<div id="readability-page-1"><div>UFP Industries Inc., a leading manufacturer and supplier of wood and wood-alternative products, has released its 2025 10-K report, detailing the company's financial performance, business operations, strategic initiatives, and the challenges it faces. The report provides a comprehensive overview of the company's activities across its core segments: Retail Solutions, Packaging, and Construction, and outlines its future growth strategies and risk management approaches. Financial Highlights UFP Industries reported net sales of $6,320 million for 2025, reflecting a 5% decrease compared to 2024. This decline was attributed to a 2% decrease in selling prices and a 3% decrease in unit sales. Gross profit for the year was $1,060 million, a 14% decrease from the previous year, primarily due to a decline in unit sales and more competitive pricing.Earnings from operations were $364 million, down 26% from the previous year, driven by lower gross profits, partially offset by a $44 million decrease in SG&amp;A expenses. Net earnings for 2025 were $296 million, a significant drop from $419 million in 2024, impacted by lower gross profits and higher effective tax rates. Basic and diluted earnings per share both stood at $5.00, down from $6.78 and $6.77, respectively, in 2024.Cash flows from operating activities totaled $546 million, a decrease of $97 million from the previous year, primarily due to changes in working capital and lower net earnings. Capital expenditures amounted to $269 million, focusing on expansionary and efficiency projects. The company also paid $82 million in dividends, reflecting a quarterly rate of $0.35 per share, a 6% increase over the prior year. Business Highlights UFP Industries operates through three main segments: Retail Solutions, Packaging, and Construction. The Retail segment includes business units like ProWood, Deckorators, and UFP Edge, focusing on products such as pressure-treated lumber and composite decking. The Packaging segment comprises Structural Packaging, PalletOne, and Protective Packaging Solutions, serving diverse industries. The Construction segment includes Factory-Built Housing, Site-Built Construction, Commercial Construction, and Concrete Forming, catering to various construction needs.The company has a significant international presence with operations in the United States, Mexico, Canada, Spain, India, and Australia. The International segment, which includes packaging operations and sales offices in these regions, is managed separately from the domestic market-centered structure.In 2025, UFP Industries experienced a 3% decrease in overall unit sales compared to 2024. The Retail segment saw a 7% decrease in units, while the Packaging segment had a 1% decrease in organic unit sales. The Construction segment's unit sales remained flat. Despite these challenges, the company introduced new products in 2025, contributing to a 6% increase in new product sales compared to the previous year. The Deckorators business unit saw significant growth in sales of its Surestone™ mineral-based composite decking.UFP Industries invested in expanding production capacity, particularly in the Deckorators and ProWood business units, to support new and value-added products. This includes investments in automation and efficiency improvements across all segments. Looking ahead, the company aims to grow annual unit sales by 7 to 10 percent, with a focus on new products comprising at least 10% of total sales. The company plans to enhance its capabilities, expand geographically, and improve operating efficiencies to achieve a 12.5 percent EBITDA margin. Strategic Initiatives UFP Industries is focused on expanding its geographic presence in core businesses both domestically and internationally. The company is also increasing its sales of value-added products and enhancing its product offerings with new or improved products. Strategic acquisitions are being pursued to complement existing businesses and provide new avenues for growth. The company aims to achieve annual new product sales of at least $560 million for 2026, with a long-term goal of new product sales comprising at least 10% of total net sales.In 2025, UFP Industries repurchased 4,498,835 shares of its common stock for $443 million, at an average price of $98.39 per share. The company also returned $82 million to shareholders through dividends, reflecting a quarterly rate of $0.35 per share, a 6% increase over the prior year. The company maintains a $750 million unsecured revolving credit facility, with approximately $710.8 million in remaining availability as of December 27, 2025. Capital expenditures in 2025 totaled $269 million, primarily for expansionary and efficiency projects, and $18 million was invested in business combinations.Looking forward, UFP Industries plans to continue a balanced and return-driven approach to capital allocation, focusing on increasing dividends in line with anticipated long-term earnings growth, repurchasing common stock to offset dilution, and making capital investments to support organic growth and operational improvements. The company anticipates achieving cumulative cost reductions in 2025 and 2026 totaling $67 million, exceeding its original goal. For 2026, the company expects to spend approximately $300 million to $325 million on capital expenditures and has targeted core SG&amp;A expenses of approximately $570 million, excluding variable expenses tied to profitability. Challenges and Risks UFP Industries operates in a highly competitive market with significant reliance on the construction, retail, and packaging sectors. The company's growth strategy includes business combinations, which involve inherent risks such as assimilation and managing growth. The company is also subject to fluctuations in the price of lumber, which can significantly impact sales, cost of materials, and gross profits. Additionally, the company faces risks related to environmental and safety regulations, which could affect its ability to manufacture and market products.The company faces several macroeconomic risks, including inflation, interest rate uncertainty, foreign currency exchange rate fluctuations, and geopolitical events. These factors create significant economic uncertainty and could adversely impact financial performance. The company is also exposed to risks from tariffs and duties on U.S. imports and exports, which could lead to price volatility and supply chain instability. Currency fluctuations and inflation may harm results of operations, and the cyclical nature of the construction market could limit growth. The company is also vulnerable to cybersecurity breaches, which could disrupt operations and increase costs. Additionally, the emergence of artificial intelligence presents challenges, including significant capital investment and regulatory uncertainties.The company experienced a 5% decrease in net sales in 2025 compared to 2024, driven by competitive pricing and a decline in unit sales. Gross profits decreased by 14%, primarily due to weaker demand and competitive pricing. The company is focused on managing costs and improving efficiencies to mitigate these challenges. The lumber market's volatility continues to impact operating results, with lumber costs comprising a significant portion of net sales. The company aims to increase gross profits and earnings from operations at a rate that exceeds unit sales growth. Management is also focused on expanding geographically and increasing sales of value-added products.The company is exposed to market risks, including fluctuations in currency and inflation, which could impact financial results. The lumber market's volatility affects gross margins, and the company attempts to pass lumber costs through to customers. The company also faces risks from changes in the trend of lumber prices, particularly for products with significant inventory levels and low turnover rates. The company continues to monitor these risks and adjust strategies accordingly.SEC Filing: UFP INDUSTRIES INC [ UFPI ] - 10-K - Feb. 25, 2026</div></div>

UFPI

UFP Industries Inc. has released its 2025 10-K report, revealing a 5% decrease in net sales to $6.32 billion, with net earnings dropping to $296 million from $419 million in 2024. The report highlights challenges in unit sales across its Retail, Packaging, and Construction segments, alongside strategic initiatives for growth, including new product sales and geographic expansion. The company repurchased shares worth $443 million and plans to invest $300-$325 million in capital expenditures for 2026. UFP aims for a 12.5% EBITDA margin and increased dividends in line with long-term growth expectations.

UFP INDUSTRIES INC SEC 10-K Report