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UFP Industries
(NASDAQ:UFPI)
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Rating:68Neutral
Price Target:
$89.00
▲(3.08% Upside)
Action:Reiterated
Date:10/27/26
UFPI scores as moderately attractive, primarily supported by strong financial resilience (very low leverage and ample liquidity) but held back by the clear downshift in revenue/margins and weaker free-cash-flow trend. Technicals remain mixed-to-soft with the stock below longer-term moving averages, while valuation is reasonable rather than compelling. The latest earnings call reinforces a balanced view: good execution and shareholder returns, offset by meaningful transportation-cost headwinds and a more conservative demand outlook.
Positive Factors
Balance Sheet Strength
Very low leverage and substantial equity provide financial resilience in a cyclical industry. This supports continued investment, acquisitions and shareholder returns while reducing refinancing pressure if construction or industrial demand remains uneven over the next several quarters.
Negative Factors
Revenue and Margin Downshift
The sustained decline in revenue and profitability indicates that UFPI has not yet regained its prior-cycle earnings performance. Lower gross and operating margins reduce internal funding capacity and make durable earnings growth more dependent on volume recovery and operational improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and substantial equity provide financial resilience in a cyclical industry. This supports continued investment, acquisitions and shareholder returns while reducing refinancing pressure if construction or industrial demand remains uneven over the next several quarters.
Read all positive factors
UFP Industries (UFPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.46B
Dividend Yield1.77%
Average Volume (3M)488.88K
Price to Earnings (P/E)18.6
Beta (1Y)0.63
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. Volume473,654
30 Day Avg. Volume488,880
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 Cap1.07
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit4.73
Enterprise Value/Ebitda9.42
Forecast
1Y Price Target
$98.00Price Target Upside13.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)4.47
Revenue Forecast (FY)$6.30B
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
UFPI makes money primarily by purchasing lumber and other raw materials, converting them into higher-value products through processing and manufacturing (e.g., treating, cutting, fabricating, assembling, packaging), and selling those products to a...
UFP Industries Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 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
Neutral
86.34
Price Trends
81.32
Negative
84.11
Negative
89.34
Negative
Market Momentum
0.03
Negative
54.33
Neutral
79.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFPI, the sentiment is Neutral. The current price of 86.34 is above the 20-day moving average (MA) of 78.07, above the 50-day MA of 81.32, and below the 200-day MA of 89.34, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.63B | 25.40 | 5.12% | 1.18% | -1.52% | -56.95% | |
68 Neutral | $4.46B | 18.60 | 7.92% | 1.77% | -4.72% | -24.05% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $5.04B | 91.18 | 3.11% | 1.64% | -14.37% | -81.88% | |
52 Neutral | $9.96M | -1.21 | -48.58% | ― | -10.71% | -297.69% | |
49 Neutral | $309.98M | 120.13 | 0.30% | ― | -1.93% | 48.75% | |
49 Neutral | $17.69B | -5.12 | -22.39% | 5.54% | 10.34% | -7165.92% |
* Basic Materials Sector Average
UFPI
UFP Industries
80.93
-9.59
-10.59%
CLW
Clearwater Paper
19.22
-0.09
-0.47%
IP
International Paper Co
33.40
-11.51
-25.62%
JCTC
Jewett-Cameron Trading Company
2.83
-0.38
-11.84%
LPX
Louisiana-Pacific
72.03
-17.95
-19.95%
BCC
Boise Cascade
75.44
3.91
5.47%
UFP Industries Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
UFP Industries Expands Pallet Network with Apache Acquisition
Positive
Oct 26, 2026
Effective Oct. 23, 2026, UFP Industries entered into a fifth amendment to its credit agreement, extending the maturity of its $750 million revolving credit facility to Oct. 23, 2031 and increasing sublimits for swingline loans and letters of credi...
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 ...
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.