UFP Industries (UFPI, Financial) has strengthened its presence in the western United States by acquiring a facility in Twin Falls, Idaho from Robert Weed Corporation. This strategic move is set to enhance UFP's regional service capabilities and increase its production capacity. By integrating this facility, the company aims to fortify its standing in the recreational vehicle, cargo trailer, and manufactured housing markets.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for UFP Industries Inc (UFPI, Financial) is $120.00 with a high estimate of $135.00 and a low estimate of $110.00. The average target implies an upside of 25.00% from the current price of $96.00. More detailed estimate data can be found on the UFP Industries Inc (UFPI) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, UFP Industries Inc's (UFPI, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for UFP Industries Inc (UFPI, Financial) in one year is $95.84, suggesting a downside of 0.17% from the current price of $96. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the UFP Industries Inc (UFPI) Summary page.
UFPI Key Business Developments
Release Date: April 29, 2025
- Revenue: Declined 3% to $1.6 billion.
- Earnings Per Share (EPS): $1.30 for the quarter.
- Adjusted EBITDA: $142 million, a 21% decline.
- Adjusted EBITDA Margin: 8.9%.
- Cash Position: $905 million at quarter end.
- Retail Segment Sales: $607 million, a 3% decline.
- Packaging Segment Sales: $410 million, a 3% decline.
- Construction Segment Sales: Largely flat at $516 million.
- New Product Sales: $106 million, 6.7% of total sales.
- Capital Expenditures: $67 million, with $19 million in maintenance and $48 million in expansionary CapEx.
- Share Repurchases: $70 million during the quarter, with an additional $107 million in April.
- Dividend: Quarterly dividend of $0.35 per share, a 6% increase from the previous year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- UFP Industries Inc (UFPI, Financial) reported a sequential improvement in business activity each month during the quarter, with positive trends continuing into April.
- The company finished the quarter with $905 million in cash, providing ample flexibility for future investments while maintaining a conservative capital structure.
- UFP Industries Inc (UFPI) is on track to realize $60 million in structural cost savings by 2026 through cost reduction and capacity adjustments.
- New product sales totaled $106 million in the quarter, with a pathway to reach 10% of total sales over time, highlighting growth potential.
- The company is actively expanding its manufacturing capacity and geographic reach, including plans for a new facility in the Northeast to support market share growth.
Negative Points
- Total sales declined by 3% from the previous year, with a 2% reduction in volumes and a 1% reduction in selling prices.
- Margins remain pressured due to unfavorable manufacturing variances, competitive pricing, higher input and transportation costs, and unfavorable product mix shifts.
- Visibility into the second half of the year remains limited, with ongoing macroeconomic uncertainties and potential tariff impacts on Canadian lumber.
- The construction segment faced challenges, particularly in the site-built area, with a significant decline in margins due to pricing challenges and higher material costs.
- The packaging segment experienced a 3% decline in sales, with competitive headwinds and increased material costs further pressuring margins.
