Lumber products maker UFP Industries expects 2026 demand to be at lower end of guidance

Overview

• U.S. wood products maker's Q1 sales fell 8%, missing analyst expectations

• Diluted EPS dropped to $0.89 from $1.30, pressured by weaker residential construction market and higher costs

• Company completed $56 mln acquisition and repurchased $30 mln of shares after quarter end

Outlook

• Company expects 2026 demand to be at the lower end of prior guidance

• Input costs, mainly energy and transportation, expected to remain a headwind in 2026

• Company expects stabilization in non-residential markets to offset weakness in residential construction

Result Drivers

• WEAKER RESIDENTIAL CONSTRUCTION - Co said earnings were primarily impacted by a weaker residential construction market, adverse weather, and higher healthcare and fuel costs

• DECLINE IN ORGANIC UNITS - Co attributed 7% decline in organic units and 1% decrease in price to Q1 sales drop

• SEGMENT-SPECIFIC WEAKNESS - Co cited unfavorable winter weather, absence of storm-related demand, and soft demand due to economic uncertainty and housing affordability as drivers of lower unit sales in key segments

Company press release: ID:nPn8LF8Lba

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the forest & wood products peer group is "buy."

• Wall Street's median 12-month price target for UFP Industries Inc is $110.00, about 14.9% above its April 28 closing price of $95.75

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.