UFP Industries Reports Q4 and Full-Year 2024 Financial Results
UFP Industries, Inc. has announced its financial results for the fourth quarter of 2024, reporting net sales of $1.46 billion and net earnings attributable to controlling interest of $68.0 million. Earnings per diluted share stood at $1.12. For the full fiscal year, the company recorded net sales of $6.7 billion and earnings per diluted share of $6.77.
The results reflect the impact of impairment charges and severance costs of approximately $0.11 per diluted share (net of income taxes), stemming from ongoing efforts to reduce capacity and personnel expenses due to weaker market demand. Additionally, the company realized a gain of approximately $0.03 per diluted share (net of income taxes) from the sale of real estate.
Leadership Transition and Strategic Outlook
On December 29, 2024, Will Schwartz succeeded Matthew J. Missad as CEO of UFP Industries, while Landon Tarvin took over as president of UFP Retail Solutions. Schwartz also assumed the role of president, and CFO Mike Cole expanded his responsibilities to include president of corporate services.
“I feel honored to step into the role of CEO at UFP Industries and continue building on the company’s remarkable legacy,” said Schwartz. “Our focus remains on investing in high-growth opportunities, bringing innovative, value-added products to market, and enhancing the value we deliver to our customers. We are prioritizing automation, product innovation, and plant optimization to drive efficiency and returns. As we navigate an uncertain economic environment, we remain committed to achieving $60 million in cost savings by the end of 2026.”
Missad reflected on the challenges and achievements of the past year: “The second half of 2024 was more difficult than anticipated, with softer demand and a highly competitive pricing environment impacting the fourth quarter. Despite these challenges, 2024 marked our 70th consecutive profitable year—a testament to our resilience and dedication. I have immense confidence in Will, Mike, and our leadership team to continue driving success and maintaining our culture of employee growth and elite performance.”
Fourth Quarter 2024 Highlights (Year-over-Year Comparisons):
- Net sales of $1.46 billion, a 4% decrease, driven by a 4% decline in selling prices.
- New product sales of $102 million accounted for 7.0% of total sales, compared to 7.7% in Q4 2023.
- Net earnings attributable to controlling interests declined 34% to $68.0 million.
- Adjusted EBITDA1 was $132.7 million, representing 9.1% of sales, down from $165.6 million (10.9% of sales) in Q4 2023.
Fiscal Year 2024 Highlights:
- Net sales of $6.7 billion, an 8% decrease due to a 1% decline in organic unit sales and a 7% drop in selling prices. The price of Southern Yellow Pine (SYP), which constitutes roughly two-thirds of the company’s lumber purchases, declined 14%, contributing to the price decrease.
- New product sales totaled $505 million, or 7.6% of total sales, compared to 7.9% in 2023. The company refined its product classification criteria, leading to the exclusion of certain products previously considered “new.”
- Net earnings attributable to controlling interests decreased 19% to $414.6 million.
- Adjusted EBITDA1 was $682.3 million (10.3% of sales), compared to $810 million (11.2% of sales) in 2023.
Capital Allocation and Strategic Investments
UFP Industries ended 2024 with nearly $1.2 billion in cash, compared to $1.1 billion at the end of 2023. The company maintains liquidity of approximately $2.5 billion, including cash, available credit, and borrowing capacity.
- Acquisitions and Growth Initiatives: On December 23, 2024, UFP Industries acquired C&L Wood Products, Inc., a pallet manufacturer based in Hartselle, Alabama, expanding the geographic footprint of its PalletOne subsidiary into northern Alabama and central Tennessee. The company also announced plans to invest up to $1 billion through 2028 in automation, technology upgrades, and capacity expansions for its Deckorators, Site Built, and Packaging segments. In 2025 alone, approximately $350 million is allocated for capital projects.
- Dividend Payments: On February 13, 2025, the Board of Directors approved a quarterly dividend of $0.35 per share, a 6% increase from the $0.33 per share paid throughout 2024. The dividend will be payable on March 17, 2025, to shareholders of record on March 3, 2025.
- Share Repurchases: On July 24, 2024, the Board authorized a share repurchase program of up to $200 million through July 31, 2025. Under this authorization, the company repurchased 9,322 shares for $1 million at an average price of $111.81 per share during Q4 2024. In January 2025, an additional 62,900 shares were repurchased for $7.0 million at an average price of $111.27 per share.
Segment Performance
UFP Retail Solutions
- Q4 2024: Net sales remained flat at $525 million. Organic unit sales rose 1%, offset by a 1% decline from product transfers to the Packaging segment. ProWood saw a 1% increase, while UFP-Edge and Deckorators declined by 2% and 4%, respectively. Gross profit was $68 million (12.9% of sales), compared to $67 million (12.7% of sales) in Q4 2023.
- Full Year: Net sales declined 12% to $2.6 billion, driven by lower prices (-5%), organic unit sales (-5%), and product transfers (-2%). Gross profit held steady at $389 million (15% of sales), up from 13.2% in 2023, due to operational improvements and SKU rationalization.
UFP Packaging
- Q4 2024: Net sales fell 9% to $375 million. Organic unit sales declined 2%, and selling prices decreased 8%. Structural Packaging (-9%) and Protective Packaging (-2%) saw demand declines, while PalletOne grew 13% due to market share gains. Gross profit was $61 million (16.2% of sales), down from $82 million (19.9%) in Q4 2023 due to pricing pressures and an unfavorable sales mix.
- Full Year: Net sales declined 11% to $1.6 billion, primarily due to pricing (-8%) and organic unit sales (-5%). PalletOne sales increased 9%, while Structural and Protective Packaging declined 10% and 6%, respectively. Gross profit was $301 million (18.4% of sales), down from $415 million (22.6%) in 2023.
UFP Construction
- Q4 2024: Net sales of $487 million (data to be continued).
