UFP Industries Announces Third Quarter 2026 Results

Organic unit growth reached 4%, but higher freight and material costs limited the earnings benefit from increased sales.

Rhea-AI Summary

UFP Industries (UFPI) reported third-quarter 2026 net sales of $1.73 billion, with growth across all three segments but lower earnings. Sales rose 11.1% year over year, supported by 4% organic unit growth, acquisitions and higher selling prices. Diluted earnings per share fell to $1.05 from $1.29. Adjusted EBITDA, a non-GAAP earnings measure, declined 14.8% to $119.3 million; its margin fell to 6.9% from 9.0%. Higher freight and lumber costs weighed on profitability.

Liquidity was approximately $2.0 billion at September 26. UFP plans to acquire Apache Products in November for an estimated $27 million in cash. The quarterly dividend increased 3% from the 2025 rate to $0.36 per share, payable December 15. UFP expects to meet or exceed its initial $60 million cost-savings objective by year-end. Its full-year outlook remains unchanged, with slightly lower industry unit demand expected in each segment.

36 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 26 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter net sales rose 11.1% to $1.73 billion year over year.
• Moderate pointThe $750 million revolving credit facility was extended to October 23, 2031.
• Moderate pointFirst-nine-month operating cash flow totaled $235 million.
• Moderate pointFirst-nine-month free cash flow, a non-GAAP measure, totaled $287 million.
• Moderate pointUFP repurchased 2,169,224 shares for $182.7 million in the first nine months, averaging $84.24 per share. 4.1% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.UFP expects approximately $150 million to $175 million in capital-project investment for 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.UFP expects to meet or exceed its initial $60 million cost-savings objective by year-end.

29 minor points

• Minor pointThird-quarter organic units increased 4%; acquisitions added 2% and selling prices 5% to sales.
• Minor pointNew products reached 8.7% of third-quarter sales, versus 6.8% a year earlier.
• Minor pointFirst-nine-month net sales increased 1.7% to $5,077,040 thousand year over year.
• Minor pointThird-quarter Retail sales increased 6.8% to $634,514 thousand year over year.
• Minor pointThird-quarter Retail net earnings rose 2.3% to $16,101 thousand year over year.
• Minor pointDeckorators third-quarter organic unit sales grew 21% year over year.
• Minor pointSurestone third-quarter decking sales increased 70% year over year.
• Minor pointWood plastic composite decking sales rose 69% year over year, including acquisitions, in the third quarter.
• Minor pointMoistureShield contributed a 44% increase in third-quarter wood plastic composite decking sales.
• Minor pointRailing sales increased 2% year over year in the third quarter.
• Minor pointThird-quarter Packaging sales rose 18.0% to $465,845 thousand year over year.
• Minor pointPackaging third-quarter organic units grew 9%; acquisitions added 6% and selling prices 3% to sales.
• Minor pointStructural Packaging third-quarter organic unit sales increased 14% year over year.
• Minor pointPalletOne third-quarter organic unit sales increased 1%; acquisitions contributed an additional 18% in unit sales.
• Minor pointProtective Packaging third-quarter organic unit sales increased 5% year over year.
• Minor pointFirst-nine-month Packaging sales increased 6.9% to $1,318,183 thousand year over year.
• Minor pointThird-quarter Construction sales increased 11.3% to $552,423 thousand year over year.
• Minor pointConstruction third-quarter organic units grew 4%, while selling prices added 7% to sales.
• Minor pointSite Built third-quarter organic unit sales increased 12% year over year.
• Minor pointConcrete Forming Solutions third-quarter organic unit sales increased 6% year over year.
• Minor pointCommercial third-quarter organic unit sales increased 20% year over year.
• Minor pointQuarter-end liquidity totaled approximately $2.0 billion, with no revolving credit facility borrowings outstanding.
• Minor pointSwingline loan and letter-of-credit sublimits increased from $50 million to $75 million.
• Minor pointRemaining repurchase authorization was approximately $198 million on October 28, available through April 30, 2027.
• Minor pointThe quarterly dividend increased 3% to $0.36 per share from the 2025 quarterly rate.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned Apache Products acquisition totals an estimated $27 million in cash; closing is planned for November 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.UFP expects roughly $100 million invested in seasonal working capital to convert to cash in the fourth quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.UFP retains annual unit-sales growth targets of 7–10%, including bolt-on acquisitions.
• Minor point. Forward-looking: it has not happened yet and may not happen.UFP retains long-term targets of at least 10% new-product sales and a 12.5% adjusted EBITDA margin.

Negative

• Moderate pointThird-quarter net earnings declined 22.4% to $58,633 thousand; net margin fell to 3.4% from 4.8%.
• Moderate pointThird-quarter adjusted EBITDA fell 14.8% to $119,255 thousand; margin declined to 6.9% from 9.0%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.UFP expects slightly lower 2026 industry unit demand in each segment and elevated energy and transportation costs.
• Minor pointThird-quarter diluted earnings per share fell to $1.05 from $1.29 a year earlier.
• Minor pointThird-quarter transportation costs, net of fuel surcharges, increased $19 million year over year.

21 minor points

• Minor pointFreight spot rates excluding fuel increased 30% during the quarter before stabilizing at an elevated level.
• Minor pointFirst-nine-month net earnings fell 24.6% to $192,901 thousand; net margin declined to 3.8% from 5.1%.
• Minor pointFirst-nine-month adjusted EBITDA fell 15.6% to $385,091 thousand; margin declined to 7.6% from 9.1%.
• Minor pointRetail third-quarter net margin declined to 2.5% from 2.7% a year earlier.
• Minor pointRetail third-quarter adjusted EBITDA fell 14.7% to $34,125 thousand; margin declined to 5.4% from 6.7%.
• Minor pointRetail third-quarter transportation costs increased $8 million year over year.
• Minor pointProWood third-quarter organic unit sales declined 4% year over year.
• Minor pointSurestone ordered but unshipped decking backlog remained approximately $18 million as capacity optimization continued.
• Minor pointRetail first-nine-month sales fell 0.3% to $1,984,433 thousand; organic units declined 4%.
• Minor pointRetail first-nine-month net earnings fell 7.4% to $71,791 thousand; net margin declined to 3.6% from 3.9%.
• Minor pointRetail first-nine-month adjusted EBITDA fell 5.0% to $132,891 thousand; margin declined to 6.7% from 7.0%.
• Minor pointPackaging third-quarter net earnings fell 46.6% to $11,411 thousand; net margin declined to 2.4% from 5.4%.
• Minor pointPackaging third-quarter adjusted EBITDA fell 20.5% to $27,250 thousand; margin declined to 5.8% from 8.7%.
• Minor pointPackaging first-nine-month net earnings fell 41.6% to $34,385 thousand; net margin declined to 2.6% from 4.8%.
• Minor pointPackaging first-nine-month adjusted EBITDA fell 23.3% to $82,973 thousand; margin declined to 6.3% from 8.8%.
• Minor pointConstruction third-quarter net earnings fell 14.3% to $21,141 thousand; net margin declined to 3.8% from 5.0%.
• Minor pointConstruction third-quarter adjusted EBITDA fell 10.0% to $37,691 thousand; margin declined to 6.8% from 8.4%.
• Minor pointFactory Built third-quarter organic unit sales declined 10% following the loss of lower-margin commodity sales.
• Minor pointConstruction first-nine-month sales fell 1.2% to $1,544,713 thousand; organic units declined 1%.
• Minor pointConstruction first-nine-month net earnings fell 29.2% to $52,495 thousand; net margin declined to 3.4% from 4.7%.
• Minor pointConstruction first-nine-month adjusted EBITDA fell 20.2% to $99,423 thousand; margin declined to 6.4% from 8.0%.

News Explained

The roughly $198 million is remaining authorization for future share purchases, not a report that this amount has already been spent.

UFP Industries amended its $750 million revolving credit facility on October 23, 2026, extending it five years to October 23, 2031 and increasing swingline-loan and letter-of-credit sublimits from $50 million to $75 million. Separately, the board authorized share repurchases of up to $300 million through April 30, 2027; approximately $198 million remained available as of October 28, 2026, leaving that amount as potential further repurchase capacity.

Key Figures

Net sales: $1.73 billion, up 11.1% Diluted EPS: $1.05 vs. $1.29 Net earnings attributable to controlling interests: $58 million vs. $75 million +4 more

Net sales

$1.73 billion, up 11.1%

Third quarter 2026 vs. $1.56 billion a year ago

Diluted EPS

$1.05 vs. $1.29

Third quarter 2026 vs. a year ago

Net earnings attributable to controlling interests

$58 million vs. $75 million

Third quarter 2026 vs. a year ago

Adjusted EBITDA

$119.3 million vs. $140.0 million

Third quarter 2026 vs. a year ago

Adjusted EBITDA margin

6.9% vs. 9.0%

Third quarter 2026 vs. a year ago

Free cash flow

$287 million

First nine months of 2026

Cost-savings objective

$60 million

Company expects to meet or exceed the initial objective by year-end

Previous Earnings Reports

2 past events · Latest: Jul 29

Same Type 2 events

1. Jul 29

   Quarterly earnings

   24h Move

   -1.8%

   Sales rose, while EPS, net earnings and adjusted EBITDA declined year over year.

2. Oct 29

   Quarterly earnings

   24h Move

   +2.0%

   Sales, diluted EPS and adjusted EBITDA declined year over year.

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

Key Terms

non-gaap, revolving credit facility, swingline loans

3 terms

non-gaap financial

"Represents a non-GAAP measurement"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

revolving credit facility financial

"amended and extended its existing $750 million revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

swingline loans financial

"increased the sublimits for swingline loans and letters of credit"

A swingline loan is a very short-term, on-demand loan that sits inside a larger credit facility to cover immediate cash needs like payroll, small bills, or last-minute payments. Think of it as an emergency overdraft from a lender: it’s quick to draw, repaid fast, and usually carries faster fees, so investors watch it as a signal of a company’s liquidity pressure and potential cost or covenant stress.

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

GRAND RAPIDS, Mich., Oct. 28, 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 third quarter 2026.

• Net sales of $1.73 billion increased by 11.1 percent compared to $1.56 billion a year ago due to a 4 percent increase in organic units (excluding growth from acquisitions within the last 12 months), a 2 percent increase due to acquisitions, and a 5 percent increase in selling prices.
• Diluted earnings per share of $1.05 compared to $1.29 a year ago, and Net earnings attributable to controlling interests of $58 million compared to $75 million a year ago. Earnings were primarily impacted by higher freight and lumber costs, offset by organic unit growth, benefits from ongoing cost out actions, and improved gross profit in several business units.
• Adjusted EBITDA^[1] was $119.3 million in the quarter, or 6.9 percent of net sales compared to $140.0 million, or 9.0 percent of net sales a year ago, as transportation costs, net of fuel surcharges, increased by $19 million, or 1.3 percent of net sales.
• Cash flows from operating activities in the first nine months of 2026 were $235 million. Cash used to invest in seasonal working capital requirements during the first nine months totaled roughly $100 million and is expected to be converted to cash in the fourth quarter. Free cash flow¹ of $287 million for the first nine months of 2026 was used to repurchase nearly $183 million of our shares.

Will Schwartz, President and CEO of UFP Industries, commented, "Organic unit growth strengthened in the third quarter despite continued pressure across several of our end markets, which speaks to the successes we are seeing with our product and market-share initiatives. New products increased to 8.7 percent of net sales, led by continued momentum in our Deckorators, Structural Packaging, and Construction value-added offerings. The breadth of this growth demonstrates the benefits of our balanced portfolio and the investments we have made to drive above-market growth and gain share, even as underlying demand across many of our end markets remains challenged.

Profitability continued to be affected by elevated transportation and material costs, which limited the earnings benefit from higher volumes and an improved earnings profile. We continue to focus on what we can control. We now expect to meet or exceed our initial $60 million cost-savings objective by year-end, and we continue to pursue additional productivity, capacity consolidation, and cost reduction opportunities. We also see further profit-improvement opportunities as we integrate recent acquisitions, improve utilization of our newer facilities, and increase the mix of new and value-added products across our portfolio.

Importantly, the progress we have made in strengthening the underlying profitability of the business remains intact. Our profitability today is meaningfully stronger than it was before our management structure change in 2019, even though transportation costs have increased significantly as a percentage of net sales since then. These higher costs have masked some of the earnings improvement we have made across the portfolio, but we believe our cost actions and operating initiatives provide meaningful opportunities to improve profitability without relying on a near-term market recovery.

Schwartz continued, "Our financial position remains a competitive advantage. We ended the quarter with approximately $2 billion of liquidity and no borrowings outstanding under our revolving credit facility, giving us the flexibility to invest through the cycle. So far this year, we have completed three acquisitions, announced a fourth, and returned more than $240 million to shareholders through dividends and share repurchases. Our M&A pipeline remains active, and we will stay disciplined, pursuing opportunities that strengthen our core businesses, expand our value-added portfolio, and meet our return criteria."

____________________
1	Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.

Third Quarter 2026 Highlights

UFP Consolidated

(In thousands)		Quarter Period								Year to Date
		2026			2025			% Change		2026			2025			% Change
Net sales		$	1,732,836		$	1,559,627		11.1	%	$	5,077,040		$	4,990,520		1.7	%
Net earnings			58,633			75,542		(22.4)			192,901			255,836		(24.6)
Net margin			3.4	%		4.8	%				3.8	%		5.1	%
Adjusted EBITDA			119,255			140,019		(14.8)			385,091			456,317		(15.6)
Adjusted EBITDA margin			6.9	%		9.0	%				7.6	%		9.1	%
Percentage change in net sales:
Organic units			4	%							—	%
Acquisitions			2								1
Selling prices			5								1

• Net sales increased 11 percent in the quarter, driven by 4 percent organic unit growth, including volume improvements in our Site Built, Commercial, Structural Packaging, and Deckorators business units. Acquisitions contributed an additional 2 percent to net sales.
• Freight costs as a percent of net sales have increased by 1.3 percent, or $19 million, net of fuel surcharges and price adjustments, compared to year ago levels. The increase was driven by higher market-based transportation rates due to tightening industry capacity and elevated fuel costs. Freight spot rates, excluding fuel, increased 30 percent during the quarter before stabilizing at an elevated level towards 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 8.7 percent of total net sales compared to 6.8 percent a year ago, highlighting continued progress to expand our portfolio of higher value-added products.

UFP Retail

(In thousands)		Quarter Period								Year to Date
		2026			2025			% Change		2026			2025			% Change
Net sales		$	634,514		$	593,985		6.8	%	$	1,984,433		$	1,989,592		(0.3)	%
Net earnings			16,101			15,741		2.3			71,791			77,532		(7.4)
Net margin			2.5	%		2.7	%				3.6	%		3.9	%
Adjusted EBITDA			34,125			39,985		(14.7)			132,891			139,812		(5.0)
Adjusted EBITDA margin			5.4	%		6.7	%				6.7	%		7.0	%
Percentage change in net sales:
Organic units			—	%							(4)	%
Acquisitions			1								1
Selling prices			6								3

• ProWood organic unit sales declined 4 percent in the quarter from year ago levels, reflecting weaker consumer sentiment amid continued macroeconomic and geopolitical uncertainty.
• Deckorators' organic unit sales grew 21 percent in the quarter from year ago levels. Our Surestone decking sales increased 70 percent, our traditional wood plastic composite decking increased 69 percent, including acquisitions, and railings increased 2 percent from the same quarter a year ago. The MoistureShield acquisition contributed a 44 percent increase in wood plastic composite decking sales. Our current backlog of ordered but unshipped Surestone decking has improved to approximately $18 million as we continue to make progress optimizing capacity.
• UFP Edge organic unit sales remained flat from year ago levels.
• Adjusted EBITDA declined 14.7 percent in the quarter from year ago levels, primarily due to an $8 million increase in transportation costs. Improved gross profit in Deckorators, supported by higher volumes, and in UFP Edge, reflecting the prior restructuring of that business, partially offset the transportation headwind.

UFP Packaging

(In thousands)		Quarter Period								Year to Date
		2026			2025			% Change		2026			2025			% Change
Net sales		$	465,845		$	394,949		18.0	%	$	1,318,183		$	1,233,626		6.9	%
Net earnings			11,411			21,358		(46.6)			34,385			58,908		(41.6)
Net margin			2.4	%		5.4	%				2.6	%		4.8	%
Adjusted EBITDA			27,250			34,284		(20.5)			82,973			108,125		(23.3)
Adjusted EBITDA margin			5.8	%		8.7	%				6.3	%		8.8	%
Percentage change in net sales:
Organic units			9	%							4	%
Acquisitions			6								3
Selling prices			3								—

• Structural Packaging organic unit sales grew 14 percent in the quarter compared to year ago levels.
• PalletOne organic unit sales increased 1 percent in the quarter from year ago levels, and acquisitions contributed an additional 18 percent in unit sales.
• Protective Packaging organic unit sales increased 5 percent in the quarter from year ago levels as two greenfield locations continue to make progress achieving sales targets.
• Adjusted EBITDA declined 21 percent in the quarter from year ago levels primarily due to higher transportation costs in each business unit and higher material costs.

UFP Construction

(In thousands)		Quarter Period								Year to Date
		2026			2025			% Change		2026			2025			% Change
Net sales		$	552,423		$	496,465		11.3	%	$	1,544,713		$	1,563,995		(1.2)	%
Net earnings			21,141			24,682		(14.3)			52,495			74,189		(29.2)
Net margin			3.8	%		5.0	%				3.4	%		4.7	%
Adjusted EBITDA			37,691			41,878		(10.0)			99,423			124,668		(20.2)
Adjusted EBITDA margin			6.8	%		8.4	%				6.4	%		8.0	%
Percentage change in net sales:
Organic units			4	%							(1)	%
Acquisitions			—								—
Selling prices			7								—

• Site Built organic unit sales increased 12 percent in the quarter from year ago levels, supported by growth in the Frame Forward systems-selling approach and alternative-material offerings.
• Factory Built organic unit sales decreased 10 percent in the quarter from year ago levels due to the loss of lower margin commodity sales.
• Concrete Forming Solutions' organic unit sales increased 6 percent in the quarter from year ago levels, driven by market share gains associated with value-added product sales.
• Commercial organic unit sales increased 20 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 10 percent in the quarter from year ago levels primarily due to lower gross profits in Site Built from macroeconomic pressures, competitive pricing and higher material costs, partially offset by improved gross profits in Commercial and Concrete Forming.

Capital Structure, Leverage and Liquidity Information

UFP Industries maintains a strong balance sheet as of September 26, 2026 and had liquidity of approximately $2.0 billion, consisting of more than $677 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:

• Credit Facility. On October 23, 2026, the company amended and extended its existing $750 million revolving credit facility for an additional five-year term, expiring October 23, 2031. The amendment also increased the sublimits for swingline loans and letters of credit from $50 million to $75 million.
• 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 $150 million to $175 million on capital projects for the year.
• Acquisitions and Inorganic Growth. On October 26, 2026, the company announced the plan to acquire Apache Products, Inc., a wood pallet manufacturer, in November 2026 for an estimated $27 million in cash. In 2025, Apache Products had sales of approximately $53 million.
• Dividend Payments. On October 21, 2026, the Board declared a quarterly cash dividend of $0.36 per share. This dividend is payable on December 15, 2026, to shareholders of record on December 1, 2026. The per share cash dividend amount represents a 3% increase from the 2025 quarterly dividend rate of $0.35 per share. 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 nine months of 2026, we repurchased a total of 2,169,224 shares for $182.7 million, at an average share price of $84.24. 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 October 28, 2026, approximately $198 million remains available under this latest repurchase authorization.

2026 Outlook and Long-Term Targets

Our full year 2026 outlook remains unchanged. We continue to expect overall industry unit demand for the year to be slightly down in each of our segments based on our sales mix.  While we have mechanisms to offset these costs, energy and transportation are expected to remain elevated for the balance of the year.  Demand tied to new residential construction is expected to remain challenging, while stabilization across most of our other end markets should partially offset that pressure. Accordingly, we are not assuming a meaningful improvement in underlying market demand through year-end. Despite these conditions, we expect to continue outperforming our markets through share gains, growth in new and value-added products, and continued execution of our cost-out initiatives. We also see opportunities to improve profitability through additional cost savings, better utilization of recent investments, and the integration of acquisitions. 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, October 29, 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 live webcast directly with this link (here). A replay of the call will be available through the UFP Investor Relations website 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 of 1934, as amended. These statements, including statements regarding our 2026 outlook, cost-savings objectives, capital allocation, the pending Apache Products acquisition, expected conversion of working capital, and long-term targets, 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, including the timing and amount of tariff refunds; concentration of sales to customers; the success of vertical integration strategies; excess capacity or supply chain challenges; inbound and outbound transportation costs and our ability to pass those costs through to customers; alternatives to replace treated wood products; government regulations, particularly involving environmental and safety regulations; our ability to make successful business acquisitions; cybersecurity breaches; artificial intelligence; 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, which are 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 Net cash from operating activities to Free cash flow.

Adjusted EBITDA margin is a non-GAAP financial measure. In calculating adjusted EBITDA, we make certain adjustments, including for interest and other (which includes interest and investment income and equity in earnings of investee), 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 nine months ended September 26, 2026, our net margin was 3.8 percent, and our adjusted EBITDA margin, calculated as described above, was 7.6 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.

Free cash flow is defined as net cash from operating activities, adjusted to exclude the change in investment in net working capital, less maintenance capital expenditures, plus interest expense, net of taxes. Free cash flow does not deduct expansionary and efficiency capital expenditures, acquisitions, dividends, or mandatory debt service, and therefore does not represent residual cash flow available for discretionary expenditures.

# # #

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND
COMPREHENSIVE INCOME (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 2026/2025
		Quarter Period										Year to Date
(In thousands, except per share data)		2026					2025					2026					2025
Net sales		$	1,732,836		100.0	%	$	1,559,627		100.0	%	$	5,077,040		100.0	%	$	4,990,520		100.0	%
Cost of sales			1,487,915		85.9			1,296,946		83.2			4,305,995		84.8			4,146,909		83.1
Gross profit			244,921		14.1			262,681		16.8			771,045		15.2			843,611		16.9
Operating expenses
Selling, general and administrative expenses			178,091		10.3			170,030		10.9			536,694		10.6			531,279		10.6
Net (gain) loss on disposition and impairments of assets			(3,184)		(0.2)			2,458		0.2			(4,534)		(0.1)			6,212		0.1
Other (gains) losses, net			(142)		—			722		—			1,232		—			1,306		—
Total operating expenses			174,765		10.1			173,210		11.1			533,392					538,797
Earnings from operations			70,156		4.0			89,471		5.7			237,653		4.7			304,814		6.1
Interest and other			(6,716)		(0.4)			(9,663)		(0.6)			(19,025)		(0.4)			(26,946)		(0.5)
Earnings before income taxes			76,872		4.4			99,134		6.4			256,678		5.1			331,760		6.6
Income taxes			18,239		1.1			23,592		1.5			63,777		1.3			75,924		1.5
Net earnings			58,633		3.4			75,542		4.8			192,901		3.8			255,836		5.1
Less net earnings attributable to noncontrolling interest			(668)		—			(196)		—			(1,290)		—			(1,003)		—
Net earnings attributable to controlling interest		$	57,965		3.3		$	75,346		4.8		$	191,611		3.8		$	254,833		5.1
Earnings per share - basic		$	1.05				$	1.29				$	3.43				$	4.29
Earnings per share - diluted		$	1.05				$	1.29				$	3.43				$	4.28
Comprehensive income		$	57,723				$	76,049				$	190,839				$	271,262
Less comprehensive income attributable to noncontrolling interest			(396)					(487)					(1,479)					(2,878)
Comprehensive income attributable to controlling interest		$	57,327				$	75,562				$	189,360				$	268,384

 

CONDENSED CONSOLIDATED STATEMENTS
OF EARNINGS BY SEGMENT (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 2026/2025
		Quarter Period 2026
(In thousands)		Retail			Packaging			Construction			All Other			Corporate			Total
Net sales		$	634,514		$	465,845		$	552,423		$	78,029		$	2,025		$	1,732,836
Cost of sales			560,963			406,791			461,118			64,512			(5,469)			1,487,915
Gross profit			73,551			59,054			91,305			13,517			7,494			244,921
Selling, general and administrative expenses			52,240			45,987			63,324			9,618			6,922			178,091
Net loss (gain) on disposition and impairments of assets			801			150			20			165			(4,320)			(3,184)
Other (gains) losses, net			(336)			—			107			50			37			(142)
Earnings from operations			20,846			12,917			27,854			3,684			4,855			70,156
Interest and other			(103)			(2,071)			(9)			(253)			(4,280)			(6,716)
Earnings before income taxes			20,949			14,988			27,863			3,937			9,135			76,872
Income taxes			4,848			3,577			6,722			847			2,245			18,239
Net earnings		$	16,101		$	11,411		$	21,141		$	3,090		$	6,890		$	58,633
		Quarter Period 2025
(In thousands)		Retail			Packaging			Construction			All Other			Corporate			Total
Net sales		$	593,985		$	394,949		$	496,465		$	72,482		$	1,746		$	1,559,627
Cost of sales			513,763			327,528			405,262			59,251			(8,858)			1,296,946
Gross profit			80,222			67,421			91,203			13,231			10,604			262,681
Selling, general and administrative expenses			49,032			45,831			58,943			9,226			6,998			170,030
Net loss (gain) on disposition and impairments of assets			9,983			(5,970)			(59)			63			(1,559)			2,458
Other losses (gains), net			462			—			(3)			203			60			722
Earnings from operations			20,745			27,560			32,322			3,739			5,105			89,471
Interest and other			(70)			(381)			(7)			(2,845)			(6,360)			(9,663)
Earnings before income taxes			20,815			27,941			32,329			6,584			11,465			99,134
Income taxes			5,074			6,583			7,647			1,691			2,597			23,592
Net earnings		$	15,741		$	21,358		$	24,682		$	4,893		$	8,868		$	75,542

 

 

CONDENSED CONSOLIDATED STATEMENTS
OF EARNINGS BY SEGMENT (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 2026/2025
		Year to Date 2026
(In thousands)		Retail			Packaging			Construction			All Other			Corporate			Total
Net sales		$	1,984,433		$	1,318,183		$	1,544,713		$	223,461		$	6,250		$	5,077,040
Cost of sales			1,715,673			1,138,422			1,285,463			185,352			(18,915)			4,305,995
Gross profit			268,760			179,761			259,250			38,109			25,165			771,045
Selling, general and administrative expenses			171,003			136,770			189,080			28,684			11,157			536,694
Net loss (gain) on disposition and impairments of assets			2,649			86			70			240			(7,579)			(4,534)
Other losses, net			123			—			659			399			51			1,232
Earnings from operations			94,985			42,905			69,441			8,786			21,536			237,653
Interest and other			(541)			(2,849)			(409)			(7,486)			(7,740)			(19,025)
Earnings before income taxes			95,526			45,754			69,850			16,272			29,276			256,678
Income taxes			23,735			11,369			17,355			3,414			7,904			63,777
Net earnings		$	71,791		$	34,385		$	52,495		$	12,858		$	21,372		$	192,901
		Year to Date 2025
(In thousands)		Retail			Packaging			Construction			All Other			Corporate			Total
Net sales		$	1,989,592		$	1,233,626		$	1,563,995		$	197,806		$	5,501		$	4,990,520
Cost of sales			1,714,335			1,026,049			1,281,803			160,706			(35,984)			4,146,909
Gross profit			275,257			207,577			282,192			37,100			41,485			843,611
Selling, general and administrative expenses			163,029			136,748			185,454			28,086			17,962			531,279
Net loss (gain) on disposition and impairments of assets			11,090			(4,713)			272			2,679			(3,116)			6,212
Other losses (gains), net			780			—			268			451			(193)			1,306
Earnings from operations			100,358			75,542			96,198			5,884			26,832			304,814
Interest and other			(184)			(848)			(8)			(6,304)			(19,602)			(26,946)
Earnings before income taxes			100,542			76,390			96,206			12,188			46,434			331,760
Income taxes			23,010			17,482			22,017			2,779			10,636			75,924
Net earnings		$	77,532		$	58,908		$	74,189		$	9,409		$	35,798		$	255,836

 

RECONCILIATION OF NET EARNINGS TO
ADJUSTED EBITDA BY SEGMENT (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 2026/2025
		Quarter Period 2026
(In thousands)		Retail			Packaging			Construction			All Other			Corporate			Total
Net earnings		$	16,101		$	11,411		$	21,141		$	3,090		$	6,890		$	58,633
Interest and other			(103)			(2,071)			(9)			(253)			(4,280)			(6,716)
Income taxes			4,848			3,577			6,722			847			2,245			18,239
Expenses associated with share-based compensation arrangements			1,254			1,798			2,559			109			1,067			6,787
Net loss (gain) on disposition and impairments of assets			801			150			20			165			(4,320)			(3,184)
Depreciation expense			10,298			10,191			6,481			858			12,015			39,843
Amortization of intangibles			926			2,194			777			1,640			116			5,653
Adjusted EBITDA		$	34,125		$	27,250		$	37,691		$	6,456		$	13,733		$	119,255
Net earnings as a percentage of net sales			2.5 %			2.4 %			3.8 %			4.0 %			*			3.4 %
Adjusted EBITDA as a percentage of net sales			5.4 %			5.8 %			6.8 %			8.3 %			*			6.9 %
* Not meaningful
		Quarter Period 2025
(In thousands)		Retail			Packaging			Construction			All Other			Corporate			Total
Net earnings		$	15,741		$	21,358		$	24,682		$	4,893		$	8,868		$	75,542
Interest and other			(70)			(381)			(7)			(2,845)			(6,360)			(9,663)
Income taxes			5,074			6,583			7,647			1,691			2,597			23,592
Expenses associated with share-based compensation arrangements			855			1,609			2,173			171			2,728			7,536
Net loss (gain) on disposition and impairments of assets			7,583			(5,970)			(59)			63			(1,559)			58
Impairment of intangibles			2,400			—			—			—			—			2,400
Depreciation expense			7,523			8,946			6,667			1,027			10,470			34,633
Amortization of intangibles			879			2,139			775			1,701			427			5,921
Adjusted EBITDA		$	39,985		$	34,284		$	41,878		$	6,701		$	17,171		$	140,019
Net earnings as a percentage of net sales			2.7 %			5.4 %			5.0 %			6.8 %			*			4.8 %
Adjusted EBITDA as a percentage of net sales			6.7 %			8.7 %			8.4 %			9.2 %			*			9.0 %
* Not meaningful

 

RECONCILIATION OF NET EARNINGS TO
ADJUSTED EBITDA BY SEGMENT (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 2026/2025
		Year to Date 2026
(In thousands)		Retail			Packaging			Construction			All Other			Corporate			Total
Net earnings		$	71,791		$	34,385		$	52,495		$	12,858		$	21,372		$	192,901
Interest and other			(541)			(2,849)			(409)			(7,486)			(7,740)			(19,025)
Income taxes			23,735			11,369			17,355			3,414			7,904			63,777
Expenses associated with share-based compensation arrangements			4,614			5,769			7,891			338			3,645			22,257
Net loss (gain) on disposition and impairments of assets			2,649			86			19			240			(7,579)			(4,585)
Impairment of intangibles			—			—			51			—			—			51
Depreciation expense			27,962			27,815			19,895			2,721			34,816			113,209
Amortization of intangibles			2,681			6,398			2,126			4,953			348			16,506
Adjusted EBITDA		$	132,891		$	82,973		$	99,423		$	17,038		$	52,766		$	385,091
Net earnings as a percentage of net sales			3.6 %			2.6 %			3.4 %			5.8 %			*			3.8 %
Adjusted EBITDA as a percentage of net sales			6.7 %			6.3 %			6.4 %			7.6 %			*			7.6 %
* Not meaningful
		Year to Date 2025
(In thousands)		Retail			Packaging			Construction			All Other			Corporate			Total
Net earnings		$	77,532		$	58,908		$	74,189		$	9,409		$	35,798		$	255,836
Interest and other			(184)			(848)			(8)			(6,304)			(19,602)			(26,946)
Income taxes			23,010			17,482			22,017			2,779			10,636			75,924
Expenses associated with share-based compensation arrangements			3,146			5,390			7,173			609			11,588			27,906
Net loss (gain) on disposition and impairments of assets			8,690			(4,713)			272			2,679			(3,116)			3,812
Impairment of intangibles			2,400			—			—			—						2,400
Gain from reduction of estimated earnout liability			—			(1,511)			(344)			—			—			(1,855)
Depreciation expense			22,425			26,933			19,188			3,080			29,948			101,574
Amortization of intangibles			2,793			6,484			2,181			4,973			1,235			17,666
Adjusted EBITDA		$	139,812		$	108,125		$	124,668		$	17,225		$	66,487		$	456,317
Net earnings as a percentage of net sales			3.9 %			4.8 %			4.7 %			4.8 %			*			5.1 %
Adjusted EBITDA as a percentage of net sales			7.0 %			8.8 %			8.0 %			8.7 %			*			9.1 %
* Not meaningful

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
SEPTEMBER 2026/2025
(In thousands)
Assets			2026			2025		Liabilities and equity			2026			2025
Current assets								Current liabilities
Cash and cash equivalents		$	677,446		$	1,008,632		Accounts payable		$	279,768		$	231,905
Restricted cash			1,093			3,062		Accrued liabilities and other			299,154			294,923
Investments			47,526			33,926		Current portion of debt			5,247			5,386
Accounts receivable			684,638			607,537
Inventories			747,529			667,418		Total current liabilities			584,169			532,214
Other current assets			98,929			66,509
								Long-term debt and finance lease obligations			229,114			229,007
Total current assets			2,257,161			2,387,084		Other liabilities			264,122			166,057
Other assets			328,805			283,796		Temporary equity			476			5,018
Intangible assets, net			477,046			488,774
Property, plant and equipment, net			1,070,954			975,897		Shareholders' equity			3,056,085			3,203,255
Total assets		$	4,133,966		$	4,135,551		Total liabilities and equity		$	4,133,966		$	4,135,551

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED
SEPTEMBER 2026/2025
(In thousands)			2026			2025
Cash flows from operating activities:
Net earnings		$	192,901		$	255,836
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation			113,209			101,574
Amortization of intangibles			16,506			17,666
Expense associated with share-based and grant compensation arrangements			22,257			27,906
Deferred income taxes			(2,470)			(393)
Unrealized gain on investment and other			(4,241)			(2,195)
Impairment of investments			4,000			—
Equity in earnings of investee			(3,066)			(1,072)
Net (gain) loss on sale, disposition and impairment of assets			(4,585)			3,812
Impairment of intangibles			51			2,400
Gain from reduction of estimated earnout liability			—			(1,855)
Changes in:
Accounts receivable			(199,161)			(104,813)
Inventories			(1,405)			61,025
Accounts payable			67,016			6,243
Accrued liabilities and other			33,504			32,988
Net cash from operating activities			234,516			399,122
Cash flows used in investing activities:
Capital expenditures			(122,715)			(205,504)
Proceeds from sale of property, plant and equipment			19,188			17,308
Acquisitions and purchases of non-controlling interest, net of cash received			(123,097)			(17,626)
Purchases of investments			(28,379)			(27,388)
Proceeds from sale of investments			15,702			14,464
Other			3,201			1,535
Net cash used in investing activities			(236,100)			(217,211)
Cash flows used in financing activities:
Borrowings under revolving credit facilities			35,594			23,299
Repayments under revolving credit facilities			(30,718)			(22,469)
Contingent consideration payments and other			(1,939)			(221)
Proceeds from issuance of common stock			1,824			1,867
Dividends paid to shareholders			(60,199)			(62,490)
Distributions to noncontrolling interest			(3,083)			(1,280)
Purchase of remaining noncontrolling interest of subsidiary			(3,937)			—
Payments to taxing authorities in connection with shares directly withheld from employees			(1,458)			(9,582)
Repurchase of common stock			(181,281)			(280,987)
Other			73			(182)
Net cash used in financing activities			(245,124)			(352,045)
Effect of exchange rate changes on cash			176			2,234
Net change in cash and cash equivalents			(246,532)			(167,900)
Cash, cash equivalents, and restricted cash, beginning of period			925,071			1,179,594
Cash, cash equivalents, and restricted cash, end of period		$	678,539		$	1,011,694
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
Cash, cash equivalents, and restricted cash, beginning of period		$	925,071		$	1,179,594
Cash and cash equivalents, end of period		$	677,446		$	1,008,632
Restricted cash, end of period			1,093			3,062
Cash, cash equivalents, and restricted cash, end of period		$	678,539		$	1,011,694

 

RECONCILIATION OF NET CASH FROM OPERATING
ACTIVITIES TO FREE CASH FLOW (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 2026/2025
(In thousands)			2026			2025
Net cash from operating activities		$	234,516		$	399,122
Increase in investment in net working capital			100,046			4,557
Maintenance capital expenditures(1)			(52,910)			(80,947)
Interest expense, net of taxes			5,515			6,279
Free cash flow		$	287,167		$	329,011
(1) Breakdown of Capital expenditures from the condensed consolidated statements of cash flows:
Maintenance capital expenditures		$	52,910		$	80,947
Expansionary and efficiency capital expenditures			69,805			124,557
Total Capital expenditures		$	122,715		$	205,504

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/ufp-industries-announces-third-quarter-2026-results-302922639.html

SOURCE UFP Industries, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were UFP Industries' third-quarter 2026 sales and earnings per share?

UFP Industries reported net sales of $1.73 billion, up 11.1% year over year, and diluted earnings per share of $1.05, compared with $1.29 a year earlier. Organic unit growth, acquisitions and higher selling prices supported sales, while higher freight and lumber costs weighed on earnings.

When will UFP Industries pay its increased quarterly dividend?

The $0.36-per-share quarterly cash dividend is payable on December 15, 2026, to shareholders of record on December 1, 2026. The board declared it on October 21, 2026. The amount represents a 3% increase from the 2025 quarterly dividend rate of $0.35 per share.

What business is UFP Industries planning to buy with its Apache Products acquisition?

Apache Products is a wood pallet manufacturer with approximately $53 million in 2025 sales. UFP plans to acquire it in November 2026 for an estimated $27 million in cash.

What makes up UFP Industries' approximately $2 billion in liquidity?

At September 26, 2026, liquidity consisted of more than $677 million in cash and cash equivalents and $1.3 billion of remaining availability under the revolving credit facility and a shelf agreement with certain lenders. There were no borrowings outstanding under the revolving credit facility.