Why Is UFP Industries (UFPI) Down 16.2% Since Last Earnings Report?

It has been about a month since the last earnings report for UFP Industries (UFPI). Shares have lost about 16.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is UFP Industries due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for UFP Industries, Inc. before we dive into how investors and analysts have reacted as of late.

UFP Industries Q4 Earnings & Sales Miss Estimates, Both Down Y/Y

UFP Industries reported lower than expected fourth-quarter 2025 results, with adjusted earnings and net sales missing the Zacks Consensus Estimate and also declining year over year.

Earnings & Sales Performance in Q4

Adjusted EPS of 70 cents missed the Zacks Consensus Estimate of $1.03 by 32%. In the year-ago quarter, it had reported an EPS of $1.12.

Quarterly net sales of $1.33 billion missed the consensus mark of $1.4 billion by 5.3% and declined by 9% year over year from $1.46 billion.

UFPI’s Margins & Profitability

Gross profit totaled $216.5 million, down from $239.5 million in the year-ago quarter, with gross margin contracting to 16.3% from 16.4% a year earlier.

Adjusted EBITDA came in at $107 million, down from $132.7 million. Adjusted EBITDA margin contracted to 8.1% from 9.1% year over year.

Q4 Segment Highlights

UFP Retail Solutions: Net sales of $444 million, down 15.4% from last year. Segment adjusted EBITDA declined 44.4% to $24.5 million year over year.

UFP Packaging: Sales declined 1.4% to $370.1 million due to soft industrial activity and volatile lumber pricing. Adjusted EBITDA contracted 26.9% to $27.5 million compared to the year-ago quarter.

UFP Construction: Net sales of $439.8 million, down 9.7% year over year due to soft housing demand and weak consumer sentiment. Adjusted EBITDA tumbled year over year by 26.3% to $33.2 million.

Balance Sheet & Liquidity

Cash and cash equivalents were $914.2 million as of the fourth quarter of 2025, down from $1.17 billion at 2024-end. The current liquidity level is sufficient to meet the short-term obligation of $0.9 million. The long-term debt was $228.9 million as of the fourth quarter 2025-end, slightly down from $229.8 million at 2024-end.

As of Dec. 27, 2025, the company repurchased 4.5 million shares for $443 million (or $98.39 per share).

UFPI’s FY25 Highlights

In 2025, UFPI reported net sales of $6.32 billion, down 5% from the fiscal 2024 level.

The annual gross profit was $1.06 billion, down from $1.23 billion reported in the prior year, while gross margin contracted 160 basis points year over year to 16.8%.

Adjusted EBITDA totaled $563.6 million, down from $682.3 million in fiscal 2024, while the adjusted EBITDA margin contracted 140 basis points year over year to 8.9%.

UFPI’s Long-Term Outlook For 2026

The company expects market conditions to remain challenging in 2026, with demand likely to stay flat to slightly down across segments. Residential construction-related markets are expected to remain weak, while other end markets may stabilize. However, the company believes market share gains, cost-reduction efforts and growth in its Deckorators and Surestone businesses will help it outperform the broader market.

UFP Industries remains committed to its long-term growth strategy. The company still aims to achieve annual unit sales growth of 7-10%, including contributions from bolt-on acquisitions, while driving at least 10% of total sales from new products. Additionally, UFP Industries targets EBITDA margins of 12.5%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a flat trend in fresh estimates.

VGM Scores

Currently, UFP Industries has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

UFP Industries has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

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UFP Industries, Inc. (UFPI): Free Stock Analysis Report

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