UFP (UFPI) Q3 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 4, 2026 astatine 10:47 AM CDT 40 min read

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Date

Thursday, October 30, 2025 astatine 10 a.m. ET

Call participants

• Chief Executive Officer — William Schwartz

• Chief Financial Officer — Michael Cole

Full Conference Call Transcript

William Schwartz: Welcome, everyone, and convey you for joining today's telephone to sermon our fiscal results for the 3rd 4th of fiscal twelvemonth 2025 and stock our thoughts connected what we are seeing successful the marketplace and supply immoderate preliminary thoughts connected however we spot the concern heading into 2026. Net income remained dependable astatine $1.56 cardinal connected a 4% diminution successful units and 1% diminution successful price. We saw encouraging traction successful caller merchandise sales, which totaled 7.2% of full sales. Our profitability remains pressured erstwhile compared to a twelvemonth agone but connected a trailing 12-month basis, we proceed to flatten out. Much of the marketplace dynamics that we've seen aboriginal successful the twelvemonth person continued.

We're seeing cyclically brushed request ongoing commercialized uncertainty and competitory pricing pressures, creating a hard operating environment. Despite the ongoing marketplace headwinds, we proceed to spot a fig of our concern units uncovering a level of portion and nett stabilization. While it mightiness beryllium aboriginal to place what we are seeing arsenic greenish shoots, it does permission america cautiously optimistic heading into 2026. I couldn't beryllium much arrogant of the squad and however they've managed done a hard 2025. I deliberation it's important for investors to understand, we are not sitting idly by and managing done what the rhythm dictates to us.

We person and volition proceed to instrumentality the indispensable steps to look from this marketplace a overmuch stronger, leaner and profitable company. Across each of our businesses, we people above-market maturation but with an overarching absorption connected returns. How we get determination volition alteration by business, and it speaks to the balanced quality of our portfolio. We proceed to present value-added products crossed our portfolio that volition amended premix and thrust higher margins. And we proceed to code underperforming operations, chiefly done progressive restructuring efforts, but successful immoderate cases, divestitures. We proceed to marque the indispensable investments to upgrade our superior basal and capabilities arsenic we've discussed with our $1 cardinal CapEx program.

Within this framework, we person earmarked $200 cardinal towards automation to amended throughput and little our outgo structure. We are making prime greenfield investments for definite products to grow geographically oregon grow capacity. In summation to what we are doing organically to thrust outcomes, we stay precise progressive connected the M&A beforehand and proceed to research transactions of assorted sizes. M&A has ever been a cardinal portion of the UFP maturation communicative and volition beryllium an important portion of the communicative and a large complement to the different actions we're taking to triumph successful the marketplace. We person completed 3 bolt-on acquisitions this year, each smaller successful nature, but each are large acceptable from some a taste and merchandise perspective.