UFP Industries Q1 Sales Drop 8.4%; Adjusted EBITDA Falls to $111M
UFP Industries reported Q1 net sales of $1.46 billion, down 8.4% year-over-year, with diluted EPS of $0.89 versus $1.30 a year ago. Adjusted EBITDA declined 21.7% to $111.4 million, operating cash outflow was $104 million, and the company repurchased $30 million of shares alongside a 3% dividend increase.
1. First Quarter 2026 Results
UFP Industries posted net sales of $1.461 billion for Q1 2026, an 8.4% decrease from $1.596 billion a year earlier. Net earnings attributable to controlling interests fell 35.7% to $51.1 million, with diluted EPS of $0.89 compared to $1.30 last year.
2. Segment Performance
Retail sales declined 12.5% to $531.2 million, driven by a 13% drop in organic units. Packaging net sales fell 3.9% to $394.1 million, while Construction sales slid 9.8% to $465.5 million, all impacted by weaker end-market demand and weather.
3. Cash Flow and Capital Allocation
Operating activities used $104 million of cash, resulting in $87 million of free cash flow. The company repurchased $30 million of stock, raised its dividend by 3%, and completed a $56 million acquisition, with another deal expected in May.
4. Cost-Out Program and Outlook
UFP is on track to achieve at least $25 million of the remaining $60 million cost-out target by year-end. Management cites diversified end markets, ongoing M&A and disciplined capital deployment as key to driving long-term growth and margin recovery.