UFP Industries, Inc. UFPI reported mixed fourth-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. Both metrics declined year over year.

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The quarterly results were affected by softer demand and broad-based pricing pressures. While economic challenges are expected to persist in 2025, the company remains confident that its balanced business model, variable incentive-compensation structure and ongoing growth initiatives will support continued success. Additionally, with a strong leadership team in place, the company aims to maintain culture of employee development and high performance as it pursues further expansion.

UFPI’s Earnings & Revenue Discussion

UFP Industries reported earnings per share of $1.20, which missed the Zacks Consensus Estimate of $1.23 by 2.4% and declined 25.9% from the year-ago quarter.

Net sales of $1.46 billion beat the consensus mark of $1.44 billion, but declined 4.1% year over year. This downside was mainly due to a 4% fall in selling prices. New product sales of $102 million contributed 7% to total net sales compared with 7.7% in the prior-year quarter.

Segmental Discussion of UFPI

UFP Retail Solutions: The segment reported net sales of $525 million (up from our projection of $480 million), flat year over year. Organic unit sales grew 1%, but this gain was offset by 1% decline resulting from the transfer of certain product sales to the Packaging segment. Within specific product lines, ProWood saw 1% increase in organic unit sales, while UFP-Edge and Deckorators experienced a decrease of 2% and 4%, respectively.

Adjusted EBITDA margin rose 180 basis points (bps) from the prior year to 8.4%.

UFP Packaging: The segment’s net sales totaled $375 million, down 9% from the year-ago period’s level (down from our expectation of $377.3 million). Selling prices declined 8% and organic unit sales were down 2% year over year. This was partially balanced by a 1% increase from the transfer of certain product sales from the Retail segment.

Adjusted EBITDA margin contracted 280 bps from the prior year to 10%.

UFP Construction: Net sales in the segment were $487 million, which declined 5% from the year-ago period (down from our expectation of $491.1 million). This downturn was due to a 7% decrease in selling prices, which was overshadowed by 2% increase in organic unit sales. Factory Built saw an 18% rise in organic unit sales, driven by higher industry production and market share expansion, while Concrete Forming posted a 6% increase. In contrast, organic unit sales declined 9% in Site Built and 2% in the Commercial segment, largely due to softer demand.

Adjusted EBITDA margin contracted 360 bps from the prior year to 9.2%.

UFPI’s Operating Highlights

Selling, general and administrative expenses, accounting for 10.7% of net sales, decreased 60 bps year over year.

Adjusted EBITDA of $132.7 million declined year over year from $165.6 million. Adjusted EBITDA margin also contracted 180 bps from the prior year to 9.1%.

Balance Sheet & Cash Flow of UFPI

As of Dec. 28, 2024, the company had nearly $2.5 billion in liquidity. Cash and cash equivalents were $1.17 billion at the fourth-quarter end compared with $1.1 billion at the end of 2023. Long-term debt and finance lease obligations were $229.8 million, down from $233.5 million at 2023-end.

Net cash from operating activities was $642.6 million at the fourth-quarter end compared with $959.9 million in the year-ago period.

On Feb. 13, 2025, UFPI’s board of directors approved a quarterly dividend payment of 35 cents per share, a 6% increase from the quarterly dividend of 33 cents. The dividend is payable on March 17 to its shareholders of record as of March 3.

Short-Term Outlook of UFPI

UFPI is actively working with its domestic and international suppliers to manage the potential impact of proposed tariffs, which are currently on hold in Mexico and Canada. If implemented, tariffs could drive higher demand for domestic products, potentially increasing costs due to capacity constraints. However, with strong relationships across supply chain and no ownership of foreign sawmills, the company believes that it is well-positioned to adapt with minimal financial disruption after an initial adjustment period. UFPI continues to monitor the evolving trade landscape and remains prepared to act swiftly to mitigate any negative effects.

In terms of market conditions, the company expects demand to remain subdued in the first half of 2025, alongside a competitive pricing environment. Retail, Packaging and Construction segments are all expected to experience a slight decline in overall demand during this period.

Long-Term Outlook of UFPI

Despite near-term challenges, UFPI remains committed to its long-term growth strategy. The company aims to achieve annual unit sales growth of 7-10%, including contributions from bolt-on acquisitions, while driving at least 10% of total sales from new products. Additionally, UFPI targets EBITDA margins of 12.5%.

UFPI’s Zacks Rank & Recent Construction Releases

UFP Industries currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AECOM ACM reported impressive results for first-quarter fiscal 2025, where earnings surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. Revenues also increased from the prior year, backed by solid organic net service revenue (“NSR”) growth in its design business. Also, the strong improvement was backed by the benefits received from high-returning organic growth initiatives.

As of the fiscal quarter’s end, AECOM’s total backlog was $23.88 billion compared with $23.32 billion reported in the prior-year period. The current backlog level includes 55.2% contracted backlog growth. ACM’s pipeline of opportunities increased to a new record, driven by double-digit growth in later-stage opportunities, with award decisions expected over the next several quarters. The company anticipates to generate 5-8% organic NSR growth in fiscal 2025.

PulteGroup Inc. PHM has reported remarkable fourth-quarter 2024 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate and grew year over year. The quarter’s results indicate the company’s success in addressing the affordability issues of the housing market due to a still high mortgage rate.

By implementing several operational changes, including targeted sales incentives and faster construction cycle times, PulteGroup was able to drive its home sales and foster new orders. Also, the increase in the average selling price of homes closed aided the quarter’s top-line growth. In 2024, PHM invested about $5.3 billion into its business, returned $1.4 billion to shareholders through stock repurchases and dividends and generated a return on equity of 27.5%.

Weyerhaeuser Company WY reported mixed results for the fourth quarter of 2024. Its earnings beat the Zacks Consensus Estimate, while net sales missed the same. On a year-over-year basis, both metrics declined due to lower fee harvest volumes in the West.

For first-quarter 2025, for Timberland, Weyerhaeuser expects earnings and adjusted EBITDA to be approximately $20 million higher than the fourth quarter. In the Real Estate, Energy and Natural Resources segment, Weyerhaeuser expects first-quarter earnings and adjusted EBITDA to be comparable sequentially. Within the Wood Products segment, WY expects its first-quarter earnings before special items and adjusted EBITDA to slightly exceed fourth-quarter levels.

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