Q4 2025 UFP Industries Inc Earnings Call Transcript
Key Points
- UFP Industries Inc (UFPI) executed $443 million in share repurchases, representing 7% of outstanding shares, and paid $82 million in dividends, with a 3% dividend increase announced for 2026.
- The company maintained a strong balance sheet with $2.2 billion in liquidity, providing flexibility for M&A opportunities and shareholder returns.
- UFPI's Deckorators brand saw a 44% increase in Surestone sales and a 35% increase in wood-plastic composite sales, indicating strong demand and market share gains.
- The company achieved $11 million in SG&A cost reductions in Q4 and is on track to surpass its $60 million cost-out program by the end of 2026.
- UFPI's packaging segment showed signs of stabilization, with structural packaging volume increasing by 1%, marking the first positive year-over-year comparison since 2021.
- Net sales for Q4 2025 were $1.3 billion, down 9% from the previous year, driven by a 7% decline in units and a 2% decline in pricing.
- The Site Built and ProWood business units experienced significant declines, contributing to a 10% decrease in gross profits to $217 million.
- The Retail segment saw a 15% decline in sales, with ProWood experiencing a 13% unit decrease and Edge a 57% decrease due to restructuring.
- The construction segment faced a 10% sales decline, with a 17% unit decline in the Site Built business due to challenges in the residential construction market.
- UFPI's profitability remained pressured by cyclical and competitive pricing pressures, with adjusted EBITDA declining by 8% year-over-year.
Good day, and welcome to the UFP Industries fourth quarter and full year 2025 earnings conference call and webcast. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker, Mr. Stanley Elliott, Director of Investor Relations. Please go ahead.
Good morning, everyone. And thank you for joining us to discuss our fourth quarter results.
With me on the call are Will Schwartz, our President and Chief Executive Officer; and Mike Cole, our Chief Financial Officer. Will and Mike will offer prepared remarks, and then we will open the call for questions. This conference call is available to all investors and news media through the Investor Relations section of our website, ufpi.com, where we will also post a replay of this call.
Before I turn the call over, let me remind you that yesterday's press release and presentation include forward-looking statements as defined in the Private Securities
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