UFP INDUSTRIES, INC._June 27, 2026

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 27, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-22684

UFP INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)


	Michigan		38-1465835
	(State or other jurisdiction of incorporation or		(I.R.S. Employer Identification Number)
	organization)

	2801 East Beltline NE, Grand Rapids, Michigan		49525
	(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (616) 364-6161

NONE

(Former name or former address, if changed since last report.)


Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol	Name of Each Exchange On Which Registered
Common Stock, $1 par value	UFPI	The Nasdaq Stock Market, LLC

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by checkmark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer ⌧	Accelerated Filer ◻	Non-Accelerated Filer ◻	Smaller Reporting Company ☐
			Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by checkmark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:


	Class		Outstanding as of June 27, 2026
	Common stock, $1 par value		55,161,491

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UFP INDUSTRIES, INC.

TABLE OF CONTENTS

PART I.		FINANCIAL INFORMATION.	Page No.

	Item 1.	Financial Statements	3

		Condensed Consolidated Balance Sheets at June 27, 2026, December 27, 2025 and June 28, 2025	3

		Condensed Consolidated Statements of Earnings and Comprehensive Income for the Three and Six Months Ended June 27, 2026 and June 28, 2025	4

		Condensed Consolidated Statements of Shareholders’ Equity for the Three and Six Months Ended June 27, 2026 and June 28, 2025	5

		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 27, 2026 and June 28, 2025	7

		Notes to Unaudited Condensed Consolidated Financial Statements	8

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	39

	Item 4.	Controls and Procedures	40

PART II.		OTHER INFORMATION

	Item 1.	Legal Proceedings – NONE

	Item 1A.	Risk Factors	40

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40

	Item 3.	Defaults upon Senior Securities – NONE

	Item 4.	Mine Safety Disclosures – NONE

	Item 5.	Other Information	42

	Item 6.	Exhibits	43

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UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(in thousands of United States dollars, except share data)		June 27,			December 27,			June 28,
		2026			2025			2025
Assets
Current assets
Cash and cash equivalents		$	597,263		$	914,199		$	841,930
Restricted cash			1,604			10,872			1,061
Investments			46,330			34,374			32,021
Accounts receivable, net			731,092			475,959			687,332
Inventories:
Raw materials			397,510			380,206			386,859
Finished goods			350,994			341,814			335,373
Total inventories			748,504			722,020			722,232
Income taxes receivable			7,748			38,373			21,876
Assets held for sale			2,558			6,340			8,641
Other current assets			84,043			66,515			52,412
Total current assets			2,219,142			2,268,652			2,367,505
Deferred income taxes			10,361			8,025			5,125
Restricted investments			50,991			50,540			44,321
Right of use assets			163,894			115,790			130,819
Other assets			98,136			102,433			109,082
Goodwill			345,393			343,921			341,579
Indefinite-lived intangible assets			7,351			7,336			7,324
Other intangible assets, net			128,819			133,616			145,592
Property, plant and equipment:
Property, plant and equipment			2,075,346			1,936,470			1,850,171
Less accumulated depreciation and amortization			(994,569)			(943,890)			(904,130)
Property, plant and equipment, net			1,080,777			992,580			946,041
Total assets		$	4,104,864		$	4,022,893		$	4,097,388
Liabilities, temporary equity and shareholders’ equity
Current liabilities
Accounts payable		$	292,979		$	205,932		$	258,784
Accrued compensation and benefits			143,902			188,354			143,689
Other accrued liabilities			87,144			71,039			85,338
Current portion of lease liability			27,958			27,997			28,185
Current portion of long-term debt			5,493			899			5,122
Total current liabilities			557,476			494,221			521,118
Long-term debt and finance lease obligations			228,758			228,859			229,181
Lease liability			146,187			99,085			112,857
Deferred income taxes			83,166			83,205			30,425
Other liabilities			29,349			28,816			30,091
Total liabilities			1,044,936			934,186			923,672
Temporary Equity
Redeemable noncontrolling interest			485			4,463			5,253
Shareholders’ equity
Controlling interest shareholders’ equity:
Preferred stock, no par value; shares authorized 1,000,000; issued and outstanding, none			—			—			—
Common stock, $1 par value; shares authorized 240,000,000; issued and outstanding, 55,161,491, 56,591,900 and 58,566,148			55,161			56,592			58,566
Additional paid-in capital			468,534			444,828			425,398
Retained earnings			2,513,870			2,559,375			2,663,394
Accumulated other comprehensive (loss) income			(49)			1,564			(1,976)
Total controlling interest shareholders’ equity			3,037,516			3,062,359			3,145,382
Noncontrolling interest			21,927			21,885			23,081
Total shareholders’ equity			3,059,443			3,084,244			3,168,463
Total liabilities, temporary equity and shareholders’ equity		$	4,104,864		$	4,022,893		$	4,097,388

See notes to unaudited interim condensed consolidated financial statements.

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UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

AND COMPREHENSIVE INCOME

(Unaudited)


(in thousands of United States dollars, except per share data)		Three Months Ended				Six Months Ended
		June 27,		June 28,		June 27,			June 28,
		2026		2025		2026			2025
Net sales		$	1,882,937	$	1,835,374	$	3,344,204		$	3,430,893
Cost of sales			1,592,702		1,522,640		2,818,080			2,849,963
Gross profit			290,235		312,734		526,124			580,930

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

Earnings from operations			103,416		123,091		167,497			215,343

Interest and other
Interest expense			2,008		2,716		4,631			5,385
Interest and investment income			(10,528)		(10,757)		(15,961)			(21,874)
Equity in earnings of investee			(926)		(813)		(979)			(794)
Total interest and other			(9,446)		(8,854)		(12,309)			(17,283)

Earnings before income taxes			112,862		131,945		179,806			232,626
Income taxes			29,691		31,074		45,538			52,332
Net earnings			83,171		100,871		134,268			180,294
Less net earnings attributable to noncontrolling interest			(299)		(137)		(622)			(807)
Net earnings attributable to controlling interest		$	82,872	$	100,734	$	133,646		$	179,487

Earnings per share - basic		$	1.48	$	1.70	$	2.38		$	2.99
Earnings per share - diluted		$	1.48	$	1.70	$	2.37		$	2.99

Other comprehensive income:
Net earnings			83,171		100,871	$	134,268		$	180,294
Other comprehensive (loss) income			(249)		11,738		(1,152)			14,919
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

See notes to unaudited interim condensed consolidated financial statements.

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UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)


(in thousands of United States dollars,	Controlling Interest Shareholders’ Equity
except share and per share data)			Additional				Accumulated Other
	Common		Paid-In		Retained		Comprehensive		Noncontrolling				Temporary
	Stock		Capital		Earnings		Loss		Interest (NCI)		Total		Equity
Balance on December 27, 2025	$	56,592	$	444,828	$	2,559,375	$	1,564	$	21,885	$	3,084,244	$	4,463
Net earnings						50,774				305		51,079		18
Foreign currency translation adjustment								(1,220)		(6)		(1,226)		(59)
Unrealized gain on debt securities								382				382
Distributions to NCI										(1,082)		(1,082)
Purchase of remaining NCI of subsidiary												—		(3,937)
Other				(167)								(167)
Cash dividends - $0.36 per share - quarterly						(20,456)						(20,456)
Issuance of 7,575 shares under employee stock purchase plan		8		570								578
Issuance of 144,425 shares under stock grant programs		144		1,896		38						2,078
Issuance of 70,871 shares under deferred compensation plans		71		(71)								—
Repurchase of 334,541 shares		(335)		(1,193)		(28,501)						(30,029)
Expense associated with share-based compensation arrangements				8,409								8,409
Accrued expense under deferred compensation plans				6,881								6,881
Balance on March 28, 2026	$	56,480	$	461,153	$	2,561,230	$	726	$	21,102	$	3,100,691	$	485
Net earnings						82,872				299		83,171
Foreign currency translation adjustment								(162)		526		364
Unrealized loss on debt securities								(613)				(613)
Other				(1,169)								(1,169)
Cash dividends - $0.36 per share - quarterly						(19,934)						(19,934)
Issuance of 8,452 shares under employee stock purchase plan		8		655								663
Net forfeitures of 2,267 shares under stock grant programs		(2)		47		2						47
Issuance of 10,305 shares under deferred compensation plans		10		(10)								—
Repurchase of 1,335,229 shares		(1,335)		(184)		(110,300)						(111,819)
Expense associated with share-based compensation arrangements				6,948								6,948
Accrued expense under deferred compensation plans				1,094								1,094
Balance on June 27, 2026	$	55,161	$	468,534	$	2,513,870	$	(49)	$	21,927	$	3,059,443	$	485

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UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY, CONTINUED

(Unaudited)


(in thousands of United States dollars,	Controlling Interest Shareholders’ Equity
except share and per share data)			Additional				Accumulated Other
	Common		Paid-In		Retained		Comprehensive		Noncontrolling				Temporary
	Stock		Capital		Earnings		Earnings (Loss)		Interest (NCI)		Total		Equity
Balance on December 28, 2024	$	60,724	$	403,379	$	2,775,280	$	(15,311)	$	20,553	$	3,244,625	$	5,366
Net earnings (loss)						78,753				853		79,606		(183)
Foreign currency translation adjustment								2,744		(31)		2,713		(2)
Unrealized gain on debt securities								470				470
Other				(355)								(355)		99
Cash dividends - $0.35 per share - quarterly						(21,322)						(21,322)
Issuance of 7,197 shares under employee stock purchase plan		7		643								650
Issuance of 232,101 shares under stock grant programs		232		3,055		101						3,388
Issuance of 80,341 shares under deferred compensation plans		81		(81)								—
Repurchase of 649,060 shares		(649)		(9,460)		(59,991)						(70,100)
Expense associated with share-based compensation arrangements				11,493								11,493
Accrued expense under deferred compensation plans				7,888								7,888
Balance on March 29, 2025	$	60,395	$	416,562	$	2,772,821	$	(12,097)	$	21,375	$	3,259,056	$	5,280
Net earnings (loss)						100,734				376		101,110		(239)
Foreign currency translation adjustment								10,239		1,615		11,854		2
Unrealized loss on debt securities								(118)				(118)
Other				(1,818)								(1,818)		210
Distributions to NCI										(285)		(285)
Cash dividends - $0.35 per share - quarterly						(20,656)						(20,656)
Issuance of 7,593 shares under employee stock purchase plan		8		636								644
Issuance of 26,949 shares under stock grant programs		27		17		1						45
Issuance of 10,998 shares under deferred compensation plans		10		(10)								—
Repurchase of 1,874,279 shares		(1,874)		(13)		(189,506)						(191,393)
Expense associated with share-based compensation arrangements				8,755								8,755
Accrued expense under deferred compensation plans				1,269								1,269
Balance on June 28, 2025	$	58,566	$	425,398	$	2,663,394	$	(1,976)	$	23,081	$	3,168,463	$	5,253

See notes to unaudited interim condensed consolidated financial statements.

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UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


(in thousands of United States dollars)		Six Months Ended
		June 27,			June 28,
		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 investments 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 and cash overdraft			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 noncontrolling 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)
Cash, cash equivalents, and restricted cash, beginning of period			925,071			1,179,594
Cash, cash equivalents, and restricted cash, end of period		$	598,867		$	842,991

Reconciliation of cash, 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
Cash, cash equivalents, and restricted cash, 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
Cash, cash equivalents, and restricted cash, end of period		$	598,867		$	842,991

Supplemental information:
Interest paid		$	4,635		$	5,390
Income taxes paid			17,273			53,580
Non-cash investing activities:
Capital expenditures included in accounts payable		$	2,130		$	1,325
Non-cash financing activities:
Common stock issued under deferred compensation plans		$	8,626		$	9,908

See notes to unaudited interim condensed consolidated financial statements.

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UFP INDUSTRIES, INC.

NOTES TO UNAUDITED INTERIM

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

A. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Presentation Currency

The accompanying unaudited interim condensed consolidated financial statements are presented in United States dollars (“US dollars” or “USD”), unless otherwise indicated.

Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements (the “Financial Statements”) include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships, and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, the Financial Statements do not include all the information and footnotes normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America. All significant intercompany balances and transactions have been eliminated in consolidation.

We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members as well as whether the entity is a variable interest entity (“VIE”) and whether we are the primary beneficiary. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The primary beneficiary is required to consolidate the VIE. We account for unconsolidated VIEs using the equity method of accounting.

As a result of the investment in Dempsey on June 27, 2022, we own 50% of the issued equity of that entity, and the remaining 50% of the issued equity is owned by the previous owners (“Sellers”). The investment in Dempsey is an unconsolidated variable interest entity and we have accounted for it using the equity method of accounting because we do not have a controlling financial interest in the entity. Per the contracts, the Sellers have a put right to sell their equity interest to us for $50 million and we have a call right to purchase the Seller’s equity interest for $70 million, which were both first exercisable in June 2025 and expire in June 2030. As of June 27, 2026, the carrying value of our investment in Dempsey is $51.3 million, which is recorded in Other Assets on our condensed consolidated balance sheets. Our maximum exposure to loss consists of our investment amount and any contingent loss that may occur in the future as a result of a change in the fair value of Dempsey relative to the strike price of the put option.

In our opinion, the Financial Statements contain all material adjustments necessary to present fairly our consolidated financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature. These Financial Statements should be read in conjunction with the annual consolidated financial statements, and footnotes thereto, included in our Annual Report to Shareholders on Form 10-K for the fiscal year ended December 27, 2025.

Seasonality has a significant impact on our working capital from March to August, which historically results in negative or modest cash flows from operations in our first and second quarters. Conversely, we experience a substantial decrease in working capital from September to February which typically results in significant cash flow from operations in our third and fourth quarters. For comparative purposes, we have included the June 28, 2025 balances in the accompanying unaudited condensed consolidated balance sheets.

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UFP INDUSTRIES, INC.

Assets and Liabilities Held for Sale

We classify assets and related liabilities as held for sale when the following conditions are met: (i) management has committed to a plan to sell the net assets, (ii) the net assets are available for immediate sale, (iii) there is an active program to locate a buyer, (iv) the sale and transfer of the net assets is probable within one year, (v) the net assets are being actively marketed for sale at a price that is reasonable in relation to the current fair value, and (vi) it is unlikely that significant changes will be made to the plan to sell the net assets. Upon designation as held for sale, we record the assets and related liabilities at the lower of their carrying value or their estimated fair value, reduced for the costs to dispose of the assets and related liabilities, which we determined using the estimated proceeds from the sale.

During the second quarter of 2026, machinery and equipment and real estate within our Retail and Corporate segments met the criteria as held for sale, and therefore we have classified the related assets as held for sale on the condensed consolidated balance sheet. The fair value measurements for the assets held for sale are generally based on Level 3 inputs, which include information obtained from third-party appraisals. The assets had a carrying value of $2.6 million as of June 27, 2026, with $3.3 million of impairment charges recorded in fiscal 2025. No additional impairment charges were recorded during the second quarter of 2026. We have recognized $0.8 million of net gains on the sale of real estate and machinery and equipment that were previously classified as assets held for sale during the year and were included in net loss (gain) on disposition and impairments of assets on the condensed consolidated statements of earnings and comprehensive income.

Recently Issued Accounting Guidance

In September 2025, the FASB issued ASU 2025-06, Intangible - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU removes all references to prescriptive and sequential software development stages. The ASU requires entities to begin capitalizing software costs when management authorizes and commits to funding the software project, and it is probable that the project will be completed, and the software will be used for its intended purpose. The amendments in this ASU are effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, using a prospective, retrospective or modified transition approach, with early adoption permitted. We are currently evaluating the impact of adopting this guidance on the consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. This ASU provides guidance to expand disclosures related to the disaggregation of income statement expenses. Also, this ASU requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses which includes purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption. ASU 2025-01 is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. We are currently evaluating the impact of adopting this guidance on the financial statement disclosures.

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UFP INDUSTRIES, INC.

B. FAIR VALUE

We apply the provisions of ASC 820, Fair Value Measurements and Disclosures, to assets and liabilities measured at fair value. Assets measured at fair value are as follows (in thousands):


		June 27, 2026											December 27, 2025
		Quoted			Prices with								Quoted			Prices with
		Prices in			Other				Prices with				Prices in			Other				Prices with
		Active			Observable				Unobservable				Active			Observable				Unobservable
		Markets			Inputs				Inputs				Markets			Inputs				Inputs
		(Level 1)			(Level 2)				(Level 3)	Total			(Level 1)			(Level 2)				(Level 3)		Total
Money market funds		$	71,769		$	17,140		$	—	$	88,909		$	182,051		$	26,450		$	—		$	208,501
Fixed income funds			4,836			52,042			—		56,878			5,365			44,227			—			49,592
Treasury securities			345			—			—		345			345			—			—			345
Equity securities			22,089			—			25,734		47,823			18,492			—			28,000			46,492
Alternative investments			—			—			4,366		4,366			—			—			4,186			4,186
Mutual funds:
Domestic stock funds			11,367			—			—		11,367			10,436			—			—			10,436
International stock funds			943			—			—		943			816			—			—			816
Target funds			12			—			—		12			11			—			—			11
Bond funds			6			—			—		6			6			—			—			6
Alternative funds			506			—			—		506			490			—			—			490
Total mutual funds			12,834			—			—		12,834			11,759			—			—			11,759
Total		$	111,873		$	69,182		$	30,100	$	211,155		$	218,012		$	70,677		$	32,186		$	320,875

From the assets measured at fair value as of June 27, 2026, listed in the table above, $88.1 million of money market funds are held in Cash and cash equivalents, $46.3 million of mutual funds, equity securities, fixed income funds, and alternative investments are held in Investments, $25.7 million of equity securities are held in Other assets, $0.1 million of mutual funds are held in Other assets for our deferred compensation plan, and $51.0 million of fixed income funds and $0.8 million of money market funds are held in Restricted investments. As of December 27, 2025, $207.9 million of money market funds were held in Cash and cash equivalents, $34.3 million of mutual funds, equity securities, and alternative investments were held in Investments, $28.0 million of equity securities were held in Other assets, $0.2 million of mutual funds were held in Other assets for our deferred compensation plan, and $49.9 million of fixed income funds and $0.6 million of money market funds were held in Restricted investments.

We maintain money market, mutual funds, bonds, and/or equity securities in our non-qualified deferred compensation plan, our wholly owned licensed captive insurance company, and assets held in financial institutions. These funds are valued at prices quoted in an active exchange market and are included in Cash and cash equivalents, Investments, Other assets, and Restricted investments. We have elected not to apply the fair value option under ASC 825, Financial Instruments, to any of our financial instruments except for those expressly required by U.S. GAAP.

We have $25.7 and $28.0 million of investments through our Innov8 Fund as of June 27, 2026 and December 27, 2025, respectively, which is designed to invest in emerging projects, services, and technologies. These investments are valued as Level 3 assets and are categorized as “Equity securities.” We evaluate these investments quarterly, including a qualitative assessment for indicators of impairment in accordance with ASC 321-10-35-3. During the first quarter of 2026, we concluded that one investment was fully impaired, resulting in a $4.0 million loss.

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UFP INDUSTRIES, INC.

In accordance with our investment policy, our wholly-owned captive, Ardellis Insurance Ltd. (“Ardellis”), maintains an investment portfolio, totaling $96.4 million and $84.3 million as of June 27, 2026 and December 27, 2025, respectively, which has been included in the aforementioned table of total investments. This portfolio consists of domestic and international equity securities, alternative investments, and fixed income bonds.

Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands):


		June 27, 2026									December 27, 2025
					Unrealized									Unrealized
		Cost			Gain (Loss)			Fair Value			Cost			Gain			Fair Value
Fixed income		$	57,057		$	(220)		$	56,837		$	49,342		$	209		$	49,551
Treasury securities			345			—			345			345			—			345
Equity			15,376			6,713			22,089			14,028			4,464			18,492
Mutual funds			8,542			4,224			12,766			8,545			3,152			11,697
Alternative investments			3,494			872			4,366			3,436			750			4,186
Total		$	84,814		$	11,589		$	96,403		$	75,696		$	8,575		$	84,271

Our fixed income investments consist of a blend of US Government and Agency bonds and investment grade corporate bonds with varying maturities. Our equity investments consist of small, mid, and large cap growth and value funds, as well as international equity. Our mutual fund investments consist of domestic and international stock. Our alternative investments consist of a private real estate income trust which is valued as a Level 3 asset. The net pre-tax unrealized gain of the portfolio was $11.6 million and $8.6 million as of June 27, 2026 and December 27, 2025, respectively. Carrying amounts above are recorded in the Investments and Restricted investments line items within the balance sheet as of June 27, 2026 and December 27, 2025.

C. REVENUE RECOGNITION

Within the three primary segments, UFP Retail Solutions (“Retail”), UFP Packaging (“Packaging”) and UFP Construction (“Construction”), that the Company operates, there are a variety of written agreements governing the sale of our products and services. The transaction price is stated at the purchase order level, which includes shipping and/or freight costs and any applicable governmental authority taxes. The majority of our contracts have a single performance obligation concentrated around the delivery of goods to the carrier, Free On Board (FOB) shipping point. Therefore, revenue is recognized when this performance obligation is satisfied. Generally, title and control passes at the time of shipment. In certain circumstances, the customer takes title when the shipment arrives at the destination. However, our shipping process is typically completed the same day.

Certain customer products that we provide require installation by the Company or a third party. Installation revenue is recognized upon completion. If we use a third party for installation, the party will act as an agent to us until completion of the installation. Installation revenue represents an immaterial share of our total net sales.

We utilize rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized.

Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred relative to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced relative to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent.

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UFP INDUSTRIES, INC.

Our construction contracts are generally entered into with a fixed price, and completion of the projects can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. 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.

The following table presents our net sales disaggregated by revenue source (in thousands):


		Three Months Ended							Six Months Ended
		June 27,			June 28,				June 27,			June 28,
		2026			2025			% Change	2026			2025		% Change
Point in Time Revenue		$	1,837,724		$	1,799,250		2.1%	$	3,264,891		$	3,348,555	(2.5)%
Over Time Revenue			45,213			36,124		25.2%		79,313			82,338	(3.7)%
Total Net Sales			1,882,937			1,835,374		2.6%	$	3,344,204		$	3,430,893	(2.5)%

The Construction segment comprises the construction contract revenue shown above. Construction contract revenue is primarily made up of site-built and framing customers.

The following table presents the account balances associated with over time revenue which are included in Other current assets and Other accrued liabilities, respectively (in thousands):


		June 27,			December 27,			June 28,
		2026			2025			2025
Cost and Earnings in Excess of Billings		$	13,004		$	4,979		$	5,995
Billings in Excess of Cost and Earnings			5,511			3,961			7,888

D. EARNINGS PER SHARE

The computation of earnings per share (“EPS”) is as follows (in thousands):


		Three Months Ended						Six Months Ended
		June 27,			June 28,			June 27,			June 28,
		2026			2025			2026			2025
Numerator:
Net earnings attributable to controlling interest		$	82,872		$	100,734		$	133,646		$	179,487
Adjustment for earnings allocated to non-vested restricted common stock equivalents			(3,278)			(3,728)			(5,263)			(6,706)
Net earnings for calculating EPS		$	79,594		$	97,006		$	128,383		$	172,781
Denominator:
Weighted average shares outstanding			56,181			59,511			56,422			60,193
Adjustment for non-vested restricted common stock equivalents			(2,374)			(2,440)			(2,388)			(2,474)
Shares for calculating basic EPS			53,807			57,071			54,034			57,719
Effect of dilutive restricted common stock equivalents			89			116			80			101
Shares for calculating diluted EPS			53,896			57,187			54,114			57,820
Net earnings per share:
Basic		$	1.48		$	1.70		$	2.38		$	2.99
Diluted		$	1.48		$	1.70		$	2.37		$	2.99

E. COMMITMENTS, CONTINGENCIES, AND GUARANTEES

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.

On June 27, 2026, we were parties either as plaintiff or defendant to a number of lawsuits and claims arising through the normal course of our business. In the opinion of management, our consolidated financial statements will not be materially affected by the outcome of these contingencies and claims.

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UFP INDUSTRIES, INC.

On June 27, 2026, we had outstanding purchase commitments on commenced capital projects of approximately $108 million.

We provide a variety of warranties for products we manufacture. Historically, warranty claims have not been material. We also distribute products manufactured by other companies. While we do not warrant these products, we have received claims as a distributor of these products when the manufacturer no longer exists or no longer has the ability to pay. Historically, these costs have not had a material effect on our consolidated financial statements.

As part of our operations, we supply building materials and labor to site-built construction projects or we jointly bid on contracts with framing companies for such projects. In some instances, we are required to post payment and performance bonds to ensure the products and installation services are completed in accordance with our contractual obligations. We have agreed to indemnify the surety for claims properly made against these bonds. As of June 27, 2026, we had approximately $50.2 million in outstanding payment and performance bonds for open projects. We had approximately $7.5 million in payment and performance bonds outstanding for completed projects which are still under warranty.

On June 27, 2026, we had outstanding letters of credit totaling $43.1 million, primarily related to certain insurance contracts, industrial development revenue bonds, and other debt agreements described further below.

In lieu of cash deposits, we provide irrevocable letters of credit in favor of our insurers and other third parties to guarantee our performance under certain insurance contracts and other legal agreements. As of June 27, 2026, we have irrevocable letters of credit outstanding totaling approximately $39.8 million for these types of arrangements. We have reserves recorded on our balance sheet, in accrued liabilities, that reflect our expected future liabilities under those insurance arrangements.

We are required to provide irrevocable letters of credit in favor of the bond trustees for all industrial development revenue bonds that have been issued. These letters of credit guarantee principal and interest payments to the bondholders. We currently have irrevocable letters of credit outstanding totaling approximately $3.3 million related to our outstanding industrial development revenue bonds. These letters of credit have varying terms but may be renewed at the option of the issuing banks.

Certain wholly owned domestic subsidiaries have guaranteed the indebtedness of UFP Industries, Inc. in certain debt agreements, including the Series 2018 and 2020 Senior Notes and our revolving credit facility. The maximum exposure of these guarantees is limited to the indebtedness outstanding under these debt arrangements and this exposure will expire concurrent with the expiration of the debt agreements.

We did not enter into any new guarantee arrangements during the second quarter of 2026 which would require us to recognize a liability on our balance sheet.

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UFP INDUSTRIES, INC.

F. BUSINESS COMBINATIONS

We completed the following acquisitions during the first six months of 2026 and during fiscal 2025, which were accounted for using the purchase method (in thousands):


					Net
Company	Acquisition		Intangible		Tangible		Operating
Name	Date	Purchase Price	Assets		Assets		Segment
Berry Pallets, Inc.	May 18, 2026	$19,623 consideration for 100% asset purchase	$	3,426	$	16,197	Packaging
	Located in Waseca, MN, Berry Pallets is a wood pallet manufacturer.
John Rock, Inc.	May 4, 2026	$47,289 consideration for 100% asset purchase	$	1,787	$	45,502	Packaging
	Located in Coatesville, PA, John Rock designs and manufactures new pallets.
MoistureShield, Inc.	April 6, 2026	$55,097 consideration for 100% asset purchase	$	3,577	$	51,520	Retail
	Located in Springdale, AR, MoistureShield is a leading manufacturer of wood plastic composite decking.
National Supply, LLC	July 14, 2025	$6,531 consideration for 100% asset purchase	$	3,045	$	3,486	Construction
	Located in Elkhart, IN, National Supply is a material supplier in the RV industry.
RWP West, LLC	June 16, 2025	$7,360 consideration for 100% asset purchase	$	77	$	7,283	Construction
	Located in Twin Falls, ID and established in 2007, RWP West serves the western portion of the US and is a manufacturer and distributor for the manufactured housing, RV, and cargo markets.

The estimated fair values of assets acquired and liabilities assumed are based on available information at the acquisition date and assumptions deemed reasonable by management, supplemented by the expertise of third-party valuation specialists engaged to assist in determining fair value for intangible assets, including goodwill. As of June 27, 2026, the fair value determination of the intangible assets for the above business combinations has not been finalized, with the exception of RWP West which was finalized during the second quarter of 2026. Therefore, changes in facts and circumstances may result in adjustments to the initial fair value estimates during the measurement period, which may not exceed one year from the acquisition date.

The business combinations mentioned above contributed approximately $41.0 million to net sales and a $0.6 million operating loss during the first six months of 2026. They are not significant to our operating results and thus proforma results for 2026 and 2025 are not presented.

G. SEGMENT REPORTING

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. Our CODM is the chief executive officer, as he has the ultimate decision-making authority related to assessing the Company’s performance and allocating resources. The CODM assesses performance for our segments and decides how to allocate resources based on net sales, cost of goods sold, earnings from operations and net earnings. These metrics are also reported on the Consolidated Statement of Earnings and Comprehensive Income. The measure of segment assets is reported on the Consolidated Balance Sheet as total consolidated assets. The CODM uses earnings from operations and net earnings to evaluate income generated from segment assets (return on investment) in determining wage increase allocations and bonus pools, and in deciding whether to reinvest profits into the business, such as for acquisitions, or to pay dividends.

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UFP INDUSTRIES, INC.

We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of Retail, Packaging and Construction and align with the end markets we serve. This segment 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. We manage the operations of our individual locations primarily through a market-centered reporting structure under which each location is included in a business unit and business units are included in our Retail, Packaging, and Construction segments. In the case of locations that serve multiple segments, results are allocated and accounted for by segment.

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. Our International and Ardellis segments do not meet the quantitative thresholds in order to be separately reported and accordingly, the International and Ardellis segments have been aggregated in the “All Other” segment for reporting purposes.

“Corporate” includes purchasing, transportation, corporate ventures, and administrative functions that serve our operating segments. 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. 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. Total assets of the Corporate segment include unallocated cash and cash equivalents, certain prepaid assets, and certain property, equipment and other assets pertaining to the centralized activities of Corporate, UFP Real Estate, Inc., UFP Transportation, Inc., and UFP Purchasing, Inc. Real estate activities are conducted by the real estate company on behalf of the segments, and capital expenditures associated with real estate are allocated to the segments.

The tables below are presented in thousands:


	Three Months Ended June 27, 2026
							All
	Retail		Packaging		Construction		Other		Corporate		Total
Net sales to outside customers	$	818,743	$	458,245	$	526,777	$	76,927	$	2,245	$	1,882,937
Intersegment net sales		92,215		24,632		22,317		65,045		(204,209)		—
Cost of goods sold		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, administrative expenses		62,717		45,580		63,930		10,088		3,405		185,720
Net loss (gain) on disposition and impairment 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 expense		(281)		2		(385)		(205)		2,877		2,008
Interest and investment income		(87)		—		(12)		(5,102)		(5,327)		(10,528)
Equity in earnings of investee		—		(820)		—		(106)		—		(926)
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
Other significant items:
Amortization expense	$	919	$	2,101	$	674	$	1,673	$	116	$	5,483
Depreciation expense		9,907		9,308		6,640		853		11,573		38,281
Segment assets		1,088,049		850,483		668,506		320,702		1,177,124		4,104,864
Capital expenditures		11,304		12,080		3,562		1,736		9,629		38,311

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UFP INDUSTRIES, INC.


	Three Months Ended June 28, 2025
							All
	Retail		Packaging		Construction		Other		Corporate		Total
Net sales to outside customers	$	788,224	$	428,669	$	551,590	$	65,026	$	1,865	$	1,835,374
Intersegment net sales		75,997		25,829		24,678		100,543		(227,047)		—
Cost of goods sold		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, administrative expenses		58,642		43,148		63,727		10,398		9,080		184,995
Net loss (gain) on disposition and impairment 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 expense		30		3		—		(198)		2,881		2,716
Interest and investment income		(84)		—		—		(2,299)		(8,374)		(10,757)
Equity in earnings of investee		—		(798)		—		(15)		—		(813)
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
Other significant items:
Amortization expense	$	957	$	2,166	$	704	$	1,671	$	430	$	5,928
Depreciation expense		7,592		9,090		6,330		1,109		9,879		34,000
Segment assets		955,976		819,438		664,848		336,597		1,320,529		4,097,388
Capital expenditures		22,218		21,289		10,236		810		7,931		62,484


	Six Months Ended June 27, 2026
							All
	Retail		Packaging		Construction		Other		Corporate		Total
Net sales to outside customers	$	1,349,919	$	852,338	$	992,290	$	145,432	$	4,225	$	3,344,204
Intersegment net sales		163,281		50,783		41,057		122,494		(377,615)		—
Cost of goods sold		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, administrative expenses		118,763		90,783		125,756		19,066		4,235		358,603
Net loss (gain) on disposition and impairment 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 expense		(250)		4		(385)		(483)		5,745		4,631
Interest and investment income		(188)		—		(15)		(6,553)		(9,205)		(15,961)
Equity in earnings of investee		—		(782)		—		(197)		—		(979)
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
Other significant items:
Amortization expense	$	1,755		4,204		1,349		3,313		232	$	10,853
Depreciation expense		17,664		17,624		13,414		1,863		22,801		73,366
Segment assets		1,088,049		850,483		668,506		320,702		1,177,124		4,104,864
Capital expenditures		39,376		23,455		9,867		2,973		10,905		86,576

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UFP INDUSTRIES, INC.


	Six Months Ended June 28, 2025
							All
	Retail		Packaging		Construction		Other		Corporate		Total
Net sales to outside customers	$	1,395,607	$	838,677	$	1,067,530	$	125,324	$	3,755	$	3,430,893
Intersegment net sales		140,642		49,543		51,239		191,027		(432,451)		—
Cost of goods sold		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, administrative expenses		113,997		90,917		126,511		18,860		10,964		361,249
Net loss (gain) on disposition and impairment 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 expense		60		6		—		(531)		5,850		5,385
Interest and investment income		(174)		—		(1)		(2,607)		(19,092)		(21,874)
Equity in earnings of investee		—		(473)		—		(321)		—		(794)
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
Other significant items:
Amortization expense	$	1,914	$	4,345	$	1,406	$	3,272	$	808	$	11,745
Depreciation expense		14,902		17,987		12,521		2,053		19,478		66,941
Segment assets		955,976		819,438		664,848		336,597		1,320,529		4,097,388
Capital expenditures		54,526		46,549		16,664		1,424		10,589		129,752

The following table presents goodwill by segment as of June 27, 2026, and December 27, 2025 (in thousands):


	Retail		Packaging		Construction		All Other		Corporate		Total
Balance as of December 27, 2025	$	84,174	$	148,104	$	88,397	$	23,246	$	—	$	343,921
2026 Acquisitions		—		1,678		—		—		—		1,678
2026 Purchase Accounting Adjustments		—		—		—		—		—		—
Foreign Exchange, Net		12		—		(169)		(49)		—		(206)
Balance as of June 27, 2026	$	84,186	$	149,782	$	88,228	$	23,197	$	—	$	345,393

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The following table presents our disaggregated net sales by business unit for each segment for the three and six months ended June 27, 2026, and June 28, 2025 (in thousands).


	Three Months Ended						Six Months Ended
	June 27,			June 28,			June 27,			June 28,
	2026			2025			2026			2025
Retail
ProWood	$	669,050		$	657,098		$	1,109,799		$	1,171,376
Deckorators		122,678			97,994			191,347			163,606
UFP Edge		27,015			33,132			48,773			60,625
Total Retail	$	818,743		$	788,224		$	1,349,919		$	1,395,607

Packaging
Structural Packaging	$	282,305		$	267,301		$	531,598		$	523,283
PalletOne		153,897			141,914			278,083			276,133
Protective Packaging		22,043			19,454			42,657			39,261
Total Packaging	$	458,245		$	428,669		$	852,338		$	838,677

Construction
Factory Built	$	215,545		$	229,669		$	408,929		$	446,888
Site-Built		186,405			202,413			337,275			393,030
Commercial		71,370			70,515			144,613			134,235
Concrete Forming		53,457			48,993			101,473			93,377
Total Construction	$	526,777		$	551,590		$	992,290		$	1,067,530

All Other	$	76,927		$	65,026		$	145,432		$	125,324

Corporate	$	2,245		$	1,865		$	4,225		$	3,755

Total Net Sales	$	1,882,937		$	1,835,374		$	3,344,204		$	3,430,893

H. INCOME TAXES

Effective tax rates differ from statutory federal income tax rates, primarily due to provisions for foreign, state and local income taxes and permanent tax differences. Our effective tax rate was 26.3% in the second quarter of 2026 compared to 23.6% in the same period of 2025 and was 25.3% in the first six months of 2026 compared to 22.5% for the same period in 2025. The increase in our effective tax rate for the second quarter and for the first six months of 2026 was primarily due to $3.0 million of state income tax benefits recorded as discrete items in the second quarter of 2025 resulting from an approved reduction in our tax rate in Texas and job credits in South Carolina, and a decrease in our tax deduction from stock-based compensation accounted for as a permanent difference.

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I. COMMON STOCK

Below is a summary of common stock issuances for the first six months of 2026 and 2025 (in thousands, except average share price):


	June 27, 2026
Share Issuance Activity	Common Stock		Average Share Price
Shares issued under the employee stock purchase plan	16	$	91.01

Shares issued under the employee stock gift program	1		94.11
Shares issued under the director compensation plan	2		93.99
Shares issued under the LTSIP	121		110.39
Shares issued under the executive stock match program	26		110.55
Forfeitures	(8)
Total shares issued under stock grant programs	142	$	110.01

Shares issued under the deferred compensation plan	81	$	106.26

During the first six months of 2026, we repurchased 1,669,770 shares of our common stock at an average share price of $84.95.


	June 28, 2025
Share Issuance Activity	Common Stock		Average Share Price
Shares issued under the employee stock purchase plan	15	$	102.96

Shares issued under the employee stock gift program	1		108.28
Shares issued under the director retainer stock program	39		55.10
Shares issued under the LTSIP	179		106.65
Shares issued under the executive stock match program	60		109.84
Forfeitures	(20)
Total shares issued under stock grant programs	259	$	100.22

Shares issued under the deferred compensation plan	91	$	108.47

During the first six months of 2025, we repurchased approximately 2,523,339 shares of our common stock at an average share price of $103.63.

J. INVENTORIES

Inventories are stated at the lower of cost or net realizable value. The cost of inventories includes raw materials, direct labor, and manufacturing overhead and is determined using the weighted average cost method. Raw materials consist primarily of unfinished wood products and other materials expected to be manufactured or treated prior to sale, while finished goods represent various manufactured and treated wood products ready for sale.

We write down the value of inventory, the impact of which is reflected in cost of goods sold in the Condensed Consolidated Statements of Earnings and Comprehensive Income, if the cost of specific inventory items on hand exceeds the amount we expect to realize from the ultimate sale or disposal of the inventory. These estimates are based on management's judgment regarding future demand and market conditions and analysis of historical experience.

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K. SUBSEQUENT EVENTS

Subsequent to our reporting date, we repurchased 125,000 shares for $10.4 million, resulting in an average share price of $83.05.

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Item 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

UFP Industries, Inc. is a holding company with subsidiaries in North America, Europe, Asia, 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. We are headquartered in Grand Rapids, Michigan. Our business segments are functionally interdependent and are supported by common corporate services, such as accounting and finance, information technology, human resources, marketing, purchasing, transportation, legal and compliance, among others. We regularly invest in automation and implement best practices to improve the efficiency of our manufacturing facilities across each of the segments. The results and improvements from these investments are shared among the segments. This exchange of ideas drives 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. We believe that the diversification and manner in which we operate our business segments 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 diversification and operating practices also mitigate the impact of volatile lumber market conditions experienced by traditional lumber companies.

This report 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. 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. 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; 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; 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; artificial intelligence; and potential pandemics. 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

Our results for the second quarter of 2026 include the following highlights:

●

Our net sales increased 3% compared to the second quarter of 2025, consisting of a 1% increase in organic unit sales (excluding growth from acquisitions within the last 12 months) and a 2% increase attributable to acquisitions. Organic unit sales increased 4% in our packaging segment, partially offset by a 2% decrease in our construction segment and a 1% decrease in our retail segment. Acquired businesses contributed 4%, 2%, and 1% unit increases in our packaging, retail, and construction segments, respectively. Overall selling prices were flat as higher selling prices in our ProWood business unit, driven by the pass-through of higher commodity lumber costs to customers, were offset by competitive pricing pressure in our Site Built business unit.

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●

Our gross profit decreased by $23 million, or 7%, compared to the same period of the prior year. By segment, gross profit decreased by $10 million in Construction, $10 million in Packaging, and $3 million in Corporate, while Retail increased by $1 million and All Other remained flat. The overall decrease in our gross profit is primarily due to higher transportation costs across all of the business units. The impact of weaker demand on volumes and pricing in our Site Built and Pallet One was more than offset by improvements in our other business units.

●

Our operating profits decreased $20 million, or 16%, compared to the second quarter of 2025. The overall decrease is a result of the decrease in gross profit mentioned above and a $1 million increase in selling, general, and administrative (“SG&A”) expenses, partially offset by a $4 million decrease in net losses on the disposition and impairment of assets. The increase in SG&A is due to acquired business and professional and legal fees associated with acquisitions.

●

Our cash flows from operations were $61 million in the first six months of 2026 compared to $113 million during the first six months of 2025. The $52 million decline resulted from a decrease in net earnings and non-cash expenses of $50 million and an increase in our investment in net working capital since year end that was $2 million higher in the first six months of 2026 than it was in the first six months of 2025. We anticipate that this increase in net working capital will convert to cash by early in the fourth quarter as we move past the typical seasonal peak in our net working capital.

●

Our Cash and cash equivalents at the end of June 2026 was $597 million compared to $842 million at the end of June 2025. The decline in our cash is primarily due to share repurchase activity and recent business acquisitions. 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 $1.9 billion at the end of the second quarter of 2026.

HISTORICAL LUMBER PRICES

We experience significant fluctuations in the cost of commodity lumber products from primary producers (“Lumber Market”). The following table presents the Random Lengths framing lumber composite price:


		Random Lengths Composite
		Average $/MBF
		2026			2025
January		$	400		$	434
February			436			442
March			443			479
April			486			485
May			484			453
June			491			431

Second quarter average		$	487		$	456
Year-to-date average		$	457		$	454

Second quarter percentage change			6.8	%
Year-to-date percentage change			0.7	%

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In addition, a Southern Yellow Pine (“SYP”) composite price, which we prepare and use, is presented below. Our purchases of this species comprise approximately 76% of our total lumber purchases.


		Random Lengths SYP
		Average $/MBF
		2026			2025
January		$	392		$	386
February			415			401
March			422			424
April			484			446
May			445			445
June			453			381

Second quarter average		$	461		$	424
Year-to-date average		$	435		$	414

Second quarter percentage change			8.7	%
Year-to-date percentage change			5.1	%

Finally, a Spruce Pine Fir (“SPF”) composite price, which we prepare and use, is presented below. Our purchases of this species comprise approximately 11% of our total lumber purchases.


		Random Lengths SPF
		Average $/MBF
		2026			2025
January		$	430		$	480
February			457			479
March			464			526
April			491			504
May			496			446
June			508			444

Second quarter average		$	498		$	465
Year-to-date average		$	474		$	480

Second quarter percentage change			7.1	%
Year-to-date percentage change			(1.3)	%

Lumber prices increased during the second quarter of 2026, after declining during the first quarter. Commodity lumber costs increased due to mill curtailments and higher duties on Canadian lumber, partially offset by weak overall demand resulting from lower consumer sentiment and greater economic uncertainty.

A change in lumber prices impacts profitability of products sold with fixed and variable prices, as discussed below.

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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. Lumber costs were 43.7% and 42.9% of our total net sales in the first six months of 2026 and 2025, respectively.

Our gross margins are impacted by (1) the relative level of the Lumber Market (i.e. whether prices are higher or lower from comparative periods), and (2) the trend in the market price of lumber (i.e. whether the price of lumber is increasing or decreasing within a period or from period to period). Additionally, as explained below, product categories can be priced differently. Some of our products have fixed selling prices, while the selling prices of other products are indexed to the reported Lumber Market with a fixed dollar adder to cover conversion costs and profits. Consequently, the level and trend of the Lumber Market impact our products differently.

Below is a general description of the primary ways in which our products are priced.

●

Products with fixed selling prices. These products include value-added products, such as manufactured items, sold within all segments. Prices for these products are generally fixed at the time of the sales quotation for a specified period of time. In order to reduce any exposure to adverse trends in the price of component lumber products, we attempt to lock in costs with our suppliers or purchase necessary inventory for these sales commitments. The time period limitation eventually allows us to periodically re-price our products for changes in lumber costs from our suppliers.

●

Products with selling prices indexed to the reported Lumber Market with a fixed dollar “adder” to cover conversion costs and profit. These products primarily include treated lumber, panel goods, other commodity-type items, and trusses sold to the manufactured housing industry. For these products, we estimate customers’ needs and carry appropriate levels of inventory. Because lumber costs are incurred in advance of final sale prices, subsequent increases or decreases in the market price of lumber impact our gross margins. We believe our sales of these products are at their highest relative level in our second quarter, primarily due to pressure-treated lumber sold in our retail segment.

For each of the product pricing categories above, our margins are exposed to changes in the trend of lumber prices. As a result of the balance in our net sales to each of our end markets, we believe our gross profit is more stable compared to our competitors who are less diversified.

The greatest risk associated with changes in the trend of lumber prices is on the following products:

●

Products with significant inventory levels with low turnover rates, whose selling prices are indexed to the Lumber Market. 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 22% of our total net sales in the first six months of 2026. This exposure is less significant with remanufactured lumber, panel goods, other commodity-type items, and trusses sold to the manufactured housing market due to the higher rate of inventory turnover. We attempt to mitigate the risk associated with treated lumber through managed inventory programs with our vendors. We estimate that 21% of our total purchases for the first six months of 2026 were transacted 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 attempt to mitigate this risk through our purchasing practices and longer vendor commitments.

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In addition to the impact of Lumber Market trends on gross margins, changes in the level of the market cause fluctuations in gross margins when comparing operating results from period to period. 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. Gross margins and operating margins are negatively impacted during periods of high lumber prices; conversely, we experience margin improvement when lumber prices are relatively low.

IMPACT OF TARIFFS ON OUR OPERATING RESULTS

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. We will continue to monitor the market and intend to make decisions quickly to minimize disruption. As of June 27, 2026, 84% of our lumber purchases were from domestic suppliers, 9% were imported from Canada, and 7% were imported from other international suppliers.

In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”), which the U.S. administration relied on to impose certain tariffs, does not authorize the administration to impose tariffs. As a result of this ruling, the U.S. Court of International Trade (“CIT”) issued an order directing the U.S. Customs and Border Protection (“CBP”) agency to begin formalizing a process for refunds. As of June 27, 2026, we have received $3 million in tariff refunds and recorded a receivable of $20 million related to the expected refund of tariffs previously paid under the IEEPA, including applicable interest, with the corresponding offsets of $20 million to Cost of goods sold, $1 million to interest income, and $2 million as a reduction to the carrying value of inventory on hand. We have certain contractual obligations that will require us to refund customers certain of the tariff refunds we receive. If we collect the entire $23 million of tariffs paid pursuant to the IEEPA, we will be required to refund approximately $11 million to customers. As a result, we recorded $11 million as a liability as of June 27, 2026, with a corresponding reduction to Net sales. Of the $9 million net increase in Earnings from operations relating to these tariff refunds, $6 million related to products sold in the current quarter and $3 million related to products sold in prior quarters. Subsequent to June 27, 2026, we received approximately $18 million of the tariff refund receivable, including related interest.

IMPACT OF HIGHER TRANSPORTATION COSTS ON OUR OPERATING RESULTS

A combination of macroeconomic and geopolitical events and capacity constraints in the flatbed carrier market have contributed to an increase in our input costs across the enterprise, primarily related to fuel and transportation. In the second quarter of 2026, we estimate that we incurred an additional $31 million of these costs which adversely impacted our profitability reflecting increased fuel costs and flatbed carrier rates as a result of many small carriers exiting the market. This has increased our cost in the “spot” market with market rates up over 30% excluding fuel. These market conditions have resulted in $6 million in additional fuel costs and $25 million in higher flatbed carrier costs. Our efforts to pass through these higher costs to our customers have been concentrated on fuel and through surcharges and increased product pricing, which resulted in an offset totaling approximately $4 million for the quarter. We plan to negotiate with our customers to pass through the remaining increase in our transportation costs, however, there are factors beyond our control, including contract terms and market conditions, that may impact our ability to be successful in these efforts. Please see “Risk Factors” below for more information.

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BUSINESS COMBINATIONS AND ASSET PURCHASES

We completed three business combinations in the second quarter of 2026 and two in fiscal 2025. The annual historical sales attributable to these acquisitions are approximately $183 million in aggregate. These business combinations are not significant to our quarterly results and thus proforma results for 2026 and 2025 are not presented. See Notes to the Unaudited Interim Condensed Consolidated Financial Statements, Note F, “Business Combinations” for additional information.

RESULTS OF OPERATIONS

The following table presents, for the periods indicated, the components of our Unaudited Condensed Consolidated Statements of Earnings as a percentage of net sales.


	Three Months Ended				Six Months Ended
	June 27,		June 28,		June 27,		June 28,
	2026		2025		2026		2025
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Cost of goods sold	84.6		83.0		84.3		83.1
Gross profit	15.4		17.0		15.7		16.9
Selling, general, and administrative expenses	9.9		10.1		10.7		10.5
Net gain on disposition and impairment of assets	—		0.2		—		0.1
Other losses (gains), net	—		—		—		—
Earnings from operations	5.5		6.7		5.0		6.3
Interest and other	(0.5)		(0.5)		(0.4)		(0.5)
Earnings before income taxes	6.0		7.2		5.4		6.8
Income taxes	1.6		1.7		1.4		1.5
Net earnings	4.4		5.5		4.0		5.3
Less net earnings attributable to noncontrolling interest	—		—		—		—
Net earnings attributable to controlling interest	4.4	%	5.5	%	4.0	%	5.2	%

Note: Actual percentages are calculated and may not sum to total due to rounding.

As a result of the impact of the level of lumber prices on the percentages displayed in the table above (see Impact of the Lumber Market on Our Operating Results), we believe it is useful to compare our change in units sold with our change in gross profit, selling, general, and administrative expenses, and operating profits as presented in the following table.



		Percentage Change						Percentage Change
		Three Months Ended						Six Months Ended
		June 27,			June 28,			June 27,			June 28,
		2026			2025			2026			2025
Units sold		3.0	%		(3.0)	%		(2.0)	%		(2.0)	%
Gross profit		(7.2)			(13.8)			(9.4)			(15.7)
Selling, general, and administrative expenses		0.4			(8.9)			(0.7)			(8.6)
Earnings from operations		(16.0)			(22.6)			(22.2)			(26.5)

The following table presents, for the periods indicated, our selling, general, and administrative (SG&A) costs as a percentage of gross profit. 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. The increase in the ratio of SG&A as a percentage of gross profit from the prior year is primarily due to the impact of weak consumer demand reflecting lower selling prices as well as higher transportation costs, which have reduced our gross profit.



	Three Months Ended				Six Months Ended
		June 27,		June 28,		June 27,		June 28,
		2026		2025		2026		2025
Gross profit	$	290,235	$	312,734	$	526,124	$	580,930
Selling, general, and administrative expenses	$	185,720	$	184,995	$	358,603	$	361,249
SG&A as percentage of gross profit		64.0%		59.2%		68.2%		62.2%

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Operating Results by Segment:

Our business segments consist of Retail, Packaging and Construction, and align with the end markets we serve. 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. We manage the operations of our individual locations primarily through a market-centered reporting structure under which each location is included in a business unit, and business units are included in our Retail, Packaging, and Construction segments. 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 “All Other” in the table below. The “Corporate” segment includes purchasing, transportation, corporate ventures, and administrative functions that serve our operating segments. Operating results of Corporate primarily consists 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. 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.

The following tables present our operating results, for the periods indicated, by segment (in thousands).


		Three Months Ended June 27, 2026

		Retail			Packaging			Construction		All Other		Corporate			Total
Net sales		$	818,743		$	458,245		$	526,777	$	76,927	$	2,245		$	1,882,937
Cost of goods sold			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, administrative expenses			62,717			45,580			63,930		10,088		3,405			185,720
Net loss (gain) on disposition and impairment 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


		Three Months Ended June 28, 2025

		Retail			Packaging			Construction		All Other		Corporate			Total
Net sales		$	788,224		$	428,669		$	551,590	$	65,026	$	1,865		$	1,835,374
Cost of goods sold			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, administrative expenses			58,642			43,148			63,727		10,398		9,080			184,995
Net loss (gain) on disposition and impairment of assets			1,083			1,225			211		2,616		(1,305)			3,830
Other losses (gains), net			536			—			191		302		(211)			818
Earnings (loss) from operations		$	53,479		$	26,209		$	36,060	$	(79)	$	7,422		$	123,091

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	Six Months Ended June 27, 2026

	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 goods sold		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, administrative expenses		118,763		90,783		125,756		19,066		4,235		358,603
Net loss (gain) on disposition and impairment 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


	Six Months Ended June 28, 2025

	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 goods sold		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, administrative expenses		113,997		90,917		126,511		18,860		10,964		361,249
Net loss (gain) on disposition and impairment 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

The following tables present the components of our operating results, for the periods indicated, as a percentage of net sales by segment.


		Three Months Ended June 27, 2026

		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		86.0		86.8		82.9		83.3		—	84.6
Gross profit		14.0		13.2		17.1		16.7		—	15.4
Selling, general, administrative expenses		7.7		9.9		12.1		13.1		—	9.9
Net loss (gain) on disposition and impairment of assets		0.2		—		—		0.1		—	—
Other losses, net		—		—		—		0.3		—	—
Earnings from operations		6.1	%	3.2	%	5.0	%	3.2	%	—	5.5	%

Note: Actual percentages are calculated and may not sum to total due to rounding.

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UFP INDUSTRIES, INC.


		Three Months Ended June 28, 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		85.6		83.5		81.8		79.6		—	83.0
Gross profit		14.4		16.5		18.2		20.4		—	17.0
Selling, general, administrative expenses		7.4		10.1		11.6		16.0		—	10.1
Net loss (gain) on disposition and impairment of assets		0.1		0.3		—		4.0		—	0.2
Other losses (gains), net		0.1		—		—		0.5		—	—
Earnings (loss) from operations		6.8	%	6.1	%	6.5	%	(0.1)	%	—	6.7	%

Note: Actual percentages are calculated and may not sum to total due to rounding.


		Six Months Ended June 27, 2026

		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		85.5		85.8		83.1		83.1		—	84.3
Gross profit		14.5		14.2		16.9		16.9		—	15.7
Selling, general, administrative expenses		8.8		10.7		12.7		13.1		—	10.7
Net loss (gain) on disposition and impairment of assets		0.1		—		—		0.1		—	—
Other losses, net		—		—		0.1		0.2		—	—
Earnings from operations		5.5	%	3.5	%	4.2	%	3.5	%	—	5.0	%

Note: Actual percentages are calculated and may not sum to total due to rounding.


		Six Months Ended June 28, 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		86.0		83.3		82.1		81.0		—	83.1
Gross profit		14.0		16.7		17.9		19.0		—	16.9
Selling, general, administrative expenses		8.2		10.8		11.9		15.0		—	10.5
Net loss (gain) on disposition and impairment of assets		0.1		0.1		—		2.1		—	0.1
Other losses (gains), net		—		—		—		0.2		—	—
Earnings from operations		5.7	%	5.7	%	6.0	%	1.7	%	—	6.3	%

Note: Actual percentages are calculated and may not sum to total due to rounding.

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UFP INDUSTRIES, INC.

NET SALES

We design, manufacture and market wood and wood-alternative products, primarily used to enhance outdoor living environments; for national home centers and other retailers; for 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. Our strategic long-term sales objectives include:

●	Maximizing unit sales growth while achieving return on investment goals. 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
		Second Quarter 2026 versus Second Quarter 2025
		in Sales		in Selling Prices		in Units		Acquisition Unit Change		Organic Unit Change
Retail		3.9	%	2.9	%	1.0	%	2.0	%	(1.0)	%
Packaging		6.9	%	(1.1)	%	8.0	%	4.0	%	4.0	%
Construction		(4.5)	%	(3.5)	%	(1.0)	%	1.0	%	(2.0)	%
All Other		18.3	%	1.3	%	17.0	%	—	%	17.0	%
Corporate		20.4	%	—	%	20.4	%	—	%	20.4	%
Total Sales		2.6	%	(0.4)	%	3.0	%	2.0	%	1.0	%

		% Change
		Year-to-Date 2026 versus Year-to-Date 2025
		in Sales		in Selling Prices		in Units		Acquisition Unit Change		Organic Unit Change
Retail		(3.3)	%	1.7	%	(5.0)	%	1.0	%	(6.0)	%
Packaging		1.6	%	(1.4)	%	3.0	%	3.0	%	—	%
Construction		(7.0)	%	(4.0)	%	(3.0)	%	1.0	%	(4.0)	%
All Other		16.0	%	(1.0)	%	17.0	%	—	%	17.0	%
Corporate		12.5	%	—	%	12.5	%	—	%	12.5	%
Total Sales		(2.5)	%	(0.5)	%	(2.0)	%	1.0	%	(3.0)	%

●	Expanding geographically in our higher margin core businesses.

●

Increasing our sales of “value-added” products and enhancing our product offering with new or improved products. Value-added products generally consist of fencing, decking, lattice, and other specialty products sold in the Retail segment; structural and protective packaging and machine-built pallets sold in the Packaging segment; engineered wood components, customized interior fixtures, manufactured and assembled concrete forms sold in the Construction segment; and “wood alternative” products. Engineered wood components include roof trusses, wall panels, and floor systems. Wood-alternative products consist of products manufactured with wood and non-wood composites, metals and plastics sold in each of our segments. Although we consider the treatment of dimensional lumber and panels with certain chemical preservatives a value-added process, treated lumber is not presently included in the value-added sales totals. Remanufactured lumber and panels that are components of finished goods are also generally categorized as “commodity-based” products. 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.

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UFP INDUSTRIES, INC.

The following table presents, for the periods indicated, our percentage of value-added and commodity-based sales to total sales by our segments:


		Three Months Ended June 27, 2026						Three Months Ended June 28, 2025
		Value-Added			Commodity-Based			Value-Added			Commodity-Based
Retail		51.7	%		48.3	%		52.6	%		47.4	%
Packaging		76.5	%		23.5	%		74.8	%		25.2	%
Construction		82.8	%		17.2	%		80.7	%		19.3	%
All Other		76.1	%		23.9	%		66.4	%		33.6	%
Corporate		72.6	%		27.4	%		81.0	%		19.0	%
Total Sales		67.3	%		32.7	%		67.0	%		33.0	%

		Six Months Ended June 27, 2026						Six Months Ended June 28, 2025
		Value-Added			Commodity-Based			Value-Added			Commodity-Based
Retail		51.4	%		48.6	%		52.1	%		47.9	%
Packaging		75.9	%		24.1	%		75.0	%		25.0	%
Construction		82.9	%		17.1	%		80.4	%		19.6	%
All Other		74.7	%		25.3	%		77.3	%		22.7	%
Corporate		78.5	%		21.5	%		73.5	%		26.5	%
Total Sales		67.8	%		32.2	%		67.2	%		32.8	%

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.

Our overall unit sales of value-added products were up 4% in the second quarter and down 1% in the first six months of 2026 compared to the prior year. Our overall unit sales of commodity-based products were flat in the second quarter and down 3% in the first six months of 2026 compared to the prior year.

●

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. New product sales in the second quarter and first six months of 2026 increased 33% and 26%, respectively. The increase in the second quarter was primarily attributable to sales of Venture and Surestone™ decking products in our Retail segment, mixed-material products for a key national customer in our Packaging segment, and exterior siding and cladding products, light-gauge metal components, and concrete forming products in our Construction segment. Approximately $13.8 million of new product sales for the first six months of 2025, while they continue to be sold, were sunset in 2026 and excluded from the table below because they no longer meet the definition above. Our short-term goal is to achieve annual new product sales of at least $560 million in 2026. For the first six months of 2026, new product sales totaled $272 million. Our long-term goal is for new products to comprise at least 10% of our total net sales.

The table below presents new product sales in thousands:



		New Product Sales by Segment
		Three Months Ended
		June 27,		% of Segment			June 28,		% of Segment			% Change
		2026		Net Sales			2025		Net Sales			in Sales
Retail		$	80,113	9.8	%			67,243	8.5	%		19.1	%
Packaging			53,036	11.6	%			38,522	9.0	%		37.7	%
Construction			23,962	4.5	%			12,297	2.2	%		94.9	%
All Other			315	0.4	%			27	0.0	%		1,066.7	%
Corporate			572	25.5	%			908	48.7	%		(37.0)	%
Total New Product Sales			157,998	8.4	%			118,997	6.5	%		32.8	%

Note: Certain prior year product reclassifications and the change in designation of certain products as "new" resulted in a change in prior year's sales.

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UFP INDUSTRIES, INC.

		New Product Sales by Segment
		Six Months Ended
		June 27,		% of Segment			June 28,		% of Segment			% Change
		2026		Net Sales			2025		Net Sales			in Sales
Retail		$	127,521	9.4	%		$	111,653	8.0	%		14.2	%
Packaging			101,962	12.0	%			78,981	9.4	%		29.1	%
Construction			41,224	4.2	%			23,727	2.2	%		73.7	%
All Other			536	0.4	%			220	0.2	%		143.6	%
Corporate			1,097	26.0	%			1,325	35.3	%		(17.2)	%
Total New Product Sales			272,340	8.1	%			215,906	6.3	%		26.1	%

Note: Certain prior year product reclassifications and the change in designation of certain products as "new" resulted in a change in prior year's sales.

Retail Segment

Net sales in the second quarter of 2026 increased by 4% compared to the same period of 2025 due to a 3% increase in selling prices and a 2% increase due to acquisitions, partially offset by a 1% decrease in organic unit sales. Organic unit changes within this segment consisted of a 17% decrease in Edge and a 1% decrease in ProWood, partially offset by a 9% increase in Deckorators. Of the 25% year over year increase in net sales for our Deckorators business unit, wood-plastic composite decking and mineral-based-composite decking (sold under our new Surestone tradename) increased 85% and 37%, respectively. An acquired business contributed 13% in sales growth to Deckorators and 51% in sales growth to wood-plastic composite decking sales. These increases were partially offset by railings which declined 17%. Our unit sales to big box customers, which we believe are more closely correlated with repair and remodel activity, increased approximately 2%, while unit sales to independent retailers, which we believe are more closely correlated to new housing starts, decreased approximately 2%. The decline in ProWood volume is primarily due to weaker consumer sentiment and economic uncertainty resulting in a softening of demand to complete repair and remodel projects.

Gross profit increased by $1 million, or 1% to $115 million for the second quarter of 2026 compared to the same period of 2025. The change in gross profit was attributable to the following:

●

The gross profit of our Edge business unit improved by $3 million as a result of cost savings from the closure of the Bonner, MT facility and restructuring of this business unit which led to operational improvements.

●

The gross profit of our Deckorators business unit increased by $1 million despite higher transportation costs. This business unit continues to make progress optimizing new capacity and we anticipate a higher profit contribution on growth in future quarters.

●

The gross profit of our ProWood pressure-treated products decreased by $3 million, due to higher transportation costs.

SG&A increased by $4 million, or 7%, in the second quarter of 2026 compared to the same period of 2025. The increase was caused by a $1 million increase due to acquired operations, a $1 million increase in professional fees, and a $2 million increase in expenses across several other categories. Accrued bonus expense, which varies with overall profitability and return on investment of the segment remained flat from the second quarter of 2025 and totaled $15 million for the quarter.

Earnings from operations decreased in the second quarter of 2026 compared to the same period of 2025 by $4 million, or 7%, as a result of the factors mentioned above.

Net sales in the first six months of 2026 decreased by 3% compared to the same period of 2025, due to a 6% decrease in organic units, partially offset by a 2% increase in selling prices and a 1% increase due to acquisitions. Organic unit changes within this segment consisted of decreases of 18% in Edge and 7% in ProWood, partially offset by a 5% increase in Deckorators. Within our Deckorators business unit, our mineral-based-composite decking sales increased by 33% as consumers continue to see the benefits of its superior product attributes, and wood-plastic composite decking increased by 51%. An acquired business contributed an additional 9% in sales growth to Deckorators and 30% in sales growth to wood-plastic composite decking sales. These increases were partially offset by a 13% decrease in railing sales. Unit sales to big box customers decreased approximately 5%, while unit sales to independent retailers decreased approximately 4%.

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UFP INDUSTRIES, INC.

Gross profit remained flat for the first six months of 2026 compared to the same period in 2025. The components of gross profit were as follows:

●

The gross profit of our ProWood business unit decreased $7 million, primarily due to a decline in unit sales in the first quarter and higher transportation costs in the second quarter.

●

The gross profit of our Edge business unit improved by $4 million as a result of cost savings from the closure of the Bonner, MT facility and restructuring of this business unit which led to operational improvements.

●

The gross profit of our Deckorators business unit increased by $3 million despite higher transportation costs.

SG&A increased by approximately $5 million, or 4%, in the first six months of 2026 compared to the same period of 2025. The overall increase was due to a $1 million increase due to acquired operations, a $2 million increase in professional fees, and a $3 million increase in expenses across several other categories. These increases were partially offset by a decline in accrued bonus expense of $1 million, which totaled $24 million for the first six months of 2026.

Earnings from operations decreased in the first six months of 2026 compared to the same period of 2025 by $6 million, or 7%, as a result of the factors mentioned above.

Packaging Segment

Net sales in the second quarter of 2026 increased 7% compared to the same period of 2025, due to a 4% increase in organic unit sales and a 4% contribution from business acquisitions. These increases were partially offset by a 1% decrease in selling prices. Organic unit changes consist of a 15% increase in Protective Packaging and an 8% increase in Structural Packaging, partially offset by a 3% decrease in PalletOne. Acquisitions contributed an additional 12% in unit sales growth to PalletOne.

Gross profit decreased by $10 million, or 14%, for the second quarter of 2026 compared to the same period of 2025. The change in gross profit was attributable to the following:

●

The gross profit of our PalletOne business unit decreased by $6 million primarily due to increased material and transportation costs.

●

The gross profit of our Structural Packaging business unit decreased by $3 million due to an increase in transportation costs, partially offset by organic unit growth.

●

The gross profit of our Protective Packaging business unit decreased by $1 million compared to the same period of 2025, resulting from unabsorbed manufacturing overhead costs associated with two new greenfield locations.

SG&A increased by approximately $2 million, or 6%, in the second quarter of 2026 compared to the same period of 2025. The increase is attributable to a one-time write-off on an earnout liability in 2025 for $2 million, a $1 million increase due to acquired operations, and a $1 million increase in expenses across several other categories. The increases were offset by accrued bonus expense, which decreased approximately $2 million relative to the same period of 2025 and totaled $6 million for the quarter.

Earnings from operations decreased in the second quarter of 2026 compared to the same period of 2025 by $12 million, or 44%, due to the factors discussed above.

Net sales in the first six months of 2026 increased 2% compared to the same period of 2025, due to acquired businesses which contributed 3% to unit growth, partially offset by a 1% decrease in selling prices. Organic unit changes consist of a 10% increase in Protective Packaging and a 4% increase in Structural Packaging, offset by a 7% decrease in PalletOne. Acquisitions contributed an additional 7% in unit sales growth to PalletOne.

Gross profit decreased by $19 million, or 14%, for the first six months of 2026 compared to the same period in 2025. The change in gross profit was attributable to the following.

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UFP INDUSTRIES, INC.

●

The gross profit of our PalletOne business unit decreased by $11 million primarily due to weak demand and increased material and transportation costs.

●

The gross profit of our Structural Packaging business unit decreased by $6 million primarily due to higher transportation costs.

●

The gross profit of our Protective Packaging business unit decreased $2 million compared to the same period of 2025, resulting from unabsorbed manufacturing overhead costs associated with two new greenfield locations.

SG&A remained flat for first six months of 2026 compared to the same period of 2025. Accrued bonus expense decreased $4 million, and totaled $12 million for the six months of 2026. The decrease was offset by a one-time write off on an earnout liability in 2025 for $2 million, a $1 million increase due to acquired businesses, and a $1 million increase in bad debt expense.

Earnings from operations decreased in the first six months of 2026 compared to the same period 2025 by $18 million, or 38%, due to the factors discussed above, partially offset by a decrease in the net loss on disposition and impairment of assets, which primarily related to a $1 million lease impairment in 2025.

Construction Segment

Net sales in the second quarter of 2026 decreased 4% compared to the same period of 2025 due to a 3% decrease in selling prices due to competitive price pressure in our Site-Built business unit and a 2% decrease in organic unit sales, partially offset by a 1% contribution from acquisitions. We experienced organic unit sales decreases of 6% in Factory Built and 3% in Site-Built due to weaker demand for housing, which was partially offset by an 11% increase in Commercial and a 6% increase in Concrete Forming.

Gross profit decreased by $10 million, or 10%, in the second quarter of 2026 compared to the same period of 2025. The change in our gross profit was attributable to the following:

●

The gross profit of our Site-Built housing business unit decreased by $15 million, primarily due to weak demand and competitive pricing as housing starts have declined due to affordability challenges and economic uncertainty.

●

The gross profit of our Factory-Built business unit decreased by $2 million primarily due to lost market share of certain low margin commodity products.

●

The gross profit of our Commercial construction business unit increased by $6 million due to an increase in unit sales and productivity improvements.

●

The gross profit of our Concrete-Forming business unit increased by $1 million due to an increase in unit sales.

SG&A remained flat in the second quarter of 2026 compared to the same period of 2025. Accrued bonus expense decreased by $2 million and totaled $9 million for the quarter. The decrease in accrued bonus expense was offset by increases of $1 million in wages and benefits and $1 million in travel expenses.

Earnings from operations decreased in the second quarter of 2026 compared to the same period of 2025 by $10 million, or 27%, due to the factors mentioned above.

Net sales in the first six months of 2026 decreased 7% compared to the same period of 2025 and consisted of a 4% decrease in selling prices and a 4% decrease in unit organic sales, partially offset by a 1% contribution from acquisitions. Organic unit changes within this segment consist of decreases of 7% in Factory Built and 8% in Site Built, partially offset by increases of 13% in Commercial and 10% in Concrete Forming.

Gross profit decreased by $23 million, or 12%, for the first six months of 2026 compared to the same period of 2025. The change in our gross profit was attributable to the following:

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UFP INDUSTRIES, INC.

●

The gross profit of our Site-Built housing business unit decreased by $34 million, primarily due to weak demand and competitive pricing as housing starts have declined primarily due to affordability challenges and economic uncertainty.

●

The gross profit of our Commercial construction business unit increased by $10 million due higher volumes and productivity improvements.

●

The gross profit of our Concrete-Forming business unit increased by $1 million due to an increase in unit sales.

●

The gross profit of our Factory-Built business unit remained flat.

SG&A decreased by approximately $1 million, or 1%, in the first six months of 2026 compared to the same period of 2025. Accrued bonus expenses decreased $5 million and totaled $15 million for the first six months of 2026. The decrease in SG&A was partially offset by increases in wages and benefits totaling $2 million, professional fees totaling $1 million and travel expenses totaling $1 million.

Earnings from operations decreased in the first six months of 2026 compared to the same period of 2025 by $22 million, or 35%, 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.

Corporate

The corporate segment consists of over (under) allocated costs that are not significant and net sales to external customers initiated by UFP Purchasing, UFP Transportation, and UFP Real Estate. In 2026 we modified our cost allocation methods to more closely approximate actual.

INCOME TAXES

Effective tax rates differ from statutory federal income tax rates, primarily due to provisions for foreign, state and local income taxes and permanent tax differences. Our effective tax rate was 26.3% in the second quarter of 2026 compared to 23.6% in the same period of 2025 and was 25.3% in the first six months of 2026 compared to 22.5% for the same period in 2025. The increase in our effective tax rate for the second quarter and for the first six months of 2026 was primarily due to $3 million of state income tax benefits recorded as discrete items in the second quarter of 2025 resulting from an approved reduction in our tax rate in Texas and job credits in South Carolina, and a decrease in our tax deduction from stock-based compensation accounted for as a permanent difference.

OFF-BALANCE SHEET TRANSACTIONS

We have no significant off-balance sheet transactions.

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UFP INDUSTRIES, INC.

LIQUIDITY AND CAPITAL RESOURCES

The table below presents, for the periods indicated, a summary of our cash flow statement (in thousands):


		Six Months Ended
		June 27,			June 28,
		2026			2025
Cash from operating activities		$	60,645		$	113,138
Cash used in investing activities			(204,035)			(149,579)
Cash used in financing activities			(183,233)			(302,338)
Effect of exchange rate changes on cash			419			2,176
Net change in all cash and cash equivalents			(326,204)			(336,603)
Cash, cash equivalents, and restricted cash, beginning of period			925,071			1,179,594
Cash, cash equivalents, and restricted cash, end of period		$	598,867		$	842,991

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. We have not issued equity to finance growth except in the case of a large acquisition that occurred many years ago. We manage our capital structure by attempting to maintain a targeted ratio of debt to equity and debt to earnings before interest, taxes, depreciation and amortization. We believe this is one of many 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. Consequently, our working capital typically increases during our first and second quarters resulting in negative or modest cash flows from operations during those periods. Conversely, we tend to 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.

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 of payables outstanding) is a good indicator of our working capital management. As indicated in the table below, our cash cycle remained at 59 days during the second quarter of 2026 and increased to 63 days from 60 days during the first six months of 2026 compared to the same periods of the prior year.


	Three Months Ended				Six Months Ended
	June 27,		June 28,		June 27,		June 28,
	2026		2025		2026		2025
Days of sales outstanding		35		35		35		35
Days supply of inventory		36		36		41		38
Days of payables outstanding		(12)		(12)		(13)		(13)
Days in cash cycle		59		59		63		60

The increase in our days supply of inventory for the first six months of 2026 is due to slower inventory turns in our Retail segment as a result of an increase in safety stock and weaker than anticipated demand in the first quarter. We continue to focus on past due account balances with customers, and the percentage of our accounts receivable that are current was 94% at the end of the second quarter of 2026 and 2025.

In the first six months of 2026, our cash flows from operations were $61 million which consisted of net earnings of $134 million and $95 million of non-cash expenses, partially offset by a $169 million increase in working capital since the end of December 2025 due to seasonal demand. Our cash flows from operations decreased by $52 million compared to the same period of 2025 primarily due to the decline in our net earnings as well as the increase in our investment in net working capital since year end, which was $2 million higher in the first six months of 2026 compared to the first six months of 2025. We anticipate the seasonal increase in net working capital in 2026 will be converted to cash by early in the fourth quarter.

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UFP INDUSTRIES, INC.

Purchases of property, plant, and equipment comprised $87 million of our cash used in investing activities during the first six months of 2026. Outstanding purchase commitments on existing capital projects totaled approximately $108 million on June 27, 2026. Capital spending primarily consists of several projects to expand capacity to manufacture new and value-added products, primarily in our Packaging segment and Deckorators business units, to achieve efficiencies through automation in all segments, and make improvements to a number of facilities. We intend to fund capital expenditures and purchase commitments through our operating cash flows for the balance of the year. Cash used for acquisitions during the first six months of 2026 totaled $122 million (refer to Note F to our unaudited interim condensed consolidated financial statements).

Cash flows used in financing activities during the first six months of 2026 primarily consisted of the following:

●

We repurchased 1,669,770 shares of our common stock for $142 million during the first six months of 2026 at an average price of $84.95 per share. Of this amount, 14,187 shares were repurchased in order to settle tax withholding obligations of long-term stock incentive plan participants’ awards which vested in the current year. The shares were purchased at an average price of $98.07 per share, totaling $1.4 million.

●

Dividends paid during the first six months of 2026 were $40 million. The quarterly dividend of $0.36 per share represents a 3% increase from the quarterly dividend of $0.35 per share paid in 2025.

On June 27, 2026, we had no amount outstanding on our $750 million revolving credit facility, and we had approximately $708 million in remaining availability after considering $42 million in outstanding letters of credit under the revolving credit facility. 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 that may be sold. We were in compliance with all of our covenant requirements as of June 27, 2026.

At the end of the second quarter of 2026, we had approximately $1.9 billion in total liquidity, consisting of our cash, remaining availability under our revolving credit facility, and a shelf agreement with certain lenders providing up to $575 million in remaining borrowing capacity.

ENVIRONMENTAL CONSIDERATIONS AND REGULATIONS

See Notes to Unaudited Interim Condensed Consolidated Financial Statements, Note E, “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. We continually review our accounting policies and financial information disclosures. There have been no material changes in our policies or estimates since December 27, 2025.

FORWARD OUTLOOK

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 adjusted 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.

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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. However, in the short-term, demand in our markets has contracted due to a variety of macro-economic and geopolitical factors, which will continue to impact our results and vary depending on the severity and duration of this cycle. 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. At the beginning of 2025, we announced that our goal through these actions was to improve our operating profits by $60 million by the end of 2026. We are on track to deliver the remaining $25 million or more from this cost out program by year end, with most to be realized in the third and fourth quarters. Additionally, we anticipate:

●

Core SG&A will be approximately $580 million for the year. In addition, we anticipate sales incentives will be 3% of gross profit (3% of gross profit in 2025), bonus expense will range from 17% to 18% of pre-bonus operating profits (17% of pre-bonus operating profits in 2025), and vesting expense associated with incentive shares granted in prior years will total $24 million ($28 million in 2025).

●

Depreciation, amortization and other non-cash expenses will be approximately $211 million for the year.

●

An annual effective tax rate between 25% and 26%.

The following factors should be considered when evaluating our future sales and gross profit:

●

We anticipate lumber prices will remain near current levels, and experience typical seasonal trends, until there is a substantial change in the balance of supply and demand. Transportation constraints may also cause prices to remain elevated, mitigating a typical decline in prices as the peak selling season comes to an end. In the event new tariffs are enacted on imports, we anticipate lumber prices will increase accordingly. We believe we are currently in a strong position to adapt quickly to new tariffs without adverse financial impact after a short adjustment period. Approximately 84% of our purchases of lumber are from domestic sources.

●

A combination of macroeconomic and geopolitical events and capacity constraints in the flatbed carrier market have resulted in an increase in certain of our input and transportation costs. We anticipate that these costs will remain elevated for the foreseeable future. While our intention and operating practices are to pass these costs on to customers in our pricing, there are a variety of factors beyond our control that may impact our ability to be successful in these efforts.

●

Retail sales accounted for 40% of our net sales for the first six months of 2026. 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 down low single digits for the remainder of 2026. We anticipate market growth and share gains in our composite decking and railing products will contribute approximately $100 million of sales growth in our Deckorators business unit in 2026, however our current backlog of ordered but unshipped Surestone™ decking is approximately $30 million as we continue to make progress optimizing capacity. We anticipate recent investments in equipment to improve the manufacturing throughput and lower the cost of our Surestone™ decking products will result in margin improvements in those products in 2026 as the new capacity is effectively brought on-line and once the higher cost inventory is sold.

●

Packaging sales accounted for 25% of our net sales for the first six months of 2026. When evaluating future demand, we consider a number of metrics, including the Purchasing Managers Index (PMI), durable goods manufacturing, and U.S. real GDP. We currently believe overall demand in the markets we serve to be down low single digits for the remainder of 2026, primarily due to softening demand in our PalletOne business unit. We anticipate share gains in each of our business units will help mitigate weaker demand.

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●

Construction sales accounted for 30% of our net sales for the first six months of 2026.

The Site-Built business unit accounted for approximately 10% of our net sales for the first six months of 2026. Approximately one-third of site-built customers are multifamily builders. The industry consensus estimate of national housing starts for 2026 is 1.35 million, with estimates generally predicting flat to mid-single digit growth in the coming year with multi-family showing slightly weaker performance compared to single-family. We anticipate demand in the regions we operate to be down low to mid-single digits for the remainder of 2026. Despite the softer near-term demand outlook, our backlog has increased as a result of several newly awarded projects for which contracts are in place, with projected margins generally consistent with those of other recent projects. As of June 27, 2026 and June 28, 2025, we estimate that our backlog of orders in our Site-Built housing business unit were $117 million and $59 million, respectively. The increase was primarily related to multi-family projects in the Northeast.

The Factory-Built housing business unit accounted for 12% of our net sales for the first six months of 2026. When evaluating future demand, we analyze data from production and shipments of manufactured housing. Year to date industry production is down 8%. We currently believe overall demand will be down low to mid-single digits for the remainder of 2026.

The Commercial construction and Concrete Forming business units accounted for approximately 8% of our net sales for the first six months of 2026. When evaluating future demand, we analyze data from non-residential construction spending. We anticipate modest growth in overall demand of these business units for the remainder of 2026.

Capital Allocation:

We believe the strength of our cash flow generation and conservative capital structure provide us with sufficient resources to grow our business and also fund returns to our shareholders. We plan to continue to pursue a balanced and return-driven approach to capital allocation across dividends, share buybacks, capital investments and acquisitions.

●

On July 22, 2026, our board approved a quarterly cash dividend of $0.36 per share, which represents a 3% increase from the 2025 dividend rate. This dividend is payable on September 15, 2026, to shareholders of record on September 1, 2026. 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 earnings growth.

●

On May 29, 2026, our board authorized the repurchase of up to $300 million worth of our shares through April 30, 2027. This share authorization supersedes and replaces our prior share repurchase authorizations. Our objective is to repurchase our stock at sufficient amounts to offset issuances under our share-based compensation plans. In addition, we will allocate more of our free cash flow to opportunistically buy shares when the price trades at pre-determined levels we believe are at a significant discount to intrinsic value. Through August 4, 2026, we have approximately $273 million of remaining availability under this authorization.

●

Our targeted range for capital expenditures for 2026 is $175 to $200 million and will continue to be impacted by extended lead times required for most equipment and rolling stock as well as the time required for site selection in the case of investments in new locations. Priority continues to be given to projects that enhance the working environments of our plants, take advantage of automation opportunities, and drive strategies that have strong long-term growth potential for new and value-added products. Certain planned capital projects have been canceled as we evaluated acquisition opportunities as an alternative means of adding capacity rather than investing in greenfield operations.

●

We continue to pursue a healthy pipeline of acquisition opportunities of companies that are a strong strategic fit and enhance our capabilities while providing higher margin, return, and growth potential.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

We are exposed to market risks related to fluctuations in interest rates on our variable rate debt, which consists of a revolving credit facility and industrial development revenue bonds. We do not enter into any material interest rate swaps, futures contracts or options on futures, or other types of derivative financial instruments to mitigate this risk.

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For fixed rate debt, changes in interest rates generally affect the fair market value, but not earnings or cash flows. Conversely, for variable rate debt, changes in interest rates generally do not influence fair market value, but do affect future earnings and cash flows. We do not have an obligation to prepay fixed rate debt prior to maturity, and as a result, interest rate risk and changes in fair market value should not have a significant impact on such debt until we are required to refinance it.

We are subject to fluctuations in the price of lumber. We experience significant fluctuations in the cost of commodity lumber products from primary producers (the “Lumber Market”). A variety of factors over which we have no control, including government regulations, tariffs and trade policies, transportation, environmental regulations, weather conditions, economic conditions, and natural disasters, impact the cost of lumber products and our selling prices. While we attempt to minimize our risk from severe price fluctuations, substantial, prolonged trends in lumber prices can affect our sales, cost of materials, and gross profit. (See “Impact of the Lumber Market on Our Operating Results”).

Our international operations have exposure to foreign currency rate risks, primarily due to fluctuations in their local currency, which is their functional currency, compared to the U.S. Dollar. Additionally, certain of our operations enter into transactions that will be settled in a currency other than the U.S. Dollar. We may enter into forward foreign exchange rate contracts in the future to mitigate foreign currency exchange risk. Historically, our hedge contracts have been immaterial to the financial statements.

Item 4. Controls and Procedures.

(a)

Evaluation of Disclosure Controls and Procedures. With the participation of management, our Chief Executive Officer and Chief Financial Officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in SEC Rules 13a–15(e) and 15d–15(e)) in the manner required by SEC Rule 13a-15(b) and 15d-15(b), have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

(b)

Changes in Internal Controls. During the quarter ended June 27, 2026, there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1A. Risk Factors.

There have been no material changes to the risk factors disclosed in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 27, 2025, as updated by the Part II - Item 1A Risk Factors of our Quarterly Report on Form 10-Q for the quarter ended March 28, 2026.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Director Compensation Plan

(a)

A portion of the annual retainer payable to each of our non-employee directors (such portion for each director is $135,000 for 2026) 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. We use the market price per share on each such installment date (or the preceding 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.

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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. 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. 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. 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.

On May 1, 2026, the Company issued 1,196 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). 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.

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. 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. 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. 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.

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. On February 19, 2026, we issued a total of 61,748 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. During 2026 we issued 19,428 shares 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 29, 2026		39
January 30, 2026		2,872
February 26, 2026		38
February 27, 2026		2,896
March 26, 2026		45
March 28, 2026		3,233
April 30, 2026		44
April 30, 2026		3,293
May 28, 2026		49
May 29, 2026		3,624
June 25, 2026		44
June 27, 2026		3,251
Total common stock shares issued		19,428

(b)

N/A.

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(c)

Issuer purchases of equity securities.


Fiscal Month		(1)		(2)			(3)		(4)
March 29 - May 2, 2026		215,323		$	89.63		215,323		$	76,662,655
May 3 - 30, 2026		924,256			82.65		924,256			274,012
May 31 - June 27, 2026		195,650			82.46		195,650			283,867,125

Note: May includes 2,191 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. 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.

(4)	Approximate dollar value of shares that may yet be purchased under the plans or programs.

(1)

A total of 1,139,579 shares reported as repurchased between March 29, 2026 and May 30, 2026 in the table above were repurchased pursuant to the share repurchase authorization approved by our board on July 23, 2025 to repurchase up to $300 million worth of our common stock through July 31, 2026. On and effective as of May 29, 2026, our board authorized the repurchase of up to $300 million worth of shares of our common stock through the period ending April 30, 2027. This authorization supersedes and replaces any prior authorization. The balance of shares reported for the period from May 31, 2026, through June 27, 2026 were purchased pursuant to the new share authorization.

Item 5. Other Information.

During the quarter ended June 27, 2026, no director or officer adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

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PART II. OTHER INFORMATION

Item 6. Exhibits.

The following exhibits (listed by number corresponding to the Exhibit Table as Item 601 in Regulation S-K) are filed with this report:


31	Certifications.

	(a)	Certificate of the Chief Executive Officer of UFP Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

	(b)	Certificate of the Chief Financial Officer of UFP Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

32	Certifications.

	(a)	Certificate of the Chief Executive Officer of UFP Industries, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

	(b)	Certificate of the Chief Financial Officer of UFP Industries, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

101	Interactive Data File formatted in iXBRL (Inline eXtensible Business Reporting Language).

	(INS)	iXBRL Instance Document.

	(SCH)	iXBRL Schema Document.

	(CAL)	iXBRL Taxonomy Extension Calculation Linkbase Document.

	(LAB)	iXBRL Taxonomy Extension Label Linkbase Document.

	(PRE)	iXBRL Taxonomy Extension Presentation Linkbase Document.

	(DEF)	iXBRL Taxonomy Extension Definition Linkbase Document.

104	Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	UFP INDUSTRIES, INC.

Date: August 5, 2026	By:	/s/ William D. Schwartz, Jr.
	William D. Schwartz, Jr.,
	Chief Executive Officer and
	Principal Executive Officer

Date: August 5, 2026	By:	/s/ Michael R. Cole
	Michael R. Cole,
	Chief Financial Officer,
	Principal Financial Officer and
	Principal Accounting Officer