UFP Industries' Q2 2025: Navigating Contradictions in Deckorators, Site Built Pricing, and Lumber Dynamics
Generated by AI AgentAinvest Earnings Call Digest
Tuesday, Jul 29, 2025 5:28 pm ET1min read
UFPI--
Aime Summary
Aime SummaryDeckorators market share and sales growth expectations, competitive dynamics and pricing pressures in the Site Built segment, site built pricing and competitive dynamics, and lumber pricing and competitive dynamics are the key contradictions discussed in UFP Industries' latest 2025Q2 earnings call.
Revenue and Profitability Trends:
- UFP IndustriesUFPI-- reported sales of $1.8 billion for the June quarter, a 3.5% decline year-over-year.
- The decline was attributed to weaker demand, competitive pricing, and higher input costs across various end markets.
Segment Performance Impact:
- The Construction segment sales declined by 4% due to a 6% decline in selling prices, partly offset by a 2% increase in units.
- The decline in gross margin is primarily due to pressure in the Site Built business, impacted by weak builder sentiment and a softer spring selling season.
Investments and Cost Management:
- UFP Industries has made progress on its $60 million cost-out program, aiming to achieve full savings by exiting 2026.
- The company is optimizing its manufacturing footprint and reducing SG&A costs to ensure operational efficiency.
Innovation and New Product Sales:
- New product sales totaled $129 million in the quarter, representing 7% of sales, with the aim to reach 10% over time.
- Growth is driven by new products like Deckorators' Surestone technology, which saw a 45% year-over-year increase in decking board sales.
Revenue and Profitability Trends:
- UFP IndustriesUFPI-- reported sales of $1.8 billion for the June quarter, a 3.5% decline year-over-year.
- The decline was attributed to weaker demand, competitive pricing, and higher input costs across various end markets.
Segment Performance Impact:
- The Construction segment sales declined by 4% due to a 6% decline in selling prices, partly offset by a 2% increase in units.
- The decline in gross margin is primarily due to pressure in the Site Built business, impacted by weak builder sentiment and a softer spring selling season.
Investments and Cost Management:
- UFP Industries has made progress on its $60 million cost-out program, aiming to achieve full savings by exiting 2026.
- The company is optimizing its manufacturing footprint and reducing SG&A costs to ensure operational efficiency.
Innovation and New Product Sales:
- New product sales totaled $129 million in the quarter, representing 7% of sales, with the aim to reach 10% over time.
- Growth is driven by new products like Deckorators' Surestone technology, which saw a 45% year-over-year increase in decking board sales.
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