Structural margin compression is evident as gross margins fell from 19.9% in 2024Q1 to 16.1% in 2026Q1, reflecting ongoing difficulties in maintaining pricing power amidst top-line weakness.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 6.19B | 6.32B | 6.65B | 7.22B | 9.63B | 8.64B | 5.15B | 4.42B | 4.49B | 3.94B | 3.24B | 2.89B | 2.66B | 2.47B | 2.05B | 1.82B | 1.89B | 1.67B | 2.23B | 2.51B | 2.66B | 2.69B | 2.45B | 1.9B | 1.64B | 1.53B | 1.39B | 1.43B | 1.24B | 1.07B | 891.2M |
| Revenue Growth % | -6.4% | -4.99% | -7.84% | -25.02% | 11.47% | 67.56% | 16.71% | -1.63% | 13.9% | 21.62% | 12.24% | 8.52% | 7.69% | 20.22% | 12.76% | -3.62% | 13.02% | -25.06% | -11.17% | -5.68% | -1% | 9.71% | 29.2% | 15.79% | 7.16% | 10.33% | -3.17% | 15.63% | 16.19% | 19.65% | 18.12% |
| Cost of Goods Sold | 5.16B | 5.26B | 5.43B | 5.8B | 7.84B | 7.23B | 4.35B | 3.73B | 3.9B | 3.4B | 2.77B | 2.49B | 2.33B | 2.19B | 1.83B | 1.62B | 1.66B | 1.43B | 1.98B | 2.2B | 2.28B | 2.33B | 2.16B | 1.64B | 1.41B | 1.32B | 1.2B | 1.25B | 1.08B | 960.8M | 792.8M |
| COGS % of Revenue | - | 83.23% | 81.56% | 80.34% | 81.41% | 83.71% | 84.47% | 84.48% | 86.79% | 86.23% | 85.35% | 86.15% | 87.77% | 88.64% | 89.05% | 89.04% | 87.84% | 85.44% | 88.61% | 87.7% | 85.68% | 86.65% | 87.92% | 86.41% | 85.95% | 86.18% | 86.52% | 87.55% | 87% | 90.11% | 88.96% |
| Gross Profit | 1.03B | 1.06B | 1.23B | 1.42B | 1.79B | 1.41B | 800.3M | 685.52M | 592.89M | 542.83M | 474.59M | 399.9M | 325.34M | 280.55M | 225.11M | 199.73M | 229.96M | 243.66M | 254.2M | 309.03M | 381.68M | 359.26M | 296.25M | 257.99M | 230.41M | 211.48M | 187.01M | 178.39M | 161M | 105.5M | 98.4M |
| Gross Margin % | 16.62% | 16.77% | 18.44% | 19.66% | 18.59% | 16.29% | 15.53% | 15.52% | 13.21% | 13.77% | 14.65% | 13.85% | 12.23% | 11.36% | 10.95% | 10.96% | 12.16% | 14.56% | 11.39% | 12.3% | 14.32% | 13.35% | 12.08% | 13.59% | 14.05% | 13.82% | 13.48% | 12.45% | 13% | 9.89% | 11.04% |
| Gross Profit Growth % | - | -13.58% | -13.55% | -20.71% | 27.19% | 75.81% | 16.74% | 15.62% | 9.22% | 14.38% | 18.68% | 22.92% | 15.96% | 24.63% | 12.71% | -13.15% | -5.63% | -4.15% | -17.74% | -19.04% | 6.24% | 21.27% | 14.83% | 11.97% | 8.95% | 13.08% | 4.84% | 10.8% | 52.61% | 7.22% | 17.99% |
| Operating Expenses | 693.58M | 693.12M | 734.5M | 772.4M | 839.28M | 669.41M | 454.47M | 440.61M | 385.63M | 361.36M | 310.15M | 264.44M | 227.97M | 206.28M | 180.58M | 187.72M | 199.67M | 200.85M | 235.8M | 255.54M | 258.59M | 235.65M | 199.94M | 177.97M | 158.3M | 145.72M | 124.39M | 115.59M | 108.8M | 73.5M | 65.8M |
| OpEx % of Revenue | - | 10.97% | 11.04% | 10.7% | 8.72% | 7.75% | 8.82% | 9.98% | 8.59% | 9.17% | 9.57% | 9.16% | 8.57% | 8.35% | 8.79% | 10.3% | 10.56% | 12.01% | 10.56% | 10.17% | 9.7% | 8.76% | 8.15% | 9.37% | 9.65% | 9.52% | 8.97% | 8.07% | 8.78% | 6.89% | 7.38% |
| Selling, General & Admin | 687.64M | 691.01M | 735.05M | 766.63M | 832.08M | 682.25M | 444.6M | 439.05M | 392.24M | 362.22M | 310.15M | 264.26M | 229.78M | 204.39M | 184.92M | 181.36M | 197.62M | 200.94M | 228.56M | 247.37M | 258.59M | 235.65M | 201.34M | 177.97M | 158.3M | 145.72M | 124.39M | 115.59M | 93.8M | 63.5M | 57.1M |
| SG&A % of Revenue | - | 10.93% | 11.05% | 10.62% | 8.64% | 7.9% | 8.63% | 9.94% | 8.74% | 9.19% | 9.57% | 9.15% | 8.64% | 8.27% | 9% | 9.95% | 10.45% | 12.01% | 10.24% | 9.84% | 9.7% | 8.76% | 8.21% | 9.37% | 9.65% | 9.52% | 8.97% | 8.07% | 7.57% | 5.96% | 6.41% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2.3M | 2.11M | -546K | 5.77M | 7.2M | -12.84M | 9.87M | 1.56M | -6.6M | -863K | 0 | 172K | -1.8M | 1.89M | -4.34M | 6.35M | 2.05M | -92K | 7.24M | 8.16M | 0 | 0 | -1.39M | 0 | 0 | 0 | 0 | 0 | 15M | 10M | 8.7M |
| Operating Income | 334.98M | 367.03M | 492.24M | 646.53M | 950.18M | 737.55M | 345.83M | 244.91M | 207.26M | 181.47M | 164.44M | 135.47M | 97.37M | 74.27M | 44.53M | 12.01M | 30.29M | 42.82M | 18.41M | 53.49M | 123.09M | 123.61M | 96.31M | 80.02M | 72.11M | 65.76M | 62.62M | 62.8M | 52.2M | 32M | 32.6M |
| Operating Margin % | 5.42% | 5.81% | 7.4% | 8.96% | 9.87% | 8.54% | 6.71% | 5.55% | 4.62% | 4.6% | 5.07% | 4.69% | 3.66% | 3.01% | 2.17% | 0.66% | 1.6% | 2.56% | 0.82% | 2.13% | 4.62% | 4.59% | 3.93% | 4.21% | 4.4% | 4.3% | 4.51% | 4.38% | 4.21% | 3% | 3.66% |
| Operating Income Growth % | - | -25.44% | -23.86% | -31.96% | 28.83% | 113.27% | 41.21% | 18.16% | 14.21% | 10.36% | 21.39% | 39.13% | 31.1% | 66.79% | 270.73% | -60.35% | -29.26% | 132.64% | -65.59% | -56.54% | -0.42% | 28.34% | 20.36% | 10.96% | 9.66% | 5.01% | -0.28% | 20.3% | 63.13% | -1.84% | 21.64% |
| EBITDA | 497.73M | 528.08M | 640.4M | 778.42M | 1.06B | 835.69M | 418.51M | 311.73M | 268.61M | 234.87M | 208.06M | 177.05M | 126.89M | 108.57M | 77.91M | 48M | 69.69M | 84.43M | 66.6M | 101.07M | 161.96M | 157.16M | 124.38M | 107.56M | 95.67M | 89.99M | 84.05M | 80.4M | 66.8M | 43.7M | 40.6M |
| EBITDA Margin % | 8.05% | 8.36% | 9.63% | 10.78% | 11.05% | 9.68% | 8.12% | 7.06% | 5.98% | 5.96% | 6.42% | 6.13% | 4.77% | 4.39% | 3.79% | 2.63% | 3.69% | 5.05% | 2.98% | 4.02% | 6.08% | 5.84% | 5.07% | 5.66% | 5.83% | 5.88% | 6.06% | 5.61% | 5.39% | 4.1% | 4.56% |
| EBITDA Growth % | -17.28% | -17.54% | -17.73% | -26.82% | 27.29% | 99.68% | 34.25% | 16.05% | 14.37% | 12.89% | 17.51% | 39.53% | 16.88% | 39.36% | 62.31% | -31.12% | -17.47% | 26.77% | -34.11% | -37.59% | 3.05% | 26.35% | 15.64% | 12.43% | 6.31% | 7.06% | 4.55% | 20.36% | 52.86% | 7.64% | 21.56% |
| D&A (Non-Cash Add-back) | 162.75M | 161.05M | 148.16M | 131.89M | 113.56M | 98.13M | 72.68M | 66.82M | 61.34M | 53.4M | 43.62M | 41.59M | 29.52M | 34.3M | 33.38M | 35.99M | 39.4M | 41.62M | 48.2M | 47.58M | 38.87M | 33.56M | 28.07M | 27.55M | 23.56M | 24.23M | 21.43M | 17.6M | 14.6M | 11.7M | 8M |
| EBIT | 362.24M | 403.16M | 552.86M | 684.08M | 948.73M | 740.15M | 350.29M | 249.37M | 206.75M | 182.22M | 165.25M | 136.13M | 99.98M | 75.11M | 45.12M | 12.52M | 30.66M | 43.21M | 19.23M | 55.64M | 123.09M | 123.61M | 96.31M | 80.02M | 72.11M | 65.76M | 62.62M | 62.8M | 52.2M | 32M | 32.6M |
| Net Interest Income | 19.18M | 27.63M | 47.82M | 27.07M | -13.19M | -7.32M | -4.84M | -4.23M | -7.52M | -5.49M | -4.03M | -4.84M | -2.03M | -4.21M | -3.54M | -3.17M | -3.25M | -4.22M | -11.26M | -14.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 27.43M | 38.55M | 60.53M | 39.92M | 725K | 6.5M | 4.47M | 4.47M | 1.37M | 731K | 541K | 294K | 2.23M | 640K | 510K | 0 | 0 | 391K | 829K | 2.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 8.25M | 10.92M | 12.71M | 12.84M | 13.91M | 13.81M | 9.31M | 8.7M | 8.89M | 6.22M | 4.58M | 5.13M | 4.27M | 4.85M | 4.05M | 3.17M | 3.25M | 4.61M | 12.09M | 17.05M | 13.55M | 13.94M | 13.48M | 15.57M | 11.41M | 12.76M | 12.94M | 10.8M | 8.8M | 7.7M | 2.4M |
| Other Income/Expense | 23.52M | 25.21M | 47.91M | 24.71M | -15.37M | -11.22M | -4.84M | -4.23M | -9.41M | -5.46M | -3.77M | -4.46M | -1.65M | -4.01M | -3.46M | -3.22M | -3.18M | -4.22M | -11.26M | -14.88M | -10.96M | -12.83M | -16.24M | -15.57M | -12.49M | -13M | -12.97M | -11.39M | -9.2M | -6M | -2.8M |
| Pretax Income | 358.5M | 392.24M | 540.15M | 671.24M | 934.82M | 726.34M | 340.98M | 240.67M | 197.85M | 176.01M | 160.67M | 131M | 95.71M | 70.26M | 41.06M | 8.85M | 27.04M | 38.6M | 7.15M | 38.61M | 112.14M | 110.77M | 80.06M | 64.44M | 59.62M | 52.75M | 49.66M | 51.4M | 43M | 26M | 29.8M |
| Pretax Margin % | 5.8% | 6.21% | 8.12% | 9.3% | 9.71% | 8.41% | 6.62% | 5.45% | 4.41% | 4.47% | 4.96% | 4.54% | 3.6% | 2.84% | 2% | 0.49% | 1.43% | 2.31% | 0.32% | 1.54% | 4.21% | 4.12% | 3.26% | 3.39% | 3.64% | 3.45% | 3.58% | 3.59% | 3.47% | 2.44% | 3.34% |
| Income Tax | 90.84M | 96.25M | 121.42M | 156.78M | 229.85M | 173.97M | 87.1M | 58.27M | 45.44M | 51.97M | 55.17M | 45.87M | 34.15M | 24.45M | 15.05M | 2.87M | 7.2M | 13.85M | 1.69M | 15.4M | 38.76M | 41.05M | 31.46M | 24.32M | 22.98M | 19.61M | 19.22M | 20M | 16.6M | 9M | 12M |
| Effective Tax Rate % | 25.34% | 24.54% | 22.48% | 23.36% | 24.59% | 23.95% | 25.54% | 24.21% | 22.97% | 29.53% | 34.34% | 35.01% | 35.68% | 34.81% | 36.66% | 32.49% | 26.63% | 35.89% | 23.59% | 39.88% | 34.57% | 37.06% | 39.3% | 37.75% | 38.55% | 37.18% | 38.7% | 38.91% | 38.6% | 34.62% | 40.27% |
| Net Income | 263.98M | 294.79M | 414.56M | 514.31M | 692.65M | 535.64M | 246.78M | 179.65M | 148.6M | 119.51M | 101.18M | 80.59M | 57.55M | 43.08M | 23.93M | 4.55M | 17.41M | 24.27M | 4.34M | 21.05M | 70.13M | 67.37M | 48.6M | 40.12M | 36.64M | 33.14M | 30.44M | 31.4M | 26.4M | 17M | 17.8M |
| Net Margin % | 4.27% | 4.66% | 6.23% | 7.12% | 7.2% | 6.2% | 4.79% | 4.07% | 3.31% | 3.03% | 3.12% | 2.79% | 2.16% | 1.74% | 1.16% | 0.25% | 0.92% | 1.45% | 0.19% | 0.84% | 2.63% | 2.5% | 1.98% | 2.11% | 2.23% | 2.17% | 2.19% | 2.19% | 2.13% | 1.59% | 2% |
| Net Income Growth % | -29.14% | -28.89% | -19.4% | -25.75% | 29.31% | 117.05% | 37.37% | 20.9% | 24.34% | 18.12% | 25.54% | 40.04% | 33.58% | 80% | 426.14% | -73.87% | -28.27% | 458.88% | -79.36% | -69.99% | 4.08% | 38.62% | 21.15% | 9.5% | 10.55% | 8.88% | -3.06% | 18.94% | 55.29% | -4.49% | 26.24% |
| Net Income (Continuing) | 267.67M | 295.99M | 418.73M | 514.46M | 704.96M | 552.36M | 253.88M | 182.4M | 152.41M | 124.04M | 105.5M | 85.13M | 61.56M | 45.8M | 26.01M | 5.91M | 19.91M | 24.75M | 5.46M | 23.21M | 70.13M | 67.37M | 48.6M | 40.12M | 36.64M | 33.14M | 30.44M | 31.45M | 26.4M | 17M | 17.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 25.92M | 50.46M | 39.72M | 37.96M | 22.84M | 14.02M | 15.28M | 14.55M | 11.29M | 13.65M | 13.87M | 9.11M | 7.76M | 5.79M | 6.67M | 5.73M | 6.34M | 10.38M | 10.82M | 8.58M | 8.27M | 7.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.63 | 5.00 | 6.77 | 8.07 | 10.97 | 8.59 | 4.00 | 2.91 | 2.46 | 1.94 | 1.65 | 1.33 | 0.95 | 0.72 | 0.40 | 0.08 | 0.30 | 0.42 | 0.08 | 0.36 | 1.21 | 1.18 | 0.86 | 0.73 | 0.66 | 0.54 | 0.50 | 0.49 | 0.43 | 0.31 | 0.33 |
| EPS Growth % | -25.37% | -26.14% | -16.11% | -26.44% | 27.71% | 114.75% | 37.46% | 18.29% | 26.8% | 17.58% | 24.06% | 40% | 31.94% | 80% | 421.51% | -74.43% | -28.57% | 447.59% | -78.69% | -70.25% | 2.54% | 37.21% | 17.81% | 10.61% | 22.22% | 8% | 2.04% | 13.95% | 38.71% | -6.06% | 22.22% |
| EPS (Basic) | - | 5.00 | 6.78 | 8.20 | 11.05 | 8.61 | 4.00 | 2.91 | 2.46 | 1.95 | 1.66 | 1.33 | 0.96 | 0.72 | 0.40 | 0.08 | 0.30 | 0.42 | 0.08 | 0.37 | 1.24 | 1.22 | 0.90 | 0.75 | 0.69 | 0.62 | 0.51 | 0.51 | 0.44 | 0.32 | 0.34 |
| Diluted Shares Outstanding | 57.05M | 58.96M | 58.88M | 60.64M | 60.65M | 60.35M | 59.93M | 60.13M | 60.43M | 61.6M | 61.2M | 60.6M | 60.37M | 60.11M | 59.34M | 58.6M | 58.43M | 58.4M | 57.67M | 58.09M | 58.11M | 57.32M | 56.31M | 55.14M | 55.86M | 61.13M | 61.43M | 63.56M | 61.84M | 54.84M | 54.49M |
| Basic Shares Outstanding | 56.42M | 58.96M | 58.41M | 59.62M | 60.18M | 60.2M | 59.91M | 60.11M | 60.35M | 61.29M | 61.07M | 59.76M | 60.16M | 59.84M | 58.88M | 58.23M | 57.7M | 57.77M | 57.22M | 57.17M | 56.46M | 55.12M | 54.1M | 53.28M | 53.94M | 59.31M | 60.4M | 61.91M | 59.75M | 52.58M | 52.35M |
| Dividend Payout Ratio | - | 27.93% | 19.49% | 13.27% | 8.5% | 7.51% | 12.43% | 13.66% | 14.85% | 16.41% | 17.47% | 20.48% | 21.21% | 18.95% | 33.03% | 171.86% | 44.38% | 21.78% | 136.73% | 10.38% | 2.95% | 2.85% | 3.7% | 6.29% | 8.05% | 5.08% | 5.27% | 4.78% | 5.68% | 6.47% | 5.62% |
Commodity price volatility exposure
According to the provided quarterly income statements, UFPI has experienced a consistent decline in top-line performance, with revenue growth rates remaining negative for ten consecutive quarters, culminating in a -8.4% year-over-year contraction as of 2026Q1, reflecting ongoing challenges in volume and pricing realization.
The persistent negative growth trajectory suggests that the company is struggling to offset the impact of normalizing lumber prices and potentially softer demand in its core construction and retail segments. Investors should monitor whether this trend is purely a function of commodity price pass-through or if it indicates a deeper erosion of market share in key product categories.
As reported in financial statements, UFPI's gross margin has compressed from a peak of 19.9% in 2024Q1 to 16.1% in 2026Q1, indicating that the company's ability to maintain premium pricing on its value-added products is being challenged by broader market conditions and input cost volatility.
The steady decline in gross margins suggests that the company may be losing its pricing power, or that the mix of products sold is shifting toward lower-margin commodity items. This compression warrants further investigation into whether the company's proprietary brands are successfully insulating the business from the cyclicality of the lumber market.
Based on UFPI's reported figures, operating income has fallen significantly from $159.0 million in 2024Q2 to $62.4 million in 2026Q1, demonstrating that the company is failing to achieve operating leverage as revenue declines, with SG&A expenses remaining relatively sticky despite the top-line contraction.
The inability to scale SG&A costs down in proportion to the revenue decline suggests a lack of operational flexibility in the current cost structure. This trend may indicate that the company is maintaining overhead levels in anticipation of a recovery that has yet to materialize, potentially pressuring future earnings.
Data from recent filings shows that UFPI's net income has faced significant downward pressure, dropping from $125.9 million in 2024Q2 to $50.8 million in 2026Q1, while the intermittent presence of stock-based compensation expenses adds a layer of complexity to the underlying profitability of the firm.
The volatility in net income, coupled with the periodic recognition of stock-based compensation, suggests that reported EPS may not fully reflect the cash-generative capacity of the core business. Investors should be cautious of the impact these non-operating items have on the quality of earnings during periods of cyclical downturn.
While management emphasizes a shift toward value-added products, the income statement data suggests that UFPI remains highly sensitive to commodity cycles, as evidenced by the sharp decline in operating margins from 8.4% in 2024Q2 to 4.3% in 2026Q1, challenging the narrative of long-term structural insulation.
Short-sellers might focus on the fact that the company's profitability metrics are trending toward historical lows, suggesting that the 'value-added' strategy has not yet decoupled the firm from the broader lumber market. The reliance on cyclical housing and construction demand appears to be the primary driver of the current earnings decline, regardless of the company's branding efforts.
Quick answers to the most common questions about buying UFPI stock.
For fiscal year 2025, UFP Industries, Inc. (UFPI) reported total revenue of $6.32B. This represents a 609.2% increase compared to $891.2M in 1996.
UFP Industries, Inc. (UFPI) is profitable, generating $294.8M in net income for the fiscal year ending 2025 with a net profit margin of 4.7%.
UFP Industries, Inc. (UFPI) reported an operating income of $367.0M, resulting in an operating profit margin of 5.8%. This margin reflects the operational efficiency of the business before interest and taxes.
UFP Industries, Inc. (UFPI) generated $1.06B in gross profit for the year, representing a gross profit margin of 16.8%. This demonstrates the company's core pricing power and production efficiency.