Q1 2026 UFP Industries Inc Earnings Call Transcript
Key Points
- UFP Industries Inc (UFPI) has approximately $2 billion in liquidity, allowing for meaningful M&A opportunities and shareholder returns through share repurchases and dividends.
- The company announced two strategic acquisitions post-quarter-end: MoistureShield and Berry Pallets, which are expected to expand capacity and geographic reach.
- Deckorators segment showed strong momentum with a 27% increase in Surestone decking sales and a 4% increase in traditional wood/plastic composite decking sales.
- UFP Industries Inc (UFPI) is on track to deliver the remaining $25 million of its $60 million cost-out program by year-end, with potential for additional savings.
- The company maintains a strong balance sheet with $714 million in surplus cash and no borrowings under its credit agreements.
- Net sales for Q1 2026 were down 8% from the previous year, reflecting a 7% decline in units and a 1% decline in pricing.
- The company faced macro headwinds, including geopolitical uncertainty and inflation, particularly in transportation costs.
- Higher medical costs and a longer-than-normal winter season adversely affected profitability, contributing to a 60% year-over-year decline in profitability.
- The Site Built segment experienced a 14% unit decline due to continued weakness in residential construction activity and competitive pricing pressure.
- The company anticipates continued pressure from energy and transportation costs, which may take time to offset through pricing actions.
Good day, and welcome to UFP Industries Q1 2026 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. Thank you for joining us to discuss UFP Industries' first-quarter 2026 results. Joining me on our call are Will Schwartz, our President and Chief Executive Officer; and Mike Cole, our Chief Financial Officer. Following our prepared remarks, we will open the call for questions.
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 Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, the
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