Key Highlights

  • Net sales of USD 1.73 billion rose 11.1%, beating the USD 1.60 billion consensus estimate on 4% organic unit growth.
  • Diluted EPS of USD 1.05 fell from USD 1.29 and came in below the USD 1.20 consensus estimate.
  • Adjusted EBITDA slid to USD 119.3 million, a 6.9% margin, as net transportation costs rose USD 19 million.
  • New products reached 8.7% of net sales, up from 6.8%, led by Deckorators and Structural Packaging.

UFP Industries, Inc. (NASDAQ:UFPI) reported third-quarter 2026 net sales of USD 1.73 billion, up 11.1% from USD 1.56 billion and above a consensus estimate of USD 1.60 billion. Growth came from a 4% rise in organic units, a 2% contribution from acquisitions and a 5% increase in selling prices.

Diluted earnings per share were USD 1.05, down from USD 1.29 a year earlier and below a consensus estimate of USD 1.20. Net earnings attributable to controlling interests were USD 58 million versus USD 75 million, with the company citing higher freight and lumber costs.

Segment Detail and Cost Pressure

Adjusted EBITDA fell 14.8% to USD 119.3 million, or 6.9% of net sales against 9.0%. Freight costs net of fuel surcharges climbed USD 19 million, or 1.3% of net sales, as spot rates excluding fuel rose 30% during the quarter and carrier capacity tightened.

UFP Packaging sales jumped 18.0% to USD 465.8 million with 9% organic unit growth, though adjusted EBITDA slid 20.5% to USD 27.3 million. UFP Construction sales rose 11.3% to USD 552.4 million, with Site Built units up 12% and Commercial up 20%. UFP Retail sales grew 6.8% to USD 634.5 million; Deckorators units rose 21% and the Surestone decking backlog improved to about USD 18 million, while ProWood units fell 4%.

Outlook, Liquidity and Capital Allocation

The company's full-year 2026 outlook is unchanged. It projects industry unit demand slightly lower in each segment, with new residential construction remaining challenging and energy and transportation costs staying elevated. CEO Will Schwartz said the company now anticipates meeting or exceeding its initial USD 60 million cost-savings objective by year-end. Long-term targets remain 7% to 10% annual unit growth and a 12.5% adjusted EBITDA margin.

Liquidity was about USD 2.0 billion, including USD 677 million in cash and no revolver borrowings, and the USD 750 million revolving facility was extended to October 23, 2031. Nine-month operating cash flow was USD 235 million and free cash flow was USD 287 million. The company repurchased 2,169,224 shares for USD 182.7 million at an average price of USD 84.24, and about USD 198 million remains under the current authorization.

Indicators Still in Focus

Four items give structure to the coming period. The Apache Products pallet acquisition, priced at roughly USD 27 million in cash against about USD 53 million of 2025 sales, is scheduled for November 2026. The quarterly dividend of USD 0.36 per share is payable December 15, 2026 to holders of record on December 1. Roughly USD 100 million of seasonal working capital is projected to convert to cash in the fourth quarter. The transportation line is the fourth, since the USD 19 million net increase accounts for 1.3% of net sales.