UFP Industries (UFPI) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 4, 2026 astatine 10:49 AM CDT 38 min read

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DATE

Tuesday, Feb. 24, 2026 astatine 9 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — William Schwartz

• Chief Financial Officer — Michael Cole

Full Conference Call Transcript

William Schwartz: Good morning, everyone, and convey you for joining today's telephone to sermon our 4th fourth fiscal results for fiscal twelvemonth 2025. We'll commencement by sharing our thoughts connected the 4th and what we're seeing successful the marketplace earlier providing immoderate thoughts connected wherever we spot the concern heading into 2026 and opening the telephone for questions. The marketplace dynamics we saw successful aboriginal 2025 continued into our 4th fourth with nett income totaling $1.33 billion, representing a 7% diminution successful units and a 2% diminution successful price. Our profitability remained pressured, though the structural improvements we've made to the concern were masked by respective onetime accounting items Mike volition item aboriginal successful the call.

2025 proved to beryllium a hard operating situation with respective of our cardinal markets facing some cyclical and competitory pricing pressures. Despite mostly brushed extremity marketplace demand, our 4th fourth income and profits were successful enactment with interior expectations. On a trailing 12-month basis, our margins proceed to flatten, and we proceed to spot stabilizing trends crossed the bulk of our businesses. Throughout the twelvemonth 2025, we took disciplined steps to put successful the aboriginal occurrence of our concern portion returning superior to our shareholders. Last year, we executed connected stock repurchases of $443 million, representing 7% of outstanding shares. Further, we paid $82 cardinal successful dividends, and we announced a 3% dividend summation for 2026.

We spent $270 cardinal connected attraction and maturation CapEx, Together with stock repurchases and dividends, that's astir $800 cardinal of superior deployed successful a disciplined and balanced fashion, and we inactive person $2.2 cardinal successful equilibrium expanse capacity. A hallmark of our balanced portfolio is our quality to make beardown and accordant escaped currency flow. This lone enhances our presumption looking ahead. We program to usage our beardown equilibrium expanse to prosecute meaningful M&A opportunities portion continuing to instrumentality superior to shareholders done opportunistic stock repurchases and dividends. Finally, our squad made advancement navigating a pugnacious situation and executing connected our strategy to negociate things wrong our control.

We exited underperforming businesses, reduced excess capacity, and we are connected a way to successfully achieving our $60 cardinal cost-out program. We expect to spot the savings proceed to physique passim the twelvemonth arsenic we stay committed to lowering our outgo structure. As a result, we are entering 2026 successful a stronger presumption to thrust improved results. As we've said before, we proceed to absorption connected innovation crossed the portfolio to bring value-added and higher-margin products to market. New merchandise income totaled 7.6% of full sales, and we similar the trajectory and opportunities up of us. As we determination into 2026, we are successful presumption to physique connected that momentum.