- Net sales of 1.60 billion US dollars. The decrease amounted to 2.7%, which was due to a 0.7% decline in selling prices and a 2% decline in organic unit sales.
- New product sales of USD 106 million amounted to 6.7% of total sales compared to 7.2% in the first quarter of 2024.
- Net profit attributable to majority interests of USD 78.8 million, a decrease of 35% compared to the previous year. Net income attributable to majority interests of USD 120.8 million last year including USD 7.3 million of additional tax benefits related to our deduction for share-based payments.
- Adjusted EBITDA 1 amounted to USD 142.2 million in the quarter, or 8.9 percent of sales, compared to USD 180.8 million, or 11.0 percent of sales, in the same period last year.
Capital Allocation
$UFPI (-4,25%) has a strong balance sheet with nearly $903.6 million in cash as of March 29, 2025, compared to $979.7 million in cash at the end of the first quarter of 2024. As of March 29, 2025, the Company had approximately $2.2 billion of liquidity, consisting of cash and remaining funds on its revolving credit facility and a master credit agreement with certain lenders. The Company's return-oriented approach to capital allocation includes the following:
- Acquisitions and organic growth. The Company targets strategic acquisitions and invests in organic growth when acquisition targets are not available at valuations that allow us to meet or exceed targeted returns. In 2024, the company announced up to $1 billion in capital investments across its portfolio through 2028 for automation, technology upgrades, geographic expansion and capacity expansion in existing facilities, primarily for its Deckorators and Site Built and Packaging segments. The company plans to invest approximately USD 300 million to USD 350 million in capital projects in 2025.
- Dividend payments. On23. April 2025, the Board of Directors of UFP Industries approved a quarterly dividend payment of $0.35 per share, an increase of 6 percent over the quarterly dividend of $0.33 per share paid during 2024. The dividend is payable on June 16, 2025 to shareholders of record on June 2, 2025.
- Share buybacks. On April 23, 2025, the Board of Directors of UFP Industries authorized the Company to repurchase up to $200 million of shares from July 24, 2024, through July 31, 2025, to $300 million over the same period. Since July 24, 2024, the company has repurchased 1,624,069 shares at an average share price of €105.93 ($172 million in total). In the first quarter of 2025, the company bought around 649,060 shares at an average share price of € 108.00 (USD 70.1 million in total) and bought around 1,022,493 shares in April at an average share price of $104.65 (USD 107 million in total). As of April 28, 2025, the company has invested $122 million in its buybacks.
Short-term outlook
Impact of tariffs: We are working closely with our domestic and international suppliers to manage the recently proposed tariffs on several of our raw materials, which have been suspended in Mexico and Canada Should tariffs be imposed, demand for domestic products is likely to increase, which will likely result in higher costs given capacity constraints. Although the trade landscape is constantly evolving, as we do not own any foreign sawmills and have excellent relationships with our sawmill partners, we are currently in a strong position to adapt quickly to tariffs after a short adjustment period without significant financial disadvantage. The company will continue to monitor the market and make decisions quickly to minimize disruption.
End market demand: We expect weaker demand and a competitive pricing environment to continue until the end of 2025. Overall demand in all our segments will decline slightly. We assume that a decline in locally built products will be partially offset by an increase in factory-built products.
Long-term goals
The company's long-term goals remain unchanged and include: 1) annual sales growth of 7 to 10 percent (including bolt-on acquisitions) and at least 10 percent of total sales from new products; 2) achieving an EBITDA margin of 12.5 percent; 3) achieving an incremental return on new investments above our minimum return; and 4) maintaining a conservative capital structure.
