UFP Industries, Inc. (UFPI) Bundle
A Brief History of UFP Industries, Inc.
Company Overview
UFP Industries, Inc., a leading company in the building materials industry, operates through various segments including UFP Retail Solutions, UFP Packaging, and UFP Construction. As of 2024, the company continues to adapt to market fluctuations and evolving consumer demands.
Financial Performance
For the third quarter of 2024, UFP Industries reported net sales of $1.649 billion, a decrease from $1.828 billion in the same period of 2023. This decline reflects a 10% decrease year-over-year, attributed to a 7% decrease in selling prices and a 3% decrease in unit sales.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $1,649 million | $1,828 million | $5,190 million | $5,694 million |
| Cost of Goods Sold | $1,351 million | $1,463 million | $4,203 million | $4,571 million |
| Gross Profit | $298 million | $364 million | $987 million | $1,123 million |
| Net Earnings | $102 million | $134 million | $349 million | $411 million |
Market Dynamics
UFP Industries experienced significant challenges due to fluctuations in lumber prices, which are indexed to the market. For instance, the average Random Lengths framing lumber composite price in September 2024 was $398 per MBF, down from $430 in September 2023, resulting in a year-to-date percentage change of (6.9)%.
| Month | 2024 Price ($/MBF) | 2023 Price ($/MBF) |
|---|---|---|
| January | $398 | $386 |
| February | $389 | $437 |
| March | $416 | $411 |
| April | $403 | $420 |
| May | $377 | $400 |
| June | $382 | $398 |
| July | $363 | $455 |
| August | $386 | $430 |
| September | $398 | $430 |
Operational Efficiency
The company has made strides in operational efficiency, with cash flows from operations reported at $498 million for the first nine months of 2024, down from $712 million in the same period of 2023. This decline was primarily due to decreased net earnings and non-cash expenses.
Stock Activity
UFP Industries actively manages its capital through stock repurchases. In the first nine months of 2024, the company repurchased 1,399,944 shares at an average price of $113.55 per share, totaling $159 million. Additionally, dividends paid during the same period amounted to $60.7 million, equating to $0.33 per share.
Future Outlook
Looking ahead, UFP Industries anticipates continued challenges in the lumber market and a cautious approach to managing operations amid fluctuating demand. The company remains focused on enhancing its product offerings and operational efficiencies to navigate the evolving market landscape.
A Who Owns UFP Industries, Inc. (UFPI)
Ownership Structure
As of 2024, UFP Industries, Inc. (UFPI) has a diverse ownership structure, which includes institutional investors, individual shareholders, and company executives. The following table highlights the significant shareholders and their ownership percentages.
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.8% |
| Institutional Investor | BlackRock, Inc. | 9.5% |
| Institutional Investor | State Street Corporation | 7.2% |
| Individual Investor | William G. Currie (CEO) | 3.4% |
| Individual Investor | Other Executives | 2.1% |
| Other | Public Float | 66.9% |
Stock Performance
UFP Industries, Inc. has seen fluctuations in its stock performance, reflecting broader market trends and company-specific developments. As of September 30, 2024, the stock price is reported at $114.78, which is a 12% decrease from its price of $130.56 at the end of Q3 2023.
Recent Shareholder Activities
In the first nine months of 2024, UFP Industries repurchased approximately 1,399,944 shares at an average price of $113.55, reflecting the company’s strategy to enhance shareholder value through buybacks.
Dividend Payments
UFP Industries declared and paid dividends totaling $60.7 million ($0.33 per share) during the first nine months of 2024. This reflects a commitment to returning capital to shareholders despite fluctuations in earnings.
Executive Compensation
Key executives have substantial compensation packages tied to performance metrics. For example, William G. Currie, the CEO, reported a total compensation of approximately $2.1 million for the fiscal year 2024, which includes salary, bonuses, and stock options.
Institutional Ownership Trends
Institutional ownership has slightly increased over the past year, with the top three institutional shareholders holding a combined 27.5% of the total shares. This indicates confidence from institutional investors in the company's long-term growth prospects.
Market Capitalization
As of September 30, 2024, UFP Industries has a market capitalization of approximately $7.1 billion, which reflects its status as a significant player in the building materials industry.
UFP Industries, Inc. (UFPI) Mission Statement
Overview
UFP Industries, Inc. is committed to being a leader in the wood products industry by providing innovative solutions to enhance outdoor living environments, support construction projects, and deliver packaging solutions. The company emphasizes sustainability and operational excellence while fostering a culture of integrity and respect.
Core Values
- Integrity: Upholding the highest standards of honesty and ethical behavior.
- Innovation: Continuously seeking innovative ways to meet customer needs.
- Sustainability: Commitment to environmentally responsible practices.
- Excellence: Striving for excellence in products and services.
Strategic Goals
UFP Industries aims to achieve the following strategic goals:
- Increase annual unit sales by 7-10%.
- Maintain an adjusted EBITDA margin of 12.5%.
- Ensure a conservative capital structure while pursuing growth.
- Enhance capabilities and expand the portfolio of value-added products.
Financial Performance Metrics
| Category | 2024 (9 Months) | 2023 (9 Months) | % Change |
|---|---|---|---|
| Net Sales | $5,190,308,000 | $5,694,031,000 | -8.8% |
| Gross Profit | $987,233,000 | $1,122,796,000 | -12.0% |
| Operating Income | $412,783,000 | $495,183,000 | -16.7% |
| Cash Flow from Operations | $498,000,000 | $712,000,000 | -30.0% |
| Cash and Cash Equivalents | $1,200,000,000 | $957,000,000 | 25.4% |
Market Positioning
UFP Industries operates in three primary segments: Retail, Packaging, and Construction. The company focuses on enhancing its market position through strategic acquisitions and innovation in product development.
Recent Developments
As of October 2024, UFP Industries declared a quarterly cash dividend of $0.33 per share, marking a 10% increase year-over-year. The company continues to explore acquisition opportunities to strengthen its market presence and enhance its product offerings.
Operational Highlights
| Segment | Net Sales (2024) | Net Sales (2023) | % Change |
|---|---|---|---|
| Retail | $2,073,403,000 | $2,430,277,000 | -14.7% |
| Packaging | $1,261,248,000 | $1,424,546,000 | -11.5% |
| Construction | $1,627,068,000 | $1,650,017,000 | -1.4% |
| All Other | $224,219,000 | $185,841,000 | 20.6% |
Conclusion
This chapter presents a focused overview of UFP Industries, Inc.'s mission statement and its operational and financial strategies as of 2024. The company's commitment to innovation, sustainability, and operational excellence underpins its strategic goals and market positioning.
How UFP Industries, Inc. (UFPI) Works
Overview of Operations
UFP Industries, Inc. operates through three primary segments: Retail, Packaging, and Construction. The company focuses on providing a wide range of products primarily made from wood and wood composites, serving various end markets including home improvement, construction, and packaging.
Financial Performance
For the first nine months of 2024, UFP Industries reported a total net sales of $5.19 billion, a decrease from $5.69 billion in the same period of 2023, reflecting an 8.8% decline year-over-year. The breakdown of net sales by segment is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| Retail | $2.07 billion | $2.43 billion | -15.0% |
| Packaging | $1.26 billion | $1.42 billion | -11.0% |
| Construction | $1.63 billion | $1.65 billion | -1.0% |
| All Other | $224 million | $186 million | 20.4% |
Cost Structure and Gross Profit
Gross profits for the first nine months of 2024 totaled $987.2 million, down from $1.12 billion in the previous year, representing a decrease of 12.0%. The gross profit margins by segment are detailed below:
| Segment | Gross Profit (2024) | Gross Profit (2023) | Change (%) |
|---|---|---|---|
| Retail | $320.9 million | $322.7 million | -0.6% |
| Packaging | $240.4 million | $333.1 million | -27.8% |
| Construction | $351.5 million | $403.7 million | -12.9% |
| All Other | $52.3 million | $58.4 million | -10.5% |
Expenses and Earnings
Selling, general, and administrative (SG&A) expenses for the first nine months of 2024 were $578.6 million, compared to $595.0 million in 2023, marking a decrease of 2.8%. The earnings from operations were reported at $412.8 million, down from $467.8 million in the prior year, a decrease of 11.8%.
Cash Flow and Liquidity
Cash flows from operations for the first nine months of 2024 were $498 million, compared to $712 million in 2023, reflecting a decline of $214 million. As of September 28, 2024, UFP Industries had $1.2 billion in cash and cash equivalents, with total liquidity amounting to approximately $2.4 billion.
Stock Performance
During the first nine months of 2024, UFP Industries repurchased 1,399,944 shares of common stock for a total of $159 million, averaging $113.55 per share. Dividends paid during the same period totaled $60.7 million, equating to $0.33 per share.
Market Trends and Pricing
The company faced significant price pressure in its major product categories, primarily due to fluctuations in lumber prices. The average lumber prices showed a year-to-date average of $390 per MBF in 2024, compared to $419 per MBF in 2023, reflecting a 6.9% decline.
Segment Performance Details
In the Retail segment, net sales for the first nine months of 2024 were $2.07 billion, with ProWood sales declining by 9%. The Packaging segment reported a net sales figure of $1.26 billion, reflecting an 11% decrease year-over-year. The Construction segment had net sales of $1.63 billion, a slight decline of 1%.
Backlog and Future Outlook
The backlog of orders in the site-built construction business unit as of September 28, 2024, was approximately $80 million, down from $91 million the previous year.
How UFP Industries, Inc. (UFPI) Makes Money
Business Segments
UFP Industries operates through several key segments, which include Retail, Packaging, and Construction. Each segment serves distinct markets and customer bases, contributing to the overall financial performance of the company.
Revenue Generation
For the first nine months of 2024, UFP Industries reported total net sales of $5.19 billion, representing a 8.8% decrease compared to the same period in 2023 when net sales were $5.69 billion.
| Segment | Net Sales (2024) | Net Sales (2023) | % Change |
|---|---|---|---|
| Retail | $2,073,403 | $2,430,277 | -14.7% |
| Packaging | $1,261,248 | $1,424,546 | -11.5% |
| Construction | $1,627,068 | $1,650,017 | -1.4% |
| All Other | $224,219 | $185,841 | 20.6% |
| Total | $5,190,308 | $5,694,031 | -8.8% |
Cost of Goods Sold and Gross Profit
The cost of goods sold (COGS) for the first nine months of 2024 was $4.20 billion, leading to a gross profit of $987.2 million, which is a 12.0% decrease from $1.12 billion in 2023.
| Segment | COGS (2024) | Gross Profit (2024) | Gross Profit (2023) | % Change in Gross Profit |
|---|---|---|---|---|
| Retail | $1,752,464 | $320,939 | $322,749 | -0.6% |
| Packaging | $1,020,877 | $240,371 | $333,094 | -27.8% |
| Construction | $1,275,520 | $351,548 | $403,671 | -12.9% |
| All Other | $171,916 | $52,303 | $58,395 | -10.4% |
| Total | $4,203,075 | $987,233 | $1,122,796 | -12.0% |
Selling, General and Administrative Expenses (SG&A)
SG&A expenses increased by 1.4% to $578.6 million in the first nine months of 2024, compared to $595.0 million in 2023.
| Period | SG&A Expenses | % of Gross Profit |
|---|---|---|
| 2024 (Nine Months) | $578,555 | 58.6% |
| 2023 (Nine Months) | $595,035 | 53.0% |
Earnings from Operations
Earnings from operations for the first nine months of 2024 totaled $412.8 million, a decrease of 24.5% from $546.2 million in 2023.
| Segment | Earnings from Operations (2024) | Earnings from Operations (2023) | % Change |
|---|---|---|---|
| Retail | $147,575 | $174,934 | -15.7% |
| Packaging | $82,627 | $153,027 | -46.0% |
| Construction | $139,753 | $185,837 | -24.8% |
| All Other | $13,916 | $32,440 | -57.0% |
| Total | $412,783 | $546,238 | -24.5% |
Cash Flow and Liquidity
UFP Industries reported cash flows from operations of $498 million in the first nine months of 2024, down from $712 million in the same period of 2023. The company's liquidity position remained strong with total liquidity of approximately $2.4 billion at the end of the third quarter of 2024.
| Cash Flow Metrics | 2024 | 2023 |
|---|---|---|
| Cash Flows from Operations | $498 million | $712 million |
| Cash and Cash Equivalents | $1.2 billion | $957 million |
| Total Liquidity | $2.4 billion | N/A |
Market Challenges
UFP Industries faced several challenges in 2024, including a decrease in unit sales across its segments. The company reported a 15% decline in net sales in the first nine months compared to 2023, attributed to lower demand and competitive pricing pressures.
| Market Indicators | 2024 | 2023 |
|---|---|---|
| Net Sales Decline | -15% | N/A |
| Effective Tax Rate | 22.3% | 23.3% |
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Resources:
- UFP Industries, Inc. (UFPI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of UFP Industries, Inc. (UFPI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View UFP Industries, Inc. (UFPI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.