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What changed in UFP INDUSTRIES INC's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of UFP INDUSTRIES INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+279 added−111 removedSource: 10-K (2025-02-26) vs 10-K (2024-02-28)

Top changes in UFP INDUSTRIES INC's 2024 10-K

279 paragraphs added · 111 removed · 82 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeInter-company lease and services charges are assessed to our operating segments for the use of these assets and services at fair market value rates. Narrative Description of Business. Historically, we owned and operated a number of manufacturing facilities across North America that served our various markets, and we managed those operations primarily on a geographic basis.
Biggest changeHistorically, we owned and operated a number of manufacturing facilities across North America that served our various markets, and we managed those operations primarily on a geographic basis. As part of that structure, the managers of those facilities and geographic business units were responsible for and compensated on the basis of each facility's, unit's, and region's respective financial performance.
Examples include our Deckorators brand of composite decking and railing and its proprietary, patented Surestone technology used to produce mineral-based composite decking; Trusstrax, mobile application offered to our Site-Built customers; and the ProWood brand of pressure-treated lumber and outdoor living products. In addition, we own numerous registered trademarks and claim common law trademark rights to several others.
Examples include our Deckorators brand of composite decking and railing and its proprietary, patented Surestone technology used to produce mineral-based composite decking; Trusstrax, a mobile application offered to our Site-Built customers; and the ProWood brand of pressure-treated lumber and outdoor living products. In addition, we own numerous registered trademarks and claim common law trademark rights to several others.
We estimate that, as the largest supplier, we manufacture approximately 10% of new machine-built pallets nationally. Protective Packaging Solutions . This business unit consists of a wide variety of products, such as corrugate, foam, labels, strapping and films.
We estimate that, as the largest supplier, we manufacture approximately 8-10% of new machine-built pallets nationally. Protective Packaging Solutions . This business unit consists of a wide variety of products, such as corrugate, foam, labels, strapping and films.
Competitive advantages for UFP Packaging include: being a low cost pallet producer due to our supply agreements, investments in vertical integration, and level of automation in our manufacturing plants; our scale and ability to serve large global, national and regional customers; design and engineering expertise, coupled with our ability to manufacture structural packaging with mixed materials, allowing us to provide creative, value-added solutions to our customers; single-source supplier offering a wide breadth of products, allowing customers to buy more efficiently.
Competitive advantages for UFP Packaging include: being a low cost pallet producer due to our supply agreements, investments in vertical integration, and level of automation in our manufacturing plants; our scale and ability to serve large global, national and regional customers; design and engineering expertise, coupled with our ability to manufacture structural packaging with mixed materials, allowing us to provide creative, value-added solutions to our customers; and serving as a single-source supplier offering a wide breadth of products, allowing customers to buy more efficiently.
This business unit designs, engineers, manufactures and tests custom packaging products primarily made of wood and metal. These products are custom designed, often including mixed materials, and manufactured based upon specific customer needs and requirements.
Structural Packaging . This business unit designs, engineers, manufactures and tests custom packaging products primarily made of wood and metal. These products are custom designed, often including mixed materials, and manufactured based upon specific customer needs and requirements.
We believe that the duration and durability of our relationships with many of our customers, which extend over several decades with certain key customers, is a reflection of our strong sales culture and intense focus on providing custom solutions. 2 The growth in our business, and in the size and number of our customers, generated an increased need for a deeper understanding of the markets we serve, as well as the need to offer more complete solutions, services, and products for existing and prospective customers.
We believe that the duration and durability of our relationships with many of our customers, which extend over several decades with certain key customers, is a reflection of our strong sales culture and intense focus on providing custom solutions. 2 Table of Contents The growth in our business, and in the size and number of our customers, generated an increased need for a deeper understanding of the markets we serve, as well as the need to offer more complete solutions, services, and products for existing and prospective customers.
Keys to our success in this business unit are low-cost production through expanded automation, including robotics and high efficiency pallet machines, and the procurement of competitively priced industrial grade wood fiber. In 2022 the company acquired a 50% equity stake in Dempsey Wood Products, LLC, which produces pallet lumber and other industrial wood products in Orangeburg, South Carolina.
Keys to our success in this business unit are low-cost production through expanded automation, including robotics and high efficiency pallet machines, and the procurement of competitively priced industrial grade wood fiber. In 2022 we acquired a 50% equity stake in Dempsey Wood Products, LLC, which produces pallet lumber and other industrial wood products in Orangeburg, South Carolina.
This business unit designs and manufactures roof trusses, cut-to-size dimensional and board lumber, plywood, and oriented strand board, all intended for use in the construction of manufactured housing. Our customers in this market are producers of mobile, modular and prefabricated homes and, to a lesser extent, recreational vehicles (RV) and cargo trailers.
Factory-Built Housing . This business unit designs and manufactures roof trusses, cut-to-size dimensional and board lumber, plywood, and oriented strand board, all intended for use in the construction of manufactured housing. Our customers in this market are producers of mobile, modular and prefabricated homes and, to a lesser extent, recreational vehicles (RV) and cargo trailers.
We estimate we manufacture 6% of all composite decking and railing in the U.S. UFP-Edge . This business unit manufactures and sells exterior siding, pattern, trim and facia products. These products include traditional wood, engineered wood and modified wood siding with a variety of finish and profile alternatives as well as primed wood trim boards and facia.
We estimate we manufacture approximately 6-8% of all composite decking and railing in the U.S. UFP-Edge . This business unit manufactures and sells exterior siding, pattern, trim and facia products. These products include traditional wood, engineered wood and modified wood siding with a variety of finish and profile alternatives as well as primed wood trim boards and facia.
We believe the breadth of our product offering, scale and geographic dispersion, proximity of our plants to core customers and key vendors, product innovation initiatives, purchasing and manufacturing expertise, procurement advantages, and service capabilities provide us a competitive edge in this market. 3 We supply customers in this segment from many of our locations.
We believe the breadth of our product offering, scale and geographic dispersion, proximity of our plants to core customers and key vendors, product innovation initiatives, purchasing and manufacturing expertise, procurement advantages, and service capabilities provide us a competitive edge in this market. 3 Table of Contents We supply customers in this segment from many of our locations.
We quantified our 2022 Scope 1 and Scope 2 greenhouse gas (GHG) emissions in our fiscal year 2022 Governance Report and plan to disclose our 2023 Scope 1 and Scope 2 GHG emissions in 2024. We are driven by operational excellence throughout the enterprise and by cultivating a unique culture that provides significant opportunity for professional and personal growth.
We quantified our 2023 Scope 1 and Scope 2 greenhouse gas (GHG) emissions in our fiscal year 2023 Governance Report and plan to disclose our 2024 Scope 1 and Scope 2 GHG emissions in 2025. We are driven by operational excellence throughout the enterprise and by cultivating a unique culture that provides significant opportunity for professional and personal growth.
Recent acquisitions, including Atlantic Prefab, Inc., Exterior Designs, LLC, and Patriot Building Systems, LLC, and Endurable Building Products have given the company manufacturing capability in alternate material components such as metal trusses, sheathed and pre-finished light gauge metal wall panels and aluminum balconies, decks and rail accessories.
Historical acquisitions, including Atlantic Prefab, Inc., Exterior Designs, LLC, Patriot Building Systems, LLC, and Endurable Building Products have given the Company manufacturing capability in alternate material components such as metal trusses, sheathed and pre-finished light gauge metal wall panels and aluminum balconies, decks and rail accessories.
As a result of these advantages, we estimate we produce approximately 45% of all roof trusses used in factory-built housing in the United States. We also distribute products such as siding, electrical, plumbing, and many other specialty products to factory-built housing and RV customers.
As a result of these advantages, we estimate we produce approximately 35% of all roof trusses used in factory-built housing in the United States. We also distribute products such as siding, electrical, plumbing, and many other specialty products to factory-built housing and RV customers.
Also available through our Internet website under "Our Company - Governance" is our Code of Ethics for Senior Financial Officers. Reports to Security Holders. Not applicable. Enforceability of Civil Liabilities Against Foreign Persons. Not applicable. 7
Also available through our Internet website under "Our Company - Governance" is our Code of Ethics for Senior Financial Officers. Reports to Security Holders. Not applicable. Enforceability of Civil Liabilities Against Foreign Persons. Not applicable. 7 Table of Contents
Information required for environmental disclosures is incorporated by reference from Note L of the Consolidated Financial Statements presented under Item 8 herein. 6 Seasonality . Information required for seasonality disclosures is incorporated by reference from Item 1A.
Information required for environmental disclosures is incorporated by reference from Note L of the Consolidated Financial Statements presented under Item 8 herein. 6 Table of Contents Seasonality . Information required for seasonality disclosures is incorporated by reference from Item 1A.
Matters of sustainability, health and safety, employee welfare, supply chain management, and community engagement are managed by our executive team, with oversight from our Nominating and Corporate Governance and Personnel and Compensation Committees. In March 2023, we published on our website our fiscal year 2022 “Governance Report,” detailing our responsible practices as well as our future outlook.
Matters of sustainability, health and safety, employee welfare, supply chain management, and community engagement are managed by our executive team, with oversight from our Nominating and Corporate Governance and Personnel and Compensation Committees. In October 2024, we published on our website our fiscal year 2023 “Governance Report,” detailing our responsible practices as well as our future outlook.
Also, the states in which we have a presence are forecast to continue to benefit from migration trends in the United States. Freight costs are a factor in the ability to competitively service this market due to the space requirements of these products on each truckload.
Also, the states in which we have a presence are forecasted to continue to benefit from migration trends in the United States. Freight costs are a factor in the ability to competitively service this market due to the space requirements of these products on each truckload. Commercial Construction .
It also includes interior pattern and trim products, as well as pre-painted and primed shiplap and project boards. UFP-Edge is sold to home improvement retailers and two-step distributors. UFP Retail Solutions has numerous competitive advantages.
The products also include interior pattern and trim products, as well as pre-painted and primed shiplap and project boards. UFP-Edge is sold to home improvement retailers and two-step distributors. UFP Retail Solutions has numerous competitive advantages.
The Retail segment services two of our largest customers, The Home Depot and Lowes, which accounted for approximately 17% and 12%, respectively, of our total net sales in fiscal 2023, 15% and 11%, respectively, in 2022, and 16% and 10%, respectively, in 2021.
The Retail segment services two of our largest customers, The Home Depot and Lowes, which accounted for approximately 17% and 11%, respectively, of our total net sales in fiscal 2024, 17% and 12%, respectively, in 2023, and 15% and 11%, respectively, in 2022.
These groupings may change periodically as opportunities to gain efficiencies occur or development of products that deliver increased scale and synergy are developed. ProWood . Our ProWood business unit manufactures and sells pressure-treated lumber products, including decking, fencing, and lattice, as well as decorative and functional lawn and garden products to building products retailers across the nation.
These groupings may change periodically as opportunities to gain efficiencies occur or new products that deliver increased scale and synergy are developed. ProWood . Our ProWood business unit manufactures and sells pressure-treated lumber products, including decking, fencing, and lattice, as well as decorative and functional lawn and garden products to building products retailers across the U.S.
The three main end markets for softwood lumber in North America – retail, construction, and packaging – align with our three business segments We are the largest converter of solid sawn softwood lumber from North American primary producers (lumber mills). For 2023, we estimate we purchased approximately 8% of the 51.5 billion board feet of North America softwood lumber production.
The three main end markets for softwood lumber in North America – retail, construction, and packaging – align with our three business segments We are the largest converter of solid sawn softwood lumber from North American primary producers (lumber mills). For 2024, we estimate we purchased approximately 6.5% of the 54 billion board feet of North America softwood lumber production.
We believe we are unique in our ability to deliver highly engineered, factory-built solutions to job sites. 5 We believe the diversification of the end markets we serve in our Construction segment as well as the breadth of our products and services represent a competitive advantage.
We believe we are unique in our ability to deliver highly engineered, factory-built solutions to job sites. 5 Table of Contents We believe the diversification of the end markets we serve in our Construction segment as well as the breadth of our products and services represent competitive advantages.
We anticipate publishing on our website our fiscal year 2023 Governance Report during the second quarter of 2024. Our manufacturing operations have a long history of environmental stewardship through efficiency and energy savings, waste management, and responsible product sourcing.
We anticipate publishing on our website our fiscal year 2024 Governance Report during 2025. Our manufacturing operations have a long history of environmental stewardship through efficiency and energy savings, waste management, and responsible product sourcing.
Additionally, we purchased approximately $571.7 million in plywood in 2023. There are numerous primary producers for all varieties we use, and we are not dependent on any particular source of supply. Intellectual Property . We own numerous patents and have several patents pending on technologies related to our business.
Additionally, we purchased approximately $608.9 million in plywood in 2024. There are numerous primary producers for all varieties we use, and we are not dependent on any particular source of supply. Intellectual Property . We own numerous patents and have several patents pending on technologies related to our business.
Risk Factors under the caption “ Seasonality and weather conditions, including those arising from climate change, could adversely affect us .” Human Capital Management . On December 30, 2023, we had approximately 15,800 employees. For nearly 70 years, the success of our company has rested on the skill, motivation and performance of our employees.
Risk Factors under the caption “ Seasonality and weather conditions, including those arising from climate change, could adversely affect us .” Human Capital Management . On December 28, 2024, we had approximately 15,000 employees. For 70 years, the success of our company has rested on the skill, motivation and performance of our employees.
The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, Asia and Australia operations, and sales and buying offices in other parts of the world. Our International segment and Ardellis, our insurance captive, are referred to as “All Other” throughout this report.
The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Spain, India, United Arab Emirates and Australia operations, and sales and buying offices in other parts of the world. Our International segment and Ardellis, our insurance captive, are referred to as “All Other” throughout this report.
On December 30, 2023 and December 31, 2022, we estimate that backlog orders associated with our site-built construction businesses approximated $79.7 million and $91.1 million, respectively. We expect that the orders above will be primarily filled within the next fiscal year; however, it is possible that some orders could be canceled. Environmental .
On December 28, 2024 and December 30, 2023, we estimate that backlog orders associated with our site-built construction businesses approximated $74.4 million and $79.7 million, respectively. We expect that the orders above will be primarily filled within the next fiscal year; however, it is possible that some orders could be canceled. Environmental .
During 2023 our annual purchases of lumber totaled approximately $2.2 billion and consisted of the following species and their respective percent of total lumber purchases: southern yellow pine (69%), spruce-pine-fir (13%), and douglas fir (2%), while the remaining 16% of lumber purchases comprise various other species and imports outside of North America.
During 2024 our annual purchases of lumber totaled approximately $2.0 billion and consisted of the following species and their respective percent of total lumber purchases: southern yellow pine (68%), spruce-pine-fir (13%), and douglas fir (2%), while the remaining 17% of lumber purchases comprise various other species and imports outside of North America.
Numerous pressure-treaters exist on local and regional scales with none approaching the volume sold by UFP. We estimate we produce approximately 28% of all residential treated wood, 9% of all wood fencing, and 8% of all fire-retardant wood products. Deckorators .
Numerous pressure-treaters exist on local and regional scales with none approaching the volume sold by UFP. We estimate we produce approximately 28% of all residential treated wood, 17% of all wood fencing, and 7% of all fire-retardant wood products within the U.S. Deckorators .
Through the acquisitions of Advantage Label in Grand Rapids, MI, and Titan Manufacturing, a highly-automated corrugate converter in Flower Mound, TX, UFP has become a manufacturer of labels and corrugate boxes, two significant growth categories for UFP Packaging.
Through the acquisitions of Advantage Label in Grand Rapids, Michigan, and Titan Manufacturing, a highly-automated corrugate converter in Flower Mound, Texas, we have become a manufacturer of labels and corrugate boxes, two significant growth categories for UFP Packaging.
Information relating to current developments in our business is incorporated by reference from our Annual Report to Shareholders for the fiscal year ended December 30, 2023 ("2023 Annual Report") under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations." Selected portions of the 2023 Annual Report are filed as Exhibit 13 with this Form 10-K Report.
Information relating to current developments in our business is incorporated by reference from our Annual Report to Shareholders for the fiscal year ended December 28, 2024 ("2024 Annual Report") under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations." Selected portions of the 2024 Annual Report are presented under Item 8 herein with this Form 10-K Report.
See Note M "Segment Reporting" of our Annual Report to Shareholders for the fiscal year ended December 30, 2023 for our disaggregated net sales by business unit for our Retail Solutions segment. Packaging segment . Formerly known as our Industrial segment, it is comprised of the following business units: Structural Packaging, PalletOne, and Protective Packaging Solutions. Structural Packaging .
See Note M "Segment Reporting" to our consolidated financial statements for the fiscal year ended December 28, 2024 in item 8 for our disaggregated net sales by business unit for our Retail Solutions segment. Packaging segment . Formerly known as our Industrial segment, it is comprised of the following business units: Structural Packaging, PalletOne, and Protective Packaging Solutions.
In neither case, however, will we receive firm orders until just prior to the anticipated delivery dates for the products ordered. On December 30, 2023 and December 31, 2022, we estimate that backlog orders associated with our customized interior fixture businesses approximated $59.2 million and $90.1 million, respectively. Cancelled orders have been removed from the prior year figure.
In neither case, however, will we receive firm orders until just prior to the anticipated delivery dates for the products ordered. On December 28, 2024 and December 30, 2023, we estimate that backlog orders associated with our customized interior fixture businesses approximated $41.9 million and $59.2 million, respectively.
See Note M "Segment Reporting" of our Annual Report to Shareholders for the fiscal year ended December 30, 2023 for our disaggregated net sales by business unit for our Construction segment. UFP Purchasing/Suppliers . Our purchasing team manages and purchases wood fiber for each of our segments.
See Note M "Segment Reporting" to our consolidated financial statements for the fiscal year ended December 28, 2024 in item 8 for our disaggregated net sales by business unit for our Construction segment. UFP Purchasing/Suppliers . Our purchasing team manages and purchases wood fiber for each of our segments.
See Note M "Segment Reporting" of our Annual Report to Shareholders for the fiscal year ended December 30, 2023 for our disaggregated net sales by business unit for our Packaging segment. 4 Construction segment. Our construction segment is comprised of the following business units – Factory-Built Housing, Site-Built Construction, Commercial Construction, and Concrete Forming. Factory-Built Housing .
See Note M "Segment Reporting" to our consolidated financial statements for the fiscal year ended December 28, 2024 in item 8 for our disaggregated net sales by business unit for our Packaging segment. 4 Table of Contents Construction segment. Our Construction segment is comprised of the following business units – Factory-Built Housing, Site-Built Construction, Commercial Construction, and Concrete Forming.
We also provide framing services for builders in certain regional markets in which we erect the wood structure. Commercial Construction . Our commercial construction business unit primarily includes the operations of idX Holdings, Inc. idX is a designer, manufacturer and installer of highly customized interior fixtures, casework and architectural millwork used in a variety of retail and commercial structures.
Our commercial construction business unit primarily includes the operations of idX Holdings, Inc. idX is a designer, manufacturer and installer of highly customized interior fixtures, casework and architectural millwork used in a variety of retail and commercial structures.
Competition in site-built construction consists of numerous national and regional building products dealers who also manufacture components and/or provide framing services, as well as regional manufacturers of engineered wood components.
We currently estimate that approximately 65% of the unit's business is for single-family homes while 35% is for multi-family structures. Competition in site-built construction consists of numerous national and regional building products dealers who also manufacture components and/or provide framing services, as well as regional manufacturers of engineered wood components.
Item 1. Business. General Development of the Business. UFP Industries, Inc. (“we” or “our”) is a holding company with subsidiaries throughout North America, Europe, Asia, and Australia that design, manufacture and supply products made from wood, composites, and other materials to three markets: retail, packaging, and construction. We are headquartered in Grand Rapids, Michigan.
Item 1. Business. General Development of the Business. UFP Industries, Inc. (“we,” “our,” “the Company,” or “UFP”) is a holding company with subsidiaries throughout the United States, Mexico, Canada, Spain, India, United Arab Emirates and Australia that design, manufacture and supply products made from wood, wood and non-wood composites, and other materials to three markets: retail, packaging, and construction.
As part of that structure, the managers of those facilities and geographic business units were responsible for and compensated on the basis of each facility's, unit's, and region's respective financial performance. This structure fostered a strong entrepreneurial and sales culture, as well as significant revenue growth – from 2011 to 2019 our revenues increased from $1.8 billion to $4.4 billion.
This structure fostered a strong entrepreneurial and sales culture, as well as significant revenue growth – from 2011 to 2019 our revenues increased from $1.8 billion to $4.4 billion.
The Corporate segment includes purchasing, transportation, corporate ventures, and administrative functions that serve our operating segments. Operating results of Corporate primarily consists of over (under) allocated costs. The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns, leases and operates transportation equipment, are also included in Corporate.
The Corporate segment includes purchasing, transportation, corporate ventures, and administrative functions that serve our operating segments. Operating results of Corporate primarily consist of net sales to external customers initiated by UFP Purchasing and UFP Transportation and over (under) allocated costs.
We’ve made a variety of investments in automation, allowing us to enhance efficiency and capacity in numerous UFP Construction operations. Our recently launched proprietary smartphone application, TrussTrax, provides a convenient, simple way for builders to track orders, shipments and engineered documents 24 hours a day, and has enjoyed wide customer adoption.
Our recently launched proprietary smartphone application, TrussTrax, provides a convenient, simple way for builders to track orders, shipments and engineered documents 24 hours a day, and has enjoyed wide customer adoption. Our customers in this market are primarily large-volume, multi-tract builders and smaller volume custom builders. We also supply builders engaged in multi-family and light commercial construction.
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For more information about UFP Industries, Inc., or our affiliated operations, go to www.ufpi.com.
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The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns, leases and operates transportation equipment, are also included in the Corporate column. Inter-company lease and service charges are assessed to our operating segments for the use of these assets and services at fair market value rates. Narrative Description of Business.
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Our customers in this market are primarily large-volume, multi-tract builders and smaller volume custom builders. We also supply builders engaged in multi-family and light commercial construction. We currently estimate that approximately 65% of the unit's business is for single-family homes while 35% is for multi-family structures.
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We also provide framing services for builders in certain regional markets in which we erect the wood structure. We’ve made a variety of investments in automation, allowing us to enhance efficiency and capacity in numerous UFP Construction operations.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur competitors may have e-commerce businesses that are substantially larger and more developed than ours, which could place us at a competitive disadvantage. We may be impacted by new tariffs and duties on U.S. imports and foreign export sales. Instability of established free trade agreements may lead to raw material and finished goods price volatility.
Biggest changeInstability of established free trade agreements, the potential imposition of new or increased tariffs on U.S. imports or exports, and potential changes to import/export regulations may lead to raw material and finished goods price volatility as well as instability and uncertainty in our supply chain.
Business combinations involve inherent risks, including assimilation and successfully managing growth. While we conduct extensive due diligence and have taken steps to ensure successful assimilation, factors beyond our control could influence the relative success of these acquisitions. 8 We may be adversely affected by the impact of environmental and safety regulations.
Business combinations involve inherent risks, including assimilation and successfully managing growth. While we conduct extensive due diligence and have taken steps to ensure successful assimilation, factors beyond our control could influence the relative success of these acquisitions. We may be adversely affected by the impact of environmental and safety regulations.
An increase in fuel and other operating expenses will significantly increase our costs. While we attempt to pass these costs along to our customers, there can be no assurance that they would agree to these price increases. Our total inbound and outbound transportation costs were approximately 9.4%, 7.4%, and 7.3% of net sales in 2023, 2022, and 2021, respectively.
An increase in fuel and other operating expenses will significantly increase our costs. While we attempt to pass these costs along to our customers, there can be no assurance that they would agree to these price increases. Our total inbound and outbound transportation costs were approximately 7.8%, 9.4%, and 7.4% of net sales in 2024, 2023, and 2022, respectively.
Our bad debt expense as a percentage of sales was 0.03%, 0.15%, and 0.01%, in 2023, 2022, and 2021, respectively. During the most difficult collection period of the Great Recession, from 2008 through 2010, our bad debt expense as a percentage of sales averaged 0.25%. ​ Item 1B. Unresolved Staff Comments. Not applicable.
Our bad debt expense as a percentage of sales was 0.05%, 0.03%, and 0.15%, in 2024, 2023, and 2022, respectively. During the most difficult collection period of the Great Recession, from 2008 through 2010, our bad debt expense as a percentage of sales averaged 0.25%. Item 1B. Unresolved Staff Comments. Not applicable.
These claims could have a negative impact on our results of operation and financial condition, including through increased litigation costs, insurance-related costs, and damage to our reputation and customer relationships. We may be adversely affected by the impact of pandemics and similar outbreaks.
These claims could have a negative impact on our results of operation and financial condition, including through increased litigation costs, insurance-related costs, and damage to our reputation and customer relationships. We may be adversely affected by the impact of pandemics and similar outbreaks. Disease outbreaks could have an adverse impact on the Company's operations and financial results.
We continue to monitor our customers’ business activities, payment patterns, and credit profiles carefully and make changes in our terms when necessary in response to this risk. As a result, our accounts receivable aging as of December 30, 2023 was approximately 91% current.
We continue to monitor our customers’ business activities, payment patterns, and credit profiles carefully and make changes in our terms when necessary in response to this risk. As a result, our accounts receivable aging as of December 28, 2024 was approximately 90% current.
Our sales to The Home Depot and Lowes comprised 17% and 12%, respectively, of our total net sales in fiscal 2023, 15% and 11%, respectively, in 2022, and 16% and 10%, respectively, in 2021. We may be impacted by vertical integration strategies.
Our sales to The Home Depot and Lowes comprised 17% and 11%, respectively, of our total net sales in fiscal 2024, 17% and 12%, respectively, in 2023, and 15% and 11%, respectively, in 2022. 8 Table of Contents We may be impacted by vertical integration strategies.
In addition, new preservatives could increase our cost of treating products in the future. Cybersecurity breaches or a failure in our e-commerce operations could disrupt our business. We rely upon information technology systems and network products and the secure operation of these systems and products.
In addition, new preservatives could increase our cost of treating products in the future. Cybersecurity breaches or other failures in our information technology systems could disrupt our business. We rely upon information technology systems and network products and the secure operation of these systems and products.
Our lumber costs, including plywood, as a percentage of net sales were 43.5% in 2023. A significant portion of our sales are concentrated with two customers .
Our lumber costs, including plywood, as a percentage of net sales were 40.4% in 2024. A significant portion of our sales are concentrated with two customers .
The impact of a change in U.S. dollar exchange rates, and inflation, would impact our import purchases and export sales, which totaled $391.2 million and $246.3 million, respectively, in 2023.
The impact of a change in U.S. dollar exchange rates, and inflation, would impact our import purchases and export sales, which totaled $390.9 million and $258.9 million respectively, in 2024.
Pressures from various global and national macroeconomic events, including recessionary concerns, heightened inflation, uncertainty regarding future interest rates, foreign currency exchange rate fluctuations, recent adverse weather conditions, escalating tensions in the Middle East, the continuation of the Russia-Ukraine war, and potential governmental responses to these events have created, and continue to create, significant economic uncertainty and could materially and adversely impact our financial performance.
Item 1A. Risk Factors. Pressures from various global and national macroeconomic events, including heightened inflation, uncertainty regarding future interest rates, foreign currency exchange rate fluctuations, recent adverse weather conditions, geo-political events, and potential governmental responses to these events have created, and continue to create, significant economic uncertainty and could materially and adversely impact our financial performance.
While we have planned for and anticipate a mild U.S. recession continuing into 2024, any one or more of the above macroeconomic factors could result in a more severe and longer recessionary cycle, which would have an adverse and potentially material impact on our business and financial performance.
While we have planned for and anticipate continued softening of demand within our markets into 2025, any one or more of the above macroeconomic factors could result in a more severe and longer downturn and/or increased costs, which would have an adverse and potentially material impact on our business and financial performance.
Disease outbreaks, such as the recent COVID-19 pandemic, could have an adverse impact on the Company's operations and financial results. These outbreaks may adversely impact our business, consolidated results of operations and financial condition.
These outbreaks may adversely impact our business, consolidated results of operations and financial condition.
Our purchases that are impacted by tariffs were approximately $391.2 million in 2023, including UFP’s U.S. import of Canadian Softwood Lumber of approximately $223.8 million, which is the largest imported commodity.
Our purchases that were impacted by tariffs were approximately $390.9 million in 2024, including UFP’s U.S. import of Canadian Softwood Lumber of approximately $211.8 million, which is the largest imported commodity. In addition, there is a risk that U.S. tariffs on imports and countering tariffs on U.S. exports could trigger broader international trade conflicts that could adversely impact our business.
An increase in foreign tariffs on U.S. goods could curtail our export sales to other countries which was approximately $246.3 million in 2023.
These changes could both be material and implemented in a relatively short timeframe, which makes planning and risk mitigation difficult. ​ An increase in foreign tariffs on U.S. goods could curtail our export sales to other countries, which were approximately $258.9 million in 2024.
In addition, there is a risk that U.S. tariffs on imports and countering tariffs on U.S. exports could trigger broader international trade conflicts that could adversely impact our business. 9 Our financial results could be negatively impacted by costs associated with product liability, casualty, manufacturing and construction defects, and other claims.
Our failure to successfully identify and manage these risks and uncertainties could disrupt our operations and increase our costs, which could negatively impact our results of operations. 9 Table of Contents Our financial results could be negatively impacted by costs associated with product liability, casualty, manufacturing and construction defects, and other claims.
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Additionally, consumers are increasingly shopping online and through mobile commerce applications. As a result, we are vulnerable to additional risks and uncertainties associated with e-commerce sales, including rapid changes in technology, website downtime and other technical failures, security breaches, cyber-attacks, consumer privacy concerns, changes in state tax regimes and government regulation of internet activities.
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We may be impacted by new tariffs and duties on U.S. imports and foreign export sales and changes in import/export regulations.
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Our failure to successfully respond to these risks and uncertainties could reduce our e-commerce sales and increase our costs, which could negatively impact our results of operations. In addition, there is no guarantee that we will be able to expand our e-commerce business.
Added
The new Trump administration has indicated its intent to evaluate key aspects of U.S. trade policy, and there has been ongoing commentary regarding potential significant changes to U.S. trade policies, treaties, and tariffs.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

11 edited+10 added−20 removed0 unchanged
Biggest changeWe also assess the potential materiality of these risks based on their potential impact on our operations or reputation. 10 Manage We apply a multi-layered defense strategy to maintain our ability to access or utilize an asset or its value and prevent threat actors from gaining or increasing their access to an asset or its value.
Biggest changeAssess We evaluate the exposure of our assets to identified cyber risks and determine the potential operational or reputational impact if access or utilization is compromised. This assessment includes determining the materiality of these risks based on their potential impact. 3. Manage We have implemented a multi-layered defense strategy designed to secure asset access and prevent unauthorized access.
Information relating to risks from cybersecurity threats is included in this report in Item 1A under the caption “ Cybersecurity breaches or a failure in our e-commerce operations and could disrupt our business .” We manage and oversee a cybersecurity risk program designed to evaluate potential threats, vulnerabilities, and the potential impact on our operations, data, and stakeholders.
Information relating to risks from cybersecurity threats is included in this report in Item 1A under the caption “ Cybersecurity breaches or other failures in our information technology systems could disrupt our business .” Our cybersecurity risk management program is designed to evaluate material threats and vulnerabilities throughout the organization and their potential impact on our operations, data, and stakeholders.
Cybersecurity threats and risks, to include any previous cybersecurity incidents, have not materially affected, or are not reasonably likely to materially affect, our business strategy, results of operations, or financial condition. We have not, as of the date of this filing, experienced a cybersecurity breach that has materially affected our business or financial condition.
As of this filing, we have not experienced any cybersecurity breach that has materially impacted our business or financial condition, nor have we identified any risks from cybersecurity threats that have materially impacted or are reasonably likely to materially impact us, including our business strategy, results of operations, or financial condition.
These processes include: ● Continuous monitoring of network traffic and systems for signs of potential threats. ● Regular vulnerability assessments and penetration testing to identify and address weaknesses. ● Implementation of cybersecurity measures, such as firewalls, intrusion detection systems, and data encryption. ● Employee training and awareness programs to educate staff about cybersecurity best practices. ● Incident response plans to ensure swift and effective responses to cybersecurity incidents. ● Software and Vendor Risk Assessments. ● Vulnerability management solution to prioritize patches based on risk. ● Privileged account management solutions for administrative access.
We employ a structured approach to monitor and mitigate risks through: ● Regular network and system monitoring for potential threats. ● Regular vulnerability assessments and penetration testing. ● Implementation of technical controls such as firewalls, intrusion detection systems, and encryption. ● Employee training and awareness programs. ● Incident response plans designed for swift and effective mitigation. ● Software and vendor risk assessments. ● Vulnerability management solutions prioritizing patching based on risk. ● Privileged account management solutions for administrative access.
This program undergoes regular reviews and updates to address emerging risks. Our process for addressing risk aligns with industry standards as outlined in the NIST Cybersecurity Framework, NIST Risk Management Framework, and CIS Top 18 Security Controls.
Our program is reviewed and updated regularly to address emerging risks, following the NIST Cybersecurity Framework, NIST Risk Management Framework, and CIS Top 18 Security Controls. We manage cybersecurity risks through a three-step process: 1.
Our CIO has developed expertise in cybersecurity, compliance, enterprise architecture and design, data analytics, digital transformation, and customer service through years of experience in the information technology space. Our Director of Cybersecurity is designated as the senior executive responsible for cybersecurity and reports directly to our CIO.
With over 20 years of experience in the information technology space, the CIO brings expertise and strategic insight to cybersecurity, compliance, enterprise architecture, systems resilience, and digital transformation to UFP Industries. ● Director of Cybersecurity .
However, because our business involves the collection, transmission, and storage of certain customer and employee data, it is possible that we could be susceptible to various cybersecurity threats, including cyberattacks, unauthorized access, and similar events. We are committed to the ongoing identification and management of cybersecurity risks as part of our business strategy, financial planning, and capital allocation.
However, we recognize that our operations involve the collection, transmission, and storage of sensitive data, which may expose us to cybersecurity threats, including unauthorized access and cyberattacks. We remain committed to identifying and managing these risks as part of our business strategy and operations. Board of Directors and Management Governance. Management’s Role .
These processes are designed to prevent cybersecurity incidents, but also allows our organization to quickly detect and respond to incidents if they do occur. They are regularly reviewed and updated to adapt to evolving cybersecurity threats. If any incidents occur, we have a comprehensive Incident Response Plan in place.
These measures aim to prevent, detect, and respond to cybersecurity incidents effectively. They are regularly reviewed and updated to adapt to evolving threats. In the event of an incident, our Incident Response Plan, which takes into account the perceived materiality of the incident with an appropriate escalation matrix, guides our response.
In addition, as part of the Audit Committee’s quarterly meetings and as provided for in its Charter, the Committee receives reports and briefings from the Company’s Chief Information Officer (CIO), Director of Cybersecurity, and management’s cybersecurity team.
The Audit Committee oversees these risks as outlined in its Charter, which mandates reviewing the company's information technology framework, practices, and implemented controls to monitor and mitigate IT risks. The Audit Committee meets quarterly and receives reports and briefings from the CIO, Director of Cybersecurity, and the cybersecurity team on emerging threats, risk status, and mitigation strategies.
To bolster the incident response process, we have business continuity, contingency, and recovery plans to ensure operational resilience during a cybersecurity incident. Previous cybersecurity incidents guide continuous improvements in our governance, policies, procedures, and technology. We use these lessons to strengthen our cybersecurity defenses.
We work proactively to prevent, detect, and minimize the impact of cybersecurity incidents through a structured incident response plan. This plan is tested and reviewed regularly with simulated incidents. We maintain business continuity, contingency, and recovery plans designed to maintain resilience during incidents. Lessons learned from past incidents are integrated into our governance, policies, and technology to strengthen our defenses.
To support the CIO and Director of Cybersecurity in managing cybersecurity risks, we established a cross-functional cybersecurity team that includes experts in various aspects of information security. Combined, this team of employees includes individuals with over 85 years of prior work experience in cybersecurity and data protection. These individuals are responsible for the day-to-day implementation of our cybersecurity program.
With over 30 years of experience in the information technology space, including systems architecture, management, and cybersecurity risk management, the Director reports directly to the CIO and is responsible for day-to-day cybersecurity operations. Our cross-functional cybersecurity team, composed of experts with decades of combined experience, supports the CIO and Director in implementing our cybersecurity program.
Removed
Item 1C. Cybersecurity. Risk Management and Strategy. Risks from Cybersecurity Threats .
Added
Item 1C. Cybersecurity. Cybersecurity Overview. At UFP Industries, we recognize the importance of managing cybersecurity risks to protect our operations, data, and stakeholders. Our program is aligned with industry-recognized frameworks, including the NIST Cybersecurity Framework and CIS Top 18 Security Controls. We employ a structured approach to identify, assess, and manage potential threats, ensuring our defenses are proactive and multi-layered.
Removed
We utilize a three-step process to effectively manage cybersecurity risks: Identify We establish an understanding of our critical operational assets and those that could be attractive to potential threat actors.
Added
Regular reviews and third-party assessments help us adapt to evolving risks, while our incident response plan and business continuity strategies are designed to minimize any operational impact from cybersecurity incidents. ​ Risk Management and Strategy. Risks from Cybersecurity Threats .
Removed
We consider any cyber activity that could diminish an asset’s value, hinder our ability to use or access the asset, or covertly allow a threat actor to gain access to an asset as a potential risk.
Added
Identify We assess our critical operational assets and those that may attract threat actors, identifying any cyber activities that could diminish asset value, hinder operational capabilities, or covertly grant access to threat actors. 10 Table of Contents 2.
Removed
Assess We evaluate the exposure of our assets to identified cyber risks and the potential impacts on our operations or reputation if we were unable to access or utilize an asset or realize its value, or if a threat actor gained access to an asset or its value.
Added
We prioritize our defenses based on cost-effectiveness and risk reduction potential, using administrative, procedural, and technical controls. To improve our cybersecurity posture, we regularly engage third-party consultants for penetration testing, risk assessments, and control audits. We also monitor third-party service providers, particularly those with access to sensitive data, through contractual and oversight mechanisms designed to mitigate and monitor risks continuously.
Removed
We prioritize our defensive mechanisms, including administrative, procedural, and technical controls, based on their cost-effectiveness and their ability to reduce risk. Periodically, we engage consultants and other third parties to assist in the continued improvement of our cybersecurity program.
Added
Primary responsibility for risk management, including cybersecurity risks, lies with management. Our management team actively assesses and manages material cybersecurity risks through a structured framework. The CIO and Director of Cybersecurity lead our efforts in managing these risks: ● CIO .
Removed
These engagements are designed to enhance our cybersecurity posture, and we work closely with these experts to help us identify and address vulnerabilities. Examples of these engagements include penetration testing, risk assessments, and cybersecurity control audits.
Added
This team consults with legal, HR, and IT specialists to assess the materiality of cybersecurity risks and incidents, using a well-established Incident Response Plan that includes clear escalation measures. Board of Directors Oversight .
Removed
We maintain policies and procedures to oversee and identify cybersecurity risks associated with our third-party service providers, especially those with access to customer and employee data. Our selection and oversight of these providers incorporate cybersecurity considerations, including contractual and other mechanisms to mitigate and continually monitor risks.
Added
The role of the Board of Directors with respect to our cybersecurity program is one of oversight of management, and the Board has delegated primary oversight authority over the program to the Audit Committee.
Removed
We undertake proactive activities to prevent, detect, and minimize the impact of cybersecurity incidents. We maintain an incident response plan to respond to breaches and minimize disruption to our operations swiftly. The incident response process is consistently tested and reviewed through simulated incidents.
Added
The Committee engages with the cybersecurity team to increase their understanding of the specific issues facing the Company and to challenge the team as appropriate. The Committee also may consult external cybersecurity experts as needed to fulfill its oversight role.
Removed
We strive to incorporate cybersecurity considerations into all aspects of our operations. As the cybersecurity landscape evolves, so does our strategy to identify and mitigate these risks. We continuously work towards enhancing our processes to ensure an effective cybersecurity posture. Board of Directors and Management Governance. Board of Directors Oversight .
Added
The Audit Committee regularly reports to the Board on matters addressed during the Committee’s quarterly meetings, including any material cybersecurity risks or developments. 11 Table of Contents Processes for Monitoring and Mitigating Cybersecurity Risks and Incidents.
Removed
We recognize the critical importance of cybersecurity and data protection and understand the potential harm to our business from cybersecurity incidents. Accordingly, we place a high priority on mitigating risks associated with cybersecurity threats and any cybersecurity incidents. Company management maintains primary responsibility for the risk management of the Company, including cybersecurity risks.
Added
Incident reports are compiled, reviewed by management, and shared with the CIO, CFO, the Audit Committee, and other key leaders, as appropriate, for resource allocation and risk mitigation planning.
Removed
The Board’s Audit Committee is responsible for the oversight of risks associated with cybersecurity threats. The Audit Committee Charter provides that the Committee is responsible for reviewing management’s assessment of the Company’s information technology process framework and practices and the controls implemented to monitor and mitigate information technology risks.
Removed
Those reports and briefings include management’s review of emerging cybersecurity developments and threats, the Company’s risk relating to cybersecurity, and the Company’s strategy to mitigate data protection and cybersecurity risks. The Audit Committee has the authority to obtain advice and input from external cybersecurity resources to assist in its oversight functions. Management’s Role .
Removed
Our management team is actively engaged in assessing and managing material risks from cybersecurity threats. We have established a robust framework for identifying, evaluating, and mitigating these risks. 11 Responsibility for Cybersecurity Risks .
Removed
He has a comprehensive information technology background with 30 years of information technology experience, to include 10 years of systems architecture and design, 12 years of management, and 14 years of service in managing, or assisting in managing, cybersecurity related risks.
Removed
Additionally, the cybersecurity management team regularly consults with additional resources, to include attorneys, accountants, human resources personnel, and other information technology specialists, to determine materiality for cybersecurity related risks and incidents. There is an established Incident Response Plan that clearly identifies escalation measures based on the impact to our organization. Processes for Monitoring and Mitigating Risks and Incidents.
Removed
We employ a comprehensive set of processes to monitor and mitigate cybersecurity risks.
Removed
The Plan includes materiality qualifiers based on the size and scope of the incident. Furthermore, there is an escalation matrix that identifies who is directly involved with managing the incident based on the severity. An Incident Report is compiled for all incidents, regardless of materiality. Management reviews the incident reports and ensures all incidents are mitigated and remediated effectively.
Removed
These reports are shared with the CIO, CFO, and Audit Committee so they can effectively manage resources to reduce risk and prevent future incidents. Reporting to the Board.
Removed
As noted above, our CIO, Director of Cybersecurity, and cybersecurity team provide quarterly updates and reports to our Audit Committee on cybersecurity risks as well as a review of the processes described above. Our management personnel are also required to provide more frequent updates to the Audit Committee on major developments regarding cybersecurity matters.
Removed
The Committee, in turn, provides regular updates to the Board on these matters. 12

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed0 unchanged
Biggest changeThe following tables summarize our property locations assigned by the primary segment the plant serves. ​ ​ ​ ​ ​ ​ ​ RETAIL SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Athens, AL ​ 1 ​ Miami, FL* ​ 1 Bartow, FL ​ 2 ​ Moneta, VA ​ 1 Belchertown, MA ​ 1 ​ Mosheim, TN ​ 1 Bennett, IA ​ 1 ​ Moultrie, GA ​ 1 Bonner, MT ​ 2 ​ Ponce, PR ​ 1 Brunswick, GA ​ 1 ​ Poulsbo, WA ​ 1 Callao, VA ​ 1 ​ Prairie du Chien, WI ​ 1 Dodgeville, WI ​ 1 ​ Rancho Cucamonga, CA* ​ 1 Elizabeth City, NC* ​ 1 ​ Ranson, WV* ​ 1 Fairless Hills, PA ​ 1 ​ Ringgold, GA ​ 1 Fort Worth, TX ​ 1 ​ Rockledge, FL ​ 1 Grand Rapids, MI ​ 1 ​ Rockwell, NC ​ 1 Greeneville, TN ​ 1 ​ Saginaw, TX* ​ 1 Hamilton, OH ​ 1 ​ Schertz, TX* ​ 1 Hampton, VA ​ 1 ​ Selma, AL ​ 2 Hazelhurst, GA ​ 1 ​ Silsbee, TX ​ 1 Howell, MI ​ 2 ​ Stockertown, PA ​ 1 Idabel, OK ​ 1 ​ Tampa, FL ​ 2 Janesville, WI* ​ 1 ​ Thomaston, GA ​ 1 Kearneysville, WV* ​ 2 ​ Tipton, IA ​ 1 Lansing, MI* ​ 1 ​ Union City, GA* ​ 1 Lockhart, FL ​ 1 ​ White Bear Lake, MN* ​ 1 Louisville, AL ​ 1 ​ White Pigeon, MI ​ 1 Matthews, NC ​ 1 ​ Windsor, CO* ​ 1 ​ ​ ​ ​ TOTAL ​ 54 ​ ​ ​ ​ ​ ​ ​ PACKAGING SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Adairsville, GA ​ 1 ​ Martin, TN ​ 1 Ashburn, GA* ​ 1 ​ McMinnville, OR* ​ 1 Auburndale, FL* ​ 1 ​ Milwaukee, WI ​ 2 Barnesville, GA ​ 1 ​ Minneota, MN* ​ 1 Bartow, FL ​ 2 ​ Mocksville, NC ​ 1 Blanchester, OH ​ 1 ​ Morristown, TN ​ 1 Blue Island, IL* ​ 1 ​ Muscle Shoals, AL ​ 2 Burnsville, MN ​ 1 ​ Nappanee, IN ​ 1 Butner, NC ​ 1 ​ New Boston, TX ​ 1 Chaffee, NY ​ 1 ​ New London, WI ​ 2 Chandler, AZ* ​ 1 ​ Newnan, GA ​ 2 Chase City, VA ​ 1 ​ Newton, NC ​ 1 Clarksville, TX ​ 1 ​ Orangeburg, SC ​ 1 Clearfield, UT* ​ 1 ​ Parker, PA ​ 1 Dallas, TX ​ 1 ​ Peru, IL ​ 1 Delano, PA ​ 1 ​ Port Arthur, TX ​ 1 Douglas, GA* ​ 1 ​ Prattville, AL ​ 1 Eatonton, GA ​ 2 ​ Riverside, CA* ​ 1 Flower Mound, TX ​ 2 ​ Robertsdale, AL ​ 1 Forsyth, GA ​ 1 ​ Rowesville, SC ​ 1 Franklinton, NC* ​ 1 ​ Salina, KS* ​ 1 Gilmer, TX ​ 1 ​ Salisbury, NC* ​ 1 Grand Rapids, MI ​ 2 ​ Sharon, TN ​ 2 Grandview, TX ​ 5 ​ Shawnee, OK ​ 1 Harrisonville, MO* ​ 1 ​ Shipshewana, IN ​ 1 13 Hartford, WI ​ 1 ​ Siler City, NC ​ 1 Hazelhurst, GA ​ 1 ​ Snohomish, WA* ​ 1 Kansas City, MO ​ 1 ​ Thornton, CA* ​ 1 Lawrenceburg, TN ​ 1 ​ Warrens, WI* ​ 1 Livermore Falls, ME ​ 1 ​ Wenatchee, WA ​ 1 Magna, UT* ​ 1 ​ Woodburn, OR* ​ 1 Marietta, GA ​ 1 ​ Yakima, WA ​ 1 ​ ​ ​ ​ TOTAL ​ 77 ​ ​ ​ ​ ​ ​ ​ CONSTRUCTION SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Athena, OR ​ 1 ​ Jefferson, GA ​ 1 Auburn, NY ​ 1 ​ Jeffersonville, IN ​ 1 Aurora, CO ​ 1 ​ Kyle, TX ​ 1 Bangalore, India ​ 1 ​ Lafayette, CO ​ 1 Belchertown, MA ​ 1 ​ Lenoir City, TN ​ 1 Berlin, NJ ​ 2 ​ Liberty, NC ​ 1 Berthoud, CO ​ 1 ​ Locust, NC ​ 1 Bridgeton, MO ​ 1 ​ Londonderry, NH ​ 1 Brooklyn Center, MN ​ 1 ​ Nampa, ID* ​ 1 Burlington, NC ​ 2 ​ Naugatuck, CT ​ 1 Cedar Hill, TX ​ 1 ​ New London, NC* ​ 1 Chesapeake, VA ​ 1 ​ New Waverly, TX* ​ 1 Chicago, IL ​ 1 ​ New Windsor, MD ​ 1 Chicopee, MA ​ 1 ​ Ontario, CA ​ 1 Clinton, NC ​ 1 ​ Ooltewah, TN ​ 1 Conway, SC ​ 1 ​ Pearisburg, VA* ​ 1 Cordele, GA ​ 1 ​ Plainville, MA ​ 1 Dayton, OH ​ 2 ​ San Antonio, TX ​ 1 DuBois, PA ​ 1 ​ Shippenville, PA ​ 1 Edwardsburg, MI* ​ 1 ​ Sidney, NY ​ 1 Elkhart, IN ​ 2 ​ Stafford, TX ​ 1 Folkston, GA ​ 2 ​ Stanfield, NC ​ 2 Fredericksburg, VA ​ 1 ​ Swindon, United Kingdom ​ 1 Gordon, PA* ​ 1 ​ Temple, TX ​ 1 Granger, IN* ​ 1 ​ Washington, NC ​ 1 Haleyville, AL* ​ 1 ​ Westbury, NY ​ 1 Hillsboro, TX* ​ 1 ​ Wilton, NH ​ 1 Hudson, NY ​ 1 ​ Wujinang, China ​ 1 ​ ​ ​ ​ TOTAL ​ 62 ​ ​ ​ ​ ​ ​ ​ ALL OTHER SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Abu Dhabi, United Arab Emirates ​ 1 ​ Erskine Park, Australia ​ 1 Apaseo el Grande, Mexico ​ 1 ​ Noida, India ​ 1 Bangalore, India ​ 3 ​ Guntur, India ​ 1 Carole Park, Australia ​ 1 ​ Hyderabad, India ​ 1 Castellón, Spain ​ 1 ​ Lacolle, Canada ​ 1 Chennai, India ​ 1 ​ Mordialloc, Australia ​ 1 Coimbatore, India ​ 1 ​ Nuevo Leon, Mexico ​ 1 Deer Park, Australia ​ 1 ​ Port Melbourne, Australia ​ 1 Dubai, United Arab Emirates ​ 1 ​ Pune, India ​ 1 Durango, Mexico ​ 2 ​ Vadodara, India ​ 1 ​ ​ ​ ​ TOTAL ​ 23 ​ ​ ​ ​ ​ ​ ​ CORPORATE SEGMENT ​ ​ ​ ​ Property Location ​ Number of Properties ​ ​ ​ ​ Grand Rapids, MI ​ 2 ​ ​ ​ ​ Spring Lake, MI ​ 1 ​ ​ ​ ​ TOTAL ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ * Due to the nature of our business and historical operating strategy, many of our locations service more than one segment. ​ We own all of our properties, free from any significant mortgage or other encumbrance, except for approximately 74 facilities which are leased.
Biggest changeDepending upon function and location, these facilities typically utilize office, manufacturing, and indoor and outdoor storage space. 12 Table of Contents The following tables summarize our property locations assigned by the primary segment the plant serves. ​ ​ ​ ​ ​ ​ ​ ​ RETAIL SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Athens, AL ​ 1 ​ Moneta, VA ​ 1 Bartow, FL ​ 2 ​ Mosheim, TN ​ 1 Belchertown, MA ​ 1 ​ Moultrie, GA ​ 1 Bennett, IA ​ 1 ​ Overland Park, KS ​ 1 Bonner, MT ​ 2 ​ Ponce, PR ​ 1 Brunswick, GA ​ 1 ​ Prairie du Chien, WI ​ 1 Callao, VA ​ 1 ​ Rancho Cucamonga, CA* ​ 1 Dodgeville, WI ​ 1 ​ Ranson, WV* ​ 1 Durango, Mexico ​ 1 ​ Ringgold, GA ​ 1 Elizabeth City, NC* ​ 1 ​ Rockledge, FL ​ 1 Fairless Hills, PA ​ 1 ​ Rockwell, NC ​ 1 Fort Worth, TX ​ 1 ​ Saginaw, TX* ​ 1 Grand Rapids, MI ​ 1 ​ Schertz, TX* ​ 1 Greeneville, TN ​ 1 ​ Selma, AL ​ 2 Hamilton, OH ​ 1 ​ Silsbee, TX ​ 1 Hampton, VA ​ 1 ​ Spartanburg, SC ​ 1 Hazelhurst, GA ​ 1 ​ Stockertown, PA ​ 1 Howell, MI ​ 2 ​ Tampa, FL ​ 2 Idabel, OK ​ 1 ​ Thomaston, GA ​ 1 Janesville, WI* ​ 1 ​ Tipton, IA ​ 1 Kearneysville, WV* ​ 2 ​ Union City, GA* ​ 1 Lansing, MI* ​ 1 ​ White Bear Lake, MN* ​ 1 Lockhart, FL ​ 1 ​ White Pigeon, MI ​ 1 Louisville, AL ​ 1 ​ Windsor, CO* ​ 1 ​ ​ ​ ​ TOTAL ​ 54 ​ ​ ​ ​ ​ ​ ​ PACKAGING SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Adairsville, GA ​ 1 ​ Milwaukee, WI ​ 1 Ashburn, GA* ​ 1 ​ Minneota, MN* ​ 1 Auburndale, FL* ​ 1 ​ Mocksville, NC ​ 1 Bartow, FL ​ 2 ​ Morristown, TN ​ 1 Blanchester, OH ​ 1 ​ Muscle Shoals, AL ​ 2 Blue Island, IL* ​ 1 ​ Nappanee, IN ​ 1 Burnsville, MN ​ 1 ​ New Boston, TX ​ 1 Butner, NC ​ 1 ​ New London, WI ​ 2 Chandler, AZ* ​ 1 ​ Newnan, GA ​ 2 Chase City, VA ​ 1 ​ Newton, NC ​ 1 Clarksville, TX ​ 1 ​ Orangeburg, SC ​ 1 Clearfield, UT* ​ 1 ​ Parker, PA ​ 1 Dallas, TX ​ 1 ​ Peru, IL ​ 1 Delano, PA ​ 1 ​ Port Arthur, TX ​ 1 Eatonton, GA ​ 1 ​ Prattville, AL ​ 1 Flower Mound, TX ​ 2 ​ Riverside, CA* ​ 1 Forsyth, GA ​ 1 ​ Robertsdale, AL ​ 1 Franklinton, NC* ​ 1 ​ Rowesville, SC ​ 1 Gilmer, TX ​ 1 ​ Salina, KS* ​ 1 Grand Rapids, MI ​ 2 ​ Salisbury, NC* ​ 1 Grandview, TX ​ 5 ​ Sharon, TN ​ 1 Harrisonville, MO* ​ 1 ​ Shawnee, OK ​ 1 Hartford, WI ​ 1 ​ Shipshewana, IN ​ 1 Hazelhurst, GA ​ 1 ​ Siler City, NC ​ 1 Inwood, WV ​ 1 ​ Snohomish, WA* ​ 1 Kansas City, MO ​ 1 ​ Stayton, OR* ​ 1 Lawrenceburg, TN ​ 1 ​ Thornton, CA* ​ 1 Livermore Falls, ME ​ 1 ​ Warrens, WI* ​ 1 Magna, UT* ​ 1 ​ Wenatchee, WA ​ 1 Martin, TN ​ 1 ​ Woodburn, OR* ​ 1 McMinnville, OR* ​ 1 ​ Yakima, WA ​ 1 ​ ​ ​ ​ TOTAL ​ 72 ​ ​ ​ ​ ​ ​ ​ 13 Table of Contents CONSTRUCTION SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Athena, OR ​ 1 ​ Jeffersonville, IN ​ 1 Auburn, NY ​ 1 ​ Kyle, TX ​ 1 Bangalore, India ​ 1 ​ Lafayette, CO ​ 1 Belchertown, MA ​ 1 ​ Lenoir City, TN ​ 1 Berlin, NJ ​ 2 ​ Liberty, NC ​ 1 Berthoud, CO ​ 1 ​ Locust, NC ​ 1 Bridgeton, MO ​ 1 ​ Londonderry, NH ​ 1 Brooklyn Center, MN ​ 1 ​ Milton-Freewater, OR ​ 1 Burlington, NC ​ 2 ​ Nampa, ID* ​ 1 Cedar Hill, TX ​ 1 ​ Naugatuck, CT ​ 1 Chesapeake, VA ​ 1 ​ New London, NC* ​ 1 Chicago, IL ​ 1 ​ New Waverly, TX* ​ 1 Chicopee, MA ​ 1 ​ New Windsor, MD ​ 1 Clinton, NC ​ 1 ​ Ontario, CA ​ 1 Conway, SC ​ 1 ​ Ooltewah, TN ​ 1 Cordele, GA ​ 1 ​ Pearisburg, VA* ​ 1 Dayton, OH ​ 2 ​ Plainville, MA ​ 1 DuBois, PA ​ 1 ​ San Antonio, TX ​ 1 Edwardsburg, MI* ​ 1 ​ Shippenville, PA ​ 1 Elkhart, IN ​ 2 ​ Sidney, NY ​ 1 Folkston, GA ​ 2 ​ Stafford, TX ​ 1 Fredericksburg, VA ​ 1 ​ Stanfield, NC ​ 2 Gordon, PA ​ 1 ​ Temple, TX ​ 1 Granger, IN* ​ 1 ​ Tooele, UT ​ 1 Haleyville, AL* ​ 1 ​ Washington, NC ​ 1 Hillsboro, TX* ​ 1 ​ Westbury, NY ​ 1 Hudson, NY ​ 1 ​ Wilton, NH ​ 1 Jefferson, GA ​ 1 ​ Wujinang, China ​ 1 ​ ​ ​ ​ TOTAL ​ 62 ​ ​ ​ ​ ​ ​ ​ ALL OTHER SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Abu Dhabi, United Arab Emirates ​ 1 ​ Gladstone, Australia ​ 1 Apaseo el Grande, Mexico ​ 1 ​ Guntur, India ​ 1 Bangalore, India ​ 2 ​ Hyderabad, India ​ 1 Carole Park, Australia ​ 1 ​ Lacolle, Canada ​ 1 Castellón, Spain ​ 2 ​ Mordialloc, Australia ​ 1 Chennai, India ​ 1 ​ Noida, India ​ 1 Coimbatore, India ​ 1 ​ Nuevo Leon, Mexico ​ 2 Deer Park, Australia ​ 1 ​ Port Melbourne, Australia ​ 1 Durango, Mexico ​ 1 ​ Pune, India ​ 1 Erskine Park, Australia ​ 1 ​ Vadodara, India ​ 1 ​ ​ ​ ​ TOTAL ​ 23 ​ ​ ​ ​ ​ ​ ​ CORPORATE SEGMENT ​ ​ ​ ​ Property Location ​ Number of Properties ​ ​ ​ ​ Grand Rapids, MI ​ 2 ​ ​ ​ ​ Matthews, NC ​ 1 ​ ​ ​ ​ Spring Lake, MI ​ 1 ​ ​ ​ ​ TOTAL ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ * Due to the nature of our business and historical operating strategy, many of our locations service more than one segment.
Item 2. Properties. Our corporate headquarters building is located in suburban Grand Rapids, Michigan. We currently have approximately 219 facilities located throughout the United States, Canada, Mexico, Europe, Asia, and Australia. Depending upon function and location, these facilities typically utilize office, manufacturing, and indoor and outdoor storage space.
Item 2. Properties. Our corporate headquarters building is located in suburban Grand Rapids, Michigan. We currently have approximately 215 facilities located throughout the United States, Mexico, Canada, Spain, India, United Arab Emirates and Australia.
We believe all of these operating facilities are adequate in capacity and condition to service our existing markets. 14
We own all of our properties, free from any significant mortgage or other encumbrance, except for approximately 77 facilities which are leased. We believe all of these operating facilities are adequate in capacity and condition to service our existing markets.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

5 edited+5 added−3 removed1 unchanged
Biggest changeMissad was promoted to Executive Vice President of the Company. On July 13, 2011, Mr. Missad became Chief Executive Officer of the Company. Michael R. Cole joined us in 1993 from the international public accounting firm Deloitte & Touche. In December 1999, he was promoted to Vice President of Finance. On July 19, 2000, Mr.
Biggest changeCole joined us in 1993 from the international public accounting firm Deloitte & Touche. In December 1999, he was promoted to Vice President of Finance. On July 19, 2000, Mr. Cole became Chief Financial Officer of the Company. On December 29, 2024, Mr. Cole added the title of President of Corporate Services to his current role. Patrick M.
Cole became Chief Financial Officer of the Company. Patrick M. Benton joined us in 1993. In 2008 he became Operations Vice President of the South Texas Region, and on July 1, 2014, he became Executive Vice President of UFP Eastern Division – North. On February 1, 2017, Mr.
Benton joined us in 1993. In 2008 he became Operations Vice President of the South Texas Region, and on July 1, 2014, he became Executive Vice President of UFP Eastern Division – North. On February 1, 2017, Mr. Benton became President of the UFP Northern Division, and on January 1, 2020, he became President of UFP Construction, LLC. Scott A.
The following table lists the names, ages, and positions of our executive officers as of February, 2024. ​ ​ ​ ​ ​ Name Age Position Matthew J. Missad ​ 63 ​ Chairman of the Board and Chief Executive Officer Michael R. Cole ​ 57 ​ Chief Financial Officer and Treasurer Patrick M.
The following table lists the names, ages, and positions of our executive officers as of February 2025. ​ ​ ​ ​ ​ ​ Name Age Position William D. Schwartz, Jr. ​ 47 ​ President and Chief Executive Officer Matthew J. Missad ​ 64 ​ Executive Chairman of the Board Michael R.
Benton became President of the UFP Northern Division, and on January 1, 2020, he became President of UFP Construction, LLC. Scott A. Worthington joined us in 1997. In 2014, he was promoted to Regional Vice President of the South Texas Region. On January 1, 2020, he became President of UFP Packaging, LLC. William D. Schwartz, Jr. joined us in 1998.
Worthington joined us in 1997. In 2014, he was promoted to Regional Vice President of the South Texas Region. On January 1, 2020, he became President of UFP Packaging, LLC. Landon Tarvin joined us in 2002. In 2019, he was promoted to Vice President of Outdoor Essentials and in 2021, he was promoted to Vice Present of Deckorators.
He became Operations Vice President in 2014 and Executive Vice President of Purchasing and Transportation in 2020. On July 1, 2022, he became Executive Vice President of Operations Services and on September 26, 2022, he became President of UFP Retail Solutions, LLC. David A. Tutas joined us in 2003 as a staff counsel.
On July 1, 2022, he became Executive Vice President of Operations Services and on September 26, 2022, he was promoted to President of UFP Retail Solutions, LLC. On December 29, 2024, Mr. Schwartz became President and Chief Executive Officer of the Company. Matthew J. Missad joined us in 1985. In February 1996, Mr.
Removed
Benton ​ 54 ​ President of UFP Construction, LLC Scott A. Worthington ​ 53 ​ President of UFP Packaging, LLC William D. Schwartz, Jr. ​ 46 ​ President of UFP Retail Solutions, LLC David A. Tutas ​ 54 ​ General Counsel, Chief Compliance Officer and Secretary ​ Matthew J. Missad joined us in 1985. In February 1996, Mr.
Added
Cole ​ 58 ​ Chief Financial Officer, Treasurer and President of Corporate Services Patrick M. Benton ​ 55 ​ President of UFP Construction, LLC Scott A. Worthington ​ 54 ​ President of UFP Packaging, LLC Landon Tarvin ​ 44 ​ President of UFP Retail Solutions, LLC R.
Removed
In 2007, he was promoted to Director of Legal Services. On August 1, 2011, he was promoted to General Counsel. On January 18, 2013, he became Secretary of the Company, and on February 1, 2019, he became Chief Compliance Officer.
Added
Paul Guerre ​ 60 ​ Corporate Secretary and Director of Corporate Compliance ​ William D. Schwartz, Jr. joined us in 1998. He became Operations Vice President in 2014 and Executive Vice President of Purchasing and Transportation in 2020.
Removed
PART II The following information items in this Part II, which are contained in the 2023 Annual Report, are specifically incorporated by reference into this Form 10-K Report. These portions of the 2023 Annual Report that are specifically incorporated by reference are filed as Exhibit 13 with this Form 10-K Report. 15
Added
Missad was promoted to Executive Vice President of the Company and on July 13, 2011, he was promoted to Chief Executive Officer of the Company. On January 1, 2023, Mr. Missad added the title of President of the Company. On December 29, 2024, Mr. Missad became Executive Chairman of the Board. Michael R.
Added
On December 29, 2024, he became President of UFP Retail Solutions, LLC. R. Paul Guerre joined us in 2020 as Senior Corporate Counsel. On May 15, 2023, he was promoted to Deputy General Counsel – Compliance & Administration. On July 1, 2024, he was promoted to Corporate Secretary and Director of Corporate Compliance. Before joining the Company, Mr.
Added
Guerre served as in-house counsel for Haworth, Inc., a leading global furniture manufacturer and designer. ​ ​ 15 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeItem 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities.
Biggest changeItem 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities. (a) Our common stock trades on The Nasdaq Stock Market (“NASDAQ”) under the symbol UFPI. As of January 28, 2025, there were approximately 2,723 record holders of our common stock.
There were no sales of securities by the Company during fiscal 2023 that were not registered under the Securities Act of 1933. (b) Not applicable.
There were no sales of securities by the Company during fiscal 2024 that were not registered under the Securities Act of 1933. (b) Not applicable.
On and effective as of July 26, 2023, our board authorized the repurchase of up to $200 million worth of shares of our common stock through the period ending July 31, 2024, which supersedes and replaces prior authorizations. Item 6. [RESERVED. ] Not applicable.
On and effective as of July 24, 2024, our board authorized the repurchase of up to $200 million worth of shares of our common stock through the period ending July 31, 2025, which supersedes and replaces prior authorizations. Item 6. [RESERVED. ]
(c) Issuer purchases of equity securities during the fourth quarter: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Month (1) (2) (3) (4) October 1 - November 4, 2023 208,057 ​ 96.48 208,057 $ 173,335,471 November 5 - December 2, 2023 — ​ — — ​ 173,335,471 December 3 - 30, 2023 — ​ — — ​ 173,335,471 (1) Total number of shares purchased.
(c) Issuer purchases of equity securities during the fourth quarter: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Month (1) (2) (3) (4) September 29 - November 2, 2024 — ​ $ — — $ 200,000,000 November 3 - 30, 2024 — ​ ​ — — ​ 200,000,000 December 1 - 28, 2024 9,322 ​ ​ 111.81 9,322 ​ 198,957,691 (1) Total number of shares purchased.
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(a) The information relating to market, holders and dividends is incorporated by reference from the 2023 Annual Report under the captions "Market Information for Our Common Stock" and “Stock Performance Graph.” As of February 3, 2024, there were approximately 2,566 record holders of our common stock.
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Our dividend rates are reviewed and approved at each of our February, April, July, and October board meetings and payments are made in March, June, September, and December of each year. On February 13, 2025, our board approved a quarterly cash dividend of $0.35 per share, which represents a 6% increase from December 2024.
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This dividend will be payable on March 17, 2025, to shareholders of record on March 3, 2025. Our board considers our dividend yield, payout ratios relative to earnings and operating cash flow, and potential variability of future results, among other factors, as part of its decision-making process.
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See Part III - Item 12 below for information about securities authorized for issuance under our equity compensation plans.
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Stock Performance Graph: The following stock price performance graph compares the annual percentage change in the cumulative total return on our common stock with the cumulative total returns of companies comprising the NASDAQ US Benchmark TR index and an industry peer group we selected.
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The graph assumes an investment of $100 on December 28, 2019, and reinvestment of dividends in all cases. 16 Table of Contents The companies included in our self-determined industry peer group are as follows: ​ ​ ​ American Woodmark Corporation Masco Corporation Boise Cascade Company Patrick Industries, Inc. Builders FirstSource, Inc. Simpson Manufacturing Company, Inc. Gibraltar Industries, Inc.
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Smurfit Westrock plc Greif, Inc. Sonoco Products Company Louisiana-Pacific Corporation Trex Company, Inc. ​ The returns of each company included in the self-determined peer group are weighted according to each respective company’s stock market capitalization at the beginning of each period presented in the graph above.
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In determining the members of our peer group, we considered companies who selected UFPI as a member of their peer group, and looked for similarly sized companies or companies that are a good fit with the markets we serve.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The information required by this item is incorporated by reference from the 2023 Annual Report under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations."
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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. UFP Industries, Inc. is a holding company with subsidiaries in the United States, Mexico, Canada, Spain, India, United Arab Emirates and Australia that design, manufacture, and supply products made from wood, wood and non-wood composites, and other materials to three segments: retail, packaging, and construction.
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We are headquartered in Grand Rapids, Michigan. This report 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.
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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.
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We do 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.
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Investors are cautioned that all forward-looking statements involve risks and uncertainty. 17 Table of Contents 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 economic conditions in the markets we serve; concentration of sales to customers; vertical integration strategies; excess capacity or supply chain challenges; our ability to make successful business acquisitions; government regulations, particularly involving environmental and safety regulations; adverse or unusual weather conditions; inbound and outbound transportation costs; alternatives to replace treated wood products; cybersecurity breaches; tariffs on import and export sales; and potential pandemics.
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Certain of these risk factors as well as other risk factors and additional information are included in our reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission. OVERVIEW We are pleased to present this overview of 2024.
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Our results for 2024 were impacted by the following: ● Our net sales decreased 8% compared to 2023, which was comprised of a 7% decrease in selling prices and a 1% decrease in unit sales.
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The overall decrease in our selling prices is primarily due to lower lumber prices and a more competitive pricing environment in certain of our business units.
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The overall unit decline consists of a 7% decrease in our retail segment and a 3% decrease in our packaging segment, partially offset by a 5% increase in our construction segment. ● Our gross profits decreased by $192.2 million, or 13.5%, compared to last year, exceeding our 1% decline in unit sales.
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By segment, gross profits decreased by $85 million in Construction and $114 million in Packaging, while Retail was flat.
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The overall decrease in our gross profits is primarily due to the decline in unit sales and unfavorable cost variances resulting from fixed manufacturing costs, and more competitive pricing in certain business units. ● Our operating profits decreased $154 million, or 24%, compared to last year.
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The overall decrease is a result of the decline in gross profits mentioned above offset by a $32 million decrease in selling, general, and administrative (“SG&A”) expenses. Our SG&A declined primarily due to our incentive compensation plans, bonus and sales incentives, which are tied to profitability and return on investment.
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More specifically, our bonus expense declined by $41 million to $134 million for the year and sales incentive expense declined by $10 million to approximately $49 million for the year. Our decremental operating margin was 27.3%, which is calculated by dividing the decrease in our earnings from operations by the decrease in our net sales.
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In other words, for every dollar decrease in sales from 2023 to 2024, our operating profits decreased 27.3 cents. The decremental operating margin is intended to provide investors additional visibility into expected operating profits during periods of declining sales and pricing.
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In a declining business cycle, the Company’s management uses this metric to evaluate a change in its profitability resulting from a reduction in sales volume while considering the impact of product pricing changes, changes in product sales mix, its ratio of variable and fixed costs, and anticipated cost saving measures, among other factors.
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Our decremental operating margin was higher this quarter than we’ve experienced in other recent down cycles primarily due to more competitive pricing and a cautious approach to reducing our cost structure and capacity as a result of uncertainty about the timing of a rebound in demand.
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We currently have a goal to implement cost and capacity reductions that will generate a favorable impact on operating profits totaling approximately $60 million by 2026. We anticipate benefits of $30 to $35 million in 2025. ● Our cash flows from operations in 2024 was $643 million compared to $960 million in 2023.
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The $317 million decline resulted from the change in our investment in net working capital, which was $237 million lower in 2024 than it was in 2023 resulting in a decrease in operating cash flows, as well as an $80 million decrease in net earnings and non-cash expenses compared to the prior year.
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Our investment in net working capital declined significantly as demand normalized from the peak of the pandemic period. ● We invested $232 million in capital expenditures to support and grow our existing businesses and invested $30 million to acquire a business. 18 Table of Contents ● We returned $81 million to our shareholders through dividends.
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We repurchased approximately 1,409,266 shares of our common stock for $160 million, at an average price of $113.53 per share. Of this amount, 154,196 shares were repurchased in order to settle tax withholding obligations of long-term stock incentive plan participants’ awards which vested in February.
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The shares were purchased at an average price of $115.69 per share, totaling $17.8 million. ● Our Cash and cash equivalents at the end of 2024 was $1.2 billion compared to $1.1 billion at the end of 2023.
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Our unused borrowing capacity under our revolving credit facility and a shelf agreement with certain lenders along with our cash resulted in total liquidity of approximately $2.5 billion at the end of December 2024.
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We plan to continue to pursue a balanced and return driven approach to capital allocation focused on continuing to increase our dividend at a rate that is aligned with our anticipated long-term earnings growth rate, repurchasing our common stock to offset dilution from issuances under our equity-based compensation programs, making capital investments needed to execute our organic growth and operating improvement strategies, and completing business acquisitions that complement our existing businesses and provide new avenues for growth. ● We made a $40 million debt repayment on our Series 2012 Senior Note Tranche B, which matured on December 17, 2024.
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HISTORICAL LUMBER PRICES The following table presents the Random Lengths framing lumber composite price. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Random Lengths Composite ​ ​ ​ Average $/MBF ​ ​ 2024 2023 January ​ $ 398 ​ $ 386 ​ February ​ 389 ​ 437 ​ March ​ 416 ​ 411 ​ April ​ 403 ​ 420 ​ May ​ 377 ​ 400 ​ June ​ 382 ​ 398 ​ July ​ 363 ​ 455 ​ August ​ 386 ​ 430 ​ September ​ 398 ​ 430 ​ October ​ ​ 405 ​ ​ 400 ​ November ​ ​ 442 ​ ​ 371 ​ December ​ ​ 436 ​ ​ 383 ​ ​ ​ ​ ​ ​ ​ ​ ​ Year-to-date average ​ $ 400 ​ $ 410 ​ ​ ​ ​ ​ ​ ​ ​ ​ Year-to-date percentage change ​ (2.4) % ​ ​ ​ 19 Table of Contents In addition, a Southern Yellow Pine (“SYP”) composite price, which we prepare and use, is presented below.
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Our purchases of this species comprise approximately two-thirds of our total lumber purchases. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Random Lengths SYP ​ ​ ​ Average $/MBF ​ ​ 2024 2023 January ​ $ 380 ​ $ 406 ​ February ​ 371 ​ 452 ​ March ​ 394 ​ 464 ​ April ​ 371 ​ 474 ​ May ​ 353 ​ 437 ​ June ​ 355 ​ 427 ​ July ​ 333 ​ 442 ​ August ​ 345 ​ 417 ​ September ​ 337 ​ 424 ​ October ​ ​ 368 ​ ​ 396 ​ November ​ ​ 386 ​ ​ 355 ​ December ​ ​ 359 ​ ​ 369 ​ ​ ​ ​ ​ ​ ​ ​ ​ Year-to-date average ​ $ 363 ​ $ 422 ​ ​ ​ ​ ​ ​ ​ ​ ​ Year-to-date percentage change ​ ​ (14.0) % ​ ​ ​ Lower overall lumber prices in 2024 compared to 2023 is primarily due to increased capacity to produce SYP lumber in the U.S. while end market demand has remained soft.
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A change in lumber prices impacts our profitability of products sold with fixed and variable prices, as discussed below. IMPACT OF THE LUMBER MARKET ON OUR OPERATING RESULTS We generally price our products to pass lumber costs through to our customers so that our profitability is based on the value-added manufacturing, distribution, engineering, and other services we provide.
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As a result, our dollar sales levels (and working capital requirements) are impacted by the lumber costs of our products. Lumber costs were 40.4% and 43.5% of our net sales in 2024 and 2023, respectively.
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Our gross margins are impacted by (1) the relative level of the Lumber Market (i.e. whether prices are higher or lower from comparative periods), and (2) the trend in the market price of lumber (i.e. whether the price of lumber is increasing or decreasing within a period or from period to period).
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Moreover, as explained below, our products are priced differently. Some of our products have fixed selling prices, while the selling prices of other products are indexed to the reported Lumber Market with a fixed dollar adder to cover conversion costs and profits. Consequently, the level and trend of the Lumber Market impact our products differently.
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Below is a general description of the primary ways in which our products are priced. ● Products with fixed selling prices. These products include value-added products, such as manufactured items, sold within all segments. Prices for these products are generally fixed at the time of the sales quotation for a specified period of time.
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In order to reduce any exposure to adverse trends in the price of component lumber products, we attempt to lock in costs with our suppliers or purchase necessary inventory for these sales commitments.
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The time period limitation eventually allows us to periodically re-price our products for changes in lumber costs from our suppliers. 20 Table of Contents ● Products with selling prices indexed to the reported Lumber Market with a fixed dollar "adder" to cover conversion costs and profits.
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These products primarily include treated lumber, panel goods, other commodity-type items, and trusses sold to the manufactured housing industry. For these products, we estimate customers’ needs and carry appropriate levels of inventory. Because lumber costs are incurred in advance of final sale prices, subsequent increases or decreases in the market price of lumber impact our gross margins.
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We believe our sales of these products are at their highest relative level in our second quarter, primarily due to pressure-treated lumber sold in our retail segment. For each of the product pricing categories above, our margins are exposed to changes in the trend of lumber prices.
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As a result of the balance in our net sales to each of our end markets, we believe our gross profits are more stable than those of our competitors who are less diversified.
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The greatest risk associated with changes in the trend of lumber prices is on the following products: ● Products with significant inventory levels with low turnover rates, whose selling prices are indexed to the Lumber Market.
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In other words, the longer the period of time these products remain in inventory, the greater the exposure to changes in the price of lumber. This includes treated lumber, which comprised approximately 21% of our total net sales in 2024.
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This exposure is less significant with remanufactured lumber, panel goods, other commodity-type items, and trusses sold to the manufactured housing market due to the higher rate of inventory turnover. We attempt to mitigate the risk associated with treated lumber through inventory consignment programs with our vendors.
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We estimate that 15% of our total purchases for 2024 were completed under these programs. ( Please refer to the “Risk Factors” section of our annual report on form 10-K, filed with the United States Securities and Exchange Commission. ) ● Products with fixed selling prices sold under long-term supply arrangements, particularly those involving multi-family construction projects.
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We attempt to mitigate this risk through our purchasing practices and longer vendor commitments. In addition to the impact of the Lumber Market trends on gross margins, changes in the level of the market cause fluctuations in gross margins when comparing operating results from period to period.
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This is explained in the following example, which assumes the price of lumber has increased from period one to period two, with no changes in the trend within each period. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period 1 Period 2 Lumber cost ​ $ 300 ​ $ 400 ​ Conversion cost ​ 50 ​ 50 ​ = Product cost ​ 350 ​ 450 ​ Adder ​ 50 ​ 50 ​ = Sell price ​ $ 400 ​ $ 500 ​ Gross margin ​ 12.5 % 10.0 % 21 Table of Contents As is apparent from the preceding example, the level of lumber prices does not impact our overall profits but does impact our margins.
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Gross margins and operating margins are negatively impacted during periods of high lumber prices; conversely, we experience margin improvement when lumber prices are relatively low.
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As a result of this factor, we believe it is useful to compare our change in units sold with our change in gross profits, selling, general, and administrative expenses, and operating profits as presented in the following table. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Annual Percentage Change from ​ ​ Prior Year Ended ​ December 28, ​ December 30, ​ 2024 2023 Units sold (1.0) % ​ (9.0) % Gross profit ​ (13.5) ​ ​ (20.7) ​ Selling, general, and administrative expenses ​ (4.1) ​ ​ (7.9) ​ Earnings from operations ​ (23.9) ​ ​ (32.0) ​ It is our long-term goal to increase our gross profits and earnings from operations at a rate of growth that exceeds our unit sales growth, or in other words, increase our profit per unit sold.
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We also have a long-term goal of improving our efficiencies and leveraging the fixed costs in our selling, general, and administrative expenses as we grow, which would result in a rate of growth of these expenses which is less than our unit sales growth resulting in a lower cost per unit.
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BUSINESS COMBINATIONS AND ASSET PURCHASES We completed one business acquisition during 2024 and one during 2023. The annual historical sales attributable to these acquisitions in 2024 and 2023 was approximately $25 million and $38 million, respectively. These business combination were not significant to our operating results; consequently pro forma results for 2024 and 2023 are not presented.
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See Notes to Consolidated Financial Statements, Note C, "Business Combinations" for additional information. RESULTS OF OPERATIONS The following table presents, for the periods indicated, the components of our Consolidated Statements of Earnings as a percentage of net sales.
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See “Impact of the Lumber Market on our Operating Results”. ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ December 28, December 30, ​ 2024 2023 Net sales 100.0 % 100.0 % Cost of goods sold 81.6 80.3 Gross profit 18.4 19.7 Selling, general, and administrative expenses 11.0 10.6 Net loss (gain) on disposition and impairment of assets ​ 0.1 ​ — ​ Other (gains) losses, net (0.1) 0.1 Earnings from operations 7.4 9.0 Interest and other (0.7) (0.3) Earnings before income taxes 8.1 9.3 Income taxes 1.8 2.2 Net earnings 6.3 7.1 Less net earnings attributable to noncontrolling interest (0.1) — Net earnings attributable to controlling interest 6.2 % 7.1 % Note: Actual percentages are calculated and may not sum to total due to rounding. 22 Table of Contents The following table presents, for the periods indicated, our selling, general, and administrative (SG&A) costs as a percentage of gross profit.
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We believe this ratio provides an enhanced view of our effectiveness in managing these costs given our strategies to enhance our capabilities and improve our value-added product offering and recognizing the higher relative level of SG&A these strategies require.
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This ratio also mitigates the impact of changing lumber prices. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 28, ​ December 30, ​ ​ 2024 ​ 2023 Gross profit ​ $ 1,226,742 ​ $ 1,418,938 Selling, general, and administrative expenses ​ $ 735,046 ​ $ 766,633 SG&A as percentage of gross profit ​ 59.9% ​ 54.0% The increase in the ratio above is primarily due to a combination of fixed SG&A costs within our Packaging, Construction, and Corporate segments and more competitive pricing in certain business units resulting in a decline in gross profits.
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For comparison purposes, our SG&A costs as a percentage of gross profits in 2019 (immediately prior to the pandemic) was 64%. OPERATING RESULTS BY SEGMENT Our business segments consist of UFP Retail Solutions (“Retail”), UFP Packaging (“Packaging”) and UFP Construction (“Construction”), and align with the end markets we serve.
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Among other advantages, this structure allows for a more specialized and consistent sales approach, more efficient use of resources and capital, and quicker introduction of new products and services.
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We manage the operations of our individual locations primarily through a market-centered reporting structure under which each location is included in a business unit, and business units are included in our Retail, Packaging, and Construction segments.
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The exception to this market-centered reporting and management structure is our International segment, which comprises our packaging operations in Mexico, Canada, Spain, India, United Arab Emirates and Australia and sales and buying offices in other parts of the world. Our International segment and Ardellis (our insurance captive) are included in the “All Other” column of the table below.
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The “Corporate” column includes purchasing, transportation, corporate ventures, and administrative functions that serve our operating segments. Operating results of Corporate primarily consists of over (under) allocated costs. The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns, leases, and operates transportation equipment, are also included in the Corporate column.
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Inter-company lease and services charges are assessed to our operating segments for the use of these assets and services at fair market value rates.
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The following tables present our operating results by segment for December 28, 2024 and December 30, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 28, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 goods sold ​ 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, administrative expenses ​ ​ 209,592 ​ ​ 191,757 ​ ​ 262,517 ​ ​ 39,940 ​ ​ 31,240 ​ ​ 735,046 Net loss (gain) on disposition and impairment 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 ​ 23 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail ​ Packaging ​ Construction ​ All Other ​ Corporate ​ Total Net sales ​ $ 2,956,007 $ 1,838,200 ​ $ 2,161,059 ​ $ 259,392 ​ $ 3,726 ​ $ 7,218,384 Cost of goods sold ​ 2,566,572 ​ 1,422,940 ​ 1,637,329 ​ 182,047 ​ ​ (9,442) ​ ​ 5,799,446 Gross profit ​ ​ 389,435 ​ ​ 415,260 ​ ​ 523,730 ​ ​ 77,345 ​ ​ 13,168 ​ ​ 1,418,938 Selling, general, administrative expenses ​ ​ 213,288 ​ ​ 219,323 ​ ​ 279,107 ​ ​ 51,548 ​ ​ 3,367 ​ ​ 766,633 Net loss (gain) on disposition and impairment of assets ​ ​ 800 ​ ​ 8 ​ ​ 9 ​ ​ (166) ​ ​ (911) ​ ​ (260) Other losses, net ​ ​ 3,180 ​ ​ — ​ ​ 1,268 ​ ​ 1,425 ​ ​ 158 ​ ​ 6,031 Earnings from operations ​ $ 172,167 ​ $ 195,929 ​ $ 243,346 ​ $ 24,538 ​ $ 10,554 ​ $ 646,534 Note: As of December 31, 2023, our Pinelli Universal entity was transferred to our Retail segment from our International segment (grouped in All Other) due to changes in our management structure.
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Prior year figures have been updated to reflect the change for comparability purposes in every applicable table in this filing.
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The following tables present the components of our operating results as a percentage of net sales by segment for December 28, 2024 and December 30, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 28, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail ​ Packaging ​ Construction ​ All Other ​ Corporate ​ Total ​ Net sales ​ 100.0 % 100.0 % 100.0 % 100.0 % N/A ​ 100.0 % Cost of goods sold ​ 85.0 ​ 81.6 ​ 79.3 ​ 80.7 ​ — ​ 81.6 ​ Gross profit ​ 15.0 ​ 18.4 ​ 20.7 ​ 19.3 ​ — ​ 18.4 ​ Selling, general, administrative expenses ​ 8.1 ​ 11.7 ​ 12.4 ​ 13.4 ​ — ​ 11.0 ​ Net loss (gain) on disposition and impairment of assets ​ 0.1 ​ 0.4 ​ — ​ — ​ — ​ 0.1 ​ Other (gains) losses, net ​ (0.1) ​ 0.0 ​ — ​ (1.2) ​ — ​ (0.1) ​ Earnings from operations ​ 6.9 % 6.3 % 8.3 % 7.1 % — ​ 7.4 % Note: Actual percentages are calculated and may not sum to total due to rounding. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail ​ Packaging ​ Construction ​ All Other ​ Corporate ​ Total ​ Net sales ​ 100.0 % 100.0 % 100.0 % 100.0 % N/A ​ 100.0 % Cost of goods sold ​ 86.8 ​ 77.4 ​ 75.8 ​ 70.2 ​ — ​ 80.3 ​ Gross profit ​ 13.2 ​ 22.6 ​ 24.2 ​ 29.8 ​ — ​ 19.7 ​ Selling, general, administrative expenses ​ 7.2 ​ 11.9 ​ 12.9 ​ 19.9 ​ — ​ 10.6 ​ Net loss (gain) on disposition and impairment of assets ​ — ​ — ​ — ​ (0.1) ​ — ​ — ​ Other losses, net ​ 0.1 ​ — ​ 0.1 ​ 0.5 ​ — ​ 0.1 ​ Earnings from operations ​ 5.8 % 10.7 % 11.3 % 9.5 % — ​ 9.0 % Note: Actual percentages are calculated and may not sum to total due to rounding. 24 Table of Contents NET SALES We design, manufacture and market: ● Wood and wood-alternative products, primarily used to enhance outdoor living environments which are sold to national home centers and other retailers; ● Engineered wood components, concrete forms, structural lumber and panels, and other building materials used to construct factory-built and site-built homes and concrete structures; ● Customized interior fixtures used in a variety of retail stores, commercial, and other structures; and ● Structural wood packaging, pallets, and packing materials for various industries.
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Our strategic long-term sales objectives include: ● Maximizing unit sales growth while achieving return on investment goals .
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The following table presents estimates, for the periods indicated, of our percentage change in net sales attributable to changes in overall selling prices versus changes in units shipped by segment. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % Change ​ ​ 2024 versus 2023 ​ ​ in Sales in Selling Prices in Units Acquisition Unit Change Organic Unit Change Retail ​ (12.1) % (5.1) % (7.0) % — % (7.0) % Packaging ​ (11.0) % (8.0) % (3.0) % — % (3.0) % Construction ​ (2.2) % (7.2) % 5.0 % — % 5.0 % All Other ​ 15.0 % (4.0) % 19.0 % 6.0 % 13.0 % Corporate ​ 53.5 % — % 53.5 % — % 53.5 % Total Sales ​ (7.8) % (6.8) % (1.0) % — % (1.0) % ● Expanding geographically in our core businesses , domestically and internationally. ● Increasing our sales of “value-added” products and enhancing our product offering with new or improved products .
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Value-added products generally consist of fencing, decking, lattice, and other specialty products sold in the Retail segment; structural and protective packaging and machine-built pallets sold in the Packaging segment; engineered wood components, customized interior fixtures, manufactured and assembled concrete forms sold in the Construction segment; and “wood alternative” products. Engineered wood components include roof trusses, wall panels, and floor systems.
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Wood alternative products consist of products manufactured with wood and non-wood composites, metals and plastics sold in each of our segments. Although we consider the treatment of dimensional lumber and panels with certain chemical preservatives a value-added process, treated lumber is not presently included in the value-added sales totals.
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Remanufactured lumber and panels that are components of finished goods are also generally categorized as “commodity-based” products.
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We estimate that approximately 80% of our sales consist of products we manufacture at our locations, while 20% of our sales consist of products manufactured by suppliers that we inventory and distribute to customers. 25 Table of Contents The following table presents, for the periods indicated, our percentage of value-added and commodity-based sales to total sales by our segments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 28, 2024 ​ Year Ended December 30, 2023 ​ ​ Value-Added Commodity-Based Value-Added Commodity-Based Retail 52.8 % ​ 47.2 % 51.1 % ​ 48.9 % ​ Packaging ​ 75.5 % ​ 24.5 % ​ 76.9 % ​ 23.1 % ​ Construction ​ 82.0 % ​ 18.0 % ​ 83.2 % ​ 16.8 % ​ All Other ​ 76.6 % ​ 23.4 % ​ 80.0 % ​ 20.0 % ​ Corporate ​ 58.8 % ​ 41.2 % ​ 27.5 % ​ 72.5 % ​ Total Sales ​ 68.6 % ​ 31.4 % ​ 68.1 % ​ 31.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Note: Certain prior year product reclassifications and the change in designation of certain products as "value-added" resulted in a change in prior year's sales.
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Our overall unit sales of value-added products decreased approximately 7% in 2024 compared to 2023. Our overall unit sales of commodity-based products decreased approximately 6% compared to 2023. ● Developing new products .
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We define new products as those that will generate sales of at least $1 million per year within 4 years of launch and are still growing and gaining market penetration and meet our internal definition of value-added products.
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New product sales in 2024 decreased 11% compared to the prior year, primarily due to a decline in unit sales in our structural packaging business unit. Approximately $155.1 million of new product sales for 2023, while still sold, were sunset in 2024 and excluded from the table below because they no longer meet the definition above.
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Our goal was to achieve annual new product sales of at least $510 million in 2024. Our short-term goal is to achieve annual new product sales of at least $550 million for 2025. On a long-term basis, our goal is for new product sales to comprise at least 10% of our total net sales.
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The table below presents new product sales in thousands: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ New Product Sales by Segment ​ ​ ​ ​ Year Ended ​ ​ ​ December 28, ​ % of Segment December 30, ​ % of Segment % Change ​ ​ ​ 2024 ​ Net Sales ​ 2023 ​ Net Sales ​ in Sales ​ Retail ​ $ 216,081 ​ 8.3 % ​ $ 213,238 ​ 7.2 % 1.3 % ​ Packaging ​ 197,119 ​ 12.0 % ​ ​ 273,192 ​ 14.9 % (27.8) % ​ Construction ​ ​ 87,974 ​ 4.2 % ​ ​ 81,371 ​ 3.8 % ​ 8.1 % ​ All Other and Corporate ​ 3,564 ​ 1.2 % ​ ​ 495 ​ 0.2 % 620.0 % ​ Total New Product Sales ​ 504,738 ​ 7.6 % ​ ​ 568,296 ​ 7.9 % (11.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Note: Certain prior year product reclassifications and the change in designation of certain products as "new" resulted in a change in prior year's sales.
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Retail Segment: Net sales from the Retail segment decreased 12% in 2024 compared to 2023 due to a 5% decrease in selling prices, a 2% decrease due to the transfer of certain sales to the Construction and Packaging segments, and a 5% decline in units.
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Unit changes within this segment consisted of decreases of 3% in Deckorators, 6% in UFP Edge, and 5% in ProWood. Our selling prices of variable-priced products declined due to lower lumber prices. The selling prices of these products are indexed to the lumber market at the time they are shipped.
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Additionally, our unit sales to big box customers decreased approximately 4%, while unit sales to independent retailers decreased approximately 7%. Within our Deckorators business unit, our sales of wood-plastic composite decking, mineral-based-composite decking and railing systems increased 4%. 26 Table of Contents Gross profits remained consistent and totaled $388.8 million in 2024 compared to $389.4 million in 2023.
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Although there was a decline in unit sales and selling prices, the stability in our gross profits was attributable to a variety of factors including the decline in lumber costs, production efficiencies, and operating improvements such as SKU rationalization, all of which contributed to an improved gross margin compared to the prior year.
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Selling, general and administrative (“SG&A”) expenses decreased by approximately $3.7 million, or 2%, in 2024 compared to 2023. Accrued bonus expense, which varies with the overall profitability and return on investment of the segment, increased approximately $1.5 million and totaled approximately $47.3 million in 2024.
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The increase was offset by a decrease in professional fees of $1.6 million and many smaller decreases spread over several accounts.
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Earnings from operations of the Retail segment increased in 2024 compared to 2023 by $6.9 million, or 4%, as a result of the factors mentioned above, as well as an increase in the net loss on disposition and impairment of assets which comprised of lease impairment charges of $1.4 million and intangible asset impairments of $1.2 million, partially offset by foreign exchange gains totaling $3.0 million.
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Packaging Segment: Net sales from the Packaging segment decreased 11% in 2024 compared to 2023 due to an 8% decrease in selling prices and a 5% decrease in unit sales, partially offset by a 2% increase due to the transfer of sales from the Retail segment.
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Unit changes consist of a decrease of 10% in structural packaging and 6% in protective packaging, primarily due to a decline in demand, partially offset by unit growth of 9% in PalletOne due to market share gains. The decline in prices is due to competitive price pressure as well as lower lumber costs.
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Gross profits decreased by $114.0 million, or 27%, to $301.3 million in 2024 compared to 2023. The decrease in gross profits was attributable to the following: ● The gross profit of our structural packaging business unit decreased by a total of $83.6 million, in spite of the transfer of certain sales from the Retail segment.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe estimated fair value of notes payable included in current liabilities and the revolving credit facility approximated the carrying values as these debt instruments have interest rates that fluctuate with current market conditions. 16 Expected cash flows over the next five years related to debt instruments, excluding debt issuance costs, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($US equivalents, in thousands) 2024 2025 2026 2027 2028 Thereafter Total Long-term Debt: ​ ​ ​ ​ ​ ​ Fixed Rate ($US) $ 40,098 $ 671 $ 194 $ 212 $ 40,232 ​ $ 185,383 $ 266,790 Average interest rate 4.01 % 9.45 % 9.45 % — ​ ​ 4.27 % 3.36 % ​ Variable Rate ($US) $ 2,802 $ — $ — $ 3,692 ​ $ — ​ $ 3,300 $ 9,794 Average interest rate (1) 9.45 % ​ — % ​ — % ​ 5.44 % — % 3.33 % ​ (1) Average of rates at December 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Biggest changeExpected cash flows over the next five years related to debt instruments, excluding debt issuance costs, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($US equivalents, in thousands) 2025 2026 2027 2028 2029 Thereafter Total Long-term Debt: ​ ​ ​ ​ ​ ​ Fixed Rate ($US) $ 209 $ 300 $ 465 $ 40,254 $ 281 ​ $ 185,307 $ 226,816 Average interest rate 9.57 % 9.60 % 9.60 % 4.14 % ​ 9.60 % 3.36 % ​ Variable Rate ($US) $ 3,916 $ — $ — ​ $ — ​ $ 3,300 ​ $ — $ 7,216 Average interest rate (1) 9.60 % ​ — % ​ — % ​ — % 3.32 % — % ​ (1) Average of rates at December 28, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 36 Table of Contents
On December 30, 2023, the estimated fair value of our long-term debt, including the current portion, was $241.4 million. The estimated fair value is based on rates anticipated to be available to us for debt with similar terms and maturities.
On December 28, 2024, the estimated fair value of our long-term debt, including the current portion, was $201.2 million. The estimated fair value is based on rates anticipated to be available to us for debt with similar terms and maturities.
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The estimated fair value of notes payable included in current liabilities and the revolving credit facility approximated the carrying values as these debt instruments have interest rates that fluctuate with current market conditions.

Other UFPI 10-K year-over-year comparisons