UFP Industries Q2 sales beat estimates on acquisitions, new products sales

Overview

• U.S. wood and packaging manufacturer's Q2 sales rose 3%, beating analyst expectations

• Diluted EPS for Q2 fell to $1.48 from $1.70 a year ago

• Company cited higher freight costs as primary factor impacting earnings

Outlook

• Company maintains 2026 outlook, expects unit sales flat to slightly down across segments

• Input costs, mainly energy and transportation, expected to remain elevated for rest of 2026

• Demand tied to new residential construction seen as challenging, with stabilization in other markets

Result Drivers

• HIGHER FREIGHT COSTS - Co said increased transportation rates and elevated fuel costs drove up freight expenses, weighing on earnings

• ACQUISITIONS AND ORGANIC GROWTH - Net sales rose mainly due to acquisitions and organic volume gains in Deckorators, Structural Packaging, Protective Packaging, Concrete Forming, and Commercial units

• NEW PRODUCT SALES - Higher share of sales from new products contributed to revenue growth

Company press release: ID:nPn5jb9hFa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the forest wood products peer group is "buy"

• Wall Street's median 12-month price target for UFP Industries Inc is $105.00, about 15.4% above its July 28 closing price of $91.01

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 29 - Ireland's Smurfit Westrock Q2 sales rise on strong paper demand

• July 29 - Home improvement firm Masco misses quarterly sales estimates as demand remains weak

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)