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GRAND RAPIDS - UFP Industries (NASDAQ:UFPI) reported second quarter earnings that fell short of analyst expectations, as the company continues to navigate challenging market conditions with limited visibility and soft demand.
The manufacturer of value-added products across Retail, Packaging (NYSE:PKG), and Construction segments posted earnings of $1.70 per share, missing analyst estimates of $1.86. Revenue came in at $1.84 billion, slightly below the consensus estimate of $1.85 billion and down 4% compared to the same period last year.
"Our second quarter was largely a continuation from our first quarter as visibility remains limited, tariff uncertainty remains a challenge for consumer and business sentiment, and end market demand remains soft but stable," said Will Schwartz, UFP Industries CEO. "Despite the current environment, we continue to make progress positioning UFP as a leaner and faster growing enterprise for when markets recover."
The company reported a 4% decrease in net sales due to a 1% decrease in price and a 3% decline in organic units. Adjusted EBITDA was $174.1 million, or 9.5% of net sales, compared to $203.9 million, or 10.7% of net sales, for the same period last year.
In the Retail Solutions segment, net sales of $788.2 million were down 3% YoY, with organic unit sales decreasing 7%, partially offset by a 4% increase in selling prices. The Packaging segment saw net sales decline 2% to $428.7 million, while Construction segment sales fell 4% to $551.6 million.
UFP Industries remains focused on its cost-saving initiatives, targeting approximately $60 million in structural cost savings by year-end 2026. The company also announced plans to close its Bonner, Montana manufacturing facilities, which is expected to eliminate future operating losses of approximately $16 million in 2026.
"Our strong balance sheet and free cash flow generation remain competitive advantages, enabling us to pursue strategic investments, along with share repurchases and dividends, while maintaining a conservative capital structure," added Schwartz.
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