UFP Industries reports mixed first-quarter results, net sales down 10% year-over-year Author: Investing.com

GRAND RAPIDS, MI – UFP Industries, Inc. (NASDAQ: UFPI) reports first quarter 2024 financial results, with net sales of $1.64 billion, down 10% from the prior year's first quarter, down Sales prices fell 9% and organic unit sales fell 1%.

Despite the sales decline, the company's adjusted earnings per share (EPS) beat analysts' expectations, coming in at $1.96 versus expectations of $1.66. However, revenue fell short of consensus estimates of $1.71 billion.

Chairman and CEO Matthew J. Missad attributed the performance to the company's balanced business model and dedicated team, emphasizing investment in automation and technology to improve operational efficiency, as well as growth through new products and regional capacity expansion. Misad also emphasized that the company is focusing on shareholder value by increasing share repurchase activities and increasing quarterly dividend payments by 32%.

First-quarter results were mixed across segments, with net sales at UFP Retail Solutions falling 17% and UFP Packaging (NYSE: ) down 13%, while net sales at UFP Construction remained relatively stable. Adjusted EBITDA in the quarter was US$181 million, a decrease of 10% year-on-year, and the adjusted EBITDA profit margin dropped slightly to 11%.

Looking ahead, UFP Industries is cautious about its outlook for the remainder of 2024, expecting lumber prices to remain at historically low levels and forecasting mid-single-digit demand declines in its packaging and retail segments. Demand in the construction sector is expected to increase or decrease slightly. The company also plans to continue its strategic capital allocation, with an investment target of up to $300 million this year.

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UFP Industries maintains a strong balance sheet, with net surplus cash of $702.6 million as of March 30, 2024, and liquidity of approximately $2.2 billion. The company's capital allocation approach includes strategic acquisitions, organic growth, dividend payments and stock repurchases, and a quarterly dividend of $0.33 per share will be paid on June 17, 2024 to shareholders of record as of June 3, 2024.

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