UFP Industries Announces Second Quarter 2026 Results

Rhea-AI Summary

UFP Industries (Nasdaq: UFPI) reported second quarter 2026 net sales of $1.88 billion, up 2.6% from $1.84 billion, driven by 1% organic unit growth and 2% from acquisitions. Net earnings attributable to controlling interests were $83 million, down from $101 million, with diluted EPS of $1.48 versus $1.70.

Adjusted EBITDA was $154.5 million (8.2% margin), down 11.3% from $174.1 million (9.5% margin), primarily due to transportation costs rising 1.6 percentage points of net sales, or about $27 million. New product sales were 8.4% of net sales, versus 6.5% a year ago.

Retail net sales grew 3.9%, Packaging 6.9%, while Construction declined 4.5%. UFP completed three acquisitions totaling $122 million in cash. Liquidity at quarter-end was about $1.9 billion. The board declared a quarterly dividend of $0.36 per share (3% increase) and repurchased $141.8 million of stock, supported by a new $300 million buyback authorization. Full-year 2026 outlook and long-term targets remain unchanged.

Positive

• Net sales $1.88 billion, up 2.6% year over year
• New product sales rose to 8.4% of net sales from 6.5%
• Deckorators Surestone sales up 37%, with ~$30 million backlog
• Three acquisitions for $122 million; 2025 sales of targets ~$159 million
• Liquidity ~$1.9 billion with $597 million cash and $1.3 billion availability
• Dividend raised 3% to $0.36 and $141.8 million share repurchases plus new $300 million authorization

Negative

• Net earnings down 17.5% to $83.2 million; EPS $1.48 vs. $1.70
• Adjusted EBITDA down 11.3% to $154.5 million; margin 8.2% vs. 9.5%
• Packaging net earnings -45.2% and Construction net earnings -28.8% year over year
• Freight costs +1.6 pts of sales, about $27 million higher than prior year
• Construction net sales -4.5% with organic units down 2% and prices down 3%
• 2026 demand outlook flat to slightly down units with elevated input costs and weak residential construction

News Explained

Seasonal working-capital use is expected to reverse by early fourth quarter, while UFP plans $175 million to $200 million of additional 2026 capital-project spending.

UFP Industries' July 29 results release reports that first-half 2026 operating cash flow was $61 million and that nearly $170 million was used for seasonal working capital, which the company expects to convert to cash by the beginning of the fourth quarter.

This adds a near-term liquidity timing consideration: the working-capital cash is expected back, while $175 million to $200 million of capital-project spending is planned for the balance of 2026.

Market Context

Tag-specific earnings history recorded an average 24-hour move of -0.59% across five events. That re...

Analysis

Tag-specific earnings history recorded an average 24-hour move of -0.59% across five events. That record adds a mixed benchmark to this release, which paired sales growth with lower profitability. Transportation costs and housing demand warrant attention.

Key Figures

Net Sales: $1.88 billion; increased 3% Diluted EPS: $1.48 Net Earnings: $83 million +5 more

8 metrics

Net Sales $1.88 billion; increased 3% Q2 2026 vs. $1.84 billion a year ago

Diluted EPS $1.48 Q2 2026 vs. $1.70 a year ago

Net Earnings $83 million Q2 2026 vs. $101 million a year ago

Adjusted EBITDA $154.5 million; 8.2% of net sales Q2 2026 vs. $174.1 million and 9.5% of net sales a year ago

Free Cash Flow $198 million First six months of 2026; used to repurchase nearly $142 million of shares

Quarterly Dividend $0.36 per share; 3% increase Declared July 22, 2026; payable September 15, 2026

Liquidity $1.9 billion At quarter end

Surestone Sales Growth 37 percent Q2 2026 compared with year-ago levels

Previous Earnings Reports

5 past events · Latest: Apr 29 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 29	Q1 earnings report	Negative	-3.7%	Lower sales, EPS, and free cash flow accompanied the quarterly earnings release.
Feb 23	Q4 earnings report	Negative	+2.3%	Lower sales and EPS were offset by strong cash generation and share repurchases.
Oct 29	Q3 earnings report	Negative	+2.0%	Lower sales, earnings, and EBITDA accompanied dividend and repurchase announcements.
Jul 28	Q2 earnings report	Negative	-1.9%	Lower sales, earnings, and EBITDA accompanied restructuring and softer segment demand.
Feb 17	Q4 earnings report	Negative	-1.6%	Softer demand and pricing pressure accompanied lower quarterly and annual sales.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across five tag-specific earnings events, weak or negative earnings outcomes aligned with declines three times and diverged twice; the average move was -0.59%.

Key Terms

adjusted ebitda, free cash flow, non-gaap measurement, greenfield, +1 more

5 terms

adjusted ebitda financial

"Adjusted EBITDA1 was $154.5 million in the quarter"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"Free cash flow1 of $198 million for the first six months"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

non-gaap measurement financial

"Represents a non-GAAP measurement"

Financial metrics that companies report which are calculated by departing from standard accounting rules set by GAAP, typically by excluding or reclassifying certain items such as one-time charges, stock-based compensation, or restructuring costs. Investors use these numbers to see an alternative view of a company's performance—like tasting a dish after omitting a strong spice—because they can emphasize underlying trends or make results easier to compare across periods, while differing methods can affect comparability.

greenfield technical

"startup costs associated with new greenfield locations"

A greenfield project is a new business development built from scratch on unused land or in a market where no prior operations exist, like constructing a factory on an empty lot instead of renovating an old site. For investors it signals a large, upfront capital commitment and longer timeline but offers more control over design and operations; that trade-off affects expected returns, regulatory and construction risks, and how quickly revenue can begin.

hurdle rate financial

"earning an incremental return on new investments over our hurdle rate"

The hurdle rate is the minimum annual return an investment must be expected to deliver before it is considered worthwhile. Think of it as the height of a jump: if a project or asset can’t clear that height, capital is kept elsewhere. For investors, the hurdle rate acts as a simple pass/fail benchmark that guides buy/sell decisions, risk assessment and how future cash flows are valued.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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.

• Net Sales of $1.88 billion increased by 3 percent compared to $1.84 billion a year ago due to a 1 percent increase in organic units (excluding growth from acquisitions within the last 12 months) and a 2 percent increase due to acquisitions.
• Diluted earnings per share of $1.48 compared to $1.70 a year ago, and Net Earnings Attributable to Controlling Interests of $83 million compared to $101 million a year ago. Earnings were primarily impacted by higher freight costs while a weaker residential construction market was offset by improvements in other business units.
• Adjusted EBITDA¹ was $154.5 million in the quarter, or 8.2 percent of net sales compared to $174.1 million, or 9.5 percent of net sales a year ago, as transportation costs increased by 1.6 percent as a percent of net sales.
• Cash flows from operating activities in the first six months of 2026 was $61 million. Cash used to invest in seasonal working capital requirements during the first six months totaled almost $170 million and is expected to be converted to cash by the beginning of the fourth quarter. Free cash flow¹ of $198 million for the first six months of 2026 was used to repurchase nearly $142 million of our shares.

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			—								—

• Net sales increased 3 percent in the quarter, driven primarily by acquisitions, as well as organic volume improvements in our Deckorators, Structural Packaging, Protective Packaging, Concrete Forming, and Commercial business units.
• Freight costs as a percent of net sales have increased by 1.6 percent, or $27 million, net of fuel surcharges and price adjustments, compared to year ago levels.  The increase was driven by higher market-based transportation rates as a result of tightening industry capacity and elevated fuel costs. Freight spot rates rose over 30 percent during the quarter, surpassing the rate of increase experienced during the COVID period, before stabilizing at an elevated level toward the end of the quarter. Industry-wide changes resulted in constrained carrier capacity, as smaller carriers have exited the market, which contributed to the higher rates.
• New product sales were 8.4 percent of total net sales compared to 6.5 percent a year ago, highlighting continued progress in expanding the portfolio of higher value-added products.

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

• ProWood organic unit sales declined 1 percent in the quarter from year ago levels, reflecting weaker consumer sentiment amid continued macroeconomic and geopolitical uncertainty. However, there have been favorable impacts from volume since the first quarter of 2026, reflecting gradually improving demand.
• Deckorators' organic unit sales grew 9 percent in the quarter from year ago levels. Our Surestone decking sales increased 37 percent and our traditional wood plastic composite decking increased 85 percent, partially offset by railings which declined 17 percent, from the same quarter a year ago. Our current backlog of ordered but unshipped Surestone decking is approximately $30 million as we continue to make progress optimizing capacity. The MoistureShield acquisition contributed a 51 percent increase in wood plastic composite decking sales.
• UFP Edge organic unit sales declined 17 percent due to the closure of the Bonner facilities at the end of 2025 and rationalizing the product portfolio to those that can achieve profitability targets.
• Adjusted EBITDA was unchanged in the quarter from year ago levels primarily due to higher transportation costs that were $17 million higher than last year. In the quarter, we were able to offset these headwinds through improved gross profits in Prowood from more favorable lumber price trends, UFP Edge from the restructuring of this business unit, and Deckorators primarily from favorable increases in volume.

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)

• Structural Packaging organic unit sales grew 8 percent in the quarter compared to year ago levels.
• PalletOne organic unit sales declined 3 percent in the quarter from year ago levels due to weaker demand, which was offset by a 12 percent contribution from acquisitions.
• Protective Packaging organic unit sales increased 15 percent in the quarter from a year ago levels as a result of the Jeffersonville, Indiana facility, which became fully operational in the third quarter of 2025.
• Adjusted EBITDA declined 28 percent in the quarter from year ago levels primarily due to higher transportation costs in each business unit, lower gross profits in PalletOne, and startup costs associated with new greenfield locations in Protective Packaging.

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)

• Site Built organic unit sales declined 3 percent in the quarter from year ago levels reflecting softer demand driven by affordability challenges and economic uncertainty, which resulted in lower housing starts.
• Factory Built organic unit sales declined 6 percent in the quarter from year ago levels due to the loss of lower margin commodity sales, partially offset by a 1 percent contribution from acquisitions. Industry production has declined by 8 percent.
• Concrete Forming Solutions' organic unit sales grew 6 percent in the quarter from year ago levels driven by market share gains associated with value-added product sales.
• Commercial organic sales grew 11 percent in the quarter from year ago levels as overall demand has improved and as the business unit continues to gain market share.
• Adjusted EBITDA declined 21 percent in the quarter from year ago levels primarily due to lower gross profits in Site Built from macroeconomic pressures and competitive pricing, partially offset by improved gross profits in Commercial and Concrete Forming.

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:

• Organic Growth. The company invests in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. The company expects to invest approximately $175 million to $200 million on capital projects for the balance of 2026.
• Acquisitions and Inorganic Growth.  During the second quarter, the company closed three transactions, expanding production capacity and expanding its geographic reach in its core businesses.
  • On April 6, 2026, the company acquired the operating assets of the composite decking manufacturing facility of MoistureShield, Inc., a leading player in the growing wood plastic composite industry, for $55 million in cash. The acquisition expands our manufacturing capacity to meet the growing demand for our Deckorators product offering.  In 2025, MoistureShield had sales of approximately $50 million.
  • On May 4, 2026, the company acquired the operating assets of John Rock, Inc., a leading manufacturer of new pallets, for $47 million in cash. In 2025, John Rock had sales of approximately $86 million.
  • On May 18, 2026, the company acquired the operating assets of Berry Pallets, Inc., a wood pallet manufacturer, for $20 million in cash. In 2025, Berry Pallets had sales of approximately $23 million.
• Dividend Payments. On July 22, 2026, the Board declared a quarterly cash dividend of $0.36 per share. This dividend is payable on September 15, 2026, to shareholders of record on September 1, 2026. The per share cash dividend amount represents a 3% increase from the 2025 dividend rate. We continue to consider our payout ratio and yield when determining the appropriate dividend rate and have a long-term objective of increasing our dividend in line with our future earnings and free cash flow growth.
• Share Repurchases. During the first six months of 2026, we repurchased a total of 1,669,770 shares for $141.8 million, at an average share price of $84.95. On May 29, 2026, our board authorized a new repurchase plan for up to $300 million worth of our shares through April 30, 2027. This authorization supersedes and replaces our prior authorizations. As of July 29, 2026, approximately $273 million remain available under this latest repurchase authorization.

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

 

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SOURCE UFP Industries, Inc.

FAQ

How did UFP Industries (UFPI) perform in Q2 2026 on sales and earnings?

UFP Industries reported Q2 2026 net sales of $1.88 billion, up 2.6%, and net earnings of $83 million, down 17.5% year over year. According to UFP Industries, diluted EPS was $1.48 versus $1.70 in the prior-year quarter, reflecting higher transportation costs.

What were UFP Industries’ adjusted EBITDA and margins in Q2 2026?

Adjusted EBITDA for UFP Industries in Q2 2026 was $154.5 million, with an 8.2% margin on net sales. According to UFP Industries, this compares with $174.1 million and a 9.5% margin a year earlier, mainly due to a 1.6 percentage point rise in transportation costs.

How did UFP Industries’ Retail, Packaging, and Construction segments perform in Q2 2026?

In Q2 2026, Retail net sales rose 3.9%, Packaging grew 6.9%, and Construction declined 4.5%. According to UFP Industries, segment net earnings fell 10.0% in Retail, 45.2% in Packaging, and 28.8% in Construction, with margin pressure from higher freight and softer construction demand.

What acquisitions did UFP Industries (UFPI) complete in Q2 2026?

UFP Industries completed three asset acquisitions in Q2 2026 totaling $122 million in cash. According to UFP Industries, these were MoistureShield’s composite decking facility ($55 million), John Rock ($47 million), and Berry Pallets ($20 million), whose 2025 sales were approximately $50 million, $86 million, and $23 million, respectively.

What is UFP Industries’ dividend and share repurchase plan for 2026?

The board declared a Q3 2026 dividend of $0.36 per share, a 3% increase from 2025. According to UFP Industries, the company repurchased $141.8 million of shares in the first half and has a new $300 million authorization through April 30, 2027, with $273 million remaining.

What is UFP Industries’ 2026 outlook and long-term growth target?

UFP Industries expects 2026 demand to be at the lower end of flat to slightly down unit volumes across segments. According to UFP Industries, input costs should remain elevated, but it targets 7–10% annual unit sales growth long term and a 12.5% adjusted EBITDA margin.