GRAND RAPIDS, Mich., July 29, 2026 /PRNewswire/ -- UFP Industries, Inc. (NASDAQ:UFPI) a leading manufacturer focused on delivering value-added products across its Retail, Packaging, and Construction segments reported results for the second quarter 2026.

Net Sales of $1.88 billion increased by 3 percent compared to $1.84 billion a year ago due to a 1 percent increase in organic units (excluding growth from acquisitions within the last 12 months) and a 2 percent increase due to acquisitions.
Diluted earnings per share of $1.48 compared to $1.70 a year ago, and Net Earnings Attributable to Controlling Interests of $83 million compared to $101 million a year ago. Earnings were primarily impacted by higher freight costs while a weaker residential construction market was offset by improvements in other business units.
Adjusted EBITDA¹ was $154.5 million in the quarter, or 8.2 percent of net sales compared to $174.1 million, or 9.5 percent of net sales a year ago, as transportation costs increased by 1.6 percent as a percent of net sales.
Cash flows from operating activities in the first six months of 2026 was $61 million. Cash used to invest in seasonal working capital requirements during the first six months totaled almost $170 million and is expected to be converted to cash by the beginning of the fourth quarter. Free cash flow¹ of $198 million for the first six months of 2026 was used to repurchase nearly $142 million of our shares.

Will Schwartz, President and CEO of UFP Industries, commented, "As we've discussed in prior quarters, we are seeing stabilization across the majority of our portfolio, and we believe our second quarter results reflect the progress we have made to strengthen our business and structurally improve our operations. The business environment remains challenging with geopolitical tensions, a weak housing market, rising input costs, and most recently, elevated transportation costs. We are actively managing these short-term disruptions while investing in initiatives that will improve our margin profile and drive above-market growth over the long term. We remain focused on the factors under our control and we are on track to deliver the remaining $25 million or more from our initial $60 million cost out program by year end. We also continue to strengthen our core businesses through organic investments and strategic M&A, positioning the company for long-term growth and returns as markets recover."

Schwartz continued, "Our balanced approach to our business has helped us navigate this uncertain environment while driving strong performance relative to market conditions. We continue to invest strategically by expanding geographically, improving operational efficiencies, and introducing innovative value-added products. To that point, the investments we've made to grow our Surestone products helped sales increase 37 percent from year ago levels, and our backlog remains robust. We also completed three acquisitions in the quarter that complement our core business and our M&A pipeline remains active. We will continue to make these investments in a targeted manner, while returning more of our free cash flow to shareholders through dividends and share repurchases. With $1.9 billion in liquidity at quarter end, we are confident in our ability to create shareholder value through prudent capital allocation."


¹	Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.

Second Quarter 2026 Highlights

UFP Consolidated


(In thousands)	Quarter Period								Year to Date
	2026			2025			% Change		2026			2025			% Change
Net sales	$	1,882,937		$	1,835,374		2.6	%	$	3,344,204		$	3,430,893		(2.5)	%
Net earnings		83,171			100,871		(17.5)			134,268			180,294		(25.5)
Net margin		4.4	%		5.5	%				4.0	%		5.3	%
Adjusted EBITDA		154,480			174,147		(11.3)			265,836			316,298		(16.0)
Adjusted EBITDA margin		8.2	%		9.5	%				7.9	%		9.2	%

Percentage change in net sales:
Organic units		1	%							(3)	%
Acquisitions		2								1
Selling prices		—								—

Net sales increased 3 percent in the quarter, driven primarily by acquisitions, as well as organic volume improvements in our Deckorators, Structural Packaging, Protective Packaging, Concrete Forming, and Commercial business units.
Freight costs as a percent of net sales have increased by 1.6 percent, or $27 million, net of fuel surcharges and price adjustments, compared to year ago levels. The increase was driven by higher market-based transportation rates as a result of tightening industry capacity and elevated fuel costs. Freight spot rates rose over 30 percent during the quarter, surpassing the rate of increase experienced during the COVID period, before stabilizing at an elevated level toward the end of the quarter. Industry-wide changes resulted in constrained carrier capacity, as smaller carriers have exited the market, which contributed to the higher rates.
New product sales were 8.4 percent of total net sales compared to 6.5 percent a year ago, highlighting continued progress in expanding the portfolio of higher value-added products.

UFP Retail


(In thousands)	Quarter Period								Year to Date
	2026			2025			% Change		2026			2025			% Change
Net sales	$	818,743		$	788,224		3.9	%	$	1,349,919		$	1,395,607		(3.3)	%
Net earnings		37,018			41,128		(10.0)			55,690			61,791		(9.9)
Net margin		4.5	%		5.2	%				4.1	%		4.4	%
Adjusted EBITDA		63,934			63,978		(0.1)			98,766			99,827		(1.1)
Adjusted EBITDA margin		7.8	%		8.1	%				7.3	%		7.2	%

Percentage change in net sales:
Organic units		(1)	%							(6)	%
Acquisitions		2								1
Selling prices		3								2

ProWood organic unit sales declined 1 percent in the quarter from year ago levels, reflecting weaker consumer sentiment amid continued macroeconomic and geopolitical uncertainty. However, there have been favorable impacts from volume since the first quarter of 2026, reflecting gradually improving demand.
Deckorators' organic unit sales grew 9 percent in the quarter from year ago levels. Our Surestone decking sales increased 37 percent and our traditional wood plastic composite decking increased 85 percent, partially offset by railings which declined 17 percent, from the same quarter a year ago. Our current backlog of ordered but unshipped Surestone decking is approximately $30 million as we continue to make progress optimizing capacity. The MoistureShield acquisition contributed a 51 percent increase in wood plastic composite decking sales.
UFP Edge organic unit sales declined 17 percent due to the closure of the Bonner facilities at the end of 2025 and rationalizing the product portfolio to those that can achieve profitability targets.
Adjusted EBITDA was unchanged in the quarter from year ago levels primarily due to higher transportation costs that were $17 million higher than last year. In the quarter, we were able to offset these headwinds through improved gross profits in Prowood from more favorable lumber price trends, UFP Edge from the restructuring of this business unit, and Deckorators primarily from favorable increases in volume.

UFP Packaging


(In thousands)	Quarter Period								Year to Date
	2026			2025			% Change		2026			2025			% Change
Net sales	$	458,245		$	428,669		6.9	%	$	852,338		$	838,677		1.6	%
Net earnings		11,315			20,633		(45.2)			22,974			37,550		(38.8)
Net margin		2.5	%		4.8	%				2.7	%		4.5	%
Adjusted EBITDA		27,933			38,796		(28.0)			55,723			73,841		(24.5)
Adjusted EBITDA margin		6.1	%		9.1	%				6.5	%		8.8	%

Percentage change in net sales:
Organic units		4	%							-	%
Acquisitions		4								3
Selling prices		(1)								(1)

Structural Packaging organic unit sales grew 8 percent in the quarter compared to year ago levels.
PalletOne organic unit sales declined 3 percent in the quarter from year ago levels due to weaker demand, which was offset by a 12 percent contribution from acquisitions.
Protective Packaging organic unit sales increased 15 percent in the quarter from a year ago levels as a result of the Jeffersonville, Indiana facility, which became fully operational in the third quarter of 2025.
Adjusted EBITDA declined 28 percent in the quarter from year ago levels primarily due to higher transportation costs in each business unit, lower gross profits in PalletOne, and startup costs associated with new greenfield locations in Protective Packaging.

UFP Construction


(In thousands)	Quarter Period								Year to Date
	2026			2025			% Change		2026			2025			% Change
Net sales	$	526,777		$	551,590		(4.5)	%	$	992,290		$	1,067,530		(7.0)	%
Net earnings		19,631			27,563		(28.8)			31,354			49,507		(36.7)
Net margin		3.7	%		5.0	%				3.2	%		4.6	%
Adjusted EBITDA		36,045			45,480		(20.7)			61,732			82,790		(25.4)
Adjusted EBITDA margin		6.8	%		8.2	%				6.2	%		7.8	%

Percentage change in net sales:
Organic units		(2)	%							(4)	%
Acquisitions		1								1
Selling prices		(3)								(4)

Site Built organic unit sales declined 3 percent in the quarter from year ago levels reflecting softer demand driven by affordability challenges and economic uncertainty, which resulted in lower housing starts.
Factory Built organic unit sales declined 6 percent in the quarter from year ago levels due to the loss of lower margin commodity sales, partially offset by a 1 percent contribution from acquisitions. Industry production has declined by 8 percent.
Concrete Forming Solutions' organic unit sales grew 6 percent in the quarter from year ago levels driven by market share gains associated with value-added product sales.
Commercial organic sales grew 11 percent in the quarter from year ago levels as overall demand has improved and as the business unit continues to gain market share.
Adjusted EBITDA declined 21 percent in the quarter from year ago levels primarily due to lower gross profits in Site Built from macroeconomic pressures and competitive pricing, partially offset by improved gross profits in Commercial and Concrete Forming.

Capital Structure, Leverage and Liquidity Information

UFP Industries maintains a strong balance sheet and as of June 27, 2026, had liquidity of approximately $1.9 billion consisting of over $597 million of Cash and cash equivalents and $1.3 billion of remaining availability under its revolving credit facility and a shelf agreement with certain lenders. The company's return-focused approach to capital allocation includes the following:

Organic Growth. The company invests in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. The company expects to invest approximately $175 million to $200 million on capital projects for the balance of 2026.
Acquisitions and Inorganic Growth. During the second quarter, the company closed three transactions, expanding production capacity and expanding its geographic reach in its core businesses.
- On April 6, 2026, the company acquired the operating assets of the composite decking manufacturing facility of MoistureShield, Inc., a leading player in the growing wood plastic composite industry, for $55 million in cash. The acquisition expands our manufacturing capacity to meet the growing demand for our Deckorators product offering. In 2025, MoistureShield had sales of approximately $50 million.
- On May 4, 2026, the company acquired the operating assets of John Rock, Inc., a leading manufacturer of new pallets, for $47 million in cash. In 2025, John Rock had sales of approximately $86 million.
- On May 18, 2026, the company acquired the operating assets of Berry Pallets, Inc., a wood pallet manufacturer, for $20 million in cash. In 2025, Berry Pallets had sales of approximately $23 million.
Dividend Payments. On July 22, 2026, the Board declared a quarterly cash dividend of $0.36 per share. This dividend is payable on September 15, 2026, to shareholders of record on September 1, 2026. The per share cash dividend amount represents a 3% increase from the 2025 dividend rate. We continue to consider our payout ratio and yield when determining the appropriate dividend rate and have a long-term objective of increasing our dividend in line with our future earnings and free cash flow growth.
Share Repurchases. During the first six months of 2026, we repurchased a total of 1,669,770 shares for $141.8 million, at an average share price of $84.95. On May 29, 2026, our board authorized a new repurchase plan for up to $300 million worth of our shares through April 30, 2027. This authorization supersedes and replaces our prior authorizations. As of July 29, 2026, approximately $273 million remain available under this latest repurchase authorization.

2026 Outlook and Long-Term Targets

Our full year 2026 outlook remains unchanged. We continue to expect overall demand for the balance of the year to be toward the lower end of our prior guidance of flat to slightly down unit expectations in each of our segments based on our sales mix. Input costs, primarily energy and transportation, are expected to remain elevated, and while we have mechanisms to offset these costs, we expect recovery to be gradual through the remainder of the year. Demand tied to new residential construction is expected to remain challenging, while stabilization across most other end markets should partially offset that pressure. Despite these conditions, we believe we are positioned to perform better than our markets through share gains across our portfolio and continued execution of our cost-out program. In addition, initial stocking orders, upgraded manufacturing capacity, and expanded distribution are expected to support continued momentum in our Deckorators' Surestone business.

The company's long-term goals remain unchanged and include: 1) achieving 7-10 percent unit sales growth annually (including bolt-on acquisitions) with at least 10 percent of all sales coming from new products; 2) achieving 12.5 percent adjusted EBITDA margins; 3) earning an incremental return on new investments over our hurdle rate; and 4) maintaining a conservative capital structure.

Conference Call

UFP Industries will host a conference call on Thursday, July 30, 2026, to discuss these results and outlook. The conference call will begin at 10:00 a.m. Eastern Time and will be hosted by CEO Will Schwartz and CFO Michael Cole. Interested investors can access the webcast directly with this link (here). A replay of the call will be available through the UFP Investor Relations website at www.ufpinvestor.com for at least 90 days following the call.

UFP Industries, Inc.

UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. For more about UFP Industries, go to www.ufpi.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "likely," "plans," "projects," "should," variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does 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. 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 or unusual weather conditions; adverse economic conditions in the markets we serve; changes in tariffs, import/export regulations, and other trade policies; concentration of sales to customers; the success of vertical integration strategies; excess capacity or supply chain challenges; inbound and outbound transportation costs; alternatives to replace treated wood products; government regulations, particularly involving environmental and safety regulations; our ability to make successful business acquisitions; cybersecurity breaches; and potential pandemics. Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.

Non-GAAP Financial Information

This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management uses Adjusted EBITDA and Free cash flow, non-GAAP financial measures, in order to evaluate historical and ongoing operations. Management believes that these non-GAAP financial measures are useful in order to enable investors to perform meaningful comparisons of historical and current performance. Adjusted EBITDA and Free cash flow are intended to supplement and should be read together with the financial results. Adjusted EBITDA and Free cash flow should not be considered alternatives or substitutes for, and should not be considered superior to, the reported financial results. Accordingly, users of this financial information should not place undue reliance on the non-GAAP financial measures. See the table below for a reconciliation of Net earnings to Adjusted EBITDA and a reconciliation of Cash flow from operations to Free cash flow.

Adjusted EBITDA margin is a non-GAAP financial measure. In calculating adjusted EBITDA, we make certain adjustments, including for share-based compensation expense, net gains or losses on the disposition and impairment of assets, and impairment of intangible assets. The most directly comparable GAAP financial measure is net earnings as a percentage of net sales (net margin). For the six months ended June 27, 2026, our net margin was 4.0 percent, and our adjusted EBITDA margin, calculated as described above, was 7.9 percent. We have not provided a quantitative reconciliation of the forward-looking adjusted EBITDA margin target to the most directly comparable GAAP measure because certain reconciling items and certain discrete tax items cannot be reasonably predicted due to the long-term nature of this target and the inherent variability and uncertainty of such items. These items could individually or in the aggregate be significant to the difference between adjusted EBITDA margin and the comparable GAAP measure.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND
COMPREHENSIVE INCOME (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED
JUNE 2026/2025

	Quarter Period								Year to Date
(In thousands, except per share data)	2026				2025				2026				2025
Net sales	$	1,882,937	100.0	%	$	1,835,374	100.0	%	$	3,344,204	100.0	%	$	3,430,893	100.0	%
Cost of sales		1,592,702	84.6			1,522,640	83.0			2,818,080	84.3			2,849,963	83.1
Gross profit		290,235	15.4			312,734	17.0			526,124	15.7			580,930	16.9

Operating expenses
Selling, general and administrative expenses		185,720	9.9			184,995	10.1			358,603	10.7			361,249	10.5
Net loss (gain) on disposition and impairments of assets		302	—			3,830	0.2			(1,350)	—			3,754	0.1
Other losses, net		797	—			818	—			1,374	—			584	—
Total operating expenses		186,819	9.9			189,643	10.3			358,627				365,587

Earnings from operations		103,416	5.5			123,091	6.7			167,497	5.0			215,343	6.3

Interest and other		(9,446)	(0.5)			(8,854)	(0.5)			(12,309)	(0.4)			(17,283)	(0.5)

Earnings before income taxes		112,862	6.0			131,945	7.2			179,806	5.4			232,626	6.8
Income taxes		29,691	1.6			31,074	1.7			45,538	1.4			52,332	1.5
Net earnings		83,171	4.4			100,871	5.5			134,268	4.0			180,294	5.3

Less net earnings attributable to noncontrolling interest		(299)	—			(137)	—			(622)	—			(807)	—

Net earnings attributable to controlling interest	$	82,872	4.4		$	100,734	5.5		$	133,646	4.0		$	179,487	5.2

Earnings per share - basic	$	1.48			$	1.70			$	2.38			$	2.99

Earnings per share - diluted	$	1.48			$	1.70			$	2.37			$	2.99

Comprehensive income	$	82,922			$	112,609			$	133,116			$	195,213

Less comprehensive income attributable to noncontrolling interest		(825)				(1,754)				(1,083)				(2,391)

Comprehensive income attributable to controlling interest	$	82,097			$	110,855			$	132,033			$	192,822

CONDENSED CONSOLIDATED STATEMENTS
OF EARNINGS BY SEGMENT (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 2026/2025

	Quarter Period 2026
(In thousands)	Retail		Packaging		Construction		All Other		Corporate		Total
Net sales	$	818,743	$	458,245	$	526,777	$	76,927	$	2,245	$	1,882,937
Cost of sales		704,096		397,886		436,449		64,058		(9,787)		1,592,702
Gross profit		114,647		60,359		90,328		12,869		12,032		290,235
Selling, general and administrative expenses		62,717		45,580		63,930		10,088		3,405		185,720
Net loss (gain) on disposition and impairments of assets		1,780		106		37		74		(1,695)		302
Other losses, net		404		—		129		243		21		797
Earnings from operations		49,746		14,673		26,232		2,464		10,301		103,416
Interest and other		(368)		(818)		(397)		(5,413)		(2,450)		(9,446)
Earnings before income taxes		50,114		15,491		26,629		7,877		12,751		112,862
Income taxes		13,096		4,176		6,998		1,663		3,758		29,691
Net earnings	$	37,018	$	11,315	$	19,631	$	6,214	$	8,993	$	83,171

	Quarter Period 2025
(In thousands)	Retail		Packaging		Construction		All Other		Corporate		Total
Net sales	$	788,224	$	428,669	$	551,590	$	65,026	$	1,865	$	1,835,374
Cost of sales		674,484		358,087		451,401		51,789		(13,121)		1,522,640
Gross profit		113,740		70,582		100,189		13,237		14,986		312,734
Selling, general and administrative expenses		58,642		43,148		63,727		10,398		9,080		184,995
Net loss (gain) on disposition and impairments of assets		1,083		1,225		211		2,616		(1,305)		3,830
Other losses (gains), net		536		—		191		302		(211)		818
Earnings from operations		53,479		26,209		36,060		(79)		7,422		123,091
Interest and other		(54)		(795)		—		(2,512)		(5,493)		(8,854)
Earnings before income taxes		53,533		27,004		36,060		2,433		12,915		131,945
Income taxes		12,405		6,371		8,497		419		3,382		31,074
Net earnings	$	41,128	$	20,633	$	27,563	$	2,014	$	9,533	$	100,871

CONDENSED CONSOLIDATED STATEMENTS
OF EARNINGS BY SEGMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 2026/2025


	Year to Date 2026
(In thousands)	Retail		Packaging		Construction		All Other		Corporate		Total
Net sales	$	1,349,919	$	852,338	$	992,290	$	145,432	$	4,225	$	3,344,204
Cost of sales		1,154,710		731,631		824,345		120,840		(13,446)		2,818,080
Gross profit		195,209		120,707		167,945		24,592		17,671		526,124
Selling, general and administrative expenses		118,763		90,783		125,756		19,066		4,235		358,603
Net loss (gain) on disposition and impairments of assets		1,848		(64)		50		75		(3,259)		(1,350)
Other losses, net		459		—		552		349		14		1,374
Earnings from operations		74,139		29,988		41,587		5,102		16,681		167,497
Interest and other		(438)		(778)		(400)		(7,233)		(3,460)		(12,309)
Earnings before income taxes		74,577		30,766		41,987		12,335		20,141		179,806
Income taxes		18,887		7,792		10,633		2,567		5,659		45,538
Net earnings	$	55,690	$	22,974	$	31,354	$	9,768	$	14,482	$	134,268

	Year to Date 2025
(In thousands)	Retail		Packaging		Construction		All Other		Corporate		Total
Net sales	$	1,395,607	$	838,677	$	1,067,530	$	125,324	$	3,755	$	3,430,893
Cost of sales		1,200,572		698,521		876,541		101,455		(27,126)		2,849,963
Gross profit		195,035		140,156		190,989		23,869		30,881		580,930
Selling, general and administrative expenses		113,997		90,917		126,511		18,860		10,964		361,249
Net loss (gain) on disposition and impairments of assets		1,107		1,257		331		2,616		(1,557)		3,754
Other losses (gains), net		318		—		271		248		(253)		584
Earnings from operations		79,613		47,982		63,876		2,145		21,727		215,343
Interest and other		(114)		(467)		(1)		(3,459)		(13,242)		(17,283)
Earnings before income taxes		79,727		48,449		63,877		5,604		34,969		232,626
Income taxes		17,936		10,899		14,370		1,088		8,039		52,332
Net earnings	$	61,791	$	37,550	$	49,507	$	4,516	$	26,930	$	180,294

RECONCILIATION OF NET EARNINGS TO
ADJUSTED EBITDA BY SEGMENT (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 2026/2025

	Quarter Period 2026
(In thousands)	Retail		Packaging		Construction		All Other		Corporate		Total
Net earnings	$	37,018	$	11,315	$	19,631	$	6,214	$	8,993	$	83,171
Interest and other		(368)		(818)		(397)		(5,413)		(2,450)		(9,446)
Income taxes		13,096		4,176		6,998		1,663		3,758		29,691
Expenses associated with share-based compensation arrangements		1,582		1,745		2,462		117		1,092		6,998
Net loss (gain) on disposition and impairments of assets		1,780		106		(14)		74		(1,695)		251
Impairment of intangibles		—		—		51		—		—		51
Depreciation expense		9,907		9,308		6,640		853		11,573		38,281
Amortization of intangibles		919		2,101		674		1,673		116		5,483
Adjusted EBITDA	$	63,934	$	27,933	$	36,045	$	5,181	$	21,387	$	154,480

Net earnings as a percentage of net sales		4.5 %		2.5 %		3.7 %		8.1 %		*		4.4 %

Adjusted EBITDA as a percentage of net sales		7.8 %		6.1 %		6.8 %		6.7 %		*		8.2 %
* Not meaningful

	Quarter Period 2025
(In thousands)	Retail		Packaging		Construction		All Other		Corporate		Total
Net earnings	$	41,128	$	20,633	$	27,563	$	2,014	$	9,533	$	100,871
Interest and other		(54)		(795)		—		(2,512)		(5,493)		(8,854)
Income taxes		12,405		6,371		8,497		419		3,382		31,074
Expenses associated with share-based compensation arrangements		867		1,617		2,175		174		3,976		8,809
Net loss (gain) on disposition and impairments of assets		1,083		1,225		211		2,616		(1,305)		3,830
Gain from reduction of estimated earnout liability		—		(1,511)		—		—		—		(1,511)
Depreciation expense		7,592		9,090		6,330		1,109		9,879		34,000
Amortization of intangibles		957		2,166		704		1,671		430		5,928
Adjusted EBITDA	$	63,978	$	38,796	$	45,480	$	5,491	$	20,402	$	174,147

Net earnings as a percentage of net sales		5.2 %		4.8 %		5.0 %		3.1 %		*		5.5 %

Adjusted EBITDA as a percentage of net sales		8.1 %		9.1 %		8.2 %		8.4 %		*		9.5 %
* Not meaningful

RECONCILIATION OF NET EARNINGS TO
ADJUSTED EBITDA BY SEGMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 2026/2025

	Year to Date 2026
(In thousands)	Retail		Packaging		Construction		All Other		Corporate		Total
Net earnings	$	55,690	$	22,974	$	31,354	$	9,768	$	14,482	$	134,268
Interest and other		(438)		(778)		(400)		(7,233)		(3,460)		(12,309)
Income taxes		18,887		7,792		10,633		2,567		5,659		45,538
Expenses associated with share-based compensation arrangements		3,360		3,971		5,332		229		2,578		15,470
Net loss (gain) on disposition and impairments of assets		1,848		(64)		(1)		75		(3,259)		(1,401)
Impairment of intangibles		—		—		51		—		—		51
Depreciation expense		17,664		17,624		13,414		1,863		22,801		73,366
Amortization of intangibles		1,755		4,204		1,349		3,313		232		10,853
Adjusted EBITDA	$	98,766	$	55,723	$	61,732	$	10,582	$	39,033	$	265,836

Net earnings as a percentage of net sales		4.1 %		2.7 %		3.2 %		6.7 %		*		4.0 %

Adjusted EBITDA as a percentage of net sales		7.3 %		6.5 %		6.2 %		7.3 %		*		7.9 %
* Not meaningful

	Year to Date 2025
(In thousands)	Retail		Packaging		Construction		All Other		Corporate		Total
Net earnings	$	61,791	$	37,550	$	49,507	$	4,516	$	26,930	$	180,294
Interest and other		(114)		(467)		(1)		(3,459)		(13,242)		(17,283)
Income taxes		17,936		10,899		14,370		1,088		8,039		52,332
Expenses associated with share-based compensation arrangements		2,291		3,781		5,000		438		8,860		20,370
Net loss (gain) on disposition and impairments of assets		1,107		1,257		331		2,616		(1,557)		3,754
Gain from reduction of estimated earnout liability		—		(1,511)		(344)		—		—		(1,855)
Depreciation expense		14,902		17,987		12,521		2,053		19,478		66,941
Amortization of intangibles		1,914		4,345		1,406		3,272		808		11,745
Adjusted EBITDA	$	99,827	$	73,841	$	82,790	$	10,524	$	49,316	$	316,298

Net earnings as a percentage of net sales		4.4 %		4.5 %		4.6 %		3.6 %		*		5.3 %

Adjusted EBITDA as a percentage of net sales		7.2 %		8.8 %		7.8 %		8.4 %		*		9.2 %
* Not meaningful

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
JUNE 2026/2025

(In thousands)
Assets		2026		2025	Liabilities and equity		2026		2025
Current assets					Current liabilities
Cash and cash equivalents	$	597,263	$	841,930	Accounts payable	$	292,979	$	258,784
Restricted cash		1,604		1,061	Accrued liabilities and other		259,004		257,212
Investments		46,330		32,021	Current portion of debt		5,493		5,122
Accounts receivable		731,092		687,332
Inventories		748,504		722,232	Total current liabilities		557,476		521,118
Other current assets		94,349		82,929
					Long-term debt and finance lease obligations		228,758		229,181
Total current assets		2,219,142		2,367,505	Other liabilities		258,702		173,373

Other assets		323,382		289,347	Temporary equity		485		5,253
Intangible assets, net		481,563		494,495
Property, plant and equipment, net		1,080,777		946,041	Shareholders' equity		3,059,443		3,168,463

Total assets	$	4,104,864	$	4,097,388	Total liabilities and equity	$	4,104,864	$	4,097,388

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED
JUNE 2026/2025

(In thousands)		2026		2025
Cash flows from operating activities:
Net earnings	$	134,268	$	180,294
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation		73,366		66,941
Amortization of intangibles		10,853		11,745
Expense associated with share-based and grant compensation arrangements		15,470		20,370
Deferred income taxes		(2,443)		(226)
Unrealized gain on investment and other		(4,036)		(654)
Impairment of investments		4,000		—
Equity in earnings of investee		(979)		(794)
Net (gain) loss on sale, disposition and impairment of assets		(1,401)		3,754
Impairment of intangibles		51		—
Gain from reduction of estimated earnout liability		—		(1,855)
Changes in:
Accounts receivable		(245,592)		(184,404)
Inventories		(2,324)		2,461
Accounts payable		86,514		32,887
Accrued liabilities and other		(7,102)		(17,381)
Net cash from operating activities		60,645		113,138

Cash flows used in investing activities:
Capital expenditures		(86,576)		(129,752)
Proceeds from sale of property, plant and equipment		11,711		3,694
Acquisitions and purchases of non-controlling interest, net of cash received		(122,008)		(15,706)
Purchases of investments		(19,825)		(16,873)
Proceeds from sale of investments		10,801		7,467
Other		1,862		1,591
Net cash used in investing activities		(204,035)		(149,579)

Cash flows used in financing activities:
Borrowings under revolving credit facilities		23,703		13,357
Repayments under revolving credit facilities		(19,033)		(12,814)
Contingent consideration payments and other		(1,939)		(221)
Proceeds from issuance of common stock		1,241		1,294
Dividends paid to shareholders		(40,390)		(41,978)
Distributions to noncontrolling interest		(1,082)		(285)
Purchase of remaining noncontrolling interest of subsidiary		(3,937)		—
Payments to taxing authorities in connection with shares directly withheld from employees		(1,391)		(9,560)
Repurchase of common stock		(140,457)		(251,933)
Other		52		(198)
Net cash used in financing activities		(183,233)		(302,338)

Effect of exchange rate changes on cash		419		2,176
Net change in cash and cash equivalents		(326,204)		(336,603)

All cash and cash equivalents, beginning of period		925,071		1,179,594

All cash and cash equivalents, end of period	$	598,867	$	842,991

Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period	$	914,199	$	1,171,828
Restricted cash, beginning of period		10,872		7,766
All cash and cash equivalents, beginning of period	$	925,071	$	1,179,594

Cash and cash equivalents, end of period	$	597,263	$	841,930
Restricted cash, end of period		1,604		1,061
All cash and cash equivalents, end of period	$	598,867	$	842,991

RECONCILIATION OF NET CASH FROM OPERATING
ACTIVITIES TO FREE CASH FLOW (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 2026/2025

(In thousands)		2026		2025
Net cash from operating activities	$	60,645	$	113,138
Increase in investment in net working capital		168,504		166,437
Maintenance capital expenditures⁽¹⁾		(34,640)		(47,622)
Interest expense, net of taxes		3,458		4,173
Free cash flow	$	197,967	$	236,126

(1) Breakdown of Capital expenditures from the condensed consolidated statements of cash flows:
Maintenance capital expenditures	$	34,640	$	47,622
Expansionary and efficiency capital expenditures		51,936		82,130
Total Capital expenditures	$	86,576	$	129,752

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SOURCE UFP Industries, Inc.