| SEGMENT REPORTING |
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. We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of Retail, Packaging and Construction, which 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 for separate reporting and, accordingly, 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. Intercompany 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 September 26, 2026 | | | | | | | | | | | | All | | | | | | | | | Retail | | Packaging | | Construction | | Other | | Corporate | | Total | Net sales to outside customers | | $ | 634,514 | | $ | 465,845 | | $ | 552,423 | | $ | 78,029 | | $ | 2,025 | | $ | 1,732,836 | Intersegment net sales | | | 84,980 | | | 28,118 | | | 25,326 | | | 60,432 | | | (198,856) | | | — | Cost of goods sold | | | 560,963 | | | 406,791 | | | 461,118 | | | 64,512 | | | (5,469) | | | 1,487,915 | Gross Profit | | | 73,551 | | | 59,054 | | | 91,305 | | | 13,517 | | | 7,494 | | | 244,921 | Selling, general, and administrative expenses | | | 52,240 | | | 45,987 | | | 63,324 | | | 9,618 | | | 6,922 | | | 178,091 | Net loss (gain) on disposition and impairment of assets | | | 801 | | | 150 | | | 20 | | | 165 | | | (4,320) | | | (3,184) | Other (gains) losses, net | | | (336) | | | — | | | 107 | | | 50 | | | 37 | | | (142) | Earnings from operations | | | 20,846 | | | 12,917 | | | 27,854 | | | 3,684 | | | 4,855 | | | 70,156 | Interest expense | | | 24 | | | 1 | | | (4) | | | (211) | | | 2,898 | | | 2,708 | Interest and investment income | | | (127) | | | (9) | | | (5) | | | (18) | | | (7,178) | | | (7,337) | Equity in earnings of investee | | | — | | | (2,063) | | | — | | | (24) | | | — | | | (2,087) | Interest and other | | | (103) | | | (2,071) | | | (9) | | | (253) | | | (4,280) | | | (6,716) | Earnings before income taxes | | | 20,949 | | | 14,988 | | | 27,863 | | | 3,937 | | | 9,135 | | | 76,872 | Income taxes | | | 4,848 | | | 3,577 | | | 6,722 | | | 847 | | | 2,245 | | | 18,239 | Net earnings | | $ | 16,101 | | $ | 11,411 | | $ | 21,141 | | $ | 3,090 | | $ | 6,890 | | $ | 58,633 | Other significant items: | | | | | | | | | | | | | | | | | | | Amortization expense | | $ | 926 | | $ | 2,194 | | $ | 777 | | $ | 1,640 | | $ | 116 | | $ | 5,653 | Depreciation expense | | | 10,298 | | | 10,191 | | | 6,481 | | | 858 | | | 12,015 | | | 39,843 | Segment assets | | | 998,437 | | | 861,062 | | | 694,865 | | | 324,996 | | | 1,254,606 | | | 4,133,966 | Capital expenditures | | | 15,066 | | | 6,901 | | | 5,752 | | | 749 | | | 7,671 | | | 36,139 |
| | | | | | | | | | | | | | | | | | | | | Three Months Ended September 27, 2025 | | | | | | | | | | | | All | | | | | | | | | Retail | | Packaging | | Construction | | Other | | Corporate | | Total | Net sales to outside customers | | $ | 593,985 | | $ | 394,949 | | $ | 496,465 | | $ | 72,482 | | $ | 1,746 | | $ | 1,559,627 | Intersegment net sales | | | 59,118 | | | 27,472 | | | 20,622 | | | 82,334 | | | (189,546) | | | — | Cost of goods sold | | | 513,763 | | | 327,528 | | | 405,262 | | | 59,251 | | | (8,858) | | | 1,296,946 | Gross Profit | | | 80,222 | | | 67,421 | | | 91,203 | | | 13,231 | | | 10,604 | | | 262,681 | Selling, general, and administrative expenses | | | 49,032 | | | 45,831 | | | 58,943 | | | 9,226 | | | 6,998 | | | 170,030 | Net loss (gain) on disposition and impairment of assets | | | 9,983 | | | (5,970) | | | (59) | | | 63 | | | (1,559) | | | 2,458 | Other losses (gains), net | | | 462 | | | — | | | (3) | | | 203 | | | 60 | | | 722 | Earnings from operations | | | 20,745 | | | 27,560 | | | 32,322 | | | 3,739 | | | 5,105 | | | 89,471 | Interest expense | | | 30 | | | 3 | | | — | | | (212) | | | 2,936 | | | 2,757 | Interest and investment income | | | (100) | | | (4) | | | (7) | | | (2,735) | | | (9,296) | | | (12,142) | Equity in (earnings) loss of investee | | | — | | | (380) | | | — | | | 102 | | | — | | | (278) | Interest and other | | | (70) | | | (381) | | | (7) | | | (2,845) | | | (6,360) | | | (9,663) | Earnings before income taxes | | | 20,815 | | | 27,941 | | | 32,329 | | | 6,584 | | | 11,465 | | | 99,134 | Income taxes | | | 5,074 | | | 6,583 | | | 7,647 | | | 1,691 | | | 2,597 | | | 23,592 | Net earnings | | $ | 15,741 | | $ | 21,358 | | $ | 24,682 | | $ | 4,893 | | $ | 8,868 | | $ | 75,542 | Other significant items: | | | | | | | | | | | | | | | | | | | Amortization expense | | $ | 879 | | $ | 2,139 | | $ | 775 | | $ | 1,701 | | $ | 427 | | $ | 5,921 | Depreciation expense | | | 7,523 | | | 8,946 | | | 6,667 | | | 1,027 | | | 10,470 | | | 34,633 | Segment assets | | | 881,513 | | | 772,184 | | | 630,054 | | | 338,211 | | | 1,513,589 | | | 4,135,551 | Capital expenditures | | | 37,278 | | | 11,155 | | | 6,149 | | | 744 | | | 20,426 | | | 75,752 |
| | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 26, 2026 | | | | | | | | | | | | All | | | | | | | | | Retail | | Packaging | | Construction | | Other | | Corporate | | Total | Net sales to outside customers | | $ | 1,984,433 | | $ | 1,318,183 | | $ | 1,544,713 | | $ | 223,461 | | $ | 6,250 | | $ | 5,077,040 | Intersegment net sales | | | 248,262 | | | 78,901 | | | 66,384 | | | 182,926 | | | (576,473) | | | — | Cost of goods sold | | | 1,715,673 | | | 1,138,422 | | | 1,285,463 | | | 185,352 | | | (18,915) | | | 4,305,995 | Gross profit | | | 268,760 | | | 179,761 | | | 259,250 | | | 38,109 | | | 25,165 | | | 771,045 | Selling, general, and administrative expenses | | | 171,003 | | | 136,770 | | | 189,080 | | | 28,684 | | | 11,157 | | | 536,694 | Net loss (gain) on disposition and impairment of assets | | | 2,649 | | | 86 | | | 70 | | | 240 | | | (7,579) | | | (4,534) | Other losses, net | | | 123 | | | — | | | 659 | | | 399 | | | 51 | | | 1,232 | Earnings from operations | | | 94,985 | | | 42,905 | | | 69,441 | | | 8,786 | | | 21,536 | | | 237,653 | Interest expense | | | (227) | | | 7 | | | (389) | | | (696) | | | 8,644 | | | 7,339 | Interest and investment income | | | (314) | | | (8) | | | (20) | | | (6,572) | | | (16,384) | | | (23,298) | Equity in earnings of investee | | | — | | | (2,848) | | | — | | | (218) | | | — | | | (3,066) | Interest and other | | | (541) | | | (2,849) | | | (409) | | | (7,486) | | | (7,740) | | | (19,025) | Earnings before income taxes | | | 95,526 | | | 45,754 | | | 69,850 | | | 16,272 | | | 29,276 | | | 256,678 | Income taxes | | | 23,735 | | | 11,369 | | | 17,355 | | | 3,414 | | | 7,904 | | | 63,777 | Net earnings | | $ | 71,791 | | $ | 34,385 | | $ | 52,495 | | $ | 12,858 | | $ | 21,372 | | $ | 192,901 | Other significant items: | | | | | | | | | | | | | | | | | | | Amortization expense | | $ | 2,681 | | $ | 6,398 | | $ | 2,126 | | $ | 4,953 | | $ | 348 | | $ | 16,506 | Depreciation expense | | | 27,962 | | | 27,815 | | | 19,895 | | | 2,721 | | | 34,816 | | | 113,209 | Segment assets | | | 998,437 | | | 861,062 | | | 694,865 | | | 324,996 | | | 1,254,606 | | | 4,133,966 | Capital expenditures | | | 54,442 | | | 30,356 | | | 15,619 | | | 3,722 | | | 18,576 | | | 122,715 |
| | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 27, 2025 | | | | | | | | | | | | All | | | | | | | | | Retail | | Packaging | | Construction | | Other | | Corporate | | Total | Net sales to outside customers | | $ | 1,989,592 | | $ | 1,233,626 | | $ | 1,563,995 | | $ | 197,806 | | $ | 5,501 | | $ | 4,990,520 | Intersegment net sales | | | 199,760 | | | 77,016 | | | 71,860 | | | 273,361 | | | (621,997) | | | — | Cost of goods sold | | | 1,714,335 | | | 1,026,049 | | | 1,281,803 | | | 160,706 | | | (35,984) | | | 4,146,909 | Gross profit | | | 275,257 | | | 207,577 | | | 282,192 | | | 37,100 | | | 41,485 | | | 843,611 | Selling, general, and administrative expenses | | | 163,029 | | | 136,748 | | | 185,454 | | | 28,086 | | | 17,962 | | | 531,279 | Net loss (gain) on disposition and impairment of assets | | | 11,090 | | | (4,713) | | | 272 | | | 2,679 | | | (3,116) | | | 6,212 | Other losses (gains), net | | | 780 | | | — | | | 268 | | | 451 | | | (193) | | | 1,306 | Earnings from operations | | | 100,358 | | | 75,542 | | | 96,198 | | | 5,884 | | | 26,832 | | | 304,814 | Interest expense | | | 89 | | | 9 | | | — | | | (742) | | | 8,786 | | | 8,142 | Interest and investment income | | | (273) | | | (4) | | | (8) | | | (5,343) | | | (28,388) | | | (34,016) | Equity in earnings of investee | | | — | | | (853) | | | — | | | (219) | | | — | | | (1,072) | Interest and other | | | (184) | | | (848) | | | (8) | | | (6,304) | | | (19,602) | | | (26,946) | Earnings before income taxes | | | 100,542 | | | 76,390 | | | 96,206 | | | 12,188 | | | 46,434 | | | 331,760 | Income taxes | | | 23,010 | | | 17,482 | | | 22,017 | | | 2,779 | | | 10,636 | | | 75,924 | Net earnings | | $ | 77,532 | | $ | 58,908 | | $ | 74,189 | | $ | 9,409 | | $ | 35,798 | | $ | 255,836 | Other significant items: | | | | | | | | | | | | | | | | | | | Amortization expense | | $ | 2,793 | | $ | 6,484 | | $ | 2,181 | | $ | 4,973 | | $ | 1,235 | | $ | 17,666 | Depreciation expense | | | 22,425 | | | 26,933 | | | 19,188 | | | 3,080 | | | 29,948 | | | 101,574 | Segment assets | | | 881,513 | | | 772,184 | | | 630,054 | | | 338,211 | | | 1,513,589 | | | 4,135,551 | Capital expenditures | | | 91,804 | | | 57,704 | | | 22,813 | | | 2,168 | | | 31,015 | | | 205,504 |
The following table presents goodwill by segment as of September 26, 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 | | | — | | | 2,567 | | | — | | | — | | | — | | | 2,567 | 2026 Purchase Accounting Adjustments | | | — | | | — | | | (761) | | | — | | | — | | | (761) | Foreign Exchange, Net | | | 6 | | | — | | | (148) | | | 47 | | | — | | | (95) | Balance as of September 26, 2026 | | $ | 84,180 | | $ | 150,671 | | $ | 87,488 | | $ | 23,293 | | $ | — | | $ | 345,632 |
The following table presents our disaggregated net sales by business unit for each segment for the three and nine months ended September 26, 2026, and September 27, 2025 (in thousands). | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 26, | | September 27, | | September 26, | | September 27, | | | 2026 | | 2025 | | 2026 | | 2025 | Retail | | | | | | | | | | | | | ProWood | | $ | 499,293 | | $ | 486,682 | | $ | 1,609,092 | | $ | 1,658,058 | Deckorators | | | 108,590 | | | 81,163 | | | 299,937 | | | 244,769 | UFP Edge | | | 26,631 | | | 26,140 | | | 75,404 | | | 86,765 | Total Retail | | $ | 634,514 | | $ | 593,985 | | $ | 1,984,433 | | $ | 1,989,592 | | | | | | | | | | | | | | Packaging | | | | | | | | | | | | | Structural Packaging | | $ | 286,561 | | $ | 245,868 | | $ | 818,159 | | $ | 769,151 | PalletOne | | | 155,487 | | | 126,573 | | | 433,570 | | | 402,706 | Protective Packaging | | | 23,797 | | | 22,508 | | | 66,454 | | | 61,769 | Total Packaging | | $ | 465,845 | | $ | 394,949 | | $ | 1,318,183 | | $ | 1,233,626 | | | | | | | | | | | | | | Construction | | | | | | | | | | | | | Factory Built | | $ | 218,790 | | $ | 201,596 | | $ | 627,718 | | $ | 648,484 | Site-Built | | | 187,782 | | | 168,069 | | | 525,058 | | | 561,099 | Commercial | | | 93,120 | | | 78,227 | | | 237,733 | | | 212,462 | Concrete Forming | | | 52,731 | | | 48,573 | | | 154,204 | | | 141,950 | Total Construction | | $ | 552,423 | | $ | 496,465 | | $ | 1,544,713 | | $ | 1,563,995 | | | | | | | | | | | | | | All Other | | $ | 78,029 | | $ | 72,482 | | $ | 223,461 | | $ | 197,806 | | | | | | | | | | | | | | Corporate | | $ | 2,025 | | $ | 1,746 | | $ | 6,250 | | $ | 5,501 | | | | | | | | | | | | | | Total Net Sales | | $ | 1,732,836 | | $ | 1,559,627 | | $ | 5,077,040 | | $ | 4,990,520 |
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