AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
UFP Industries 2025 Q1 Earnings Misses Targets as Net Income Falls 34.4%
Generated by AI AgentAinvest Earnings Report Digest
Thursday, May 8, 2025 1:16 am ET2min read
UFP Industries (UFPI) reported its fiscal 2025 Q1 earnings on May 7th, 2025. The company's revenue of $1.60 billion was in line with forecasts, but earnings per share (EPS) of $1.30 fell 17% below analyst expectations. anticipates a decline in overall demand across all segments for the remainder of 2025, with expectations of softer demand and competitive pricing persisting. The company aims to achieve structural cost savings of $60 million by year-end 2026 and plans to invest approximately $300 million to $350 million in capital projects throughout 2025.
Revenue
UFP Industries experienced a 2.7% decrease in total revenue, reaching $1.60 billion in Q1 2025, compared to $1.64 billion in Q1 2024. The Retail segment contributed $607.38 million, followed by Packaging with $410.01 million. Construction reported $515.94 million, while Other segments added $60.30 million. Corporate operations accounted for $1.89 million, culminating in the overall revenue figure.
Earnings/Net Income
The company's EPS saw a decline of 33.7%, dropping to $1.30 in Q1 2025 from $1.96 in Q1 2024. Concurrently, net income fell to $79.42 million, marking a 34.4% decrease from $121.10 million in the previous year. Despite the downturn, UFP Industries has maintained profitability over 14 years, showcasing stable business performance. The significant drop in EPS indicates challenging financial conditions.
Price Action
The stock price of UFP Industries has edged down 1.30% during the latest trading day, has edged down 1.96% during the most recent full trading week, and has tumbled 8.95% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing UFP Industries stock after a quarterly revenue increase and holding for 30 days has yielded a 10.40% return over the past five years. This performance has notably lagged behind the benchmark's return of 84.08%, highlighting the strategy's underperformance. The Sharpe ratio for this approach was a low 0.17, reflecting poor risk-adjusted returns. Additionally, the strategy faced a maximum drawdown of -15.27%, emphasizing its high risk and underscoring the necessity of robust risk management practices.
CEO Commentary
"While our first quarter proved more challenging than anticipated and visibility remains limited, we are more encouraged by recent business trends," said Will Schwartz, CEO of UFP Industries. He highlighted that business activity improved sequentially throughout the quarter and continued into April, emphasizing the company's focus on activities that enhance profitability and streamline costs. Schwartz noted the strategic advantage of the company’s scale, diversification, and culture, asserting that these factors have historically led to market outperformance. He expressed confidence in managing potential challenges from lumber tariffs and emphasized the importance of a balanced customer base, along with a strong balance sheet and cash flow generation for pursuing investments and strategic opportunities.
Guidance
UFP Industries anticipates a decline in overall demand slightly across all segments for the remainder of 2025, with expectations of softer demand and competitive pricing persisting. The company aims to achieve structural cost savings of $60 million by year-end 2026 and plans to invest approximately $300 million to $350 million in capital projects throughout 2025. Long-term goals remain focused on achieving 7-10 percent unit sales growth annually and maintaining EBITDA margins of 12.5 percent.
Additional News
Recently, UFP Industries announced a 6% increase in its quarterly dividend to $0.35 per share, payable on June 16, 2025. The company also amended its share repurchase authorization, increasing it from $200 million to $300 million through July 31, 2025. Furthermore, UFP Industries is preparing to participate in two investor conferences in June 2025. The Bank of America Housing Symposium and the Stifel Cross Sector Insight Conference will see company representatives engaging with institutional investors to discuss strategic plans and market outlook. These moves highlight UFP Industries' ongoing commitment to shareholder returns and strategic growth initiatives.
Revenue
UFP Industries experienced a 2.7% decrease in total revenue, reaching $1.60 billion in Q1 2025, compared to $1.64 billion in Q1 2024. The Retail segment contributed $607.38 million, followed by Packaging with $410.01 million. Construction reported $515.94 million, while Other segments added $60.30 million. Corporate operations accounted for $1.89 million, culminating in the overall revenue figure.
Earnings/Net Income
The company's EPS saw a decline of 33.7%, dropping to $1.30 in Q1 2025 from $1.96 in Q1 2024. Concurrently, net income fell to $79.42 million, marking a 34.4% decrease from $121.10 million in the previous year. Despite the downturn, UFP Industries has maintained profitability over 14 years, showcasing stable business performance. The significant drop in EPS indicates challenging financial conditions.
Price Action
The stock price of UFP Industries has edged down 1.30% during the latest trading day, has edged down 1.96% during the most recent full trading week, and has tumbled 8.95% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing UFP Industries stock after a quarterly revenue increase and holding for 30 days has yielded a 10.40% return over the past five years. This performance has notably lagged behind the benchmark's return of 84.08%, highlighting the strategy's underperformance. The Sharpe ratio for this approach was a low 0.17, reflecting poor risk-adjusted returns. Additionally, the strategy faced a maximum drawdown of -15.27%, emphasizing its high risk and underscoring the necessity of robust risk management practices.
CEO Commentary
"While our first quarter proved more challenging than anticipated and visibility remains limited, we are more encouraged by recent business trends," said Will Schwartz, CEO of UFP Industries. He highlighted that business activity improved sequentially throughout the quarter and continued into April, emphasizing the company's focus on activities that enhance profitability and streamline costs. Schwartz noted the strategic advantage of the company’s scale, diversification, and culture, asserting that these factors have historically led to market outperformance. He expressed confidence in managing potential challenges from lumber tariffs and emphasized the importance of a balanced customer base, along with a strong balance sheet and cash flow generation for pursuing investments and strategic opportunities.
Guidance
UFP Industries anticipates a decline in overall demand slightly across all segments for the remainder of 2025, with expectations of softer demand and competitive pricing persisting. The company aims to achieve structural cost savings of $60 million by year-end 2026 and plans to invest approximately $300 million to $350 million in capital projects throughout 2025. Long-term goals remain focused on achieving 7-10 percent unit sales growth annually and maintaining EBITDA margins of 12.5 percent.
Additional News
Recently, UFP Industries announced a 6% increase in its quarterly dividend to $0.35 per share, payable on June 16, 2025. The company also amended its share repurchase authorization, increasing it from $200 million to $300 million through July 31, 2025. Furthermore, UFP Industries is preparing to participate in two investor conferences in June 2025. The Bank of America Housing Symposium and the Stifel Cross Sector Insight Conference will see company representatives engaging with institutional investors to discuss strategic plans and market outlook. These moves highlight UFP Industries' ongoing commitment to shareholder returns and strategic growth initiatives.
Ainvest Earnings Report Digest
Get noticed about the list of notable companies` earning reports after markets close today and before markets open tomorrow.
Latest Articles
KB Home 2025 Q4 Earnings Beats Estimates Despite 46.7% Net Income Drop
Dec.19 2025
Optical Cable 2025 Q4 Earnings Sharp Net Income Drop Amid Weak Price Action
Dec.19 2025
BlackBerry 2026 Q3 Earnings Beats Expectations with 230.5% Net Income Surge
Dec.19 2025
Heico A 2025 Q4 Earnings 34.4% Net Income Growth, Beats Estimates
Dec.18 2025
FactSet 2026 Q1 Earnings Revenue Grows 6.9% as Net Income Rises 1.7%
Dec.18 2025
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet