | |||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 134,268 | $ | 180,294 | |||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Depreciation | 73,366 | 66,941 | |||||
Amortization of intangibles | 10,853 | 11,745 | |||||
Expense associated with share-based and grant compensation arrangements | 15,470 | 20,370 | |||||
Deferred income taxes | (2,443) | (226) | |||||
Unrealized gain on investment and other | (4,036) | (654) | |||||
Impairment of investments | 4,000 | — | |||||
Equity in earnings of investee | (979) | (794) | |||||
Net (gain) loss on sale, disposition and impairment of assets | (1,401) | 3,754 | |||||
Impairment of intangibles | 51 | — | |||||
Gain from reduction of estimated earnout liability | — | (1,855) | |||||
Changes in: | |||||||
Accounts receivable | (245,592) | (184,404) | |||||
Inventories | (2,324) | 2,461 | |||||
Accounts payable | 86,514 | 32,887 | |||||
Accrued liabilities and other | (7,102) | (17,381) | |||||
Net cash from operating activities | 60,645 | 113,138 | |||||
Cash flows used in investing activities: | |||||||
Capital expenditures | (86,576) | (129,752) | |||||
Proceeds from sale of property, plant and equipment | 11,711 | 3,694 | |||||
Acquisitions and purchases of non-controlling interest, net of cash received | (122,008) | (15,706) | |||||
Purchases of investments | (19,825) | (16,873) | |||||
Proceeds from sale of investments | 10,801 | 7,467 | |||||
Other | 1,862 | 1,591 | |||||
Net cash used in investing activities | (204,035) | (149,579) | |||||
Cash flows used in financing activities: | |||||||
Borrowings under revolving credit facilities | 23,703 | 13,357 | |||||
Repayments under revolving credit facilities | (19,033) | (12,814) | |||||
Contingent consideration payments and other | (1,939) | (221) | |||||
Proceeds from issuance of common stock | 1,241 | 1,294 | |||||
Dividends paid to shareholders | (40,390) | (41,978) | |||||
Distributions to noncontrolling interest | (1,082) | (285) | |||||
Purchase of remaining noncontrolling interest of subsidiary | (3,937) | — | |||||
Payments to taxing authorities in connection with shares directly withheld from employees | (1,391) | (9,560) | |||||
Repurchase of common stock | (140,457) | (251,933) | |||||
Other | 52 | (198) | |||||
Net cash used in financing activities | (183,233) | (302,338) | |||||
Effect of exchange rate changes on cash | 419 | 2,176 | |||||
Net change in cash and cash equivalents | (326,204) | (336,603) | |||||
All cash and cash equivalents, beginning of period | 925,071 | 1,179,594 | |||||
All cash and cash equivalents, end of period | $ | 598,867 | $ | 842,991 | |||
Reconciliation of cash and cash equivalents and restricted cash: | |||||||
Cash and cash equivalents, beginning of period | $ | 914,199 | $ | 1,171,828 | |||
Restricted cash, beginning of period | 10,872 | 7,766 | |||||
All cash and cash equivalents, beginning of period | $ | 925,071 | $ | 1,179,594 | |||
Cash and cash equivalents, end of period | $ | 597,263 | $ | 841,930 | |||
Restricted cash, end of period | 1,604 | 1,061 | |||||
All cash and cash equivalents, end of period | $ | 598,867 | $ | 842,991 | |||
RECONCILIATION OF NET CASH FROM OPERATING | |||||||
ACTIVITIES TO FREE CASH FLOW (UNAUDITED) | |||||||
FOR THE SIX MONTHS ENDED JUNE 2026/2025 | |||||||
(In thousands) | 2026 | 2025 | |||||
Net cash from operating activities | $ | 60,645 | $ | 113,138 | |||
Increase in investment in net working capital | 168,504 | 166,437 | |||||
Maintenance capital expenditures(1) | (34,640) | (47,622) | |||||
Interest expense, net of taxes | 3,458 | 4,173 | |||||
Free cash flow | $ | 197,967 | $ | 236,126 | |||
(1) Breakdown of Capital expenditures from the condensed consolidated statements of cash flows: | |||||||
Maintenance capital expenditures | $ | 34,640 | $ | 47,622 | |||
Expansionary and efficiency capital expenditures | 51,936 | 82,130 | |||||
Total Capital expenditures | $ | 86,576 | $ | 129,752 | |||
View original content to download multimedia:https://www.prnewswire.com/news-releases/ufp-industries-announces-second-quarter-2026-results-302838229.html
SOURCE UFP Industries, Inc.