UFP Industries Q3 sales beat estimates on organic unit growth

Overview

• U.S. value-added wood products maker's Q3 sales rose 11%, beating analyst expectations

• Diluted EPS for Q3 fell to $1.05 from $1.29 a year ago

• Profitability pressured by higher freight and lumber costs despite organic unit growth

Outlook

• Company maintains full-year 2026 outlook, expects industry unit demand to be slightly down

• UFP Industries expects energy and transportation costs to remain elevated through year-end

• Company does not anticipate meaningful improvement in market demand through year-end

Result Drivers

• HIGHER FREIGHT COSTS - Co said elevated transportation rates, driven by constrained carrier capacity and higher fuel costs, weighed on profitability

• ORGANIC UNIT GROWTH - Co said Q3 sales benefited from 4% organic unit growth, led by volume improvements in Site Built, Commercial, Structural Packaging and Deckorators units

• NEW PRODUCTS - Co said new product sales rose to 8.7% of net sales, led by Deckorators, Structural Packaging, and Construction offerings

Company press release:

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", 3 "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 31.4% above its October 27 closing price of $79.92

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• Oct 28 - Dana Q3 sales rise 6%, beat analyst expectations

• Oct 28 - IDEX Q3 sales beat on increased volumes

• Oct 26 - US retailers face record holiday delivery prices from surcharges tied to costlier diesel

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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.)