UFP Industries Announces Fourth Quarter 2025 Results

Release Details , /PRNewswire/ -- UFP Industries, Inc. (Nasdaq: UFPI) a leading manufacturer focused on delivering value-added products across its Retail, Packaging, and Construction segments reported results for the fourth quarter 2025. Net Sales of $1.33 billion decreased by 9 percent due to a 2 percent decrease in price and a 7 percent decline in organic units. Diluted earnings per share of $0.70 compared to $1.12 a year ago, and Net Earnings Attributable to Controlling Interests of $40 million compared to $68 million a year ago. Earnings were impacted by a higher estimated tax rate, year-end bonus adjustments from estimates to actual, and certain non-cash transactions. Adjusted EBITDA1 was $107.2 million in the quarter, or 8.1 percent of net sales compared to 9.1 percent a year ago. Adjusted EBITDA margin1 was 8.9 percent for the year, roughly 170bps higher than 2019. New product sales were 7.6 percent of total net sales. Cash flows from operating activities in 2025 was $546 million. Free cash flow1 of $451 million was used to repurchase nearly $450 million of our shares. Will Schwartz, President and CEO of UFP Industries, commented, "We continue to see trends stabilizing across the majority of our businesses. Despite generally soft end-market demand, our fourth quarter sales and profits were in line with internal expectations. While 2025 proved to be a challenging year given market volatility, our team made meaningful progress navigating this environment and executing on our strategy. Our disciplined focus on cost controls and growth investments leaves us on stronger footing and well-positioned as conditions improve. After several years of headwinds, we continue to see markets normalizing and are cautiously optimistic on our business prospects in 2026." Schwartz continued, "Our balanced portfolio enables us to drive shareholder value. To that point, we returned $515 million to shareholders in 2025 and finished the year with more than $900 million of cash and cash equivalents and $2.2 billion in total liquidity. We streamlined our cost structure with $60 million in cost reduction initiatives and have approached our portfolio through a more strategic lens. We plan to strengthen our core businesses, introduce innovative value-added products, and drive above market growth. Our M&A targets reflect our desire to strengthen our core businesses and drive growth in innovation and new products. We plan to use our strong balance sheet to pursue meaningful M&A while returning capital to shareholders through opportunistic share repurchases and dividends. We enter 2026 in a stronger position to drive improved results." Fourth Quarter 2025 Highlights UFP Consolidated (In thousands) Quarter Period Year to Date 2025 2024 % Change 2025 2024 % Change Net sales $ 1,329,823 $ 1,462,001 (9.0) % $ 6,320,343 $ 6,652,309 (5.0) % Net earnings 40,156 69,783 (42.5) 295,992 418,733 (29.3) Net margin 3.0 % 4.8 % 4.7 % 6.3 % Adjusted EBITDA2 107,243 132,702 (19.2) 563,560 682,264 (17.4) Adjusted EBITDA margin 8.1 % 9.1 % 8.9 % 10.3 % Percentage change in net sales: Organic units (7) % (3) % Acquisitions — — Selling prices (2) (2) 1 Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below. 2 Adjusted EBITDA is net of bonus expense (excluding vesting expense associated with share-based bonus arrangements) which totaled $16 million in the fourth quarter of 2025 and was $14 million higher than the same period of 2024. UFP Retail (In thousands) Quarter Period Year to Date 2025 2024 % Change 2025 2024 % Change Net sales $ 443,964 $ 524,591 (15.4) % $ 2,433,556 $ 2,597,994 (6.3) % Net earnings 9,147 24,359 (62.4) 86,679 139,127 (37.7) Net margin 2.1 % 4.6 % 3.6 % 5.4 % Adjusted EBITDA 24,535 44,127 (44.4) 164,347 220,828 (25.6) Adjusted EBITDA margin 5.5 % 8.4 % 6.8 % 8.5 % Percentage change in net sales: Organic units (13) % (7) % Acquisitions — — Selling prices (2) 1 ProWood organic unit sales declined 13 percent in the quarter from year ago levels due to difficult comparisons from elevated storm related demand for our products in 2024. Deckorators organic unit sales grew 17 percent in the quarter from year ago levels. Our Surestone decking sales increased 44 percent and our traditional wood plastic composite decking increased 35 percent, both from the quarter a year ago. UFP Packaging (In thousands) Quarter Period Year to Date 2025 2024 % Change 2025 2024 % Change Net sales $ 370,097 $ 375,315 (1.4) % $ 1,603,723 $ 1,636,563 (2.0) % Net earnings 7,506 16,563 (54.7) 66,414 80,035 (17.0) Net margin 2.0 % 4.4 % 4.1 % 4.9 % Adjusted EBITDA 27,518 37,657 (26.9) 135,643 159,277 (14.8) Adjusted EBITDA margin 7.4 % 10.0 % 8.5 % 9.7 % Percentage change in net sales: Organic units (2) % (1) % Acquisitions 1 1 Selling prices — (2) Structural Packaging organic unit sales grew 1 percent in the quarter from year ago levels. PalletOne organic unit sales declined 8 percent in the quarter from year ago levels due to weaker demand, which was partially offset by a 4 percent contribution from acquisitions. Protective Packaging organic unit sales declined 2 percent in the quarter from a year ago, due to challenging market conditions. UFP Construction (In thousands) Quarter Period Year to Date 2025 2024 % Change 2025 2024 % Change Net sales $ 439,790 $ 486,776 (9.7) % $ 2,003,785 $ 2,113,844 (5.2) % Net earnings 15,437 27,595 (44.1) 89,626 136,179 (34.2) Net margin 3.5 % 5.7 % 4.5 % 6.4 % Adjusted EBITDA 33,173 45,022 (26.3) 157,841 208,417 (24.3) Adjusted EBITDA margin 7.5 % 9.2 % 7.9 % 9.9 % Percentage change in net sales: Organic units (5) % — % Acquisitions — — Selling prices (5) (5) Site Built organic unit sales declined 17 percent in the quarter from year ago levels due to weaker single-family residential activity in our core western markets. Factory Built organic unit sales grew 1 percent in the quarter from year ago levels. Concrete Forming Solutions organic unit sales grew 3 percent in the quarter from year ago levels. Commercial organic sales grew 3 percent in the quarter from year ago levels. Capital Structure, Leverage and Liquidity Information UFP Industries maintains a strong balance sheet and as of December 27, 2025, had liquidity of approximately $2.2 billion consisting of over $900 million of cash and $1.3 billion of remaining availability under its revolving credit facility and a shelf agreement with certain lenders. The company's return-focused approach to capital allocation includes the following: Acquisitions and Organic Growth. The company seeks strategic acquisitions and invests in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. The company expects to invest approximately $300 million to $325 million on capital projects in 2026. Dividend payments. On February 12, 2026, the UFP Industries Board of Directors increased our quarterly cash dividend to $0.36 per share, which represents a 3 percent year-over-year increase. This dividend is payable on March 16, 2026, to shareholders of record on March 2, 2026. We continue to consider our payout ratio and yield when determining the appropriate dividend rate and have a long-term objective of increasing our dividend in line with our earnings and free cash flow growth. Share repurchases. As of December 27, 2025, we repurchased 4.5 million shares for $443 million, at an average share price of $98.39 for the year, representing approximately 7 percent of our shares outstanding at the beginning of the year. 2026 Outlook and Long-Term Targets We anticipate that the current market environment will continue in 2026 and that overall demand will be flat to slightly down in each of our segments based on our sales mix. We anticipate markets tied to new residential construction will remain more challenged and see stabilization across our other end markets as an offset. However, we believe we are positioned well to perform better than the market due to market share gains across our portfolio and the execution of our cost out program. We anticipate initial stocking orders, upgraded manufacturing capacity, and expanded distribution will support momentum in our Deckorators and Surestone businesses in 2026. The company's long-term goals remain unchanged and include: 1) achieving 7-10 percent unit sales growth annually (including bolt-on acquisitions) with at least 10 percent of all sales coming from new products; 2) achieving 12.5 percent adjusted EBITDA margins; 3) earning an incremental return on new investments over our hurdle rate; and 4) maintaining a conservative capital structure. Conference Call UFP Industries will host a conference call on Tuesday, February 24, 2026, to discuss these results and outlook. The conference call will begin at 9:30 a.m. Eastern Time and will be hosted by CEO Will Schwartz and CFO Michael Cole. Interested investors can access the webcast directly with this link (here). A replay of the call will be available through the UFP Investor Relations website at www.ufpinvestor.com for at least 90 days following the call. UFP Industries, Inc. UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. For more about UFP Industries, go to www.ufpi.com. This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "likely," "plans," "projects," "should," variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in currency and inflation; fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; changes in tariffs, import/export regulations, and other trade policies; concentration of sales to customers; the success of vertical integration strategies; excess capacity or supply chain challenges; inbound and outbound transportation costs; alternatives to replace treated wood products; government regulations, particularly involving environmental and safety regulations; our ability to make successful business acquisitions; cybersecurity breaches; and potential pandemics. Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission. Non-GAAP Financial Information This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management uses Adjusted EBITDA and Free cash flow, non-GAAP financial measures, in order to evaluate historical and ongoing operations. Management believes that these non-GAAP financial measures are useful in order to enable investors to perform meaningful comparisons of historical and current performance. Adjusted EBITDA and Free cash flow are intended to supplement and should be read together with the financial results. Adjusted EBITDA and Free cash flow should not be considered alternatives or substitutes for, and should not be considered superior to, the reported financial results. Accordingly, users of this financial information should not place undue reliance on the non-GAAP financial measures. See the table below for a reconciliation of Net earnings to Adjusted EBITDA and a reconciliation of Cash flow from operations to Free cash flow. Net earnings Net earnings refers to net earnings attributable to controlling interest unless specifically noted. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 2025/2024 Quarter Period Year to Date (In thousands, except per share data) 2025 2024 2025 2024 Net sales $ 1,329,823 100.0 % $ 1,462,001 100.0 % $ 6,320,343 100.0 % $ 6,652,309 100.0 % Cost of sales 1,113,284 83.7 1,222,492 83.6 5,260,193 83.2 5,425,567 81.6 Gross profit 216,539 16.3 239,509 16.4 1,060,150 16.8 1,226,742 18.4 Operating expenses Selling, general and administrative expenses 159,729 12.0 156,491 10.7 691,008 10.9 735,046 11.0 Net (gain) loss on disposition and impairments of assets (3,084) (0.2) 4,619 0.3 3,128 — 6,157 0.1 Other losses (gains), net 807 0.1 (1,060) (0.1) 2,113 — (6,703) (0.1) Total operating expenses 157,452 160,050 696,249 734,500 Earnings from operations 59,087 4.4 79,459 5.4 363,901 5.8 492,242 7.4 Interest and other (1,394) (0.1) (11,560) (0.8) (28,340) (0.4) (47,913) (0.7) Earnings before income taxes 60,481 4.5 91,019 6.2 392,241 6.2 540,155 8.1 Income taxes 20,325 1.5 21,236 1.5 96,249 1.5 121,422 1.8 Net earnings 40,156 3.0 69,783 4.8 295,992 4.7 418,733 6.3 Less net earnings attributable to noncontrolling interest (197) — (1,744) (0.1) (1,200) — (4,173) (0.1) Net earnings attributable to controlling interest $ 39,959 3.0 $ 68,039 4.7 $ 294,792 4.7 $ 414,560 6.2 Earnings per share - basic $ 0.70 $ 1.12 $ 5.00 $ 6.78 Earnings per share - diluted $ 0.70 $ 1.12 $ 5.00 $ 6.77 Comprehensive income $ 44,078 $ 58,121 $ 315,340 $ 398,753 Less comprehensive income attributable to noncontrolling interest (795) (1,007) (3,673) (610) Comprehensive income attributable to controlling interest $ 43,283 $ 57,114 $ 311,667 $ 398,143 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED) FOR THE THREE MONTHS ENDED DECEMBER 2025/2024 Quarter Period 2025 (In thousands) Retail Packaging Construction All Other Corporate Total Net sales $ 443,964 $ 370,097 $ 439,790 $ 73,744 $ 2,228 $ 1,329,823 Cost of sales 373,322 312,198 364,195 51,793 11,776 1,113,284 Gross profit 70,642 57,899 75,595 21,951 (9,548) 216,539 Selling, general and administrative expenses 55,233 43,871 52,495 9,772 (1,642) 159,729 Net loss (gain) on disposition and impairments of assets 49 1,826 (13) 488 (5,434) (3,084) Other losses (gains), net 618 — (3) 240 (48) 807 Earnings from operations 14,742 12,202 23,116 11,451 (2,424) 59,087 Interest and other (119) 170 (3) (1,876) 434 (1,394) Earnings before income taxes 14,861 12,032 23,119 13,327 (2,858) 60,481 Income taxes 5,714 4,526 7,682 2,194 209 20,325 Net earnings $ 9,147 $ 7,506 $ 15,437 $ 11,133 $ (3,067) $ 40,156 Quarter Period 2024 (In thousands) Retail Packaging Construction All Other Corporate Total Net sales $ 524,591 $ 375,315 $ 486,776 $ 73,971 $ 1,348 $ 1,462,001 Cost of sales 456,731 314,427 399,826 68,602 (17,094) 1,222,492 Gross profit 67,860 60,888 86,950 5,369 18,442 239,509 Selling, general and administrative expenses 34,578 35,468 51,014 (1,723) 37,154 156,491 Net loss (gain) on disposition and impairments of assets 2,189 5,090 452 18 (3,130) 4,619 Other (gains) losses, net (436) — (447) (286) 109 (1,060) Earnings from operations 31,529 20,330 35,931 7,360 (15,691) 79,459 Interest and other (171) (1,415) 42 (530) (9,486) (11,560) Earnings before income taxes 31,700 21,745 35,889 7,890 (6,205) 91,019 Income taxes 7,341 5,182 8,294 721 (302) 21,236 Net earnings $ 24,359 $ 16,563 $ 27,595 $ 7,169 $ (5,903) $ 69,783 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2025/2024 Year to Date 2025 (In thousands) Retail Packaging Construction All Other Corporate Total Net sales $ 2,433,556 $ 1,603,723 $ 2,003,785 $ 271,550 $ 7,729 $ 6,320,343 Cost of sales 2,087,657 1,338,247 1,645,998 212,499 (24,208) 5,260,193 Gross profit 345,899 265,476 357,787 59,051 31,937 1,060,150 Selling, general and administrative expenses 218,262 180,619 237,949 37,858 16,320 691,008 Net loss (gain) on disposition and impairments of assets 11,139 (2,887) 259 3,167 (8,550) 3,128 Other losses (gains), net 1,398 — 265 691 (241) 2,113 Earnings from operations 115,100 87,744 119,314 17,335 24,408 363,901 Interest and other (303) (678) (11) (8,180) (19,168) (28,340) Earnings before income taxes 115,403 88,422 119,325 25,515 43,576 392,241 Income taxes 28,724 22,008 29,699 4,973 10,845 96,249 Net earnings $ 86,679 $ 66,414 $ 89,626 $ 20,542 $ 32,731 $ 295,992 Year to Date 2024 (In thousands) Retail Packaging Construction All Other Corporate Total Net sales $ 2,597,994 $ 1,636,563 $ 2,113,844 $ 298,190 $ 5,718 $ 6,652,309 Cost of sales 2,209,195 1,335,304 1,675,346 240,518 (34,796) 5,425,567 Gross profit 388,799 301,259 438,498 57,672 40,514 1,226,742 Selling, general and administrative expenses 209,592 191,757 262,517 39,940 31,240 735,046 Net loss (gain) on disposition and impairments of assets 3,067 6,545 673 28 (4,156) 6,157 Other (gains) losses, net (2,964) — (376) (3,572) 209 (6,703) Earnings from operations 179,104 102,957 175,684 21,276 13,221 492,242 Interest and other (557) (101) 17 (9,356) (37,916) (47,913) Earnings before income taxes 179,661 103,058 175,667 30,632 51,137 540,155 Income taxes 40,534 23,023 39,488 5,793 12,584 121,422 Net earnings $ 139,127 $ 80,035 $ 136,179 $ 24,839 $ 38,553 $ 418,733 RECONCILIATION OF NET EARNINGS TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED) FOR THE THREE MONTHS ENDED DECEMBER 2025/2024 Quarter Period 2025 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 9,147 $ 7,506 $ 15,437 $ 11,133 $ (3,067) $ 40,156 Interest and other (119) 170 (3) (1,876) 434 (1,394) Income taxes 5,714 4,526 7,682 2,194 209 20,325 Expenses associated with share-based compensation arrangements 894 1,639 2,667 408 4,278 9,886 Net loss (gain) on disposition and impairments of assets 49 1,826 (13) 488 (5,434) (3,084) Gain from reduction of estimated earnout liability — — — (457) — (457) Depreciation expense 8,013 9,773 6,675 1,085 11,240 36,786 Amortization of intangibles 837 2,078 728 1,007 375 5,025 Adjusted EBITDA $ 24,535 $ 27,518 $ 33,173 $ 13,982 $ 8,035 $ 107,243 Net earnings as a percentage of net sales 2.1 % 2.0 % 3.5 % 15.1 % * 3.0 % Adjusted EBITDA as a percentage of net sales 5.5 % 7.4 % 7.5 % 19.0 % * 8.1 % * Not meaningful Quarter Period 2024 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 24,359 $ 16,563 $ 27,595 $ 7,169 $ (5,903) $ 69,783 Interest and other (171) (1,415) 42 (530) (9,486) (11,560) Income taxes 7,341 5,182 8,294 721 (302) 21,236 Expenses associated with share-based compensation arrangements 1,860 1,623 1,846 163 5,326 10,818 Net loss (gain) on disposition and impairments of assets 940 861 451 18 (3,130) (860) Impairment of intangibles 1,250 4,229 — — — 5,479 Gain from reduction of estimated earnout liability — (605) — — — (605) Depreciation expense 7,550 9,003 6,092 889 8,977 32,511 Amortization of intangibles 998 2,216 702 1,551 433 5,900 Adjusted EBITDA $ 44,127 $ 37,657 $ 45,022 $ 9,981 $ (4,085) $ 132,702 Net earnings as a percentage of net sales 4.6 % 4.4 % 5.7 % 9.7 % * 4.8 % Adjusted EBITDA as a percentage of net sales 8.4 % 10.0 % 9.2 % 13.5 % * 9.1 % * Not meaningful RECONCILIATION OF NET EARNINGS TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2025/2024 Year to Date 2025 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 86,679 $ 66,414 $ 89,626 $ 20,542 $ 32,731 $ 295,992 Interest and other (303) (678) (11) (8,180) (19,168) (28,340) Income taxes 28,724 22,008 29,699 4,973 10,845 96,249 Expenses associated with share-based compensation arrangements 4,040 7,029 9,840 1,017 15,866 37,792 Net loss (gain) on disposition and impairments of assets 8,739 (2,887) 259 3,167 (8,550) 728 Impairment of intangibles 2,400 — — — — 2,400 Gain from reduction of estimated earnout liability — (1,511) (344) (457) — (2,312) Depreciation expense 30,438 36,706 25,863 4,165 41,188 138,360 Amortization of intangibles 3,630 8,562 2,909 5,980 1,610 22,691 Adjusted EBITDA $ 164,347 $ 135,643 $ 157,841 $ 31,207 $ 74,522 $ 563,560 Net earnings as a percentage of net sales 3.6 % 4.1 % 4.5 % 7.6 % * 4.7 % Adjusted EBITDA as a percentage of net sales 6.8 % 8.5 % 7.9 % 11.5 % * 8.9 % * Not meaningful Year to Date 2024 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 139,127 $ 80,035 $ 136,179 $ 24,839 $ 38,553 $ 418,733 Interest and other (557) (101) 17 (9,356) (37,916) (47,913) Income taxes 40,534 23,023 39,488 5,793 12,584 121,422 Expenses associated with share-based compensation arrangements 5,788 6,974 7,944 772 16,685 38,163 Net loss (gain) on disposition and impairments of assets 1,817 2,316 673 28 (4,156) 678 Impairment of intangibles 1,250 4,229 — — — 5,479 Gain from reduction of estimated earnout liability — (642) (1,818) — — (2,460) Depreciation expense 28,877 34,603 23,124 3,338 34,699 124,641 Amortization of intangibles 3,992 8,840 2,810 6,124 1,755 23,521 Adjusted EBITDA $ 220,828 $ 159,277 $ 208,417 $ 31,538 $ 62,204 $ 682,264 Net earnings as a percentage of net sales 5.4 % 4.9 % 6.4 % 8.3 % * 6.3 % Adjusted EBITDA as a percentage of net sales 8.5 % 9.7 % 9.9 % 10.6 % * 10.3 % * Not meaningful CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) DECEMBER 2025/2024 (In thousands) Assets 2025 2024 Liabilities and equity 2025 2024 Current assets Current liabilities Cash and cash equivalents $ 914,199 $ 1,171,828 Accounts payable $ 205,932 $ 224,659 Restricted cash 10,872 7,766 Accrued liabilities and other 287,390 283,664 Investments 34,374 31,087 Current portion of debt 899 4,125 Accounts receivable 475,959 500,920 Inventories 722,020 720,824 Total current liabilities 494,221 512,448 Other current assets 111,228 70,600 Long-term debt and finance lease obligations 228,859 229,830 Total current assets 2,268,652 2,503,025 Other liabilities 211,106 158,669 Other assets 276,788 257,533 Temporary equity 4,463 5,366 Intangible assets, net 484,873 499,637 Property, plant and equipment, net 992,580 890,743 Shareholders' equity 3,084,244 3,244,625 Total assets $ 4,022,893 $ 4,150,938 Total liabilities and equity $ 4,022,893 $ 4,150,938 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2025/2024 (In thousands) 2025 2024 Cash flows from operating activities: Net earnings $ 295,992 $ 418,733 Adjustments to reconcile net earnings to net cash from operating activities: Depreciation 138,360 124,641 Amortization of intangibles 22,691 23,521 Expense associated with share-based and grant compensation arrangements 37,792 38,163 Deferred income taxes 49,915 (15,382) Unrealized gain on investment and other (2,431) (1,217) Impairment of investments 6,500 — Equity in earnings of investee (709) (89) Net loss on sale, disposition and impairment of assets 728 678 Impairment of intangibles 2,400 5,479 Gain from reduction of estimated earnout liability (2,312) (2,460) Changes in: Accounts receivable 27,464 47,070 Inventories 7,291 6,356 Accounts payable (20,190) 22,394 Accrued liabilities and other (17,754) (25,316) Net cash from operating activities 545,737 642,571 Cash flows used in investing activities: Capital expenditures (269,377) (232,274) Proceeds from sale of property, plant and equipment 31,472 11,501 Acquisitions and purchases of non-controlling interest, net of cash received (17,626) (29,830) Purchases of investments (38,767) (55,397) Proceeds from sale of investments 19,953 30,844 Other 1,104 4,406 Net cash used in investing activities (273,241) (270,750) Cash flows used in financing activities: Borrowings under revolving credit facilities 34,426 29,913 Repayments under revolving credit facilities (38,133) (32,256) Repayments of debt — (40,000) Repayment of debt on behalf of investee — (6,303) Contingent consideration payments and other (221) (4,868) Proceeds from issuance of common stock 2,471 2,811 Dividends paid to shareholders (82,350) (80,782) Distributions to noncontrolling interest (3,005) (11,848) Purchase of remaining noncontrolling interest of subsidiary (549) (4,902) Payments to taxing authorities in connection with shares directly withheld from employees (9,591) (17,838) Repurchase of common stock (433,028) (141,120) Other (163) 73 Net cash used in financing activities (530,143) (307,120) Effect of exchange rate changes on cash 3,124 (7,363) Net change in cash and cash equivalents (254,523) 57,338 All cash and cash equivalents, beginning of period 1,179,594 1,122,256 All cash and cash equivalents, end of period $ 925,071 $ 1,179,594 Reconciliation of cash and cash equivalents and restricted cash: Cash and cash equivalents, beginning of period $ 1,171,828 $ 1,118,329 Restricted cash, beginning of period 7,766 3,927 All cash and cash equivalents, beginning of period $ 1,179,594 $ 1,122,256 Cash and cash equivalents, end of period $ 914,199 $ 1,171,828 Restricted cash, end of period 10,872 7,766 All cash and cash equivalents, end of period $ 925,071 $ 1,179,594 RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2025/2024 (In thousands) 2025 2024 Net cash from operating activities $ 545,737 $ 642,571 Increase (decrease) in investment in net working capital 3,189 (50,504) Maintenance capital expenditures(1) (105,703) (124,511) Interest expense, net of taxes 8,238 9,852 Free cash flow $ 451,461 $ 477,408 (1) Breakdown of capital expenditures from the condensed consolidated statements of cash flows: Maintenance capital expenditures $ 105,703 $ 124,511 Expansionary and efficiency capital expenditures 163,674 107,763 Total capital expenditures $ 269,377 $ 232,274 View original content to download multimedia:https://www.prnewswire.com/news-releases/ufp-industries-announces-fourth-quarter-2025-results-302694964.html SOURCE UFP Industries, Inc. Stanley Elliott, Director of Investor Relations, (804) 337-8217