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UFP Industries
(NASDAQ:UFPI)
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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)
Market Cap
$4.76B
Dividend Yield1.66%
Average Volume (3M)518.04K
Price to Earnings (P/E)19.6
Beta (1Y)0.78
Revenue Growth-4.72%
EPS Growth-24.05%
CountryUS
Employees13,800
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)4.35
Shares Outstanding55,161,490
10 Day Avg. Volume408,437
30 Day Avg. Volume518,036
Financial Highlights & Ratios
PEG Ratio-0.71
Price to Book (P/B)1.77
Price to Sales (P/S)0.87
P/FCF Ratio19.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$101.00Price Target Upside16.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)4.52
Revenue Forecast (FY)$6.31B
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
Positive
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
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.23B | 6.32B | 6.65B | 7.22B | 9.63B | 8.64B |
| Gross Profit | 1.01B | 1.06B | 1.23B | 1.42B | 1.79B | 1.41B |
| EBITDA | 505.02M | 564.21M | 701.03M | 815.97M | 1.06B | 838.28M |
| Net Income | 246.12M | 294.79M | 414.56M | 514.31M | 692.65M | 535.64M |
Balance Sheet | ||||||
| Total Assets | 4.10B | 4.02B | 4.15B | 4.02B | 3.67B | 3.25B |
| Cash, Cash Equivalents and Short-Term Investments | 645.20M | 959.45M | 1.20B | 1.15B | 595.41M | 323.16M |
| Total Debt | 234.25M | 229.76M | 356.92M | 384.30M | 389.09M | 437.07M |
| Total Liabilities | 1.04B | 934.19M | 900.95M | 967.58M | 1.07B | 1.23B |
| Stockholders Equity | 3.06B | 3.08B | 3.22B | 3.00B | 2.56B | 1.98B |
Cash Flow | ||||||
| Free Cash Flow | 264.64M | 276.36M | 410.30M | 779.51M | 657.44M | 361.31M |
| Operating Cash Flow | 490.84M | 545.74M | 642.57M | 959.89M | 831.57M | 512.48M |
| 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
Negative
86.34
Price Trends
88.20
Negative
87.31
Negative
91.95
Negative
Market Momentum
<0.01
Positive
43.59
Neutral
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.76B | 19.62 | 7.92% | 1.61% | -4.72% | -24.05% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $680.49M | 7.48 | 19.47% | 4.58% | 1.06% | ― | |
58 Neutral | $344.33M | -6.94 | -6.13% | ― | -1.93% | 48.75% | |
58 Neutral | $4.98B | 89.52 | 3.11% | 1.56% | -14.37% | -81.88% | |
57 Neutral | $1.46B | 19.12 | 7.84% | 4.70% | -7.13% | -64.17% | |
39 Underperform | $27.68M | -0.05 | -638.67% | 11.18% | -4.81% | -372.95% |
* Basic Materials Sector Average
UFPI
UFP Industries
85.33
-15.20
-15.12%
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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’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.