UFP Industries, Inc. (NASDAQ:UFPI) today announced fourth quarter 2024 results including net sales of $1.46 billion, net earnings attributable to controlling interest of $68.0 million, and earnings per diluted share of $1.12. The company also announced net sales of $6.7 billion and earnings per diluted share of $6.77 for fiscal 2024. These results include the impact of impairment charges and severances of approximately $0.11 per diluted share (net of income taxes) associated with ongoing actions to reduce capacity and personnel costs due to lower overall market demand, and a gain on the sale of real estate of approximately $.03 per diluted share (net of income taxes).

"The second half of 2024 proved more challenging than expected, as we continued to face softer demand and a more competitive pricing environment in the fourth quarter," said Matthew J. Missad, executive chairman. "Despite these market headwinds, 2024 marked the 70th consecutive profitable year for the company, which highlights the resiliency of our businesses and our people. It has been an incredible pleasure to work with and help lead such a great team, and I am grateful for their hard work and determination, with the goal of always being the best. In times like these, they are addressing challenges head-on and making the tough decisions that will enable us to grow further and faster when our markets find a more stable footing. Although we expect the challenging economy to persist in 2025, our balanced business model, variable incentive compensation program, growth and improvement strategies, and strong balance sheet will help drive our success. I am very confident that Will Schwartz, Mike Cole and our great team of leaders will drive even greater success in the future while maintaining the team culture of employee growth and opportunity in pursuit of elite performance."

On December 29, 2024, Will Schwartz replaced Matt Missad as CEO, and Landon Tarvin succeeded Will as president of UFP Retail Solutions. Additionally, Will added the role of president, and CFO Mike Cole expanded his duties to include president of corporate services.

"I feel honored to step into the role as CEO at UFP Industries and help build on the company's incredibly rich history," said Will Schwartz. "Our team is focused on investing in our most promising growth opportunities and businesses that will generate the highest long-term returns. Bringing new, value-added products to market remains a key focus across the enterprise, and we'll showcase a few of our latest innovations, including our new Deckorators product lines made with Surestone technology, at the International Builders' Show next week. We'll also prioritize improving the value we bring to our customers and driving returns across our portfolio through investments in automation, new value-added product introductions, and plant optimization. Finally, as we manage through this uncertain environment, we will carefully manage our profitability and remain on track to achieve cost savings of $60 million by the end of 2026."

Fourth Quarter 2024 Highlights (comparisons on a year-over-year basis except where noted):

Net sales of $1.46 billion decreased 4 percent due to a 4 percent decrease in selling prices.
New product sales of $102 million were 7.0 percent of total sales compared to 7.7 percent in the fourth quarter of 2023.
Net earnings attributable to controlling interests of $68.0 million represents a 34 percent decrease from last year.
Adjusted EBITDA¹ was $132.7 million in the quarter or 9.1 percent of sales, compared to $165.6 million or 10.9 percent of sales for the same period a year ago.

Fiscal 2024 Highlights

Net sales of $6.7 billion decreased 8 percent due to a 1 percent decrease in organic unit sales and a 7 percent decrease in selling prices. The price of Southern Yellow Pine (SYP), which comprises approximately two-thirds of our lumber purchases, decreased 14 percent and contributed to the decrease in our selling prices.
New product sales of $505 million were 7.6 percent of total sales compared to 7.9 percent in fiscal 2023. Many products that were considered new products in 2023 were sunset and not included in 2024 totals. In 2024, the company also increased the margin threshold for new products, disqualifying certain product lines because they no longer met the company's growth and margin requirements to be classified as new products.
Net earnings attributable to controlling interests of $414.6 million represents a 19 percent decrease from last year.
Adjusted EBITDA¹ was $682.3 million for the year or 10.3 percent of sales, compared to $810 million or 11.2 percent of sales for the same period a year ago.

Capital Allocation

UFP Industries maintains a strong balance sheet with nearly $1.2 billion in cash as of December 28, 2024, compared to $1.1 billion in cash at the end of 2023. As of December 28, 2024, the company had approximately $2.5 billion of liquidity consisting of cash, remaining availability under the revolving credit facility, and remaining borrowing capacity provided by a shelf agreement with certain lenders. The company's return-focused approach to capital allocation includes the following:

Acquisitions and Organic Growth. The company seeks strategic acquisitions and invests in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. On December 23, 2024, the company acquired C&L Wood Products, Inc. (C&L), a manufacturer of pallets based in Hartselle, Alabama. C&L expands the geographic footprint of the company's PalletOne subsidiary into northern Alabama and central Tennessee.

In 2024, the company announced up to $1 billion in capital investments through 2028 for automation, technology upgrades, geographic expansion and increased capacity at existing facilities, specifically for its Deckorators and Site Built business units and its Packaging segment. The company expects to invest approximately $350 million in capital projects in 2025.

Dividend payments. On February 13, 2025, the UFP Industries Board of Directors approved a quarterly dividend payment of $0.35 per share, a 6 percent increase over the quarterly dividend of $0.33 per share paid throughout 2024. The dividend is payable on March 17, 2025, to shareholders of record on March 3, 2025.

Share repurchases. On July 24, 2024, the UFP Industries Board of Directors authorized the company to repurchase up to $200 million of shares through July 31, 2025. Since that date, the company repurchased 9,322 shares for $1 million at an average share price of $111.81 under this new authorization during the fourth quarter; during January 2025, 62,900 shares were repurchased for $7.0 million at an average share price of $111.27.

_____________________________

¹ Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.

By business segment, the company reported the following results:

UFP Retail Solutions

Fourth Quarter: Net sales of $525 million were flat compared to the fourth quarter of 2023. Organic unit sales increased 1 percent, which was offset by a 1 percent decline due to the transfer of certain product sales to the Packaging segment. Organic unit sales increased 1 percent for ProWood and decreased 2 percent for UFP-Edge and 4 percent for Deckorators. Gross profit was $68 million or 12.9 percent of sales compared to $67 million or 12.7 percent of sales, last year. Gross profit remained steady quarter over quarter as a result of generally stable unit volumes and SKU rationalization completed earlier in the year.

Full Year: Net sales of $2.6 billion decreased 12 percent compared to fiscal 2023, attributable to a 5 percent decline in selling prices, a 5 percent decline in organic unit sales, and a 2 percent decline due to the transfer of certain products to the Packaging and Construction segments. Organic unit sales decreased 5 percent for ProWood, 6 percent for UFP-Edge and 3 percent for Deckorators. Unit sales decreased 4 percent with big box customers, reflective of ongoing softening in repair and remodel activity. Independent dealer sales decreased 7 percent, a decline that more closely correlates to housing starts. Gross profit was $389 million or 15 percent of sales compared to $389 million or 13.2 percent of sales last year. The impact of lower volumes was offset by operational improvements and SKU rationalization. As a result of the significant amount of variable-priced products, the decline in our selling prices was substantially offset by lower lumber costs.

UFP Packaging

Fourth Quarter: Net sales of $375 million were down 9 percent compared to the fourth quarter of 2023. A 2 percent decline in organic unit sales and an 8 percent decrease in selling prices were partially offset by a 1 percent increase from the transfer of certain product sales from the Retail segment. A 9 percent decline in organic unit sales for Structural Packaging and 2 percent decline in organic unit sales for Protective Packaging, attributable to weaker demand, were partially offset by a 13 percent increase in organic unit sales for PalletOne due to market share gains. Gross profit for the Packaging segment was $61 million or 16.2 percent of sales compared to $82 million or 19.9 percent of sales in the fourth quarter last year. Gross profit declined primarily due to competitive price pressure and a less favorable sales mix.

Full Year: Net sales of $1.6 billion were down 11 percent compared to fiscal 2023, due to an 8 percent decrease in selling prices and a 5 percent decline in organic unit sales, partially offset by a 2 percent increase from the transfer of certain product sales from the Retail segment. A 10 percent decline in organic unit sales for Structural Packaging and 6 percent decline in organic unit sales for Protective Packaging, attributable to weaker demand, were partially offset by a 9 percent increase in organic unit sales for PalletOne, due to market share gains. Gross profit for the Packaging segment was $301 million or 18.4 percent of sales compared to $415 million or 22.6 percent of sales last year. Gross profit declined due to competitive price pressure, a less favorable sales mix, and lower sales volumes.

UFP Construction

Fourth Quarter: Net sales of $487 million decreased 5 percent compared to the fourth quarter of 2023, attributable to a 7 percent decrease in selling prices offset by a 2 percent increase in organic unit sales. Organic unit sales increased 18 percent in Factory Built due to an increase in industry production and market share gains, and organic unit sales increased 6 percent in Concrete Forming. Organic unit sales for the Site Built and Commercial business units decreased 9 percent and 2 percent, respectively, primarily due to weaker demand. Gross profit for the Construction segment was $87 million or 17.9 percent of sales compared to $120 million or 23.5 percent of sales in the fourth quarter last year. The decrease in gross profit was primarily due to lower volumes and unabsorbed fixed manufacturing costs, a more competitive pricing environment, and a less favorable sales mix.

Full Year: Net sales of $2.1 billion decreased 2 percent compared to fiscal 2023, attributable to a 7 percent decrease in selling prices offset by a 5 percent increase in organic unit sales. Organic unit sales increased 16 percent in Factory Built due to an increase in industry production and market share gains. Organic unit sales were flat in Site Built and down 6 percent in both Commercial and Concrete Forming. Gross profit for the Construction segment was $438 million or 20.7 percent of sales compared to $524 million or 24.2 percent of sales in the prior year. Gross profit declined primarily due to a lower volumes and unabsorbed fixed manufacturing costs, a more competitive pricing environment, and a less favorable sales mix.

Short-Term Outlook

Tariff impacts: We are working closely with our domestic and international suppliers to navigate the recently proposed tariffs, which have been paused in Mexico and Canada. If tariffs are enforced, the demand for domestic product is expected to increase, which will likely increase costs as capacity gets challenged. Although the trade landscape continues to evolve, since we do not own any foreign sawmills and have excellent relationships with our mill partners, we believe we are currently in a strong position to adapt quickly to tariffs without adverse financial impact after a short adjustment period. The company will continue to monitor the market and make decisions quickly to minimize disruption.

End Market Demand: We anticipate the softer demand and a competitive pricing environment will continue through the first half of 2025, with overall demand slightly down in each of our Retail, Packaging, and Constructions segments.

Long-Term Outlook

The company's long-term goals remain unchanged and include: 1) achieving 7-10 percent unit sales growth annually (including bolt-on acquisitions) and at least 10 percent of all sales coming from new products; 2) achieving 12.5 percent EBITDA margins; 3) earning an incremental return on new investments over its hurdle rate; and 4) maintaining its conservative capital structure.

CONFERENCE CALL

UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 9:00 a.m. ET on Tuesday, February 18, 2025. The call will be hosted by Executive Chairman Matt Missad, President and CEO Will Schwartz and CFO Michael Cole and will be available simultaneously and in its entirety to all interested investors and news media through a webcast at https://www.ufpinvestor.com/news-filings-reports#events---presentations. A replay of the call will be available through the website.

UFP Industries, Inc.

UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. UFP Industries is ranked #493 on the Fortune 500 and #128 on Industry Week's list of America's Largest Manufacturers. For more about UFP Industries, go to www.ufpi.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "likely," "plans," "projects," "should," variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; government regulations, particularly involving environmental and safety regulations; and our ability to make successful business acquisitions. Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission

Non-GAAP Financial Information

This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management uses Adjusted EBITDA, a non-GAAP financial measure, in order to evaluate historical and ongoing operations. Management believes that this non-GAAP financial measure is useful in order to enable investors to perform meaningful comparisons of historical and current performance. Adjusted EBITDA is intended to supplement and should be read together with the financial results. Adjusted EBITDA should not be considered an alternative or substitute for, and should not be considered superior to, the reported financial results. Accordingly, users of this financial information should not place undue reliance on the non-GAAP financial measure.

Net earnings

Net earnings refers to net earnings attributable to controlling interest unless specifically noted.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 2024/2023

	Quarter Period										Year to Date
(In thousands, except per share data)	2024					2023					2024					2023
NET SALES	$	1,462,001		100.0	%	$	1,524,353		100.0	%	$	6,652,309		100.0	%	$	7,218,384		100.0	%

COST OF GOODS SOLD		1,222,492		83.6			1,228,211		80.6			5,425,567		81.6			5,799,446		80.3

GROSS PROFIT		239,509		16.4			296,142		19.4			1,226,742		18.4			1,418,938		19.7

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		156,491		10.7			171,598		11.3			735,046		11.0			766,633		10.6
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS		4,619		0.3			205		—			6,157		0.1			(260	)	—
OTHER (GAINS) LOSSES, NET		(1,060	)	(0.1	)		342		—			(6,703	)	(0.1	)		6,031		0.1

EARNINGS FROM OPERATIONS		79,459		5.4			123,997		8.1			492,242		7.4			646,534		9.0

INTEREST AND OTHER		(11,560	)	(0.8	)		(11,664	)	(0.8	)		(47,913	)	(0.7	)		(24,707	)	(0.3	)

EARNINGS BEFORE INCOME TAXES		91,019		6.2			135,661		8.9			540,155		8.1			671,241		9.3

INCOME TAXES		21,236		1.5			31,753		2.1			121,422		1.8			156,784		2.2

NET EARNINGS		69,783		4.8			103,908		6.8			418,733		6.3			514,457		7.1

LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST		(1,744	)	(0.1	)		(461	)	—			(4,173	)	(0.1	)		(145	)	—

NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST	$	68,039		4.7		$	103,447		6.8		$	414,560		6.2		$	514,312		7.1

EARNINGS PER SHARE - BASIC	$	1.12				$	1.65				$	6.78				$	8.21

EARNINGS PER SHARE - DILUTED	$	1.12				$	1.62				$	6.77				$	8.07

COMPREHENSIVE INCOME	$	58,121				$	111,775				$	398,753				$	529,293

LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST		(1,007	)				(2,139	)				(610	)				(4,800	)

COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$	57,114				$	109,636				$	398,143				$	524,493

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED) FOR THE THREE MONTHS ENDED DECEMBER 2024

	Quarter Period 2024
(In thousands)	Retail			Packaging			Construction			All Other			Corporate			Total
NET SALES	$	524,591		$	375,315		$	486,776		$	73,971		$	1,348		$	1,462,001
COST OF GOODS SOLD		456,731			314,427			399,826			68,602			(17,094	)		1,222,492
GROSS PROFIT		67,860			60,888			86,950			5,369			18,442			239,509
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		34,578			35,468			51,014			(1,723	)		37,154			156,491
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS		2,189			5,090			452			18			(3,130	)		4,619
OTHER (GAINS) LOSSES, NET		(436	)		—			(447	)		(286	)		109			(1,060	)
EARNINGS FROM OPERATIONS		31,529			20,330			35,931			7,360			(15,691	)		79,459
INTEREST AND OTHER		(171	)		(1,415	)		42			(530	)		(9,486	)		(11,560	)
EARNINGS BEFORE INCOME TAXES		31,700			21,745			35,889			7,890			(6,205	)		91,019
INCOME TAXES		7,341			5,182			8,294			721			(302	)		21,236
NET EARNINGS	$	24,359		$	16,563		$	27,595		$	7,169		$	(5,903	)	$	69,783
INTEREST AND OTHER		(171	)		(1,415	)		42			(530	)		(9,486	)		(11,560	)
INCOME TAXES		7,341			5,182			8,294			721			(302	)		21,236
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS		1,860			1,623			1,846			163			5,326			10,818
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS		940			861			451			18			(3,130	)		(860	)
IMPAIRMENT OF INTANGIBLES		1,250			4,229			—			—			—			5,479
GAIN FROM REDUCTION OF ESTIMATED EARNOUT LIABILITY		—			(605	)		—			—			—			(605	)
DEPRECIATION EXPENSE		7,550			9,003			6,092			889			8,977			32,511
AMORTIZATION OF INTANGIBLES		998			2,216			702			1,551			433			5,900
ADJUSTED EBITDA	$	44,127		$	37,657		$	45,022		$	9,981		$	(4,085	)	$	132,702

ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES		8.4	%		10.0	%		9.2	%		13.5	%		*			9.1	%
* Not meaningful

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED) FOR THE THREE MONTHS ENDED DECEMBER 2023

	Quarter Period 2023
(In thousands)	Retail			Packaging			Construction			All Other			Corporate			Total
NET SALES	$	525,730		$	413,654		$	511,042		$	73,551		$	376		$	1,524,353
COST OF GOODS SOLD		459,044			331,488			390,983			54,601			(7,905	)		1,228,211
GROSS PROFIT		66,686			82,166			120,059			18,950			8,281			296,142
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		40,657			39,170			62,393			11,566			17,812			171,598
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS		741			92			53			(27	)		(654	)		205
OTHER LOSSES (GAINS), NET		264			—			34			(166	)		210			342
EARNINGS FROM OPERATIONS		25,024			42,904			57,579			7,577			(9,087	)		123,997
INTEREST AND OTHER		(124	)		1,356			(3	)		(4,300	)		(8,593	)		(11,664	)
EARNINGS BEFORE INCOME TAXES		25,148			41,548			57,582			11,877			(494	)		135,661
INCOME TAXES		5,922			9,725			13,478			2,744			(116	)		31,753
NET EARNINGS	$	19,226		$	31,823		$	44,104		$	9,133		$	(378	)	$	103,908
INTEREST AND OTHER		(124	)		1,356			(3	)		(4,300	)		(8,593	)		(11,664	)
INCOME TAXES		5,922			9,725			13,478			2,744			(116	)		31,753
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS		1,331			2,110			1,698			248			3,444			8,831
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS		740			92			54			(27	)		(654	)		205
GAIN FROM REDUCTION OF ESTIMATED EARNOUT LIABILITY		(134	)		(3,475	)		—			—			—			(3,609	)
DEPRECIATION EXPENSE		6,898			8,958			5,354			975			7,946			30,131
AMORTIZATION OF INTANGIBLES		1,101			2,192			702			1,642			365			6,002
ADJUSTED EBITDA	$	34,960		$	52,781		$	65,387		$	10,415		$	2,014		$	165,557

ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES		6.6	%		12.8	%		12.8	%		14.2	%		*			10.9	%
* Not meaningful

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2024

	Year to Date 2024
(In thousands)	Retail			Packaging			Construction			All Other			Corporate			Total
NET SALES	$	2,597,994		$	1,636,563		$	2,113,844		$	298,190		$	5,718		$	6,652,309
COST OF GOODS SOLD		2,209,195			1,335,304			1,675,346			240,518			(34,796	)		5,425,567
GROSS PROFIT		388,799			301,259			438,498			57,672			40,514			1,226,742
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		209,592			191,757			262,517			39,940			31,240			735,046
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS		3,067			6,545			673			28			(4,156	)		6,157
OTHER (GAINS) LOSSES, NET		(2,964	)		—			(376	)		(3,572	)		209			(6,703	)
EARNINGS FROM OPERATIONS		179,104			102,957			175,684			21,276			13,221			492,242
INTEREST AND OTHER		(557	)		(101	)		17			(9,356	)		(37,916	)		(47,913	)
EARNINGS BEFORE INCOME TAXES		179,661			103,058			175,667			30,632			51,137			540,155
INCOME TAXES		40,534			23,023			39,488			5,793			12,584			121,422
NET EARNINGS	$	139,127		$	80,035		$	136,179		$	24,839		$	38,553		$	418,733
INTEREST AND OTHER		(557	)		(101	)		17			(9,356	)		(37,916	)		(47,913	)
INCOME TAXES		40,534			23,023			39,488			5,793			12,584			121,422
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS		5,788			6,974			7,944			772			16,685			38,163
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS		1,817			2,316			673			28			(4,156	)		678
IMPAIRMENT OF INTANGIBLES		1,250			4,229			—			—			—			5,479
GAIN FROM REDUCTION OF ESTIMATED EARNOUT LIABILITY		—			(642	)		(1,818	)		—			—			(2,460	)
DEPRECIATION EXPENSE		28,877			34,603			23,124			3,338			34,699			124,641
AMORTIZATION OF INTANGIBLES		3,992			8,840			2,810			6,124			1,755			23,521
ADJUSTED EBITDA	$	220,828		$	159,277		$	208,417		$	31,538		$	62,204		$	682,264

ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES		8.5	%		9.7	%		9.9	%		10.6	%		*			10.3	%
* Not meaningful

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2023

	Year to Date 2023
(In thousands)	Retail			Packaging			Construction			All Other			Corporate			Total
NET SALES	$	2,956,007		$	1,838,200		$	2,161,059		$	259,392		$	3,726		$	7,218,384
COST OF GOODS SOLD		2,566,572			1,422,940			1,637,329			182,047			(9,442	)		5,799,446
GROSS PROFIT		389,435			415,260			523,730			77,345			13,168			1,418,938
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		213,288			219,323			279,107			51,548			3,367			766,633
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS		800			8			9			(166	)		(911	)		(260	)
OTHER LOSSES, NET		3,180			—			1,268			1,425			158			6,031
EARNINGS FROM OPERATIONS		172,167			195,929			243,346			24,538			10,554			646,534
INTEREST AND OTHER		(57	)		2,368			(10	)		(8,767	)		(18,241	)		(24,707	)
EARNINGS BEFORE INCOME TAXES		172,224			193,561			243,356			33,305			28,795			671,241
INCOME TAXES		40,304			45,292			56,753			7,723			6,712			156,784
NET EARNINGS	$	131,920		$	148,269		$	186,603		$	25,582		$	22,083		$	514,457
INTEREST AND OTHER		(57	)		2,368			(10	)		(8,767	)		(18,241	)		(24,707	)
INCOME TAXES		40,304			45,292			56,753			7,723			6,712			156,784
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS		5,575			7,595			7,190			935			13,604			34,899
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS		801			7			9			(167	)		(910	)		(260	)
GAIN FROM REDUCTION OF ESTIMATED EARNOUT LIABILITY		(593	)		(1,784	)		(800	)		—			—			(3,177	)
DEPRECIATION EXPENSE		25,483			32,996			19,546			2,454			30,084			110,563
AMORTIZATION OF INTANGIBLES		4,566			8,849			2,904			3,488			1,520			21,327
ADJUSTED EBITDA	$	207,999		$	243,592		$	272,195		$	31,248		$	54,852		$	809,886

ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES		7.0	%		13.3	%		12.6	%		12.0	%		*			11.2	%
* Not meaningful

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) DECEMBER 2024/2023

(In thousands)
ASSETS		2024		2023	LIABILITIES AND EQUITY		2024		2023

CURRENT ASSETS					CURRENT LIABILITIES
Cash and cash equivalents	$	1,171,828		1,118,329	Accounts payable	$	224,659	$	203,055
Restricted cash		7,766		3,927	Accrued liabilities and other		283,664		322,021
Investments		31,087		34,745	Current portion of debt		4,125		42,900
Accounts receivable		500,920		549,499
Inventories		720,824		727,788
Other current assets		70,600		67,801

TOTAL CURRENT ASSETS		2,503,025		2,502,089	TOTAL CURRENT LIABILITIES		512,448		567,976

OTHER ASSETS		257,533		220,278	LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS		229,830		233,534
INTANGIBLE ASSETS, NET		499,637		518,853	OTHER LIABILITIES		158,669		166,067

					TEMPORARY EQUITY		5,366		20,030

PROPERTY, PLANT AND EQUIPMENT, NET		890,743		776,577	SHAREHOLDERS' EQUITY		3,244,625		3,030,190


TOTAL ASSETS	$	4,150,938	$	4,017,797	TOTAL LIABILITIES AND EQUITY	$	4,150,938	$	4,017,797

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2024/2023

(In thousands)		2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	418,733		$	514,457
Adjustments to reconcile net earnings to net cash from operating activities:

Depreciation		124,641			110,563
Amortization of intangibles		23,521			21,327
Expense associated with share-based and grant compensation arrangements		38,163			34,899
Deferred income taxes		(15,382	)		(5,573	)
Unrealized gain on investment and other		(1,217	)		(2,435	)
Equity in (earnings) loss of investee		(89	)		2,367
Net loss (gain) on sale, disposition and impairment of assets		678			(260	)
Impairment of intangibles		5,479			—
Gain from reduction of estimated earnout liability		(2,460	)		(3,177	)
Changes in:
Accounts receivable		47,070			81,659
Inventories		6,356			250,561
Accounts payable		22,394			(3,578	)
Accrued liabilities and other		(25,316	)		(40,920	)
NET CASH FROM OPERATING ACTIVITIES		642,571			959,890

CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(232,274	)		(180,382	)
Proceeds from sale of property, plant and equipment		11,501			3,291
Acquisitions, net of cash received and purchase of equity method investment		(29,830	)		(52,383	)
Purchases of investments		(55,397	)		(29,806	)
Proceeds from sale of investments		30,844			29,935
Other		4,406			(10,819	)
NET CASH USED IN INVESTING ACTIVITIES		(270,750	)		(240,164	)

CASH FLOWS USED IN FINANCING ACTIVITIES:
Borrowings under revolving credit facilities		29,913			28,462
Repayments under revolving credit facilities		(32,256	)		(30,125	)
Repayments of debt		(40,000	)		(29	)
Repayment of debt on behalf of investee		(6,303	)		—
Contingent consideration payments and other		(4,868	)		(6,262	)
Proceeds from issuance of common stock		2,811			2,750
Dividends paid to shareholders		(80,782	)		(68,238	)
Distributions to noncontrolling interest		(11,848	)		(7,355	)
Purchase of remaining noncontrolling interest of subsidiary		(4,902	)		—
Payments to taxing authorities in connection with shares directly withheld from employees		(17,838	)		—
Repurchase of common stock		(141,120	)		(82,149	)
Other		73			86
NET CASH USED IN FINANCING ACTIVITIES		(307,120	)		(162,860	)

Effect of exchange rate changes on cash		(7,363	)		5,767
NET CHANGE IN CASH AND CASH EQUIVALENTS		57,338			562,633

ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		1,122,256			559,623

ALL CASH AND CASH EQUIVALENTS, END OF PERIOD	$	1,179,594		$	1,122,256

Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period	$	1,118,329		$	559,397
Restricted cash, beginning of period		3,927			226
All cash and cash equivalents, beginning of period	$	1,122,256		$	559,623

Cash and cash equivalents, end of period	$	1,171,828		$	1,118,329
Restricted cash, end of period		7,766			3,927
All cash and cash equivalents, end of period	$	1,179,594		$	1,122,256

View source version on businesswire.com: https://www.businesswire.com/news/home/20250217034441/en/

Stanley Elliott

Director of Investor Relations

(804) 337-8217

UFP Industries Announces Fourth Quarter and Fiscal 2024 Results