UFP Industries (UFPI) Q1 2026 earnings summary

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.

• Adjusted EBITDA was $111.4 million (7.6% margin), down from $142.2 million (8.9%) year-over-year; diluted EPS was $0.89, compared to $1.30 a year ago.

• Profitability decline was mainly due to abnormal March weather, increased healthcare and fuel costs, and higher transportation expenses.

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

• Innovation initiatives and recent acquisitions drive transformation from commodity to value-added solutions.

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%).

• Adjusted EBITDA: $111 million (7.6% margin), down $31 million year-over-year; operating income: $64.1 million, down from $92.3 million.

• Net earnings attributable to controlling interest: $50.8 million, down from $78.8 million; diluted EPS: $0.89 vs. $1.30.

• Free cash flow for Q1 2026 TTM: $267 million; cash and cash equivalents at quarter-end were $714 million, with total liquidity of $2.0 billion.

• Retail sales were $531 million (down 12%), Packaging $394 million (down 4%), and Construction $465 million (down 10%) year-over-year.

Outlook and guidance

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

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

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

• $100 million Deckorators growth target reaffirmed; pricing actions underway to offset cost headwinds, with benefits expected later in the year.

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