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What changed in UFP INDUSTRIES INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of UFP INDUSTRIES INC's 2024 and 2025 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 2025 report.

+276 added−242 removedSource: 10-K (2026-02-25) vs 10-K (2025-02-26)

Top changes in UFP INDUSTRIES INC's 2025 10-K

276 paragraphs added · 242 removed · 189 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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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.
Biggest changeInter-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. 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.
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 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 segment. 3 Table of Contents We supply customers in this segment from many of our locations.
Financial Information About Segments. ASC 280, Segment Reporting (“ASC 280”) defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.
ASC 280, Segment Reporting (“ASC 280”) defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance.
Also, we believe that the diversification and manner in which we operate our business provides an inherent hedge against the inevitable business cycles that our markets experience and over which we have little control. Accordingly, our goal is to provide stable earnings and cash flows to our shareholders.
We believe that the diversification and manner in which we operate our business provides an inherent hedge against the inevitable business cycles that our markets experience and over which we have little control. Accordingly, our goal is to provide stable earnings and cash flows to our shareholders.
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.
Our 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.
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 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 fascia 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 fascia.
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.
We quantified our 2024 Scope 1 and Scope 2 greenhouse gas (GHG) emissions in our fiscal year 2024 Governance Report and plan to disclose our 2025 Scope 1 and Scope 2 GHG emissions in 2026. We are driven by operational excellence throughout the enterprise and by cultivating a unique culture that provides significant opportunity for professional and personal growth.
Through our Internet website under "Financial Information" in the Investor Relations section, we make available free of charge, as soon as reasonably practical after such information has been filed with the SEC, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act.
Through our Internet website under "News Filings & Reports – SEC Filings" in the Investor Relations section, we make available free of charge, as soon as reasonably practical after such information has been filed with the SEC, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act.
Over the last five years, we have added additional products and services to this business unit to meet the increasing demand of our customers to provide a wider array of innovative solutions to their packaging and shipping needs.
Over the last several years, we have added additional products and services to this business unit to meet the increasing demand of our customers to provide a wider array of innovative solutions to their packaging and shipping needs.
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.
We anticipate publishing on our website our fiscal year 2025 Governance Report during 2026. Our manufacturing operations have a long history of environmental stewardship through efficiency and energy savings, waste management, and responsible product sourcing.
The results and improvements from these investments are shared among the segments. This exchange of improvements and ideas has also prompted better and faster innovation for new products, processes, and product improvements. Importantly, the restructuring allows us to better evaluate market conditions and opportunities, while effectively allocating capital and resources to the appropriate segments and business units.
The results and improvements from these investments are shared among the segments. This exchange of improvements and ideas has also prompted better and faster innovation for new products, processes, and product improvements. Importantly, our structure allows us to evaluate market conditions and opportunities, while effectively allocating capital and resources to the appropriate segments and business units.
This business unit includes the manufacture of wood plastic composite and our patented Surestone mineral based composite decking and related decking accessories, including aluminum railing systems, balusters, post caps, and similar products, as well as customized, aluminum fencing. Customers include big box home improvement retailers, regional home centers and wholesale distributors.
This business unit includes the manufacture of wood plastic composite and our patented Surestone™ mineral based composite decking and related decking accessories, including aluminum railing systems, balusters, post caps, and similar products, as well as customized, aluminum fencing. Customers include big box home improvement retailers, regional home centers and two-step distributors.
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.
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 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.
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.
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 July 2025, we published on our website our fiscal year 2024 “Governance Report,” detailing our responsible practices as well as our future outlook.
At the same time, we continue to maintain our existing compensation philosophy and practices of rewarding the financial performance of our plants, business units, and segments, based upon pre-bonus operating profits and return on investment, to preserve our strong entrepreneurial and sales culture.
We continue to maintain our existing compensation philosophy and practices of rewarding the financial performance of our plants, business units, and segments, based upon pre-bonus operating profits and return on investment, to preserve our strong entrepreneurial and sales culture.
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.
See Note M "Segment Reporting" to our consolidated financial statements for the fiscal year ended December 27, 2025 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 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.
We currently estimate that approximately 70% of the unit's business is for single-family homes while 30% 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.
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" to our consolidated financial statements for the fiscal year ended December 27, 2025 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.
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.
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 2025, 17% and 11%, respectively, in 2024, and 17% and 12%, respectively, in 2023.
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.
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 2025, we estimate we purchased approximately 6.4% of the 56 billion board feet of North America softwood lumber production.
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.
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 three main verticals in this business unit include producers of mobile, modular and prefabricated homes and, to a lesser extent, recreational vehicles (RV) and cargo trailers.
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.
In neither case, however, will we receive firm orders until just prior to the anticipated delivery dates for the products ordered. On December 27, 2025 and December 28, 2024, we estimate that backlog orders associated with our customized interior fixture businesses approximated $56.6 million and $41.9 million, respectively.
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.
Risk Factors under the caption “ Seasonality and weather conditions, including those arising from climate change, could adversely affect us .” Human Capital Management . On December 27, 2025, we had approximately 13,800 employees. For over 70 years, the success of our company has rested on the skill, motivation and performance of our employees.
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.
See Note M "Segment Reporting" to our consolidated financial statements for the fiscal year ended December 27, 2025 in Item 8 for our disaggregated net sales by business unit for our Retail Solutions segment. Packaging segment . Our Packaging segment is comprised of the following business units: Structural Packaging, PalletOne, and Protective Packaging Solutions.
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.
Additionally, we purchased approximately $545 million in plywood and $464 million in other panel products in 2025. 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.
Our business segments consist of UFP Retail Solutions, UFP Packaging and UFP Construction and align with the end markets we serve. Among other things, this structure allows for a specialized and consistent sales approach among Company operations, efficient use of resources and capital, and quicker introduction of new products and services.
Our business segments consist of UFP Retail Solutions (“Retail”), UFP Packaging (“Packaging”) and UFP Construction (“Construction”), and align with the end markets we serve. Among other advantages, this structure allows for a more specialized and focused sales approach, more efficient use of resources and capital, and quicker introduction of new products and services.
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.
During 2025 our annual purchases of lumber, excluding panels, totaled approximately $1.7 billion and consisted of the following species and their respective percent of total lumber purchases: southern yellow pine (75%), spruce-pine-fir (12%), and douglas fir (4%), while the remaining 9% of lumber purchases comprise various other species and imports outside of North America.
These products are primarily sold as additional offerings to our structural packaging products and pallets and are generally sold as a means of providing a more complete solution to our customers' packaging needs and requirements.
This business unit consists of a wide variety of products, such as corrugate, foam, labels, strapping and films. These products are primarily sold as additional offerings to our structural packaging products and pallets and are generally sold as a means of providing a more complete solution to our customers' packaging needs and requirements.
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.
The exception to this market-centered reporting and management structure is our International segment, which comprises our packaging operations in Mexico, Canada, Spain, India and Australia, and sales and buying offices in other parts of the world, and our Ardellis segment, which represents our wholly owned fully licensed captive insurance company based in Bermuda.
We are not aware of any competitor that currently manufactures, treats and distributes a full line of both value-added and commodity-based products, on a national basis, as we do within this segment.
The products also include interior pattern and trim products, as well as pre-painted and primed shiplap and project boards. UFP Retail Solutions has numerous competitive advantages. We are not aware of any competitor that currently manufactures, treats and distributes a full line of both value-added and commodity-based products, on a national basis, as we do within this segment.
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 .
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 .
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 also includes a recycling operation of previously used pallets. 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.
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.
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.
Our pallets are designed and manufactured in numerous sizes and configurations and are used by our customers for shipping a wide assortment of consumer and industrial products. This business unit also includes a recycling operation of previously used pallets.
We estimate our domestic market share in Structural Packaging to be 10-12%. PalletOne . This business unit designs and manufactures pallets primarily made of wood and heat-treated wood. Our pallets are designed and manufactured in numerous sizes and configurations and are used by our customers for shipping a wide assortment of consumer and industrial products.
This business unit includes our branded ProWood line of pressure-treated and fire-retardant products used primarily for outdoor decking environments, including associated accessories. It also includes our branded Outdoor Essentials line of lawn and garden products, consisting of wood and vinyl fencing and lattice, garden beds and planters, pergolas, picnic tables, and other landscaping products.
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. This business unit includes our branded ProWood line of pressure-treated and fire-retardant products used primarily for outdoor decking environments, including associated accessories.
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.
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 Our current structure focuses on our end markets which allows us to better serve our customers, recognize and exploit market opportunities, enhance the efficiency of our operations, and improve the deployment of capital.
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
Also available through our Internet website under " Governance – Governance Documents” in the Investor Relations sections is our Code of Ethics for Senior Financial Officers. ​ 7 Table of Contents
We believe we are one of the top five custom interior environment providers globally and the largest diversified custom solutions provider. Concrete Forming .
We believe we are one of the top five custom interior environment providers globally and the largest diversified custom solutions provider. Concrete Forming . This business unit designs, manufactures and supplies wood forms and related products that are used by our customers to set or form concrete for various structures.
The lumber Dempsey produces is a crucial product for pallet operations and has been in short supply as larger mills produce less of this type of lumber. PalletOne’s investment in Dempsey helps it secure and grow a critical long-term supply source. There are numerous local and regional pallet manufacturers that compete with PalletOne.
PalletOne’s investment in Dempsey helps it secure and grow a critical long-term supply source. There are numerous local and regional pallet manufacturers that compete with PalletOne. We estimate that, as the largest supplier, we manufacture approximately 8-10% of new machine-built pallets nationally. Protective Packaging Solutions .
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.
Operating results of Corporate primarily consist of over (under) allocated costs and net sales to external customers initiated by UFP Purchasing, which manages supplier relationships and purchases lumber and other materials, UFP Transportation, which owns, leases and operates transportation equipment, and UFP Real Estate, which owns and leases real estate.
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.
These groupings may change periodically as opportunities to gain efficiencies occur or new products that deliver increased scale and synergy are developed. The segment primarily sells to three main verticals including big box retailers, independent distributors, and distribution centers including two-step distributors. ProWood .
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 .
On December 27, 2025 and December 28, 2024, we estimate that backlog orders associated with our site-built construction businesses approximated $45.9 million and $74.4 million, respectively. The decline is due to a decrease in demand and slowdown associated with tariff policy.
We serve a wide variety of regional, national, and global customers in several end markets such as building materials, durable goods, agricultural, moving and storage, heavy equipment and automotive. We utilize combinations of various materials through industrial engineering and testing to promote the best value and functionality for our customers.
We serve a wide variety of regional, national, and global customers across several verticals including building materials, durable goods, agricultural, moving and storage, heavy equipment and automotive. Structural Packaging . This business unit designs, engineers, manufactures and tests custom packaging products primarily made of wood and metal.
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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.
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We are headquartered in Grand Rapids, Michigan. For information relating to current developments in our business please see "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Item 7 below. Financial Information About Segments.
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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 International segment and Ardellis are referred to as “All Other” throughout this report. “Corporate” includes purchasing, transportation, corporate ventures, and administrative functions that serve our operating segments.
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That need, combined with our growth objectives, required a structure that would reorient the Company’s focus from geography to end markets. Our 2020 restructuring accomplished that objective and now allows us to better serve our customers, recognize and exploit market opportunities, enhance the efficiency of our operations, and improve the deployment of capital.
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It also includes our branded Outdoor Essentials line of lawn and garden products, consisting of wood and vinyl fencing and lattice, garden beds and planters, pergolas, picnic tables, and other landscaping products. Numerous pressure-treaters exist on local and regional scales with none approaching the volume sold by UFP.
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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.
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These products are custom designed, often including mixed materials, and manufactured based upon specific customer needs and requirements. We utilize combinations of various materials through industrial engineering and testing to promote the best value and functionality for our customers. In Structural Packaging there are regional companies that produce similar product lines and small single-location competitors in most of our markets.
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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.
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We own 50% of Dempsey Wood Products, LLC (“Dempsey”), which produces pallet lumber and other industrial wood products in Orangeburg, South Carolina. The lumber Dempsey produces is a crucial product for pallet operations and has been in short supply as larger mills produce less of this type of lumber.
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In Structural Packaging there are regional companies that produce similar product lines and small single-location competitors in most of our markets. We estimate our domestic market share in Structural Packaging to be 10-12%. PalletOne . This business unit designs and manufactures pallets primarily made of wood and heat-treated wood.
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This business unit serves four verticals including residential building, non-residential building, distribution, and infrastructure. Our customers in this business unit include general contractors as well as distributors.
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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.
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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 . We are self-insured for environmental impairment liability, including certain liabilities which are insured through a wholly owned subsidiary, Ardellis Insurance Ltd., a licensed captive insurance company. 6 Table of Contents Seasonality .
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This business unit designs, manufactures and supplies wood forms and related products that are used by our customers to set or form concrete for various structures, including large parking garages, stadiums, commercial structures, and infrastructure projects such as bridges. Our customers in this business unit include general contractors as well as distributors.
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Seasonality has a significant impact on our working capital due to our primary selling season occurring during the period from March to September. Consequently, our working capital increases during our first and second quarters resulting in negative or modest cash flows from operations during those periods.
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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.
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Conversely, we experience a substantial decrease in working capital once we move beyond our peak selling season which typically results in significant cash flows from operations in our third and fourth quarters. Please also see the risk factor in Item 1A.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

15 edited+9 added−2 removed23 unchanged
Biggest changeNew alternatives may be developed to replace traditional treated wood products. The manufacturers of wood preservatives continue to develop new preservatives. While we believe treated products are reasonably priced relative to alternative products such as composites or vinyl, new alternatives may impact the sales of treated wood products.
Biggest changeWhile we believe treated products are reasonably priced relative to alternative products such as composites or vinyl, new alternatives may impact the sales of treated wood 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.
Our sales growth is dependent, in part, upon the growth of the markets we serve. If our markets do not achieve anticipated growth, or if we fail to maintain our market share, financial results could be impaired. We are subject to fluctuations in the price of lumber .
Our sales growth is dependent, in part, upon the growth of the markets we serve. If our markets do not achieve anticipated growth, or if we fail to maintain our market share, financial results could be impaired. 8 Table of Contents We are subject to fluctuations in the price of lumber .
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.
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 27, 2025 was approximately 90% current.
Instability 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.
Instability 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. The proposed tariffs in Canada continue to be paused.
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.
While we have planned for and anticipate a continuation of soft demand within our markets into 2026, 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.
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.
Our bad debt expense as a percentage of sales was 0.01%, 0.05%, and 0.03%, in 2025, 2024, and 2023, 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. 10 Table of Contents
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.
Our sales to The Home Depot and Lowes comprised 17% and 11%, respectively, of our total net sales in fiscal 2025, 17% and 11%, respectively, in 2024, and 17% and 12%, respectively, in 2023. We may be impacted by vertical integration strategies.
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 .
Our lumber costs, including plywood, as a percentage of net sales were 41.6% in 2025, compared to 40.4% in 2024. A significant portion of our sales are concentrated with two customers .
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.
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.
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.
We purchase a variety of raw materials and finished goods from sources around the world and export certain products. The impact of a change in U.S. dollar exchange rates, and inflation, would impact our import purchases and export sales, which totaled $407.1 million and $239.5 million respectively, in 2025, compared to $390.9 million and $258.9 million in 2024, respectively.
Despite security measures, these systems and products may be vulnerable to physical damage, hackers, computer viruses, or breaches due to errors or malfeasance by employees, vendors, or customers. We have experienced such events in the past and, although past events were immaterial, future events may occur and may be material.
We rely upon information technology systems and network products and the secure operation of these systems and products. Despite security measures, these systems and products may be vulnerable to physical damage, hackers, computer viruses, or breaches due to errors or malfeasance by employees, vendors, or customers.
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.
Our purchases that were impacted by tariffs were approximately $407.1 million in 2025 (compared to $390.9 million in 2024), including our import of Canadian Softwood Lumber of approximately $174.9 million in 2025 (compared to $211.8 million in 2024) which is the largest imported commodity.
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.
If we suffer adverse consequences due to any of these factors, it could in turn have a material adverse effect on our financial performance and operations. Our financial results could be negatively impacted by costs associated with product liability, casualty, manufacturing and construction defects, and other claims.
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.
As of December 27, 2025, 84% of our lumber purchases are from domestic suppliers, 11% are imported from Canada, and 5% are imported from other international suppliers ​ An increase in foreign tariffs on U.S. goods could curtail our export sales to other countries, which were approximately $239.5 million in 2025, compared to $258.9 million in 2024.
We may be impacted by a significant change in the value of the U.S. dollar and our results of operations may be harmed by currency fluctuations and inflation. We purchase a variety of raw materials and finished goods from sources around the world and export certain products.
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. We may be impacted by a significant change in the value of the U.S. dollar and our results of operations may be harmed by currency fluctuations and inflation.
Removed
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.
Added
If they are activated, the demand for domestic lumber products may increase, which will likely result in higher costs if capacity gets challenged.
Removed
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.
Added
Although the trade landscape continues to evolve, since we do not own any foreign sawmills and have excellent relationships with our mill partners, we believe we are currently in a strong position to adapt quickly to tariffs without material adverse financial impact after a short adjustment period.
Added
We will continue to monitor the market and intend to make decisions quickly to minimize disruption.
Added
Our total inbound and outbound transportation costs were approximately 9.5%, 7.8%, and 9.4% of net sales in 2025, 2024, and 2023, respectively. 9 Table of Contents New alternatives may be developed to replace traditional treated wood products. The manufacturers of wood preservatives continue to develop new preservatives.
Added
We have experienced such events in the past and, although past events were immaterial, future events may occur and may be material. 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.
Added
Artificial intelligence (“AI”) is an emerging area of technology that has and may further impact various aspects of our business operations, and we may not be successful in our artificial intelligence initiatives, which could adversely affect our business, financial condition and/or operating results.
Added
We have made, and expect to continue making, investments in the integration of artificial intelligence into our platforms, products, and services. However, AI presents various risks, challenges, and potential unintended consequences that could disrupt our ability to effectively integrate and leverage these technologies.
Added
The integration of AI may also require significant capital investment, specialized talent, and new safety protocols, and we may be unable to recruit or retain personnel with the necessary expertise. Additionally, competitors may develop more effective or efficient AI solutions, potentially undermining our competitive position.
Added
The regulatory environment surrounding AI is still in development, and new laws or regulations could emerge that require substantial adjustments to our business practices. These changes could impose unexpected costs or operational disruptions, and the full scope and impact of such regulatory developments remain uncertain.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

7 edited+17 added−12 removed2 unchanged
Biggest changeWith 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.
Biggest changeThis expertise supports the Director's responsibility for day-to-day cybersecurity operations, the alignment of security strategies with business objectives, and the management of our information security risk framework. The Director reports directly to the CIO and leads the cross-functional team in identifying and mitigating material risks.
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.
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. 12 Table of Contents 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.
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 .
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 .
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 .
Our cross-functional cybersecurity team, composed of experts with decades of combined experience, supports the CIO and Director in implementing our cybersecurity program. 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 .
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 .
With over 20 years of experience in the information technology space, our CIO brings expertise and strategic insight to cybersecurity, compliance, enterprise architecture, systems resilience, and digital transformation. ● Director of Cybersecurity . With over 30 years of experience in information technology, including systems architecture and management, our Director of Cybersecurity holds the Certified Information Security Manager (CISM) designation.
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.
The Audit Committee regularly reports to the Board on matters addressed during the Committee’s quarterly meetings, including any material cybersecurity risks or developments.
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.
As of the date of this report, we have not experienced any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition.
Removed
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.
Added
Item 1C. Cybersecurity. Risk Management and Strategy. We recognize the importance of managing cybersecurity risks to protect our business operations, assets, data, and stakeholders. This is achieved through implementation of an enterprise-wide security risk management program, risk-based approach to cybersecurity program management, and an internal security control framework.
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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 .
Added
We employ a structured approach to frame, assess, treat and monitor risks to determine if such risks are material. Material cybersecurity risks are identified, assessed and managed in several ways. Cybersecurity risk management processes are embedded in our enterprise-level activities, business processes as well as day-to-day operations. This includes but is not limited to: ● Program foundations and standards.
Removed
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.
Added
We established information security, cybersecurity and risk management frameworks that serve as the foundation for our cybersecurity program, which aligns with internationally recognized frameworks, including the NIST CSF and ISO 27001, as well as risk management guidelines such as NIST SP 800-37 (RMF) and ISO 27005.
Removed
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.
Added
These frameworks have been adapted to include the assessment and management of risks associated with emerging technologies, including artificial intelligence (AI). Additional security and privacy controls are selected, implemented, assessed and monitored for organizational systems and processes that access, process, transfer or store data categorized to fall under regulatory requirements. ● Integration with enterprise risk management (ERM).
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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.
Added
Cybersecurity risk management is an integral component of our ERM program, ensuring that cybersecurity risks are aggregated and compared against other enterprise-level risks to inform strategic decision-making. ● Risk management process. Our strategic and operational risk management approach begins with risk framing activities to align the enterprise-wide cybersecurity strategy with day-to-day operations.
Removed
Assess 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.
Added
Cybersecurity risks are identified, analyzed, evaluated, communicated, and prioritized across the organization through a comprehensive assessment. Risk responses are then managed to reflect our established risk appetite, tolerance, and thresholds.
Removed
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.
Added
Ongoing monitoring of risk factors, treatment effectiveness, and compliance changes are performed to maintain continuous oversight and monitoring of acceptable risk levels consistent with our governance model. ● Threat monitoring, detection and response. Our dedicated Cybersecurity Incident Response Team (CSIRT) in conjunction with our Security Operations Center (SOC) monitors threats and vulnerabilities, investigates potential incidents, and coordinates response and remediation.
Removed
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.
Added
Our Incident Response Plan is maintained and tested to verify completeness and effectiveness of its preparation, detection and analysis, containment, eradication and recovery, as well as post-incident review stages.
Removed
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 .
Added
Incidents are risk-ranked, prioritized and escalated according to defined thresholds to members of the Incident Response Team, including executive leadership, when warranted, consisting of our CIO, our Director of Cybersecurity, and other members of the executive team to facilitate timely assessment of potential materiality and coordination of required disclosures. ● Security controls and layered defense.
Removed
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.
Added
As part of our defense in depth strategy, we operate multiple layers of frontline controls spanning network security, endpoint protection, identity and access management (including privileged access management) along with data protection and encryption safeguards.
Removed
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.
Added
In addition to these technical frontline controls, we maintain a secondary layer of defense consisting of internal control owners and functional managers who perform regular self-assessments and monitoring of control effectiveness. This dual-layered approach is further validated by periodic independent testing and internal audits.
Removed
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.
Added
These preventive layers are reinforced by comprehensive logging, detection, and response capabilities, ensuring that threats are identified and contained even if one control layer is bypassed. This layered approach strengthens our overall security posture by creating overlapping defenses that collectively reduce risk and improve resilience across the enterprise. 11 Table of Contents ● Testing, exercises, and continuous improvement.
Added
We conduct tabletop exercises for our incident response and disaster recovery activities and perform internal and external vulnerability assessments as well as penetration testing. Lessons learned from these activities are analyzed and integrated into our policies, governance, and technology through a risk-managed approach. ● Training and awareness.
Added
Mandatory, periodic security and privacy training is provided to all employees during their onboarding and employment with our organization. This training is supplemented with phishing simulations and awareness activities on an ongoing basis. ● Use of external parties.
Added
We engage external assessors, consultants, independent auditors and, as needed, outside counsel, to evaluate aspects of our cybersecurity program, controls and overall posture. This is achieved through control audits as well as testing, exercises, and continuous improvement activities. ● Supply chain security. We monitor third party service providers and suppliers through risk-based onboarding and periodic assessments.
Added
Beyond initial and periodic evaluations, we actively monitor security events and threat intelligence related to our significant third-party providers to identify potential "downstream" incidents that could impact our systems or data. Additionally, we maintain security-focused contractual requirements and conduct risk-based continuous vendor monitoring (including targeted cybersecurity assessment correlated to vendor risk level).
Added
While we have not identified any such material risks to date, we recognize that the threat landscape is constantly evolving. We remain committed to our structured approach to identifying and managing these risks as a core component of our business resilience strategy. Governance. Management’s Role . Primary responsibility for risk management, including cybersecurity risks, lies with management.

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed0 unchanged
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.
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 ​ Moneta, VA ​ 1 Avondale, AZ ​ 1 ​ Mosheim, TN ​ 1 Bartow, FL ​ 2 ​ Moultrie, GA ​ 1 Belchertown, MA ​ 1 ​ Overland Park, KS ​ 1 Bennett, IA ​ 1 ​ Ponce, Puerto Rico ​ 1 Brunswick, GA ​ 1 ​ Prairie du Chien, WI ​ 1 Callao, VA ​ 1 ​ Rancho Cucamonga, CA* ​ 1 Durango, Mexico ​ 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 ​ Spartanburg, SC ​ 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 Lackawanna, NY ​ 1 ​ 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 ​ 51 ​ ​ ​ ​ ​ ​ ​ 13 Table of Contents 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 Blue Island, IL* ​ 1 ​ Muscle Shoals, AL ​ 2 Butner, NC ​ 1 ​ Nappanee, IN ​ 1 Chandler, AZ* ​ 1 ​ New London, WI ​ 2 Clarksville, TX ​ 1 ​ Newnan, GA ​ 2 Clearfield, UT* ​ 1 ​ Orangeburg, SC ​ 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 Gilmer, TX ​ 1 ​ Robertsdale, AL ​ 1 Grand Rapids, MI ​ 1 ​ Rowesville, SC ​ 1 Grandview, TX ​ 4 ​ Salina, KS* ​ 1 Harrisonville, MO* ​ 1 ​ Salisbury, NC* ​ 1 Hartford, WI ​ 1 ​ Shawnee, OK ​ 1 Hazelhurst, GA ​ 1 ​ Shipshewana, IN ​ 1 Inwood, WV ​ 1 ​ Siler City, NC ​ 1 Kansas City, MO ​ 1 ​ Snohomish, WA* ​ 1 Las Vegas, NV ​ 1 ​ Stayton, OR* ​ 1 Lawrenceburg, TN ​ 1 ​ Thornton, CA* ​ 1 Livermore Falls, ME ​ 1 ​ Warrens, WI* ​ 1 Magna, UT* ​ 1 ​ Woodburn, OR* ​ 1 Martin, TN ​ 1 ​ Yakima, WA ​ 1 McMinnville, OR* ​ 1 ​ TOTAL ​ 61 ​ ​ ​ ​ ​ ​ ​ CONSTRUCTION SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Athena, OR ​ 1 ​ Kyle, TX ​ 1 Auburn, NY ​ 1 ​ Lafayette, CO ​ 1 Belchertown, MA ​ 1 ​ Lenoir City, TN ​ 1 Berlin, NJ ​ 2 ​ Liberty, NC ​ 1 Berthoud, CO ​ 1 ​ Locust, NC ​ 1 Blanchester, OH ​ 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 Charlotte, NC ​ 1 ​ New Waverly, TX* ​ 1 Chesapeake, VA ​ 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 ​ 1 ​ 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 ​ Temple, TX ​ 1 Gordon, PA ​ 1 ​ Tooele, UT ​ 1 Granger, IN* ​ 1 ​ Twin Falls, ID ​ 1 Haleyville, AL* ​ 1 ​ Washington, NC ​ 1 Hillsboro, TX* ​ 1 ​ Westbury, NY ​ 1 Jefferson, GA ​ 1 ​ Wilton, NH ​ 1 Jeffersonville, IN ​ 1 ​ Wujinang, China ​ 1 ​ ​ ​ ​ TOTAL ​ 59 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 14 Table of Contents ALL OTHER SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Apaseo el Grande, Mexico ​ 1 ​ Gladstone, Australia ​ 1 Bangalore, India ​ 2 ​ Guntur, India ​ 1 Carole Park, Australia ​ 1 ​ Hyderabad, India ​ 1 Castellón, Spain ​ 2 ​ Lacolle, Canada ​ 1 Chennai, India ​ 1 ​ Mordialloc, Australia ​ 1 Coimbatore, India ​ 1 ​ Noida, India ​ 1 Deer Park, Australia ​ 1 ​ Nuevo Leon, Mexico ​ 2 Durango, Mexico ​ 1 ​ Port Melbourne, Australia ​ 1 Erskine Park, Australia ​ 1 ​ Vadodara, India ​ 1 ​ ​ ​ ​ TOTAL ​ 21 ​ ​ ​ ​ ​ ​ ​ CORPORATE SEGMENT ​ ​ ​ ​ Property Location ​ Number of Properties ​ ​ ​ ​ Grand Rapids, MI ​ 2 ​ ​ ​ ​ Matthews, NC ​ 1 ​ ​ ​ ​ Bryant, AR ​ 1 ​ ​ ​ ​ TOTAL ​ 4 ​ ​ ​ ​ * 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 77 facilities which are leased. We believe all of these operating facilities are adequate in capacity and condition to service our existing markets.
We own all of our properties, free from any significant mortgage or other encumbrance, except for approximately 73 facilities which are leased. We believe all of these operating facilities are adequate in capacity and condition to service our existing markets.
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.
Item 2. Properties. Our corporate headquarters building is located in suburban Grand Rapids, Michigan. We currently have approximately 196 facilities located throughout the United States, Mexico, Canada, Spain, India and Australia. Depending upon function and location, these facilities typically utilize office, manufacturing, and indoor and outdoor storage space.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

6 edited+0 added−1 removed4 unchanged
Biggest changeThe 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.
Biggest changeThe following table lists the names, ages, and positions of our executive officers as of February 2026. ​ ​ ​ ​ ​ ​ Name ​ ​ ​ Age ​ ​ ​ Position William D. Schwartz, Jr. ​ 48 ​ President and Chief Executive Officer Matthew J. Missad ​ 65 ​ Executive Chairman of the Board Michael R.
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.
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 C. Tarvin joined us in 2002. In 2019, he was promoted to Vice President of Outdoor Essentials and in 2021, he was promoted to Vice President of Deckorators.
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.
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. 15 Table of Contents Matthew J. Missad joined us in 1985. In February 1996, Mr.
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.
Paul Guerre ​ 61 ​ 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.
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.
Cole ​ 59 ​ Chief Financial Officer, Treasurer and President of Corporate Services Patrick M. Benton ​ 56 ​ President of UFP Construction, LLC Scott A. Worthington ​ 55 ​ President of UFP Packaging, LLC Landon Tarvin ​ 45 ​ President of UFP Retail Solutions, LLC R.
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.
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. ​ 16 Table of Contents PART II
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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

6 edited+16 added−2 removed4 unchanged
Biggest changeThis 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.
Biggest changeOur 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. Further declarations of dividends and the establishment of future record and payment dates are subject to approval by our board.
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.
The graph assumes an investment of $100 on December 26, 2020, and reinvestment of dividends in all cases. 17 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.
Item 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.
Item 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 27, 2026, there were approximately 2,531 record holders of our common stock.
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. ]
On and effective as of July 23, 2025, our board authorized the repurchase of up to $300 million worth of shares of our common stock through the period ending July 31, 2026, which supersedes and replaces prior authorizations. Item 6. [RESERVED. ]
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.
Our dividend rates are typically reviewed and approved at each of our February, April, July, and October board meetings and payments are typically made in March, June, September, and December of each year.
(2) Average price paid per share. (3) Total number of shares purchased as part of publicly announced plans or programs. (4) Approximate dollar value of shares that may yet be purchased under the plans or programs.
(4) Approximate dollar value of shares that may yet be purchased under the plans or programs as of the end of the respective month.
Removed
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.
Added
On February 12, 2026, our board approved a quarterly cash dividend of $0.36 per share, which represents a 3% increase from the quarterly dividend of $0.35 per share paid in 2025. This dividend will be payable on March 16, 2026, to shareholders of record on March 2, 2026.
Removed
(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.
Added
Unregistered Sales of Equity Securities Director Compensation Plan A portion of the annual retainer payable to each of our non-employee directors (such portion for each director was $135,000 for 2025) is paid in shares of our common stock. The retainer is deemed earned in equal quarterly installments on February 1, May 1, August 1, and November 1.
Added
We use the market price per share on each such installment date (or the preceding trading day if there were no trades on that installment date) to determine the number of shares issuable to each non-employee director, and except as described below, the shares are issued to the director within five business days.
Added
We maintain a Director Compensation Plan (the “Plan”) pursuant to which non-employee directors can elect to (1) receive shares of our common stock, on a deferred basis, in lieu of all or a portion of the annual retainer payable to the director in cash (which deferred cash is used to purchase our common stock on a deferred basis at the rate of 110% of the deferred cash amount), and/or (2) defer receipt of all or a portion of the annual retainer payable to the director in the form of our common stock.
Added
Any shares of common stock issuable to a director on a deferred basis pursuant to the Plan are not actually issued until the deferred payment date specified pursuant to the Plan, which is typically after a director’s retirement from the Board.
Added
However, on the date such shares are deemed earned by the director, we issue deferred stock units (“DSUs”) to a bookkeeping account for each director to represent the shares issuable in the future pursuant to the Plan.
Added
Directors who have DSUs credited to their account pursuant to the Plan receive additional DSUs credited to their account whenever a dividend is paid on the Company’s common stock.
Added
On November 1, 2025, the Company issued 1,098 shares of its common stock to non-employee directors as part of the annual retainer payable to directors in stock (i.e., shares that were issued on a current basis and not deferred pursuant to the Plan).
Added
The Company issued all shares described in this paragraph pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933 due to the fact that the issuance of the shares was made on a private basis pursuant to the Plan. 18 Table of Contents Deferred Compensation Plan We maintain a Deferred Compensation Plan (the “DCP”) which allows key employees to defer a portion of their salary and/or cash incentive compensation.
Added
Participants in the DCP may elect to invest the deferred amounts in certain investment alternatives, including our common stock. Also, under the DCP, if a key employee’s ownership of our common stock is below certain targeted thresholds, the amount of deferral must be used to invest in shares of our common stock.
Added
All amounts deferred to the DCP that are invested in our common stock are invested at a price per share representing a 15% discount to the prevailing market price of our stock.
Added
In general, each employee receives a payout of his or her DCP account one year from the date her or she terminates employment with the Company, unless termination of employment is due to retirement, death or change in control, in which case the employee or his or her beneficiary may receive the distribution earlier, subject to DCP provisions.
Added
The Company issued all shares described in this paragraph pursuant to an exemption under Section 4(2) of the Securities Act of 1933 due to the fact that the issuance of the shares was made on a private basis pursuant to the DCP.
Added
On February 20, 2025, we issued a total of 70,528 shares to employees who elected to defer a portion of their annual incentive bonus into our common stock. In addition, shares were issued on the respective employees’ last payroll dates in each month.
Added
During the fiscal year ended December 27, 2025 we issued 43,218 shares over the course of the year to employees who elected to defer a portion of their salaries into our common stock, which were as follows: ​ ​ ​ ​ ​ ​ ​ Common stock Date issued ​ ​ ​ shares issued January 30, 2025 ​ 31 January 31, 2025 ​ 3,007 February 27, 2025 ​ 34 February 28, 2025 ​ 3,349 March 27, 2025 ​ 33 March 31, 2025 ​ 3,360 April 24, 2025 ​ 34 April 30, 2025 ​ 3,654 May 29, 2025 ​ 37 May 30, 2025 ​ 3,655 June 26, 2025 ​ 37 June 30, 2025 ​ 3,582 July 31, 2025 ​ 3,640 August 28, 2025 ​ 36 August 29, 2025 ​ 3,480 September 25, 2025 ​ 40 September 30, 2025 ​ 3,744 October 30, 2025 ​ 40 October 31, 2025 ​ 3,800 November 26, 2025 ​ 39 November 28, 2025 ​ 3,722 December 24, 2025 ​ 40 December 31, 2025 ​ 3,824 Total common stock shares issued ​ 43,218 ​ (b) Not applicable. ​ 19 Table of Contents (c) Issuer purchases of equity securities during the fourth quarter: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Month ​ ​ ​ (1) ​ ​ ​ (2) ​ ​ ​ (3) ​ ​ ​ (4) September 28 - November 1, 2025 804,516 ​ $ 91.07 804,516 $ 204,769,928 November 2 - 29, 2025 774,418 ​ ​ 90.11 774,418 ​ 134,986,695 November 30 - December 27, 2025 100,000 ​ ​ 89.98 100,000 ​ 125,989,005 ​ Note: October includes 84 shares tendered by certain employees of the Company (and repurchased by the Company) in order to satisfy their respective tax withholding obligations resulting from the vesting of restricted stock awards.
Added
The Company treats these share repurchases against its board approved share repurchase authorizations described below. (1) Total number of shares purchased. (2) Average price paid per share. (3) Total number of shares purchased as part of publicly announced plans or programs.

Item 7. Management's Discussion & Analysis

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

107 edited+36 added−27 removed36 unchanged
Biggest changeThe 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.
Biggest changeThe following tables present our operating results by segment for December 27, 2025 and December 28, 2024 (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 27, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail ​ Packaging ​ Construction ​ All Other ​ Corporate ​ Total Net sales ​ $ 2,433,556 ​ $ 1,603,723 ​ $ 2,003,785 ​ $ 271,550 ​ $ 7,729 ​ $ 6,320,343 Cost of goods sold ​ 2,087,657 ​ 1,338,247 ​ 1,645,998 ​ 212,499 ​ ​ (24,208) ​ ​ 5,260,193 Gross profit ​ ​ 345,899 ​ ​ 265,476 ​ ​ 357,787 ​ ​ 59,051 ​ ​ 31,937 ​ ​ 1,060,150 Selling, general, administrative expenses ​ ​ 218,262 ​ ​ 180,619 ​ ​ 237,949 ​ ​ 37,858 ​ ​ 16,320 ​ ​ 691,008 Net loss (gain) on disposition and impairment of assets ​ ​ 11,139 ​ ​ (2,887) ​ ​ 259 ​ ​ 3,167 ​ ​ (8,550) ​ ​ 3,128 Other losses (gains), net ​ ​ 1,398 ​ ​ — ​ ​ 265 ​ ​ 691 ​ ​ (241) ​ ​ 2,113 Earnings from operations ​ $ 115,100 ​ $ 87,744 ​ $ 119,314 ​ $ 17,335 ​ $ 24,408 ​ $ 363,901 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 26 Table of Contents The following tables present the components of our operating results as a percentage of net sales by segment for December 27, 2025 and December 28, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 27, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 85.8 ​ 83.4 ​ 82.1 ​ 78.3 ​ — ​ 83.2 ​ Gross profit ​ 14.2 ​ 16.6 ​ 17.9 ​ 21.7 ​ — ​ 16.8 ​ Selling, general, administrative expenses ​ 9.0 ​ 11.3 ​ 11.9 ​ 13.9 ​ — ​ 10.9 ​ Net loss (gain) on disposition and impairment of assets ​ 0.5 ​ (0.2) ​ — ​ 1.2 ​ — ​ — ​ Other losses (gains), net ​ 0.1 ​ — ​ — ​ 0.3 ​ — ​ — ​ Earnings from operations ​ 4.7 % 5.5 % 6.0 % 6.4 % — ​ 5.8 % Note: Actual percentages are calculated and may not sum to total due to rounding. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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) ​ — ​ — ​ (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. 27 Table of Contents NET SALES We design, manufacture and market wood and wood-alternative products, primarily used to enhance outdoor living environments sold to national home centers and other retailers; engineered wood components, structural lumber, and other products for factory-built and site-built residential and commercial construction; customized interior fixtures used in a variety of retail stores, commercial, and other structures; and structural wood packaging, components and packing materials for various industries.
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.
Among other advantages, this structure allows for a specialized and consistent sales approach, more efficient use of resources and capital, and quicker introduction of new products and services.
During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist. SHORT-TERM DEMAND OUTLOOK We believe improvements in demand in the end markets we serve and effectively executing our strategies will allow us to achieve our long-term goals below.
During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist. SHORT-TERM DEMAND AND OUTLOOK We believe improvements in demand in the end markets we serve and effectively executing our strategies will allow us to achieve our long-term goals below.
LIQUIDITY AND CAPITAL RESOURCES Our cash cycle will continue to be impacted in the future by our mix of sales by segment. Sales from our Construction and Packaging segments require a greater investment in receivables than sales to our Retail segment, while our Retail segment generally requires a greater investment in inventory.
LIQUIDITY AND CAPITAL RESOURCES Our cash cycle will continue to be impacted in the future by our mix of sales by segment. Sales from our Construction and Packaging segments generally require a greater investment in receivables than sales in our Retail segment, while our Retail segment generally requires a greater investment in inventory.
Our sales to these segments require a higher ratio of SG&A costs due, in part, to product design and engineering requirements. ● Sales of new products and value-added, branded products to the Retail segment, which generally require higher product development, marketing, advertising, and other selling costs. ● Our incentive compensation programs which are tied to gross profits, pre-bonus earnings from operations and threshold levels of return on investment. ● Our growth and success in achieving continuous improvement objectives designed to improve our productivity and leverage our fixed costs as we grow.
Our sales in these segments require a higher ratio of SG&A costs due, in part, to product design and engineering requirements. ● Sales of new and value-added product and branded products in the Retail segment, which generally require higher product development, marketing, advertising, and other selling costs. ● Our incentive compensation programs which are tied to gross profits, pre-bonus earnings from operations and threshold levels of return on investment. ● Our growth and success in achieving continuous improvement and automation objectives designed to improve our productivity and leverage our fixed costs as we grow.
LONG-TERM OUTLOOK GOALS Our long-term financial goals include: ● Growing our annual unit sales by 7 to 10 percent (including smaller tuck-in acquisitions) with at least 10 percent of all sales coming from new products; ● Achieving and sustaining a 12.5 percent EBITDA margin by continuing to enhance our capabilities and grow our portfolio and sales of value-added products, expanding geographically in our higher margin business units, and achieving operating improvements; ● Earning an incremental return on new investment over our hurdle rate; and ● Maintaining a conservative capital structure.
LONG-TERM OUTLOOK GOALS Our long-term financial goals include: ● Growing our annual unit sales by 7 to 10 percent (including smaller tuck-in acquisitions) with at least 10 percent of all sales coming from new products; ● Achieving and sustaining a 12.5 percent EBITDA margin by continuing to enhance our capabilities and grow our portfolio and sales of value-added products, expanding geographically in our higher margin business units, and achieving operating improvements; ● Earning an incremental return on new investment over our hurdle rate of 15 percent; and ● Maintaining a conservative capital structure.
We believe we have sufficient available information, both current and historical, to support our assumptions, judgments and estimates used in the goodwill impairment test. 31 Table of Contents REVENUE RECOGNITION Revenue for product sales is recognized at the time the performance obligation is satisfied, which is primarily when the goods are delivered to the carrier, Free On Board (FOB) shipping point.
We believe we have sufficient available information, both current and historical, to support our assumptions, judgments and estimates used in the goodwill impairment test. 34 Table of Contents REVENUE RECOGNITION Revenue for product sales is recognized at the time the performance obligation is satisfied, which is primarily when the goods are delivered to the carrier, Free On Board (FOB) shipping point.
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.
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 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.
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.
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.
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.
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 % As is apparent from the preceding example, the level of lumber prices does not impact our overall profits but does impact our margins.
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.
The time period limitation eventually allows us to periodically re-price our products for changes in lumber costs from our suppliers. 23 Table of Contents ● Products with selling prices indexed to the reported Lumber Market with a fixed dollar "adder" to cover conversion costs and profits.
The National Association of Home Builders forecasts a 2% decrease in manufactured home shipments from 2024 to 2025 and a 2% compounded annual growth rate through 2027. Non-residential construction spending is a market indicator that should be considered when evaluating future demand for our products in our Commercial and Concrete Forming business units within our Construction segment.
The National Association of Home Builders forecasts a 1% decrease in manufactured home shipments from 2025 to 2026 and a 1% to 2% compounded annual growth rate through 2027. Non-residential construction spending is a market indicator that should be considered when evaluating future demand for our products in our Commercial and Concrete Forming business units within our Construction segment.
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.
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 2025.
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.
The exception to this market-centered reporting and management structure is our International segment, which comprises our packaging operations in Mexico, Canada, Spain, India 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.
We believe our level of service, geographic diversity, and quality of products provides an added value to our customers. However, if our customers are unwilling to pay for these advantages, our sales and gross margins may be reduced. ● Sales mix of value-added and commodity products and our ability to sell new products.
We believe our level of service, geographic diversity, and quality of products provides an added value to our customers. However, if our customers are unwilling to pay for these advantages, our sales and gross margins may be reduced. 37 Table of Contents ● Sales mix of value-added and commodity products and our ability to sell new products.
Financial covenants on the unsecured revolving credit facility and unsecured notes include minimum interest tests and a maximum leverage ratio. The agreements also restrict the amount of additional indebtedness we may incur and the amount of assets which may be sold. We were in compliance with all our covenant requirements on December 28, 2024.
Financial covenants on the unsecured revolving credit facility and unsecured notes include minimum interest tests and a maximum leverage ratio. The agreements also restrict the amount of additional indebtedness we may incur and the amount of assets which may be sold. We were in compliance with all our covenant requirements on December 27, 2025.
We are charged a facility fee on the entire amount of the lending commitment, at a per annum rate ranging from 15.0 to 30.0 basis points, also determined based upon our performance. On December 28, 2024, we had no amount outstanding on our $750 million revolving credit facility.
We are charged a facility fee on the entire amount of the lending commitment, at a per annum rate ranging from 15.0 to 30.0 basis points, also determined based upon our performance. On December 27, 2025, we had no amount outstanding on our $750 million revolving credit facility.
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.
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 $2.2 billion at the end of December 2025.
We anticipate demand in the regions we operate to be slightly down in the first half of 2025. - The factory-built business unit accounted for 12% of our net sales in 2024. When evaluating future demand, we analyze data from production and shipments of manufactured housing.
We anticipate demand in the regions we operate to be slightly down in the first half of 2026. - The factory-built business unit accounted for 13% of our net sales in 2025. When evaluating future demand, we analyze data from production and shipments of manufactured housing.
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.
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.
Changes in these estimates may result in the recognition of an impairment loss. On our annual testing date of September 28, 2024, the fair values exceeded the carrying values for all reporting units and there were no indicators for impairment.
Changes in these estimates may result in the recognition of an impairment loss. On our annual testing date of September 27, 2025, the fair values exceeded the carrying values for all reporting units and there were no indicators for impairment.
We believe these financial ratios are among many other important factors to maintaining a strong credit profile, which in turn helps ensure timely access to capital when needed. Seasonality has a significant impact on our working capital due to our primary selling season which occurs during the period from March to September.
We believe these financial ratios are among many other important factors to maintaining a strong credit profile, which in turn helps ensure timely access to capital when needed. 32 Table of Contents Seasonality has a significant impact on our working capital due to our primary selling season occurring during the period from March to September.
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.
Our goal was to achieve annual new product sales of at least $550 million in 2025. Our short-term goal is to achieve annual new product sales of at least $560 million for 2026. On a long-term basis, our goal is for new product sales to comprise at least 10% of our total net sales.
Market indicators that should be considered when evaluating future demand for our products in the packaging segment include industrial production, durable goods manufacturing, the Purchasing Managers Index, and U.S. GDP growth.
Market indicators that should be considered when evaluating future demand for our products in the packaging segment include industrial production, durable goods manufacturing, the PMI, U.S. GDP growth, and others.
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.
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, included under Item 1A above. OVERVIEW We are pleased to present this overview of 2025.
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 .
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 ​ ​ 2025 versus 2024 ​ ​ in Sales ​ ​ ​ in Selling Prices ​ ​ ​ in Units ​ ​ ​ Acquisition Unit Change ​ ​ ​ Organic Unit Change ​ ​ ​ Retail ​ (6.3) % 0.7 % (7.0) % — % (7.0) % Packaging ​ (2.0) % (2.0) % — % 1.0 % (1.0) % Construction ​ (5.2) % (5.2) % — % — % — % All Other ​ (8.9) % 1.1 % (10.0) % — % (10.0) % Corporate ​ 35.2 % 0.2 % 35.0 % — % 35.0 % Total Sales ​ (5.0) % (2.0) % (3.0) % — % (3.0) % ● 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 .
The revolving credit facility also supports letters of credit totaling $37.3 million which includes approximately $3.3 million related to industrial development revenue bonds. As a result, we have approximately $712.7 million in remaining availability. We also had approximately $2.3 million of outstanding letters of credit that were issued outside of the revolving credit facility.
The revolving credit facility also supports letters of credit totaling $39.2 million which includes approximately $3.3 million related to industrial development revenue bonds. As a result, we have approximately $710.8 million in remaining availability. We also had approximately $1.3 million of outstanding letters of credit that were issued outside of the revolving credit facility.
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.
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. Investors are cautioned that all forward-looking statements involve risks and uncertainty.
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.
Over time, 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. This ratio also mitigates the impact of changing lumber prices.
Earnings from operations of the Construction reportable segment decreased by $67.7 million in 2024 compared to 2023, or 27.8%, due to the factors mentioned above. All Other Segment: Our All Other reportable segment consists of our International and Ardellis (our insurance captive) segments that are not significant.
Earnings from operations of the Construction reportable segment decreased by $56 million in 2025 compared to 2024, or 32%, due to the factors mentioned above. All Other Segment: Our All Other reportable segment consists of our International and Ardellis (our insurance captive) segments that are not significant.
Additionally, we anticipate sales incentives will range from 3% to 4% of gross profits and bonus expense will range from 16% to 18% of pre-bonus operating profits plus approximately $31 million associated with the vesting expense of shares granted in prior years under our bonus plan.
Additionally, we anticipate sales incentives will be 3% of gross profits (3% of gross profits in 2025) and bonus expense will range from 17% to 18% of pre-bonus operating profits (17% of pre-bonus operating profits in 2025) plus approximately $21 million associated with the vesting expense of shares granted in prior years under our bonus plan ($29 million in 2025).
Our cash flows from operations decreased by $317 million compared to last year primarily due to a $237 million decrease in our investment in net working capital compared to the prior year period and a decrease in our net earnings and non-cash expenses of $80 million.
Our cash flows from operations decreased by $97 million compared to last year primarily due to a $54 million increase in our investment in net working capital compared to the prior year period and a decrease in our net earnings and non-cash expenses of $43 million.
(See “Impact of the Lumber Market on our Operating Results.”) ● Fuel and transportation costs. 34 Table of Contents ● Rising labor and benefit costs. ● Our ability to continue to achieve productivity improvements as our unit sales increase and planned cost reductions through continuous improvement activities, automation, and other initiatives. ● Changes in the cost of complying with new or increased government regulations.
(See “Impact of the Lumber Market on our Operating Results.”) ● Fuel and transportation costs. ● Rising labor and benefit costs. ● Our ability to continue to achieve productivity improvements as our unit sales increase and planned cost reductions through continuous improvement activities, automation, and other operating improvement initiatives, including our investments to improve the manufacturing throughput and reduce the cost of our Surestone™ decking products. ● Changes in the cost of complying with new or increased government regulations.
The National Association of Home Builders and John Burns Real Estate Consulting forecast the manufactured home shipments in 2025 to be flat to slightly down. - The commercial and concrete forming business units accounted for approximately 6% of our net sales in 2024. When evaluating future demand, we analyze data from non-residential construction spending.
The National Association of Home Builders forecast the manufactured home shipments in 2026 to be flat to slightly down. - The commercial and concrete forming business units accounted for 8% of our net sales in 2025. When evaluating future demand, we analyze data from non-residential construction spending.
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.
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.
Also, our net investment in trade receivables, inventory, and accounts payable will continue to be impacted by the level of lumber prices. Additionally, we expect to spend approximately $300 million to $350 million on capital expenditures, incur depreciation of approximately $133 million, and incur amortization and other non-cash expenses of approximately $53 million in 2025.
Also, our net investment in trade receivables, inventory, and accounts payable will continue to be impacted by the level of lumber prices. 38 Table of Contents Additionally, we expect to spend approximately $300 million to $325 million on capital expenditures, incur depreciation of approximately $153 million, and incur amortization and other non-cash expenses of approximately $50 million in 2026.
We have a share repurchase program approved by our Board of Directors, and on July 24, 2024, our board authorized the repurchase of up to $200 million worth of shares of outstanding stock through July 31, 2025. As of February 19, 2025, we have approximately $191 million of remaining availability under this authorization.
We have a share repurchase program approved by our Board of Directors, and on July 23, 2025, our board authorized the repurchase of up to $300 million worth of shares of outstanding stock through July 31, 2026. As of February 25, 2026, we have approximately $125 million of remaining availability under this authorization.
With these considerations in mind, we have targeted selling, general, and administrative expenses (SG&A) totaling approximately $565 million in 2025, excluding highly variable sales incentive and bonus expenses tied to profitability and return on investment.
With these considerations in mind, we have targeted “core” selling, general, and administrative expenses (SG&A) totaling approximately $570 million in 2026, excluding highly variable sales incentive and bonus expenses tied to profitability and return on investment, compared to approximately $550 million in 2025 excluding insurance settlement gains.
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.
See “Impact of the Lumber Market on our Operating Results”. ​ ​ ​ ​ ​ ​ ​ Year Ended ​ December 27, ​ ​ ​ December 28, ​ ​ ​ ​ 2025 2024 Net sales 100.0 % 100.0 % Cost of goods sold 83.2 81.6 Gross profit 16.8 18.4 Selling, general, and administrative expenses 10.9 11.0 Net loss (gain) on disposition and impairment of assets — ​ 0.1 ​ Other losses (gains), net — (0.1) Earnings from operations 5.8 7.4 Interest and other (0.4) (0.7) Earnings before income taxes 6.2 8.1 Income taxes 1.5 1.8 Net earnings 4.7 6.3 Less net earnings attributable to noncontrolling interest — (0.1) Net earnings attributable to controlling interest 4.7 % 6.2 % Note: Actual percentages are calculated and may not sum to total due to rounding.
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.
Our overall unit sales of commodity-based products decreased approximately 3% compared to 2024. ● Developing new products . 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.
See Note H — Common Stock for discussion of future compensation costs related to long-term share-based bonus awards. On a long-term basis, we expect that our SG&A expenses will primarily be impacted by: ● Our growth in sales to the Packaging and the Construction segments.
See Note H “Common Stock” of our Consolidated Financial Statements which are presented under Item 8 below for a discussion of future compensation costs related to long-term share-based bonus awards. On a long-term basis, we expect that our SG&A expenses will primarily be impacted by: ● Our growth in sales in the Packaging and the Construction segments.
The shares were purchased at an average price of $115.69 per share, totaling $17.8 million. ● Dividends paid during 2024 totaled $81 million, reflecting a quarterly rate of $0.33 per share, a 10% increase over the prior year. ● Repayments of senior note debt of $40.0 million. ● Distributions to noncontrolling interests of $11.8 million. 30 Table of Contents As of December 6, 2022, we entered into a five-year, $750 million unsecured revolving credit facility with a syndicate of U.S. banks.
These shares were purchased at an average price of $109.83 per share, totaling $10 million. ● Dividends paid during 2025 totaled $82 million, reflecting a quarterly rate of $0.35 per share, a 6% increase over the prior year. ● Distributions to noncontrolling interests of $3 million. 33 Table of Contents As of December 6, 2022, we entered into a five-year, $750 million unsecured revolving credit facility with a syndicate of U.S. banks.
CONSTRUCTION SEGMENT The industry consensus estimate of national housing starts for 2025 is 1.36 million, with estimates generally predicting slightly positive to slightly negative growth in the coming year with single-family generally performing better than multi-family. Housing starts are projected to increase low single-digits in both 2026 and 2027.
CONSTRUCTION SEGMENT The industry consensus estimate of national housing starts for 2026 is 1.34 million, with estimates generally predicting flat to slightly negative growth in 2026 with a softer single-family and multi-family outlook. Housing starts are projected to increase low single-digits in 2027.
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.
BUSINESS COMBINATIONS AND ASSET PURCHASES We completed two business acquisitions during 2025 that had annual historical sales of approximately $24 million in aggregate. During 2024 we completed one business acquisition that had approximately $25 million in annual historical sales. These business combinations were not significant to our operating results; consequently pro forma results for 2025 and 2024 are not presented.
GROSS PROFIT As a result of more challenging market conditions, we have developed and are executing plans to reduce or eliminate capacity of locations that are not meeting our profitability targets. We anticipate these actions will improve operating profits by $14 million in 2025.
GROSS PROFIT As a result of more challenging market conditions, we continue to reduce or eliminate capacity at locations that are not meeting our profitability targets and to better align capacity with current demand. We anticipate these actions will improve operating profits by $25 million in 2026.
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.
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. Future declarations of dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.
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.
These shares were purchased at an average price of $109.83 per share, totaling $10 million. ● Our Cash and cash equivalents at the end of 2025 was $914 million compared to $1.2 billion at the end of 2024.
On February 13, 2025, our board approved a quarterly cash dividend of $0.35 per share, which represents a 6% increase from December 2024. This dividend will be payable on March 17, 2025, to shareholders of record on March 3, 2025.
On February 12, 2026, our board approved a quarterly cash dividend of $0.36 per share, which represents a 3% increase from the quarterly dividend of $0.35 per share paid in 2025. This dividend will be payable on March 16, 2026, to shareholders of record on March 2, 2026.
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.
New product sales in 2025 increased 6% compared to the prior year, primarily due to an increase in unit sales in our Deckorators business unit. Approximately $76.2 million of new product sales for 2024, while still sold, were sunset in 2025 and excluded from the table below because they no longer meet the definition above.
We currently believe overall demand in the markets we serve to be slightly down in the first half of 2025. 32 Table of Contents ● Construction segment sales accounted for 32% of our net sales in 2024. - The site-built business unit accounted for approximately 13% of our net sales in 2024. Approximately one-third of site-built customers are multifamily builders.
We currently believe overall demand in the markets we serve to be flat to slightly down in the first half of 2026. ● Construction segment sales accounted for 32% of our net sales in 2025. - The site-built business unit accounted for 11% of our net sales in 2025.
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.
See Note C “Business Combinations” of our Consolidated Financial Statements which are presented under Item 8 below 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.
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.
Earnings from operations of the Retail segment decreased in 2025 compared to 2024 by $64 million, or 36%, as a result of the factors mentioned above as well as a foreign exchange loss totaling $1 million and an increase in the net loss on disposition and impairment of assets, which was comprised of machinery and equipment impairments and losses of $11 million, lease impairment charges of $2 million and intangible asset impairment charges of $1 million, partially offset by a gain on the sale of real estate totaling $5 million.
We anticipate significant growth in our Deckorators branded products that use our patented SureStone technology. ● Fluctuations in the relative level of the Lumber Market and trends in the market price of lumber.
We anticipate significant growth in our Deckorators branded products that use our patented Surestone™ technology and believe recent investments in more efficient manufacturing capabilities will lower our costs per unit. ● Fluctuations in the relative level of the Lumber Market and trends in the market price of lumber.
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.
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 27, 2025 ​ Year Ended December 28, 2024 ​ ​ ​ ​ ​ Value-Added ​ ​ ​ Commodity-Based ​ ​ ​ Value-Added ​ ​ ​ Commodity-Based ​ ​ ​ Retail 51.8 % ​ 48.2 % 52.8 % ​ 47.2 % ​ Packaging ​ 75.4 % ​ 24.6 % ​ 75.5 % ​ 24.5 % ​ Construction ​ 81.0 % ​ 19.0 % ​ 80.5 % ​ 19.5 % ​ All Other ​ 76.1 % ​ 23.9 % ​ 76.6 % ​ 23.4 % ​ Corporate ​ 80.5 % ​ 19.5 % ​ 61.6 % ​ 38.4 % ​ Total Sales ​ 68.0 % ​ 32.0 % ​ 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. 28 Table of Contents Our overall unit sales of value-added products decreased approximately 1% in 2025 compared to 2024.
As a result of these more challenging conditions, we have developed and are executing plans to reduce or eliminate capacity of locations that are not meeting our profitability targets and reduce our SG&A costs. Our goal through these actions is to lower our cost structure and improve our operating profits by $60 million by 2026.
As a result of these more challenging conditions, we have developed and are executing plans to reduce or eliminate capacity at locations that are not meeting our profitability targets and reduce our SG&A costs.
Our cash flows from operating activities in 2024 was $643 million, which was comprised of net earnings of $419 million, $173 million of non-cash expenses, and a $51 million decrease in working capital since the end of December 2023.
Our cash flows from operating activities in 2025 were $546 million, which was comprised of net earnings of $296 million, $253 million of non-cash expenses, and a $3 million increase in working capital since the end of December 2024.
However, in the short-term, demand in our markets has contracted, primarily due to higher short and long-term interest rates, which will continue to impact our results and vary depending on the severity and duration of this cycle.
However, in the short-term, demand in our markets has contracted due to a variety of macro-economic factors, which will continue to impact our results to varying degrees depending on the severity and duration of this cycle.
The increase in our days of sales outstanding is primarily due to our Retail and Packaging segments. We continue to focus on past due account balances with customers, and the percentage of our accounts receivable that are current was 90% in 2024 compared to 91% in 2023.
The increase in our days of sales outstanding is primarily due to the UFP Edge business unit resulting from a decline in sales due to restructuring. We continue to focus on past due account balances with customers, and the percentage of our accounts receivable that are current was 90% in both 2025 and 2024.
LIQUIDITY AND CAPITAL RESOURCES The table below presents, for the periods indicated, a summary of our cash flow statement (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 28, ​ December 30, ​ ​ 2024 2023 Cash from operating activities $ 642,571 $ 959,890 Cash used in investing activities ​ (270,750) ​ (240,164) Cash used in financing activities ​ (307,120) ​ (162,860) Effect of exchange rate changes on cash ​ (7,363) ​ 5,767 Net change in cash and cash equivalents ​ 57,338 ​ 562,633 Cash, cash equivalents, and restricted cash, beginning of year ​ 1,122,256 ​ 559,623 Cash, cash equivalents, and restricted cash, end of year ​ $ 1,179,594 ​ $ 1,122,256 ​ In general, we fund our growth through a combination of operating cash flows, our revolving credit facility, and issuance of long-term notes payable at times when interest rates are favorable.
LIQUIDITY AND CAPITAL RESOURCES The table below presents, for the periods indicated, a summary of our cash flow statement (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ ​ December 27, ​ ​ ​ December 28, ​ ​ 2025 ​ 2024 Cash from operating activities ​ $ 545,737 ​ $ 642,571 Cash used in investing activities ​ (273,241) ​ (270,750) Cash used in financing activities ​ (530,143) ​ (307,120) Effect of exchange rate changes on cash ​ 3,124 ​ (7,363) Net change in all cash and cash equivalents ​ (254,523) ​ 57,338 Cash, cash equivalents, and restricted cash, beginning of period ​ 1,179,594 ​ 1,122,256 Cash, cash equivalents, and restricted cash, end of period ​ $ 925,071 ​ $ 1,179,594 In general, we fund our growth through a combination of operating cash flows, our revolving credit facility, and issuance of long-term notes.
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.
The overall decrease is a result of the decline in gross profits above which was partially offset by a $44 million decrease in selling, general, and administrative (“SG&A”) expenses. The decrease in SG&A is due to our cost reduction efforts totaling $40 million and our incentive compensation plans (bonus and sales incentives) totaling $24 million.
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.
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. As a result, our dollar sales levels (and working capital requirements) are impacted by the lumber costs of our products.
Our long-term goal is to achieve sales growth by: ● Increasing our market share of value-added products, including our Deckorators product line.
Our long-term goal is to achieve sales growth by: ● Increasing our market share of value-added products, including our Deckorators business unit, which is focused on capitalizing on the advantages of our Surestone™ technology.
Continued investment in capacity for Deckorators is expected to contribute to this increase. ● Developing new products and increasing our emphasis on product innovation and product differentiation in order to counter commoditization trends and influences. ● Acquiring businesses in core product categories when those opportunities exist. ● Adding new products and customers through strategic business acquisitions or alliances. 33 Table of Contents PACKAGING SEGMENT Our goal is to increase our sales of wood, wood alternative, and protective packaging products to a wide variety of packaging customers and manufactured wood components for OEM users.
Continued investment in capacity for Deckorators is expected to contribute to this increase. ● Developing new products and increasing our emphasis on product innovation and product differentiation in order to counter commoditization trends and influences. 36 Table of Contents ● Acquiring businesses in core product categories. ● Adding new products and customers through business acquisitions that strengthen our core business and meet our strategic objectives.
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.
We repurchased 4,498,835 shares of our common stock for $443 million, at an average price of $98.39 per share. Of this amount, 87,327 shares were repurchased in order to settle tax withholding obligations of long-term stock incentive plan participants’ awards that vested in 2025.
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.
We estimate that 13% of our total purchases for 2025 were completed under these programs. ( Please refer to the “Risk Factors” in Item 1A above for more information. ) ● Products with fixed selling prices sold under long-term supply arrangements, particularly those involving multi-family construction projects.
SG&A expenses decreased by approximately $16.6 million, or 6%, in 2024 compared to 2023. Accrued bonus expense, which varies with the overall profitability of the segment and return on investment, decreased approximately $19.6 million compared to last year and totaled approximately $45.4 million for 2024.
Accrued bonus expense, which varies with the overall profitability of the segment and return on investment, decreased approximately $10 million compared to last year and totaled approximately $36 million for 2025.
Construction Segment: Net sales from the Construction segment decreased 2% in 2024 compared to 2023 due to a 7% decrease in selling prices, partially offset by an increase in unit sales of 4% and a 1% increase due to the transfer of sales from the Retail segment.
Retail Segment: Net sales from the Retail segment decreased 6% in 2025 compared to 2024 due to a 1% increase in selling prices and a 7% decrease in units.
Conversely, we experience a substantial decrease in working capital once we move beyond our peak selling season which typically results in significant cash flows from operations in our third and fourth quarters. 29 Table of Contents Due to the seasonality of our business and the effects of the Lumber Market, we believe our cash cycle (days of sales outstanding plus days supply of inventory less days payables are outstanding) is a good indicator of our working capital management.
Due to the seasonality of our business and the effects of the Lumber Market, we believe our cash cycle (days of sales outstanding plus days supply of inventory less days payables are outstanding) is a good indicator of our working capital management.
ENVIRONMENTAL CONSIDERATIONS AND REGULATIONS See Notes to Consolidated Financial Statements, Note L, “Commitments, Contingencies, and Guarantees”. CRITICAL ACCOUNTING POLICIES In preparing our consolidated financial statements, we follow accounting principles generally accepted in the United States. These principles require us to make certain estimates and apply judgments that affect our financial position and results of operations.
ENVIRONMENTAL CONSIDERATIONS AND REGULATIONS See Note L “Commitments, Contingencies, and Guarantees” of our Consolidated Financial Statements which are presented under Item 8 below. CRITICAL ACCOUNTING POLICIES In preparing our consolidated financial statements, we follow accounting principles generally accepted in the United States.
When evaluating future demand for the segment, we analyze data such as the same-store sales growth of national home improvement retailers and forecasts of home remodeling activity. Based on this data, we currently anticipate market demand to be slightly down in the first half of 2025. ● Packaging segment sales accounted for 25% of our net sales in 2024.
Approximately 84% of our purchases of lumber are from domestic sources. ● Retail segment sales accounted for 39% of our net sales in 2025. When evaluating future demand for the segment, we analyze data such as the same-store sales growth of national home improvement retailers and forecasts of home remodeling activity.
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.
We will opportunistically increase repurchases of our stock when the price reaches a pre-determined level that we believe represents an attractive investment. 21 Table of Contents HISTORICAL LUMBER PRICES The following table presents the Random Lengths framing lumber composite price. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Random Lengths Composite ​ ​ Average $/MBF ​ ​ ​ ​ 2025 ​ ​ ​ 2024 January ​ $ 434 ​ $ 398 February ​ 442 ​ 389 March ​ 479 ​ 416 April ​ 485 ​ 403 May ​ 453 ​ 377 June ​ 431 ​ 382 July ​ 426 ​ 363 August ​ 433 ​ 386 September ​ 384 ​ 398 October ​ ​ 380 ​ ​ 405 November ​ ​ 381 ​ ​ 442 December ​ ​ 367 ​ ​ 436 ​ ​ ​ ​ ​ ​ ​ Annual average ​ $ 425 ​ $ 400 ​ ​ ​ ​ ​ ​ ​ Annual percentage change ​ 6.3 % ​ ​ In addition, a Southern Yellow Pine (“SYP”) composite price, which we prepare and use, is presented below.
Consequently, our working capital increases during our first and second quarters resulting in negative or modest cash flows from operations during those periods.
Consequently, our working capital increases during our first and second quarters resulting in negative or modest cash flows from operations during those periods. Conversely, we experience a substantial decrease in working capital once we move beyond our peak selling season which typically results in significant cash flows from operations in our third and fourth quarters.
Our judgments regarding the existence of impairment are based on market conditions, operational performance and estimated future cash flows. Determining whether an impairment has occurred requires the valuation of the respective reporting unit, which we have consistently estimated using primarily a weighted average between income and market valuation approaches.
Determining whether an impairment has occurred requires the valuation of the respective reporting unit, which we have consistently estimated using primarily a weighted average between income and market valuation approaches. We believe this approach is the most appropriate and accurate method to measure the fair value of our intangible assets.
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.
Packaging Segment: Net sales from the Packaging segment decreased 2% in 2025 compared to 2024 due to a 2% decrease in selling prices, and a 1% decrease in organic unit sales, partially offset by an acquired business which contributed 1% to unit growth. The decrease in prices is primarily due to competitive price pressure.
The industry consensus estimate of national housing starts for 2025 is 1.36 million, with estimates generally predicting slightly positive to slightly negative growth in the coming year with single-family generally performing better than multi-family.
Our sales mix of single-family and multi-family homes builders is approximately 70% and 30%, respectively. The industry consensus estimate of national housing starts for 2026 is 1.34 million, with estimates generally predicting flat to slightly negative growth in the coming year with a softer single-family outlook more than offsetting an improving multi-family outlook.
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.
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 27, ​ December 28, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Units sold (3.0) % ​ (1.0) % Gross profit ​ (13.6) ​ ​ (13.5) ​ Selling, general, and administrative expenses ​ (6.0) ​ ​ (4.1) ​ Earnings from operations ​ (26.1) ​ ​ (23.9) ​ 24 Table of Contents The results above reflect the impact of generally weaker demand across most of the end markets we serve as well as more competitive pricing and higher material costs for most of 2025.
INTEREST AND INVESTMENT INCOME Interest and investment income increased by $20.6 million in 2024 compared to 2023 due to the increase in cash and a higher interest rate on those deposits. INCOME TAXES Effective tax rates differ from statutory federal income tax rates, primarily due to provisions for state and local income taxes, and permanent tax differences.
INCOME TAXES Effective tax rates differ from statutory federal income tax rates, primarily due to provisions for state and local income taxes, and permanent tax differences. Our effective tax rate was 24.5% in 2025 compared to 22.5% in 2024.
The decline in gross profit is attributable to competitive price pressure due to lower demand as well as lower unit sales and resulting unfavorable cost variances due to fixed manufacturing costs. ● The gross profit of our PalletOne business unit decreased by $26.7 million primarily due to competitive price pressure which more than offset the favorable impact from unit sales growth. ● The gross profit of our protective packaging business unit decreased by $3.7 million due to a decline in unit sales and fixed manufacturing costs resulting in unfavorable cost variances.
The decline in gross profit is attributable to competitive price pressure as we continue to execute our strategy to gain market share. ● The gross profit of our Structural Packaging business unit decreased by $15 million primarily due to lower unit sales and competitive price pressure due to lower demand. ● The gross profit of our Protective Packaging business unit decreased by $4 million due to fixed manufacturing costs resulting in unfavorable cost variances related to new greenfield locations which more than offset the sales increase resulting from increased prices and unit sales. 30 Table of Contents SG&A expenses within the Packaging segment decreased by approximately $11 million, or 6%, in 2025 compared to 2024.
SG&A expenses decreased by approximately $27.6 million, or 13%, in 2024 compared to 2023. Accrued bonus expense, which varies with the overall profitability and return on investment of the segment, decreased approximately $22.8 million, and totaled approximately $31.1 million for 2024.
Accrued bonus varies with the overall profitability and return on investment of the segment, and totaled approximately $29 million for 2025. Earnings from operations of the Packaging segment decreased by $15 million in 2025, or 15%, compared to 2024 due to the factors discussed above.
As indicated in the table below, our cash cycle decreased to 60 days in 2024 from 63 days in 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 28, ​ December 30, ​ ​ ​ 2024 ​ 2023 ​ Days of sales outstanding ​ 35 ​ 33 Days supply of inventory ​ 38 ​ 41 ​ Days of payables outstanding ​ (13) ​ (11) ​ Days in cash cycle ​ 60 ​ 63 ​ The decrease in our days supply of inventory in 2024 is due to improvements in inventory turns in our Construction and Packaging segments.
As indicated in the table below, our cash cycle increased to 63 days in 2025 from 60 days in 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 27, ​ December 28, ​ ​ ​ 2025 ​ 2024 ​ Days of sales outstanding ​ ​ ​ ​ 36 ​ ​ ​ ​ 35 ​ ​ ​ Days supply of inventory ​ 40 ​ 38 ​ Days of payables outstanding ​ (13) ​ (13) ​ Days in cash cycle ​ 63 ​ 60 ​ The increase in our days supply of inventory in 2025 is due to additional safety stock inventory resulting from anticipated supply chain disruptions and new stocking programs in the Deckorators business unit.

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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 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
Biggest changeExpected cash flows over the next five years related to debt instruments, excluding debt issuance costs, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($US equivalents, in thousands) 2026 ​ ​ ​ 2027 ​ ​ ​ 2028 ​ ​ ​ 2029 ​ ​ ​ 2030 ​ ​ ​ Thereafter ​ ​ ​ Total Long-term Debt: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed Rate ($US) $ 200 $ 217 $ 40,235 $ 255 $ 35,093 ​ $ 150,000 $ 226,000 Average interest rate 8.45 % 8.45 % 4.25 % 2.10 % ​ 4.29 % 3.09 % ​ ​ Variable Rate ($US) $ 698 $ — $ — ​ $ 3,300 ​ $ — ​ $ — $ 3,998 Average interest rate (1) 8.45 % ​ — % ​ — % ​ 2.65 % — % — % ​ ​ (1) Average of rates at December 27, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 39 Table of Contents
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.
On December 27, 2025, the estimated fair value of our long-term debt, including the current portion, was $210.1 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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