Nasdaq:UFPI
UFP INDUSTRIES INC
A leading North American producer of engineered wood panels serving the housing and commercial building sectors with a focus on cost-effective construction materials.
Key Metrics
Investment Thesis
Bull Case
Despite recent revenue contraction, the company maintains a strong balance sheet with $914.2M in cash and equivalents against manageable long-term debt of $228.9M. The resilient operating cash flow of nearly $546M suggests underlying business stability that could support margin recovery if housing construction demand rebounds.
Bear Case
The consistent year-over-year decline in revenue from 2022 to 2025 and a nearly 58% drop in net income indicate a struggling top-line trajectory without clear visibility into an immediate turnaround. High levels of accumulated other comprehensive loss and significant retained earnings deficit suggest lingering structural challenges or past impairments weighing on the equity base.
About UFP INDUSTRIES INC
UFP Industries Inc. manufactures and sells engineered wood products including particleboard, medium-density fiberboard (MDF), and oriented strand board (OSB) primarily for residential and commercial construction markets in North America.
Analysis
Management Discussion
Revenue declined from $9.63B in 2022 to $6.32B in 2025 as the company navigated a cooling housing market and higher input costs, resulting in net income dropping from $705M to $296M over the same period. While operating cash flow remains robust at $545.7M, the company has returned significant capital to shareholders through $433M in share repurchases and $82.3M in dividends despite the downward revenue trend.
Industry Overview
The engineered wood products industry is cyclical and highly correlated with residential construction activity, particularly new home builds and multi-family developments in North America. Competitors face similar pressures from lumber price volatility and interest rate sensitivity, making operational efficiency and cost control critical for survival during downturns.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $9.63B | $7.22B | $6.65B | $6.32B |
| Cost of Revenue | $7.84B | $5.80B | $5.43B | $5.26B |
| Gross Profit | $1.79B | $1.42B | $1.23B | $1.06B |
| Operating Expenses | $839.3M | $772.4M | $734.5M | $696.2M |
| Operating Income | $950.2M | $646.5M | $492.2M | $363.9M |
| G&A | $832.1M | $766.6M | $735.0M | $691.0M |
| Stock-Based Comp | $28.2M | $34.9M | $38.2M | $37.8M |
| Depreciation | $94.1M | $110.6M | $124.6M | $138.4M |
| Amortization | $19.5M | $21.3M | $23.5M | $22.7M |
| Other OpEx | $7.2M | $5.8M | $-546.0K | $5.2M |
| Non-Operating Income | $-15.4M | $24.7M | $47.9M | $28.3M |
| Interest Expense | $13.9M | $12.8M | — | — |
| Pre-Tax Income | $934.8M | $671.2M | $540.2M | $392.2M |
| Income Tax | $229.9M | $156.8M | $121.4M | $96.2M |
| Continuing Ops | $705.0M | $514.5M | $418.7M | $296.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $705.0M | $514.5M | $418.7M | $296.0M |
| Minority Interest | $12.3M | $145.0K | $4.2M | $1.2M |
| Net to Common | $692.7M | $514.3M | $414.6M | $294.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.26B | $2.50B | $2.50B | $2.27B |
| Cash & Equivalents | $559.4M | $1.12B | $1.17B | $914.2M |
| Marketable Securities | $36.0M | $34.7M | $31.1M | $34.4M |
| Accounts Receivable | $617.6M | $549.5M | $500.9M | $476.0M |
| Inventory | $973.2M | $727.8M | $720.8M | $722.0M |
| Other Current Assets | $75.9M | $71.7M | $78.4M | $122.1M |
| Long-Term Assets | $1.41B | $1.52B | $1.65B | $1.75B |
| PP&E (Net) | $689.0M | $776.6M | $890.7M | $992.6M |
| Goodwill | $337.3M | $336.3M | $339.8M | $343.9M |
| Operating Leases | $107.5M | $103.8M | $114.7M | $115.8M |
| Other LT Assets | $276.1M | $299.0M | $302.6M | $301.9M |
| Total Assets | $3.67B | $4.02B | $4.15B | $4.02B |
| Current Liabilities | $611.8M | $568.0M | $512.4M | $494.2M |
| Accounts Payable | $206.9M | $203.1M | $224.7M | $205.9M |
| Current Debt | $2.9M | $42.9M | $4.1M | $899.0K |
| Current Leases | $25.6M | $23.0M | $27.9M | $28.0M |
| Deferred Revenue | $10.2M | $9.5M | $6.5M | $4.0M |
| Other Current Liab | $366.2M | $289.6M | $249.3M | $255.4M |
| Long-Term Liabilities | $456.5M | $399.6M | $388.5M | $440.0M |
| Long-Term Debt | $275.2M | $233.5M | $229.8M | $228.9M |
| LT Operating Leases | $85.4M | $84.9M | $95.1M | $99.1M |
| Other LT Liab | $96.0M | $81.2M | $63.6M | $112.0M |
| Total Liabilities | $1.07B | $967.6M | $900.9M | $934.2M |
| Shareholders' Equity | $2.60B | $3.05B | $3.25B | $3.09B |
| Paid-In Capital | $294.0M | $354.7M | $403.4M | $444.8M |
| Retained Earnings | $2.22B | $2.58B | $2.78B | $2.56B |
| AOCI | $-9.1M | $1.1M | $-15.3M | $1.6M |
| Total L&E | $3.67B | $4.02B | $4.15B | $4.02B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $705.0M | $514.5M | $418.7M | $296.0M |
| Non-Cash Adjustments | $401.8M | $822.2M | $280.2M | $322.4M |
| Working Capital Changes | $-275.2M | $-376.7M | $-56.3M | $-72.7M |
| Cash from Operations | $831.6M | $959.9M | $642.6M | $545.7M |
| Capital Expenditures | $174.1M | $180.4M | $232.3M | $269.4M |
| Cash from Investing | $-353.9M | $-240.2M | $-270.8M | $-273.2M |
| Share Buybacks | $95.8M | $82.1M | $141.1M | $433.0M |
| Dividends Paid | $58.9M | $68.2M | $80.8M | $82.3M |
| Cash from Financing | $-210.2M | $-162.9M | $-307.1M | $-530.1M |
| FX Effect | $979.0K | $5.8M | $-7.4M | $3.1M |
| Net Change in Cash | $268.4M | $562.6M | $57.3M | $-254.5M |
| Beginning Cash | $291.2M | $559.6M | $1.12B | $1.18B |
| Ending Cash | $559.6M | $1.12B | $1.18B | $925.1M |
Frequently Asked Questions
How does UFP INDUSTRIES INC make money?
The company operates through three primary segments: Engineered Wood Panels (particleboard, MDF, OSB) which drive the majority of revenue; Building Products including sheathing and siding solutions; and other specialty products such as truss components and packaging materials.
What are the main risks for UFPI?
High exposure to volatile raw material costs such as wood chips and resins impacting gross margins; sensitivity to interest rate fluctuations affecting housing starts and commercial construction demand; potential for supply chain disruptions in logistics or energy costs required for manufacturing processes.
What is UFPI's competitive advantage?
Significant scale advantages in production volume allowing for lower unit costs compared to smaller competitors; extensive distribution network reaching nearly all major residential construction sites; and a diversified product portfolio that mitigates reliance on single material cycles.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.