UFP Industries shares Q2 results
UFP Industries reported second-quarter net sales of $1.9 billion, down 7 percent from the previous year. Net earnings were $126 million, down 16 percent year-over-year.
“Our second quarter results were in line with expectations in a more challenging business cycle,” said chairman and CEO Matthew J. Missad. “The weaker environment and expected near-term softness in demand have enabled us to more aggressively pursue our long-term expansion plans and improvement strategies. These efforts include investments in automation and consolidating operations to eliminate redundancies, lower costs and enhance the profitability of each of our facilities," he said.
Missad went on to share that UFP would "stay on offense by investing in acquisitions, new ventures, new value-added products and organic expansion, while returning capital to shareholders through our recently increased dividend and share repurchase program.”
Q2 2024 highlights (comparisons on a year-over-year basis except where noted):
- Net sales of $1.9 billion decreased 7 percent due to a 6 percent decrease in selling prices and a 1 percent decrease in organic unit sales. Quarter over quarter, the price of southern yellow pine (SYP) decreased 19 percent, which contributed to a decrease in selling prices.
- New product sales of $134 million were 7 percent of total sales compared to 7.4 percent in the second quarter of 2023. Many products that were considered new products in 2023 were discontinued and not included in 2024 totals.
- Net earnings attributable to controlling interests of $126 million represents a 16 percent decrease from last year.
Capital allocation
UFP Industries has $1.04 billion in cash as of June 29, 2024, compared to $702 million in cash at the end of the second quarter of 2023. The company had approximately $2.3 billion of liquidity as of June 29, 2024.
The company’s return-focused approach to capital allocation includes the following:
Acquisitions and organic growth. The company is targeting capital investments in 2024 of up to $300 million for automation, technology upgrades, geographic expansion and increased capacity at existing facilities, specifically for its Deckorators, Site Built, metal packaging and machine-built pallet businesses. Approximately $200 million of projects have been approved in 2024 and another $96 million in projects are pending approval.
Dividend payments. On July 24, 2024, the UFP Industries board of directors approved a quarterly dividend payment of $0.33 per share, a 10 percent increase over the quarterly dividend of $0.30 per share paid in September 2023. The dividend is payable on September 16, 2024, to shareholders of record on September 2, 2024.
Share repurchases. The company was authorized to purchase up to $200 million of outstanding stock through July 31, 2024. From July 26, 2023, through the end of the second quarter of 2024, the company repurchased approximately 1,477,000 shares at an average price of $110.96 (a total of $163.9 million). On July 24, 2024, the board of directors for UFP authorized the company to repurchase up to $200 million of shares through July 31, 2025.
For a more detailed breakdown of UFP's Q2 earnings, including specific business segment results, click here.
