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Investing.com -- UFP Industries, Inc. (NASDAQ:UFPI) reported third quarter earnings that fell short of analyst expectations, as the manufacturer faced headwinds from weaker demand and competitive pricing across its business segments.
The company posted adjusted earnings per share of $1.29, missing the analyst estimate of $1.41, while revenue came in at $1.56 billion, below the consensus estimate of $1.61 billion and down 5% YoY. The revenue decline was attributed to a 1% decrease in pricing and a 4% drop in organic unit volume. Shares fell 2.3% in after-hours trading Wednesday following the results.
"Our third quarter played out largely as anticipated and reflective of the competitive environment we are seeing across our end markets," said Will Schwartz, President and CEO of UFP Industries. "Visibility remains limited, particularly in markets tied to residential construction; however, trends across the majority of our business units have shown signs of stabilizing."
Net earnings attributable to controlling interest declined to $76 million from $100 million in the same quarter last year. Adjusted EBITDA was $140 million, representing 9.0% of net sales compared to 10.0% a year ago.
The company’s Construction segment was particularly challenged, with net sales declining 7.1% YoY to $496.5 million, driven by a 2% decrease in organic units and a 5% drop in selling prices. Site Built organic unit sales fell 15% from year-ago levels.
The Retail segment saw sales decrease 6.5% to $594 million, while the Packaging segment reported a modest 1.7% decline to $395 million.
Despite the challenging environment, UFP maintained its full-year outlook, expecting low single-digit unit declines across all segments for the remainder of 2025. The company has repurchased approximately $350 million in shares year-to-date and announced a quarterly dividend of $0.35 per share, representing a 6% increase YoY.
"We plan to gain market share, strengthen return on capital, and achieve margin improvements," Schwartz added. "As part of this plan, we will have reduced structural costs by $60 million from 2024 levels by the end of 2026."
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