UFP Q2 sales see decline

UFP Industries, Inc. reported a 30% decrease in net sales for the second quarter, amounting to $2.04 billion. This decline was primarily attributed to a 22% drop in prices and an 8% decrease in organic unit sales.

Sales of new products saw a reduction of 9%, totaling $184 million. The decrease was largely influenced by the company's decision to lower lumber prices, which impacted customer costs. Despite this, new product sales as a percentage of total sales increased from 7% in 2022 to 9%.

The diluted EPS for the quarter were $2.36, marking a 27% decrease in comparison to the previous year. Adjusted EBITDA decreased by 27% to $234 million. However, the adjusted EBITDA margin saw a slight improvement, rising to 11.5% from 11% in 2022.

Within its divisions, UFP Retail Solutions witnessed a decline of 18% in net sales, amounting to $920 million, while UFP Packaging experienced a 28% decrease, with net sales totaling $488 million. These figures are in comparison to the second quarter of 2022.