UFP Industries, Inc. (UFPI) announced net sales of $1.5 billion, net earnings attributable to controlling interest of $103 million, and earnings per diluted share of $1.62 for the Q4 2023. Net sales decreased 20% due to a 10% decrease in prices and a 10% decrease in organic unit sales. The organic unit growth decline was due, in part, to the impact of one less week of operating activity in the Q4 2023, which resulted in a 6% unit decline.
Q4 2023 earnings from operations of $124 million decreased 26%.
Q4 2023 Adjusted EBITDA of $166 million decreased 22%, and adjusted EBITDA margin declined 20 basis points to 10.9%.
Fiscal 2023 Highlights
Net sales of $7.2 billion decreased 25% from the record year of 2022 due to a 16% decrease in prices and a 9% decline in organic unit sales. Higher-margin, value-added product sales improved to 68% of total sales, up from 63% in 2022.
Earnings from operations of $647 million decreased 32%.
Adjusted EBITDA of $810 million decreased 26%. Adjusted EBITDA margin declined 20 basis points to 11.2%.
“Our teammates produced solid results in 2023 and built the foundation for future growth in sales and profits,” said Chairman and CEO Matthew J. Missad. “Our operating margins and robust cash flow continue to surpass historic levels and allow us to remain on offense. We have the capital to make significant investments to grow, both organically and through acquisitions, while continuing to enhance our value-added product offering. This gives us the confidence to raise our long-term targets for growth and profitability.”
“As we look to 2024, we expect market conditions to remain challenging in the first half of the year before improving in the second half,” Missad added. “We are committed to make each aspect of our business better as we work toward greater efficiencies, lower costs and more innovative products and services. The team’s commitment to winning contributed greatly to our success in 2023 and positions us well for the future.”
UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide.
