Net Sales of $1.33 billion decreased by 9 percent due to a 2 percent decrease in price and a 7 percent decline in organic units.
Diluted earnings per share of $0.70 compared to $1.12 a year ago, and Net Earnings Attributable to Controlling Interests of $40 million compared to $68 million a year ago. Earnings were impacted by a higher estimated tax rate, year-end bonus adjustments from estimates to actual, and certain non-cash transactions.
Adjusted EBITDA1 was $107.2 million in the quarter, or 8.1 percent of net sales compared to 9.1 percent a year ago. Adjusted EBITDA margin1 was 8.9 percent for the year, roughly 170bps higher than 2019.
New product sales were 7.6 percent of total net sales.
Cash flows from operating activities in 2025 was $546 million. Free cash flow1 of $451 million was used to repurchase nearly $450 million of our shares.
Will Schwartz, President and CEO of UFP Industries, commented, "We continue to see trends stabilizing across the majority of our businesses. Despite generally soft end-market demand, our fourth quarter sales and profits were in line with internal expectations. While 2025 proved to be a challenging year given market volatility, our team made meaningful progress navigating this environment and executing on our strategy. Our disciplined focus on cost controls and growth investments leaves us on stronger footing and well-positioned as conditions improve. After several years of headwinds, we continue to see markets normalizing and are cautiously optimistic on our business prospects in 2026."
Schwartz continued, "Our balanced portfolio enables us to drive shareholder value. To that point, we returned $515 million to shareholders in 2025 and finished the year with more than $900 million of cash and cash equivalents and $2.2 billion in total liquidity. We streamlined our cost structure with $60 million in cost reduction initiatives and have approached our portfolio through a more strategic lens. We plan to strengthen our core businesses, introduce innovative value-added products, and drive above market growth. Our M&A targets reflect our desire to strengthen our core businesses and drive growth in innovation and new products. We plan to use our strong balance sheet to pursue meaningful M&A while returning capital to shareholders through opportunistic share repurchases and dividends. We enter 2026 in a stronger position to drive improved results."
Fourth Quarter 2025 Highlights
UFP Consolidated
(In thousands)
Quarter Period
Year to Date
2025
2024
% Change
2025
2024
% Change
Net sales
$
1,329,823
$
1,462,001
(9.0)
%
$
6,320,343
$
6,652,309
(5.0)
%
Net earnings
40,156
69,783
(42.5)
295,992
418,733
(29.3)
Net margin
3.0
%
4.8
%
4.7
%
6.3
%
Adjusted EBITDA2
107,243
132,702
(19.2)
563,560
682,264
(17.4)
Adjusted EBITDA margin
8.1
%
9.1
%
8.9
%
10.3
%
Percentage change in net sales:
Organic units
(7)
%
(3)
%
Acquisitions
—
—
Selling prices
(2)
(2)
1 Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.
2 Adjusted EBITDA is net of bonus expense (excluding vesting expense associated with share-based bonus arrangements) which totaled $16 million in the fourth quarter of 2025 and was $14 million higher than the same period of 2024.
UFP Retail
(In thousands)
Quarter Period
Year to Date
2025
2024
% Change
2025
2024
% Change
Net sales
$
443,964
$
524,591
(15.4)
%
$
2,433,556
$
2,597,994
(6.3)
%
Net earnings
9,147
24,359
(62.4)
86,679
139,127
(37.7)
Net margin
2.1
%
4.6
%
3.6
%
5.4
%
Adjusted EBITDA
24,535
44,127
(44.4)
164,347
220,828
(25.6)
Adjusted EBITDA margin
5.5
%
8.4
%
6.8
%
8.5
%
Percentage change in net sales:
Organic units
(13)
%
(7)
%
Acquisitions
—
—
Selling prices
(2)
1
ProWood organic unit sales declined 13 percent in the quarter from year ago levels due to difficult comparisons from elevated storm related demand for our products in 2024.
Deckorators organic unit sales grew 17 percent in the quarter from year ago levels. Our Surestone decking sales increased 44 percent and our traditional wood plastic composite decking increased 35 percent, both from the quarter a year ago.
UFP Packaging
(In thousands)
Quarter Period
Year to Date
2025
2024
% Change
2025
2024
% Change
Net sales
$
370,097
$
375,315
(1.4)
%
$
1,603,723
$
1,636,563
(2.0)
%
Net earnings
7,506
16,563
(54.7)
66,414
80,035
(17.0)
Net margin
2.0
%
4.4
%
4.1
%
4.9
%
Adjusted EBITDA
27,518
37,657
(26.9)
135,643
159,277
(14.8)
Adjusted EBITDA margin
7.4
%
10.0
%
8.5
%
9.7
%
Percentage change in net sales:
Organic units
(2)
%
(1)
%
Acquisitions
1
1
Selling prices
—
(2)
Structural Packaging organic unit sales grew 1 percent in the quarter from year ago levels.
PalletOne organic unit sales declined 8 percent in the quarter from year ago levels due to weaker demand, which was partially offset by a 4 percent contribution from acquisitions.
Protective Packaging organic unit sales declined 2 percent in the quarter from a year ago, due to challenging market conditions.
UFP Construction
(In thousands)
Quarter Period
Year to Date
2025
2024
% Change
2025
2024
% Change
Net sales
$
439,790
$
486,776
(9.7)
%
$
2,003,785
$
2,113,844
(5.2)
%
Net earnings
15,437
27,595
(44.1)
89,626
136,179
(34.2)
Net margin
3.5
%
5.7
%
4.5
%
6.4
%
Adjusted EBITDA
33,173
45,022
(26.3)
157,841
208,417
(24.3)
Adjusted EBITDA margin
7.5
%
9.2
%
7.9
%
9.9
%
Percentage change in net sales:
Organic units
(5)
%
—
%
Acquisitions
—
—
Selling prices
(5)
(5)
Site Built organic unit sales declined 17 percent in the quarter from year ago levels due to weaker single-family residential activity in our core western markets.
Factory Built organic unit sales grew 1 percent in the quarter from year ago levels.
Concrete Forming Solutions organic unit sales grew 3 percent in the quarter from year ago levels.
Commercial organic sales grew 3 percent in the quarter from year ago levels.
Capital Structure, Leverage and Liquidity Information
UFP Industries maintains a strong balance sheet and as of December 27, 2025, had liquidity of approximately $2.2 billion consisting of over $900 million of cash 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:
Acquisitions and Organic Growth. The company seeks strategic acquisitions and 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 $300 million to $325 million on capital projects in 2026.
Dividend payments. On February 12, 2026, the UFP Industries Board of Directors increased our quarterly cash dividend to $0.36 per share, which represents a 3 percent year-over-year increase. This dividend is payable on March 16, 2026, to shareholders of record on March 2, 2026. 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 earnings and free cash flow growth.
Share repurchases. As of December 27, 2025, we repurchased 4.5 million shares for $443 million, at an average share price of $98.39 for the year, representing approximately 7 percent of our shares outstanding at the beginning of the year.
2026 Outlook and Long-Term Targets
We anticipate that the current market environment will continue in 2026 and that overall demand will be flat to slightly down in each of our segments based on our sales mix. We anticipate markets tied to new residential construction will remain more challenged and see stabilization across our other end markets as an offset. However, we believe we are positioned well to perform better than the market due to market share gains across our portfolio and the execution of our cost out program. We anticipate initial stocking orders, upgraded manufacturing capacity, and expanded distribution will support momentum in our Deckorators and Surestone businesses in 2026.
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 Tuesday, February 24, 2026, to discuss these results and outlook. The conference call will begin at 9:30 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.
Net earnings
Net earnings refers to net earnings attributable to controlling interest unless specifically noted.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND
COMPREHENSIVE INCOME (UNAUDITED)
FOR THE THREE AND TWELVE MONTHS ENDED
DECEMBER 2025/2024
Quarter Period
Year to Date
(In thousands, except per share data)
2025
2024
2025
2024
Net sales
$
1,329,823
100.0
%
$
1,462,001
100.0
%
$
6,320,343
100.0
%
$
6,652,309
100.0
%
Cost of sales
1,113,284
83.7
1,222,492
83.6
5,260,193
83.2
5,425,567
81.6
Gross profit
216,539
16.3
239,509
16.4
1,060,150
16.8
1,226,742
18.4
Operating expenses
Selling, general and administrative expenses
159,729
12.0
156,491
10.7
691,008
10.9
735,046
11.0
Net (gain) loss on disposition and impairments of assets
(3,084)
(0.2)
4,619
0.3
3,128
—
6,157
0.1
Other losses (gains), net
807
0.1
(1,060)
(0.1)
2,113
—
(6,703)
(0.1)
Total operating expenses
157,452
160,050
696,249
734,500
Earnings from operations
59,087
4.4
79,459
5.4
363,901
5.8
492,242
7.4
Interest and other
(1,394)
(0.1)
(11,560)
(0.8)
(28,340)
(0.4)
(47,913)
(0.7)
Earnings before income taxes
60,481
4.5
91,019
6.2
392,241
6.2
540,155
8.1
Income taxes
20,325
1.5
21,236
1.5
96,249
1.5
121,422
1.8
Net earnings
40,156
3.0
69,783
4.8
295,992
4.7
418,733
6.3
Less net earnings attributable to noncontrolling interest
(197)
—
(1,744)
(0.1)
(1,200)
