UFP Industries 2025 Q2 Earnings Misses Targets, Net Income Drops 20.1%

UFP Industries reported Q2 2025 earnings on August 6, 2025. The results missed expectations with a 17.1% decline in EPS and a 20.1% drop in net income. The company maintained its guidance, noting ongoing soft demand and cost-saving initiatives ahead.

Revenue
UFP Industries reported $1.84 billion in revenue for Q2 2025, representing a 3.5% decline year-over-year from $1.90 billion. The Retail segment was the largest contributor, generating $788.22 million in revenue, followed by the Construction segment at $551.59 million. The Packaging segment brought in $428.67 million, while other operations, including corporate and non-core segments, accounted for $65.03 million and $1.86 million, respectively.

Earnings/Net Income
UFP Industries reported earnings per share (EPS) of $1.70 for Q2 2025, a 17.1% decrease from $2.05 in the same period the previous year. The company’s net income also declined, falling to $100.87 million from $126.23 million, a 20.1% year-over-year drop. This reflects a challenging operating environment, with soft demand and macroeconomic headwinds weighing on profitability.

Price Action
The stock of UFP Industries has experienced a slight downtrend recently. Over the latest trading day, the stock declined by 0.41%. This downward momentum continued through the week, with a 0.44% decline, and has accelerated to a 3.44% drop month-to-date. The market appears to be reacting cautiously to the company’s earnings performance and forward-looking guidance.

Post-Earnings Price Action Review
A strategy of buying UFP Industries following earnings beats and holding for 30 days delivered a 38.52% return, but this significantly underperformed the 80.63% benchmark return. The approach avoided losses but demonstrated a lackluster performance, highlighted by a Sharpe ratio of 0.35, a maximum drawdown of 0.00%, and a CAGR of 7.09%. Investors appear to be favoring broader market exposure over post-earnings stock-specific strategies.

CEO Commentary
CEO Will Schwartz noted that the Q2 results reflected continued soft but stable demand across business segments. He emphasized UFP’s progress in becoming a leaner, faster-growing enterprise, with $60 million in expected structural cost savings by year-end 2026. Schwartz underscored the company’s commitment to innovation, strategic investments, and M&A as key growth drivers, supported by a strong balance sheet and free cash flow. He also highlighted the importance of navigating uncertainty with a conservative capital structure.

Guidance
The company anticipates continued soft demand and competitive pricing for the remainder of 2025. UFP expects low single-digit unit declines across segments, partially offset by growth in its Factory Built business. The company plans $300–325 million in capital expenditures for 2025 and expects $15–17 million in Q3 2025 restructuring costs, which are expected to eliminate $16 million in annual operating losses by 2026.

Additional News
Institutional investors have shown increased interest in UFP Industries. Annis Gardner Whiting Capital Advisors LLC significantly boosted its stake in the first quarter, acquiring 2,806 additional shares—a 2,505.4% increase—valuing its holdings at $312,000. Several other institutional investors, including UMB Bank n.a. and Signaturefd LLC, also increased their positions by 182.1% and 222.5%, respectively. Loop Capital initiated coverage with a “hold” rating and a $112.00 price target, while UFP Industries announced a $0.35 per share quarterly dividend, payable on September 15. This brings the annualized dividend to $1.40 with a current yield of 1.4%.