UFP Industries Announces Third Quarter 2026 Results
UFP INDUSTRIES INC (UFPI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 UFP Industries Announces Third Quarter 2026 Results GRAND RAPIDS, MI (October 28, 2026) - UFP Industries, Inc. (Nasdaq: UFPI), a leading manufacturer focused on delivering value-added products across its Retail, Packaging, and Construction segments, reporte
How this was made
The 30-second read
Why it matters
The earnings miss and higher freight costs are likely to depress the stock in the short term, though the company’s liquidity and acquisition pipeline provide a longer‑term upside narrative.
Market read
The new earnings data introduces fresh downside risk for UFPI and may influence peer industrial stocks.
What to watch
Strong cash position of $2 billion and ongoing acquisitions could support longer‑term growth.
Net sales increased 11.1 percent to $1.73 billion, while diluted earnings per share declined to $1.05 from $1.29 and adjusted EBITDA declined to $119.3 million from $140.0 million.
Quarterly sales and organic units grew, but gross profit, operating earnings, net earnings, diluted EPS, and adjusted EBITDA declined amid higher freight and lumber costs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, third quarterGAAP | $1.73B | – | 11.1 % |
| Cost of sales, third quarterGAAP | $1.49B | – | – |
| Gross profit, third quarterGAAP | $244.9M | – | – |
| Gross profit margin, third quarterGAAP | 14.1 % | – | – |
| Selling, general and administrative expenses, third quarterGAAP | $178.1M | – | – |
| Total operating expenses, third quarterGAAP | $174.8M | – | – |
| Earnings from operations, third quarterGAAP | $70.16M | – | – |
| Net earnings, third quarterGAAP | $58.63M | – | (22.4) % |
| Net margin, third quarterGAAP | 3.4 % | – | – |
| Net earnings attributable to controlling interest, third quarterGAAP | $57.97M | – | – |
| Earnings per share - basic, third quarterGAAP | $ 1.05 | – | – |
| Earnings per share - diluted, third quarterGAAP | $ 1.05 | – | – |
| Adjusted EBITDA, third quarternon-GAAP | $119.3M | – | (14.8) % |
| Adjusted EBITDA margin, third quarternon-GAAP | 6.9 % | – | – |
| Net sales, first nine monthsGAAP | $5.08B | – | 1.7 % |
| Gross profit, first nine monthsGAAP | $771.0M | – | – |
| Gross profit margin, first nine monthsGAAP | 15.2 % | – | – |
| Earnings from operations, first nine monthsGAAP | $237.7M | – | – |
| Net earnings, first nine monthsGAAP | $192.9M | – | (24.6) % |
| Net margin, first nine monthsGAAP | 3.8 % | – | – |
| Earnings per share - diluted, first nine monthsGAAP | $ 3.43 | – | – |
| Adjusted EBITDA, first nine monthsnon-GAAP | $385.1M | – | (15.6) % |
| Adjusted EBITDA margin, first nine monthsnon-GAAP | 7.6 % | – | – |
| Net cash from operating activities, first nine monthsGAAP | $234.5M | – | – |
| Free cash flow, first nine monthsnon-GAAP | $287.2M | – | – |
| Capital expenditures, first nine monthsGAAP | $122.7M | – | – |
| Cash and cash equivalents, September 2026GAAP | $677.4M | – | – |
| Long-term debt and finance lease obligations, September 2026GAAP | $229.1M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| UFP Retail, third quarterSelling prices contributed 6 percent to net sales and acquisitions contributed 1 percent. Deckorators’ organic unit sales grew 21 percent, while ProWood organic unit sales declined 4 percent. | $634.5M | – | 6.8 % |
| UFP Packaging, third quarterOrganic units increased 9 percent, acquisitions contributed 6 percent, and selling prices contributed 3 percent. Structural Packaging organic unit sales grew 14 percent. | $465.8M | – | 18.0 % |
| UFP Construction, third quarterOrganic units increased 4 percent and selling prices contributed 7 percent. Site Built organic unit sales increased 12 percent and Commercial organic unit sales increased 20 percent. | $552.4M | – | 11.3 % |
| All Other, third quarterThe filing presents All Other as a separate column in the condensed consolidated statements of earnings by segment. | $78.03M | – | – |
| UFP Retail, first nine monthsOrganic units declined 4 percent, acquisitions contributed 1 percent, and selling prices contributed 3 percent. | $1.98B | – | (0.3) % |
| UFP Packaging, first nine monthsOrganic units increased 4 percent and acquisitions contributed 3 percent. | $1.32B | – | 6.9 % |
| UFP Construction, first nine monthsOrganic units declined 1 percent; selling prices and acquisitions were reported as —. | $1.54B | – | (1.2) % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
full year 2026 outlook
- NoteFull year 2026 outlook remains unchanged.
- NoteOverall industry unit demand for the year is expected to be slightly down in each segment based on sales mix.
- NoteThe company now expects to meet or exceed its initial $60 million cost-savings objective by year-end.
- NoteThe company expects to invest approximately $150 million to $175 million on capital projects for the year.
- NoteEnergy and transportation are expected to remain elevated for the balance of the year.
- NoteDemand tied to new residential construction is expected to remain challenging, and the company is not assuming a meaningful improvement in underlying market demand through year-end.
- NoteLong-term goal: 7-10 percent unit sales growth annually, including bolt-on acquisitions, with at least 10 percent of all sales coming from new products.
- NoteLong-term goal: 12.5 percent adjusted EBITDA margins.
Capital returns
- During the first nine months of 2026, the company repurchased 2,169,224 shares for $182.7 million, at an average share price of $84.24.
- Dividends paid to shareholders during the first nine months of 2026 were $ 60,199 (In thousands).
- On October 21, 2026, the Board declared a quarterly cash dividend of $0.36 per share, payable on December 15, 2026 to shareholders of record on December 1, 2026.
- The quarterly dividend represents a 3% increase from the 2025 quarterly dividend rate of $0.35 per share.
- The board authorized a new repurchase plan for up to $300 million worth of shares through April 30, 2027.
- As of October 28, 2026, approximately $198 million remained available under the latest repurchase authorization.
- Management stated that more than $240 million had been returned to shareholders through dividends and share repurchases so far in 2026.
What drove it
- Third-quarter net sales growth reflected a 4 percent increase in organic units, a 2 percent increase due to acquisitions, and a 5 percent increase in selling prices.
- Volume improved in Site Built, Commercial, Structural Packaging, and Deckorators.
- New product sales were 8.7 percent of total net sales compared to 6.8 percent a year ago.
- Deckorators’ Surestone decking sales increased 70 percent, and its backlog of ordered but unshipped Surestone decking improved to approximately $18 million.
- The MoistureShield acquisition contributed a 44 percent increase in wood plastic composite decking sales.
- Management cited cost-out actions, integration of recent acquisitions, improved utilization of newer facilities, and greater new and value-added product mix as profit-improvement opportunities.
Concerns
- Transportation costs, net of fuel surcharges, increased by $19 million, or 1.3 percent of net sales, compared with year-ago levels.
- Freight spot rates, excluding fuel, increased 30 percent during the quarter before stabilizing at an elevated level toward the end of the quarter.
- Higher freight and lumber costs reduced the earnings benefit of higher volumes and an improved earnings profile.
- Retail adjusted EBITDA declined 14.7 percent, Packaging adjusted EBITDA declined 20.5 percent, and Construction adjusted EBITDA declined 10.0 percent.
- Factory Built organic unit sales decreased 10 percent due to the loss of lower margin commodity sales.
- Management expects new residential construction demand to remain challenging and industry unit demand to be slightly down in each segment for the year.
What to watch
- Whether the company meets or exceeds its initial $60 million cost-savings objective by year-end.
- Fourth-quarter conversion of roughly $100 million invested in seasonal working capital requirements.
- The persistence of elevated transportation, energy, and material costs and the company’s ability to offset them.
- Deckorators’ Surestone capacity optimization, backlog conversion, upgraded manufacturing capacity, and expanded distribution.
- Integration of recent acquisitions, including the planned November 2026 acquisition of Apache Products, Inc. for an estimated $27 million in cash.
- Execution against the expected $150 million to $175 million of capital projects for the year.
Balance sheet and cash flow
- Liquidity was approximately $2.0 billion as of September 26, 2026, consisting of more than $677 million of Cash and cash equivalents and $1.3 billion of remaining availability under the revolving credit facility and a shelf agreement with certain lenders.
- The company had no borrowings outstanding under its revolving credit facility.
- Current portion of debt was $ 5,247 (In thousands) as of September 2026, compared with $ 5,386 (In thousands) as of September 2025.
- Long-term debt and finance lease obligations were $ 229,114 (In thousands) as of September 2026, compared with $ 229,007 (In thousands) as of September 2025.
- Accounts receivable were $ 684,638 (In thousands) and inventories were $ 747,529 (In thousands) as of September 2026.
- 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.
- Net cash used in investing activities was $ 236,100 (In thousands) in the first nine months of 2026, including $ 123,097 (In thousands) for acquisitions and purchases of non-controlling interest, net of cash received.
- Maintenance capital expenditures were $ 52,910 (In thousands), and expansionary and efficiency capital expenditures were $ 69,805 (In thousands), in the first nine months of 2026.
Analysis
UFP Industries delivered third-quarter net sales of $1.73 billion, up 11.1 percent from $1.56 billion. Growth came from a 4 percent increase in organic units, a 2 percent acquisition contribution, and a 5 percent increase in selling prices. Organic volume gains were broad across Site Built, Commercial, Structural Packaging, and Deckorators. New product sales rose to 8.7 percent of total net sales from 6.8 percent a year ago, indicating continued progress in the company’s value-added product portfolio.
The earnings result was weaker than the revenue result. Gross profit was $244,921 thousand versus $262,681 thousand, and gross profit margin was 14.1 percent versus 16.8 percent. Earnings from operations were $70,156 thousand versus $89,471 thousand. Net earnings declined 22.4 percent to $58,633 thousand, diluted EPS was $1.05 versus $1.29, and adjusted EBITDA declined 14.8 percent to $119,255 thousand. Transportation costs, net of fuel surcharges and price adjustments, increased by $19 million, or 1.3 percent of net sales, while the company also cited higher lumber and material costs.
All three operating segments increased quarterly sales, but segment profitability declined. Retail sales increased 6.8 percent, Packaging sales increased 18.0 percent, and Construction sales increased 11.3 percent. Retail adjusted EBITDA declined 14.7 percent, Packaging adjusted EBITDA declined 20.5 percent, and Construction adjusted EBITDA declined 10.0 percent. Packaging’s volume growth was supported by Structural Packaging, PalletOne, and Protective Packaging, while Construction benefited from Site Built, Concrete Forming Solutions, and Commercial. Management identified higher transportation costs across business units as a central pressure on profitability.
Cash generation remained material despite lower earnings. Net cash from operating activities was $234,516 thousand for the first nine months, while free cash flow was $287,167 thousand. The company stated that roughly $100 million invested in seasonal working capital is expected to convert to cash in the fourth quarter. UFP repurchased 2,169,224 shares for $182.7 million during the first nine months, paid $60,199 thousand in dividends, and maintained approximately $2.0 billion of liquidity with no borrowings outstanding under the revolving credit facility.
The full-year 2026 outlook remains unchanged. Management expects overall industry unit demand to be slightly down in each segment and does not assume a meaningful improvement in underlying market demand through year-end. It expects to outperform markets through share gains, new and value-added products, and cost-out initiatives, and now expects to meet or exceed its initial $60 million cost-savings objective by year-end. The key reported issue is whether cost actions, acquisition integration, utilization improvements, and Surestone momentum can offset elevated transportation, energy, and material costs.
Management, verbatim
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.
Will Schwartz, President and CEO of UFP Industries
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.
Will Schwartz, President and CEO of UFP Industries
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.
Will Schwartz, President and CEO of UFP Industries
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported quarterly metrics
- Quantitative full-year 2026 revenue guidance
- Quantitative full-year 2026 gross-margin guidance
- Quantitative full-year 2026 operating-expense guidance
- Quantitative full-year 2026 tax-rate guidance
- Prior release outlook for comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
UFP Industries Inc. (Nasdaq: UFPI) filed a Form 8‑K reporting its third‑quarter 2026 results, highlighting revenue growth but margin compression.
Ticker impact
UFPI reported Q3 2026 net sales of $1.73 billion, EPS of $1.05 and a 22% drop in net earnings versus a year ago.
likely downward pressure as the market prices in lower earnings and margin compression
The quarter showed weaker earnings per share and a decline in net margin, while transportation costs rose 1.3% of sales, suggesting earnings disappointment may trigger a sell‑off.
Market effects
The packaging and construction materials sector may see broader pressure as UFPI signals cost‑inflation challenges.
U.S. industrial stocks could face modest downside risk in the near term.
Limited; impact confined to U.S. listed industrials.
Counterpoint
If the company can achieve its $60 million cost‑savings target, the earnings dip may be temporary.
Key entities
- ExecutiveWill Schwartz
President and CEO of UFP Industries who commented on cost‑savings and liquidity.
