UFP Industries (UFPI) investor relations material

Executive summary

• Q1 2026 net sales were $1.46 billion, down 8% year-over-year due to a 7% unit decline and 1% price decrease, with all major segments experiencing lower volumes from weak demand, adverse weather, and higher costs.

• Diluted EPS was $0.89, down from $1.30 a year ago; net earnings attributable to controlling interests were $50.8 million, down from $78.8 million.

• Adjusted EBITDA was $111.4 million (7.6% margin), down from $142.2 million (8.9%) year-over-year; profitability decline was mainly due to abnormal weather and increased costs.

• The company maintains strong liquidity with $714 million in cash and $2.0 billion in total liquidity, supporting ongoing M&A and capital returns.

• Focus remains on cost control, strategic M&A, and returning free cash flow to shareholders via dividends and share repurchases.

Financial highlights

• Q1 2026 net sales: $1.46 billion, down from $1.60 billion in Q1 2025; gross profit: $235.9 million (16.1% margin), down from $268.2 million (16.8%).

• Operating income: $64.1 million (4.4% margin), down from $92.3 million (5.8%).

• Adjusted EBITDA: $111.4 million (7.6% margin), down $31 million year-over-year.

• Free cash flow was negative $87 million, with $30 million used for share repurchases.

• Trailing 12-month ROIC remained strong at nearly 11%, above the weighted average cost of capital.

Outlook and guidance

• Market environment expected to remain challenging through 2026, with demand trending toward the lower end of prior guidance.

• Flat to slightly down unit volumes anticipated across segments; input cost pressures from energy and transportation expected to persist.

• Long-term targets include 7–10% annual unit sales growth, 12.5% adjusted EBITDA margin, and maintaining a conservative capital structure.

• Cost reduction initiatives on track to deliver $25 million in additional operating profit improvements by year-end.

• $100 million incremental growth targeted in Deckorators decking and railing sales for 2026.