UFP Industries Announces Third Quarter Results

Rhea-AI Summary

UFP Industries (UFPI) reported third quarter 2024 results with net sales of $1.65 billion, down 10% year-over-year, and net earnings of $100 million, a 26% decrease. The decline was attributed to softer demand and broad-based pricing pressure. The company maintains a strong balance sheet with $1.19 billion in cash and approximately $2.4 billion in liquidity. The Board approved a 10% increase in quarterly dividend to $0.33 per share. The company expects challenging conditions to continue through 2024 and into 2025, with anticipated decreases in demand across segments.

Positive

• Strong cash position of $1.19 billion, up from $957 million year-over-year
• 10% increase in quarterly dividend to $0.33 per share
• 11% organic unit sales growth in Factory Built segment
• $2.4 billion in total liquidity available
• Market share gains in PalletOne and Protective Packaging segments

Negative

• Net sales decreased 10% to $1.65 billion
• Net earnings declined 26% to $100 million
• Adjusted EBITDA decreased 21% with margin declining 140 basis points to 10.0%
• Retail segment sales down 13% year-over-year
• Packaging segment gross profit decreased 24%
• Construction segment gross profit fell 23%

Insights

Financial Analyst

UFP Industries' Q3 results reveal significant headwinds with $1.65 billion in net sales, down 10% year-over-year and net earnings of $100 million, a 26% decline. The company faces pressure from softer demand and broad-based pricing challenges, particularly evident in the 21% decrease in Southern Yellow Pine prices.

Despite challenges, UFP maintains a robust balance sheet with $1.19 billion in cash and $2.4 billion in total liquidity. Their strategic capital allocation includes a $1 billion investment plan over 5 years, focusing on automation and capacity expansion. The 10% dividend increase to $0.33 per share and new $200 million share buyback authorization demonstrate financial strength and shareholder commitment.

All three segments showed revenue declines: Retail (-13%), Packaging (-11%) and Construction (-8%), with margin compression across the board. The outlook suggests continued challenges through 2025, though Factory Built construction remains a bright spot.

Market Research Analyst

The market dynamics reflect broader economic challenges in construction and home improvement sectors. The decrease in both big box (-3%) and independent dealer (-8%) sales signals a significant slowdown in consumer spending and construction activity. The disparity between these channels provides insight into market segmentation, with independent dealers more closely tied to housing starts showing steeper declines.

The bright spot in Factory Built (+11%) amid general construction weakness suggests a shift in housing preferences and affordability concerns. This trend, combined with planned investments in automation and technology, positions UFP to capitalize on evolving market dynamics when conditions improve. The company's strategic focus on maintaining strong liquidity while pursuing growth opportunities shows adaptive management in a challenging environment.

GRAND RAPIDS, Mich.--(BUSINESS WIRE)-- UFP Industries, Inc. (Nasdaq: UFPI) today announced third quarter 2024 results including net sales of $1.65 billion, net earnings attributable to controlling interest of $100 million, and earnings per diluted share of $1.64.

"Our third quarter results were impacted by softer demand and broad-based pricing pressure which reduced our revenue and profit margins. We are managing through these ongoing challenges by operating more efficiently, aligning our overhead with lower demand levels and eliminating unnecessary costs. I am confident our teammates will respond appropriately to the changing economy while enhancing the pursuit of our strategic priorities. While we expect conditions to remain challenging as we move into 2025, we are well positioned to capitalize on opportunities when markets recover and remain on track to achieve our longer-term profitability targets,” said Chairman and CEO Matthew J. Missad.

“When the economy slows, it also creates opportunities to obtain more appropriate pricing on strategic acquisitions; invest in new products, automation and technology; and pursue organic expansion. We plan to leverage our strong balance sheet and free cash flow generation to pursue growth initiatives that drive ROI and expand our market share, while pursuing share buybacks when our stock is at an attractive level.”

“Finally, I want to give special thanks to our teammates in the southeastern U.S. for their dedication and perseverance after the recent hurricanes. Despite their own storm-related personal challenges, they worked long hours to make sure our customers were taken care of. They embody the UFP culture by also caring for their neighbors and communities and helping the UFPI Foundation identify charities to support in the hardest-hit communities where we operate. I am proud to be on their team.”

Third Quarter 2024 Highlights (comparisons on a year-over-year basis except where noted):

• Net sales of $1.65 billion decreased 10 percent due to a 3 percent decrease in organic unit sales and a 7 percent decrease in selling prices. The price of Southern Yellow Pine (SYP), which comprises approximately two-thirds of our lumber purchases, decreased 21 percent and contributed to the decrease in our selling prices.
• New product sales of $119 million were 7.2 percent of total sales compared to 7.6 percent in the third quarter of 2023. Many products that were considered new products in 2023 were sunset and not included in 2024 totals. In 2024, we also increased the margin threshold for new products, resulting in certain product lines no longer meeting our growth and margin requirements for the purpose of being categorized as new products.
• Net earnings attributable to controlling interests of $100 million represents a 26 percent decrease from last year.
• Adjusted EBITDA¹ of $165 million represents a decrease of 21 percent while adjusted EBITDA margin¹ declined 140 basis points to 10.0 percent.

Capital Allocation

UFP Industries maintains a strong balance sheet with $1.19 billion in cash as of September 28, 2024, compared to $957 million in cash at the end of the third quarter of 2023. The company had approximately $2.4 billion of liquidity as of September 28, 2024. The company’s return-focused approach to capital allocation includes the following:

- Acquisitions and Organic Growth. The company continues to pursue strategic acquisitions and will invest in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. The company has targeted approximately $1 billion in capital investments over the next five years, including capital investments in 2024 of up to $300 million for automation, technology upgrades, geographic expansion and increased capacity at existing facilities, specifically for its Deckorators, Site Built, structural and protective packaging, and machine-built pallet businesses. Approximately $295 million in capital projects have been approved in 2024 and another $55 million are pending approval.

- Dividend payments. On October 23, 2024, the UFP Industries Board of Directors approved a quarterly dividend payment of $0.33 per share, a 10 percent increase over the quarterly dividend of $0.30 per share paid in December 2023. The dividend is payable on December 16, 2024, to shareholders of record on December 2, 2024.

- Share repurchases. On July 24, 2024, the UFP Industries Board of Directors authorized the company to repurchase up to $200 million of shares through July 31, 2025. No shares have been repurchased under this new authorization.

________________________________
¹ Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.

By business segment, the company reported the following third quarter 2024 results:

UFP Retail Solutions

Net sales of $636 million, down 13 percent compared to the third quarter of 2023, attributable to a 4 percent decline in organic unit sales, a 7 percent decline in selling prices, and a 2 percent decline due to the transfer of certain product sales to the Packaging and Construction segments. Organic unit sales decreased 5 percent for ProWood, 4 percent for UFP-Edge, and 3 percent for Deckorators. Overall, unit sales decreased 3 percent with big box customers, reflective of ongoing softening in repair and remodel activity. Independent dealer sales decreased 8 percent, a decline that more closely correlates to housing starts. Gross profit of $93 million decreased 11 percent.

UFP Packaging

Net sales of $402 million were down 11 percent compared to the third quarter of 2023, due to a 5 percent decline in organic unit sales and an 8 percent decrease in selling prices, partially offset by a 2 percent increase from the transfer of certain product sales from the Retail segment. A 10 percent decline in organic unit sales for Structural Packaging, attributable to weaker demand, drove results in the quarter and were partially offset by a 2 percent increase in organic unit sales for PalletOne and a 4 percent increase in organic unit sales for Protective Packaging, both due to market share gains. Gross profit for the Packaging segment decreased 24 percent to $71 million due to competitive price pressure and lower sales volumes.

UFP Construction

Net sales of $535 million decreased 8 percent compared to the third quarter of 2023, attributable to a 2 percent decrease in organic unit sales and a 7 percent decrease in selling prices, partially offset by a 1 percent increase from the transfer of certain product sales from the Retail segment. Organic unit sales increased 11 percent in Factory Built due to an increase in industry production and market share gains. Organic unit sales for Site Built, Concrete Forming and Commercial decreased 8 percent, 7 percent and 6 percent, respectively, primarily due to weaker demand. Gross profit for the Construction segment decreased 23 percent to $112 million, primarily due to a drop in volume and fixed manufacturing costs, as well as a more competitive pricing environment.

Short-Term Outlook

Lumber Market: We continue to anticipate lumber prices will remain at lower levels in 2024 based on current supply and demand dynamics. Recent industry production curtailments combined with new demand from rebuilding after storm damage may better align supply and demand in 2025.

End Market Demand: Our outlook for the fourth quarter remains unchanged for our Retail and Packaging segments. While we continue to anticipate demand will decrease in Retail by mid-single digits and decrease in Packaging by mid- to high-single digits, we now anticipate a decrease in demand for Construction by low-single digits, with continued strength in our Factory Built business offsetting weaker demand in our other Construction business units. We anticipate the softer demand and competitive pricing environment to continue through the remainder of 2024 and into 2025, resulting in more challenging year-over-year unit sales and profitability comparisons, partially offset by market share gains in each of our segments.

CONFERENCE CALL

UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 8:30 a.m. ET on Tuesday, October 29, 2024. The call will be hosted by Chairman and CEO Matthew J. Missad and CFO Michael Cole and will be available simultaneously and in its entirety to all interested investors and news media through a webcast at https://www.ufpinvestor.com/news-filings-reports#events---presentations. A replay of the call will be available through the website.

UFP Industries, Inc.

UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. UFP Industries is ranked #493 on the Fortune 500 and #128 on Industry Week’s list of America’s Largest Manufacturers. For more about UFP Industries, go to www.ufpi.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” “likely,” “plans,” “projects,” “should,” variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; government regulations, particularly involving environmental and safety regulations; and our ability to make successful business acquisitions. Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.

Non-GAAP Financial Information

This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management uses Adjusted EBITDA, a non-GAAP financial measure, in order to evaluate historical and ongoing operations. Management believes that this non-GAAP financial measure is useful in order to enable investors to perform meaningful comparisons of historical and current performance. Adjusted EBITDA is intended to supplement and should be read together with the financial results. Adjusted EBITDA should not be considered an alternative or substitute for, and should not be considered superior to, the reported financial results. Accordingly, users of this financial information should not place undue reliance on the non-GAAP financial measure.

Net earnings

Net earnings refers to net earnings attributable to controlling interest unless specifically noted.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 2024/2023
		Quarter Period														Year to Date
(In thousands, except per share data)		2024							2023							2024							2023
NET SALES		$	1,649,383			100.0		%	$	1,827,637			100.0		%	$	5,190,308			100.0		%	$	5,694,031			100.0		%
COST OF GOODS SOLD			1,350,971			81.9				1,463,237			80.1				4,203,075			81.0				4,571,235			80.3
GROSS PROFIT			298,412			18.1				364,400			19.9				987,233			19.0				1,122,796			19.7
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			183,341			11.1				195,649			10.7				578,555			11.1				595,035			10.5
OTHER LOSSES (GAINS), NET			(4,855	)		(0.3	)			1,419			0.1				(4,105	)		(0.1	)			5,224			0.1
EARNINGS FROM OPERATIONS			119,926			7.3				167,332			9.2				412,783			8.0				522,537			9.2
INTEREST AND OTHER			(14,184	)		(0.9	)			(6,177	)		(0.3	)			(36,353	)		(0.7	)			(13,043	)		(0.2	)
EARNINGS BEFORE INCOME TAXES			134,110			8.1				173,509			9.5				449,136			8.7				535,580			9.4
INCOME TAXES			32,491			2.0				39,326			2.2				100,186			1.9				125,031			2.2
NET EARNINGS			101,619			6.2				134,183			7.3				348,950			6.7				410,549			7.2
LESS NET (EARNINGS) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST			(1,819	)		(0.1	)			(148	)		—				(2,429	)		—				316			—
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST		$	99,800			6.1			$	134,035			7.3			$	346,521			6.7			$	410,865			7.2
EARNINGS PER SHARE - BASIC		$	1.64						$	2.14						$	5.66						$	6.55
EARNINGS PER SHARE - DILUTED		$	1.64						$	2.10						$	5.65						$	6.45
COMPREHENSIVE INCOME		$	102,411						$	130,422						$	340,632						$	417,518
LESS COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST			(1,032	)						820							397							(2,661	)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST		$	101,379						$	131,242						$	341,029						$	414,857

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 2024/2023
		Quarter Period 2024
(In thousands)		Retail				Packaging				Construction				All Other				Corporate				Total
NET SALES		$	635,571			$	401,626			$	534,625			$	75,802			$	1,759			$	1,649,383
COST OF GOODS SOLD			542,516				330,381				422,967				61,350				(6,243	)			1,350,971
GROSS PROFIT			93,055				71,245				111,658				14,452				8,002				298,412
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			54,113				49,352				69,046				13,696				(2,866	)			183,341
OTHER			(2,870	)			28				212				(1,791	)			(434	)			(4,855	)
EARNINGS FROM OPERATIONS			41,812				21,865				42,400				2,547				11,302				119,926
INTEREST AND OTHER			(114	)			81				—				(4,033	)			(10,118	)			(14,184	)
EARNINGS BEFORE INCOME TAXES			41,926				21,784				42,400				6,580				21,420				134,110
INCOME TAXES			10,157				5,277				10,273				1,594				5,190				32,491
NET EARNINGS		$	31,769			$	16,507			$	32,127			$	4,986			$	16,230			$	101,619
INTEREST AND OTHER			(114	)			81				—				(4,033	)			(10,118	)			(14,184	)
INCOME TAXES			10,157				5,277				10,273				1,594				5,190				32,491
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS			1,116				1,575				1,822				140				3,416				8,069
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS			(9	)			28				(64	)			(4	)			(404	)			(453	)
DEPRECIATION EXPENSE			7,238				8,664				6,027				832				8,726				31,487
AMORTIZATION OF INTANGIBLES			998				2,216				703				1,536				433				5,886
ADJUSTED EBITDA		$	51,155			$	34,348			$	50,888			$	5,051			$	23,473			$	164,915
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES			8.0	%			8.6	%			9.5	%			6.7	%			*				10.0	%
* Not meaningful

		Quarter Period 2023
(In thousands)		Retail				Packaging				Construction				All Other				Corporate				Total
NET SALES		$	730,353			$	449,885			$	583,960			$	62,454			$	985			$	1,827,637
COST OF GOODS SOLD			625,730				355,924				439,152				43,084				(653	)			1,463,237
GROSS PROFIT			104,623				93,961				144,808				19,370				1,638				364,400
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			57,019				52,524				75,293				13,919				(3,106	)			195,649
OTHER			930				8				(45	)			108				418				1,419
EARNINGS FROM OPERATIONS			46,674				41,429				69,560				5,343				4,326				167,332
INTEREST AND OTHER			26				10				(1	)			(98	)			(6,114	)			(6,177	)
EARNINGS BEFORE INCOME TAXES			46,648				41,419				69,561				5,441				10,440				173,509
INCOME TAXES			10,642				9,388				15,766				1,164				2,366				39,326
NET EARNINGS		$	36,006			$	32,031			$	53,795			$	4,277			$	8,074			$	134,183
INTEREST AND OTHER			26				10				(1	)			(98	)			(6,114	)			(6,177	)
INCOME TAXES			10,642				9,388				15,766				1,164				2,366				39,326
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS			1,314				1,686				1,685				184				3,324				8,193
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS			35				8				(14	)			(200	)			(112	)			(283	)
DEPRECIATION EXPENSE			6,355				8,361				4,930				518				7,482				27,646
AMORTIZATION OF INTANGIBLES			1,133				2,175				703				563				380				4,954
ADJUSTED EBITDA		$	55,511			$	53,659			$	76,864			$	6,408			$	15,400			$	207,842
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES			7.6	%			11.9	%			13.2	%			10.3	%			*				11.4	%
* Not meaningful

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 2024/2023
		Year to Date 2024
(In thousands)		Retail				Packaging				Construction				All Other				Corporate				Total
NET SALES		$	2,073,403			$	1,261,248			$	1,627,068			$	224,219			$	4,370			$	5,190,308
COST OF GOODS SOLD			1,752,464				1,020,877				1,275,520				171,916				(17,702	)			4,203,075
GROSS PROFIT			320,939				240,371				351,548				52,303				22,072				987,233
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			175,014				156,289				211,503				41,663				(5,914	)			578,555
OTHER			(1,650	)			1,455				292				(3,276	)			(926	)			(4,105	)
EARNINGS FROM OPERATIONS			147,575				82,627				139,753				13,916				28,912				412,783
INTEREST AND OTHER			(386	)			1,314				(25	)			(8,826	)			(28,430	)			(36,353	)
EARNINGS BEFORE INCOME TAXES			147,961				81,313				139,778				22,742				57,342				449,136
INCOME TAXES			33,193				17,841				31,194				5,072				12,886				100,186
NET EARNINGS		$	114,768			$	63,472			$	108,584			$	17,670			$	44,456			$	348,950
INTEREST AND OTHER			(386	)			1,314				(25	)			(8,826	)			(28,430	)			(36,353	)
INCOME TAXES			33,193				17,841				31,194				5,072				12,886				100,186
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS			3,928				5,351				6,098				609				11,359				27,345
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS			877				1,455				222				10				(1,026	)			1,538
GAIN FROM REDUCTION OF ESTIMATED EARNOUT LIABILITY			—				(37	)			(1,818	)			—				—				(1,855	)
DEPRECIATION EXPENSE			21,327				25,600				17,032				2,449				25,722				92,130
AMORTIZATION OF INTANGIBLES			2,994				6,624				2,108				4,573				1,322				17,621
ADJUSTED EBITDA		$	176,701			$	121,620			$	163,395			$	21,557			$	66,289			$	549,562
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES			8.5	%			9.6	%			10.0	%			9.6	%			*				10.6	%
* Not meaningful

		Year to Date 2023
(In thousands)		Retail				Packaging				Construction				All Other				Corporate				Total
NET SALES		$	2,430,277			$	1,424,546			$	1,650,017			$	185,841			$	3,350			$	5,694,031
COST OF GOODS SOLD			2,107,528				1,091,452				1,246,346				127,446				(1,537	)			4,571,235
GROSS PROFIT			322,749				333,094				403,671				58,395				4,887				1,122,796
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			172,631				180,153				216,714				39,982				(14,445	)			595,035
OTHER			2,975				(84	)			1,190				1,452				(309	)			5,224
EARNINGS FROM OPERATIONS			147,143				153,025				185,767				16,961				19,641				522,537
INTEREST AND OTHER			67				1,012				(7	)			(4,467	)			(9,648	)			(13,043	)
EARNINGS BEFORE INCOME TAXES			147,076				152,013				185,774				21,428				29,289				535,580
INCOME TAXES			34,382				35,567				43,275				4,979				6,828				125,031
NET EARNINGS		$	112,694			$	116,446			$	142,499			$	16,449			$	22,461			$	410,549
INTEREST AND OTHER			67				1,012				(7	)			(4,467	)			(9,648	)			(13,043	)
INCOME TAXES			34,382				35,567				43,275				4,979				6,828				125,031
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS			4,244				5,485				5,492				687				10,160				26,068
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS			61				(85	)			(45	)			(140	)			(256	)			(465	)
DEPRECIATION EXPENSE			18,585				24,038				14,192				1,479				22,138				80,432
AMORTIZATION OF INTANGIBLES			3,465				6,657				2,202				1,846				1,155				15,325
ADJUSTED EBITDA		$	173,498			$	189,120			$	207,608			$	20,833			$	52,838			$	643,897
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES			7.1	%			13.3	%			12.6	%			11.2	%			*				11.3	%
* Not meaningful

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) SEPTEMBER 2024/2023
(In thousands)
ASSETS			2024			2023		LIABILITIES AND EQUITY			2024			2023
CURRENT ASSETS								CURRENT LIABILITIES
Cash and cash equivalents		$	1,190,807		$	957,092		Accounts payable		$	239,897		$	253,065
Restricted cash			761			3,761		Accrued liabilities and other			322,031			347,231
Investments			38,935			37,062		Current portion of debt			44,103			1,539
Accounts receivable			650,869			697,555
Inventories			645,429			744,747
Other current assets			86,724			64,905
TOTAL CURRENT ASSETS			2,613,525			2,505,122		TOTAL CURRENT LIABILITIES			606,031			601,835
OTHER ASSETS			259,637			283,999		LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS			232,043			273,308
INTANGIBLE ASSETS, NET			501,641			476,271		OTHER LIABILITIES			180,465			173,390
								TEMPORARY EQUITY			5,527			6,788
PROPERTY, PLANT AND EQUIPMENT, NET			843,082			738,692		SHAREHOLDERS' EQUITY			3,193,819			2,948,763
TOTAL ASSETS		$	4,217,885		$	4,004,084		TOTAL LIABILITIES AND EQUITY		$	4,217,885		$	4,004,084

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 2024/2023
(In thousands)			2024					2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings		$	348,950				$	410,549
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation			92,130					80,432
Amortization of intangibles			17,621					15,325
Expense associated with share-based and grant compensation arrangements			27,345					26,068
Deferred income taxes			(674	)				113
Unrealized (gain) loss on investment and other			(3,201	)				362
Equity in loss of investee			1,313					1,013
Net loss (gain) on sale, disposition and impairment of assets			1,538					(465	)
Gain from reduction of estimated earnout liability			(1,855	)				—
Changes in:
Accounts receivable			(102,355	)				(82,883	)
Inventories			81,238					230,559
Accounts payable and cash overdraft			37,391					49,093
Accrued liabilities and other			(1,779	)				(18,363	)
NET CASH FROM OPERATING ACTIVITIES			497,662					711,803
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchases of property, plant, and equipment			(165,493	)				(130,947	)
Proceeds from sale of property, plant and equipment			3,795					2,211
Acquisitions, net of cash received and purchase of equity method investment			—					(52,488	)
Purchase of remaining noncontrolling interest of subsidiary			(4,902	)				—
Purchases of investments			(34,284	)				(26,333	)
Proceeds from sale of investments			13,782					22,101
Other			4,712					(2,092	)
NET CASH USED IN INVESTING ACTIVITIES			(182,390	)				(187,548	)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Borrowings under revolving credit facilities			20,130					18,915
Repayments under revolving credit facilities			(20,477	)				(21,929	)
Repayments of debt			—					(29	)
Repayment of debt on behalf of investee			(6,303	)				—
Contingent consideration payments and other			(4,779	)				(6,179	)
Proceeds from issuance of common stock			2,122					2,087
Dividends paid to shareholders			(60,721	)				(49,723	)
Distributions to noncontrolling interest			(11,848	)				(7,355	)
Payments to taxing authorities in connection with shares directly withheld from employees			(17,838	)				—
Repurchase of common stock			(141,122	)				(62,076	)
Other			55					65
NET CASH USED IN FINANCING ACTIVITIES			(240,781	)				(126,224	)
Effect of exchange rate changes on cash			(5,179	)				3,199
NET CHANGE IN CASH AND CASH EQUIVALENTS			69,312					401,230
ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			1,122,256					559,623
ALL CASH AND CASH EQUIVALENTS, END OF PERIOD		$	1,191,568				$	960,853
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period		$	1,118,329				$	559,397
Restricted cash, beginning of period			3,927					226
All cash and cash equivalents, beginning of period		$	1,122,256				$	559,623
Cash and cash equivalents, end of period		$	1,190,807				$	957,092
Restricted cash, end of period			761					3,761
All cash and cash equivalents, end of period		$	1,191,568				$	960,853

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241028146612/en/

Dick Gauthier

VP of Investor Relations

(616) 365-1555

Source: UFP Industries, Inc.

FAQ

What were UFP Industries' (UFPI) Q3 2024 earnings per share?

UFP Industries reported earnings per diluted share of $1.64 in Q3 2024.

How much did UFPI's net sales decline in Q3 2024?

UFPI's net sales decreased 10% to $1.65 billion in Q3 2024 compared to the same period last year.

What is UFPI's new quarterly dividend for Q4 2024?

UFPI approved a quarterly dividend of $0.33 per share, payable on December 16, 2024, representing a 10% increase.

What was UFPI's cash position at the end of Q3 2024?

UFPI had $1.19 billion in cash as of September 28, 2024.