tiprankstipranks
UFP Industries (UFPI)
NASDAQ:UFPI
Want to see UFPI full AI Analyst Report?

UFP Industries (UFPI) AI Stock Analysis

365 Followers

Top Page

UFPI

UFP Industries

(NASDAQ:UFPI)

Select Model
Select Model
Select Model
Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
$98.00
▲(13.50% Upside)
Action:Reiterated
Date:08/18/26
UFPI scores as moderately attractive, led by strong financial resilience (very low leverage and solid liquidity) but tempered by a clear downshift in margins, profitability and free-cash-flow momentum. The latest earnings call reinforced this balance—good operational execution and shareholder returns, yet significant transportation-cost headwinds and conservative demand expectations. Technicals and valuation are both neutral and do not meaningfully change the overall view.
Positive Factors
Strong Balance Sheet and Liquidity
Very low leverage and substantial liquidity give UFPI flexibility to manage cyclical demand, fund capacity and acquisitions, and sustain shareholder returns without relying heavily on external financing.
Negative Factors
Sustained Revenue and Margin Decline
The multi-year slowdown indicates weaker operating conditions and reduced earnings power versus the prior cycle. Lower margins also make results more sensitive to input costs and limit near-term returns on capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet and Liquidity
Very low leverage and substantial liquidity give UFPI flexibility to manage cyclical demand, fund capacity and acquisitions, and sustain shareholder returns without relying heavily on external financing.
Read all positive factors

UFP Industries (UFPI) vs. SPDR S&P 500 ETF (SPY)

UFP Industries Business Overview & Revenue Model

Company Description
UFP Industries, Inc., a company founded in 1955 and based in Grand Rapids, Michigan, specializes in the global design, manufacturing, and distribution of both traditional wood and innovative wood-alternative products. Operating across North Americ...
How the Company Makes Money
UFP Industries makes money by manufacturing and distributing wood-based and wood-adjacent products and services across several end markets, generating revenue primarily from product sales and, in some cases, value-added services. Key revenue strea...

UFP Industries Earnings Call Summary

Earnings Call Date:Jul 29, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Neutral
The call presented a mix of meaningful operational wins (first organic growth since 2022; strong Deckorators/decking growth; strategic acquisitions; new product traction; strong liquidity and active capital returns) alongside significant near-term profitability pressure driven primarily by an abrupt, structural rise in flatbed transportation costs and continued softness in new residential / site-built end markets. Management emphasized disciplined capital allocation, margin-focused initiatives and expectations that transportation pressure will gradually ease from peak levels but remain elevated. Overall, positive execution and balance-sheet strength are offset by material margin headwinds and conservative near-term demand expectations.
Positive Updates
Positive Consolidated Sales and First Organic Growth Since 2022
Net sales of $1.88 billion, up ~3% year-over-year (management also cited 2.6%); overall volume increased ~3% (1% organic, 2% from acquisitions). This is the first quarter of positive year-over-year organic growth since Q3 2022.
Negative Updates
Adjusted EBITDA and Margin Compression
Adjusted EBITDA was $154 million, down $20 million year-over-year; consolidated adjusted EBITDA margin declined to 8.2% from 9.5% (a ~130 basis point decline).
Read all updates
Q2-2026 Updates
Negative
Positive Consolidated Sales and First Organic Growth Since 2022
Net sales of $1.88 billion, up ~3% year-over-year (management also cited 2.6%); overall volume increased ~3% (1% organic, 2% from acquisitions). This is the first quarter of positive year-over-year organic growth since Q3 2022.
Read all positive updates
Company Guidance
UFP said its full‑year outlook is unchanged but now expects demand for the rest of 2026 toward the lower end of prior guidance (prior plan = flat to slightly down unit expectations by segment); Q2 results cited to frame this included net sales of $1.88B (+3% YoY), volume +3% (2% acquisitions, 1% organic), and adjusted EBITDA $154M (8.2% margin vs 9.5% a year ago). Management warned input costs—particularly energy and transportation—will remain elevated: flatbed spot rates rose ~30% (ex‑fuel) in Q2, driving roughly a $31–34M gross increase and a $27M net transportation headwind (≈1.6% of sales) they expect to stabilize at higher levels and be gradually mitigated through pricing and efficiencies. They remain on track to achieve/exceed the remaining $25M of a $60M cost‑out program, expect to invest $175–200M in 2026 capex (≈$75M maintenance), have ~$600M cash and no revolver borrowings (≈$1.9B total liquidity), expect a $170M seasonal working‑capital conversion to cash by early Q4, historically convert ~70–80% of adjusted EBITDA to free cash flow, target a long‑term 12.5% EBITDA margin, and continue shareholder returns (quarterly dividend $0.36, +3% YoY; $300M repurchase authorization; YTD buybacks $142M at $84.95 avg).

UFP Industries Financial Statement Overview

Summary
Financial profile is resilient due to a standout balance sheet (very low leverage; debt-to-equity ~0.08) and continued profitability, but operating performance has clearly cooled: multi-year revenue declines, margin compression (TTM net margin ~4.3% vs ~7.2% in 2022–2023), and weaker free-cash-flow trajectory (TTM FCF -11.2% and lower cash conversion vs prior years).
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
67
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.23B6.32B6.65B7.22B9.63B8.64B
Gross Profit1.01B1.06B1.23B1.42B1.79B1.41B
EBITDA505.02M564.21M701.03M815.97M1.06B838.28M
Net Income246.12M294.79M414.56M514.31M692.65M535.64M
Balance Sheet
Total Assets4.10B4.02B4.15B4.02B3.67B3.25B
Cash, Cash Equivalents and Short-Term Investments645.20M959.45M1.20B1.15B595.41M323.16M
Total Debt234.25M229.76M356.92M384.30M389.09M437.07M
Total Liabilities1.04B934.19M900.95M967.58M1.07B1.23B
Stockholders Equity3.06B3.08B3.22B3.00B2.56B1.98B
Cash Flow
Free Cash Flow264.64M276.36M410.30M779.51M657.44M361.31M
Operating Cash Flow490.84M545.74M642.57M959.89M831.57M512.48M
Investing Cash Flow-331.63M-273.24M-270.75M-240.16M-353.94M-611.19M
Financing Cash Flow-407.10M-530.14M-307.12M-162.86M-210.21M-45.01M

UFP Industries Technical Analysis

Technical Analysis Sentiment
Negative
Last Price86.34
Price Trends
50DMA
88.20
Negative
100DMA
87.31
Negative
200DMA
91.95
Negative
Market Momentum
MACD
<0.01
Positive
RSI
43.59
Neutral
STOCH
23.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFPI, the sentiment is Negative. The current price of 86.34 is below the 20-day moving average (MA) of 89.98, below the 50-day MA of 88.20, and below the 200-day MA of 91.95, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.59 is Neutral, neither overbought nor oversold. The STOCH value of 23.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UFPI.

UFP Industries Risk Analysis

UFP Industries disclosed 18 risk factors in its most recent earnings report. UFP Industries reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

UFP Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$4.76B19.627.92%1.61%-4.72%-24.05%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
$680.49M7.4819.47%4.58%1.06%
58
Neutral
$344.33M-6.94-6.13%-1.93%48.75%
58
Neutral
$4.98B89.523.11%1.56%-14.37%-81.88%
57
Neutral
$1.46B19.127.84%4.70%-7.13%-64.17%
39
Underperform
$27.68M-0.05-638.67%11.18%-4.81%-372.95%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UFPI
UFP Industries
85.33
-15.20
-15.12%
CLW
Clearwater Paper
21.09
-0.29
-1.36%
LPX
Louisiana-Pacific
70.72
-23.50
-24.94%
MERC
Mercer International
0.39
-2.85
-87.96%
MATV
Mativ Holdings
12.18
0.32
2.70%
SLVM
Sylvamo Corp
36.60
-7.43
-16.87%

UFP Industries Corporate Events

Business Operations and StrategyFinancial Disclosures
UFP Industries Highlights Q2 2026 Strategy and Performance
Positive
Jul 30, 2026
UFP Industries released its current second-quarter 2026 investor relations presentation, detailing results through June 27, 2026 and outlining its strategic priorities and financial performance. The materials highlight trailing 12-month net sales ...
Business Operations and StrategyStock Buyback
UFP Industries Announces $300 Million Share Repurchase Program
Positive
Jun 1, 2026
On May 29, 2026, the board of UFP Industries, Inc. authorized a new share repurchase program of up to $300 million of the company&#8217;s outstanding common stock, with the authorization set to expire on April 30, 2027 and replacing prior buyback ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 18, 2026