UFP Industries falls on third quarter earnings miss

Investing.com -- Ufp Industries Inc (NASDAQ: UFPI) reported third quarter results that missed analyst expectations on earnings despite beating revenue estimates, with shares falling 4.7% in after-hours trading Wednesday.

The manufacturer reported adjusted earnings per share of $1.05, missing the analyst consensus of $1.22 by $0.17. Revenue of $1.73 billion exceeded the estimate of $1.6 billion and increased 11.1% from $1.56 billion in the same quarter last year. The revenue growth was driven by 4% organic unit growth, 2% from acquisitions, and 5% from higher selling prices.

Profitability was significantly impacted by elevated transportation and material costs. Transportation costs, net of fuel surcharges, increased by $19 million, or 1.3% of net sales, compared to the prior year. Freight spot rates, excluding fuel, increased 30% during the quarter due to tightening industry capacity as smaller carriers exited the market. Adjusted EBITDA was $119.3 million, or 6.9% of net sales, compared to $140.0 million, or 9.0% of net sales, a year ago.

"Organic unit growth strengthened in the third quarter despite continued pressure across several of our end markets, which speaks to the successes we are seeing with our product and market-share initiatives," said Will Schwartz, President and CEO. "Profitability continued to be affected by elevated transportation and material costs, which limited the earnings benefit from higher volumes and an improved earnings profile."

New product sales reached 8.7% of total net sales, up from 6.8% a year ago. The company expects to meet or exceed its initial $60 million cost-savings objective by year-end.

UFP Industries generated $235 million in cash flows from operating activities during the first nine months of 2026 and repurchased nearly $183 million of shares. The company ended the quarter with approximately $2 billion of liquidity and no borrowings under its revolving credit facility.

The company's full year 2026 outlook remains unchanged, with overall industry unit demand expected to be slightly down in each segment based on its sales mix.

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