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1. Imagine Trex, but they don't just make composite decking – they manufacture a vast range of wood and composite products, from residential construction components to industrial shipping pallets and outdoor living items.

2. They are like the primary manufacturer for many of the wood and composite building materials sold at Home Depot or Lowe's, also a major producer of essential industrial packaging like pallets for countless other businesses.

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• Decking and Railing Systems: Engineered wood and composite products for residential and commercial outdoor living spaces.
• Outdoor Living Products: A range of items including pergolas, outdoor furniture, and shade structures for patios and gardens.
• Industrial Packaging: Custom-designed wood and wood-alternative crates, pallets, and containers for shipping and material handling.
• Structural Building Components: Prefabricated trusses, wall panels, and floor systems used in residential and commercial construction.
• Fencing and Landscaping Products: Wood and composite fencing, garden beds, and other decorative or functional outdoor landscape items.
• Concrete Forming Products: Specialized wood and steel concrete forming solutions for various construction projects.

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UFP Industries (UFPI) primarily sells its products and services to other companies (Business-to-Business or B2B) across its three main segments: UFP Retail Solutions, UFP Packaging, and UFP Construction. Its customers include big box home improvement centers, independent lumberyards, industrial businesses across various sectors, and manufacturers of factory-built homes, as well as multifamily and site-built residential builders.

While UFP Industries' 2023 10-K report initially states that no single customer accounts for 10% or more of its net sales, it subsequently discloses more specific information regarding customer concentration. The report indicates that sales of outdoor living and other products to two of its largest retail customers accounted for approximately 17% and 15% of its consolidated net sales in 2023, respectively. These two customers, therefore, represent major customers for UFP Industries.

UFP Industries does not publicly name these specific major retail customers in its SEC filings. However, given that they are described as "big box home improvement centers" and account for a significant portion of sales in the UFP Retail Solutions segment, the most probable major customers are:

• The Home Depot, Inc. (Symbol: HD)
• Lowe's Companies, Inc. (Symbol: LOW)

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William D. Schwartz, Jr. President and Chief Executive Officer

William D. Schwartz, Jr. was appointed President and Chief Executive Officer of UFP Industries, Inc., on December 29, 2024. He joined the company in 1998 as a sales trainee and has held various positions of increasing responsibility, including operations vice president, executive vice president of purchasing, executive vice president of operations services, and President of UFP Retail Solutions.

Matthew J. Missad Executive Chairman

Matthew J. Missad became Executive Chairman of the Board of Directors of UFP Industries, Inc., on December 29, 2024, after serving as CEO since July 2011 and Chairman since 2023. He started with the company as a high school student on its maintenance crew and joined full-time in 1985 as manager of legal compliance, progressing to executive vice president, general counsel, and secretary. Mr. Missad also served as a director of Independent Bank Corporation.

Michael R. Cole Chief Financial Officer, President of Corporate Services, and Treasurer

Michael R. Cole has been the Chief Financial Officer, President of Corporate Services, and Treasurer of UFP Industries since 2000. He joined Universal Forest Products in November 1993 and previously served as the Vice President of Finance. Mr. Cole also worked at Deloitte & Touche LLP.

Patrick M. Benton President - UFP Construction, LLC

Patrick M. Benton has been the President of UFP Construction at the company since 2020. His previous roles include President of UFP Northern Division, Executive Vice President of UFP Eastern Division, and Vice President of Operations of the South Texas Region.

Scott A. Worthington President - UFP Packaging LLC

Scott A. Worthington has served as the President of UFP Packaging LLC since 2020.

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The key risks to UFP Industries (UFPI) are:

1. Fluctuations in Raw Material Costs: UFP Industries is highly susceptible to significant fluctuations in the cost of commodity lumber products and other raw materials. These fluctuations are influenced by various uncontrollable factors, including government and environmental regulations, weather conditions, economic conditions, and natural disasters. Substantial and prolonged trends in lumber prices can directly impact the company's sales, cost of materials, and gross profits. Tariffs on imported lumber, such as those on Canadian softwood lumber, also contribute to increased input costs and pricing pressures.
2. Cyclicality of End Markets and Economic Conditions: A significant portion of UFP Industries' business is tied to the cyclical construction and housing markets. Downturns or slowdowns in these sectors, as well as broader adverse economic conditions, can negatively affect the company's sales and profitability. Macroeconomic factors such as inflation, interest rate changes, and shifts in consumer confidence can further impact demand for UFPI's products and overall financial performance.
3. Intense Competition and Customer Concentration: UFP Industries operates in a highly competitive building materials and construction industry, facing competition from both large, diversified companies and smaller, regional players. This intense competition can lead to price wars, reduced profit margins, and loss of market share. Additionally, the company has a notable reliance on key customers, with sales to major retailers like The Home Depot and Lowe's representing a significant portion of its total net sales. Changes in these customer relationships, their purchasing strategies, or their financial health could adversely affect UFPI's business.

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Clear Emerging Threats for UFP Industries (UFPI):

• Additive Manufacturing (3D Printing) in Construction: The emerging use of 3D printing technology for constructing residential and commercial buildings, primarily with concrete and advanced composites, poses a potential threat. As this technology develops and scales, it could reduce the demand for traditional stick-built wood framing, engineered wood components, and other prefabricated wood products that UFP Industries supplies to the construction market. Companies like ICON and Mighty Buildings are actively demonstrating the viability and potential cost-effectiveness of 3D-printed structures, which could fundamentally alter traditional construction methods.
• Accelerated Shift Towards Reusable and Non-Wood Industrial Packaging Solutions: UFP Industries has a substantial business segment in wood pallets, crates, and industrial packaging components. A growing industry trend, fueled by corporate sustainability initiatives (ESG) and supply chain efficiency goals, is the increased adoption of reusable packaging solutions (e.g., plastic or metal pallets, returnable transit packaging) and other circular economy models. If this shift continues to accelerate significantly, it could gradually erode the demand for traditional, single-use, or wood-based industrial packaging solutions.

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UFP Industries (UFPI) operates primarily in three segments: UFP Packaging, UFP Construction, and UFP Retail Solutions. The addressable markets for their main products and services are identified as follows:

• UFP Packaging:

  • The global wooden and plywood packaging market, which includes products like pallets, crates, and boxes, was valued at approximately USD 20.9 billion in 2025 and is projected to reach USD 31.8 billion by 2035, growing at a Compound Annual Growth Rate (CAGR) of 4.3%.

• UFP Construction:

  • The North America construction materials market, which includes various wood-based and alternative construction materials, was valued at approximately USD 568.62 billion in 2024. The U.S. alone accounted for a major share of this market, with a size of approximately USD 448.64 billion in 2024.

  • The U.S. prefabricated housing market, which includes modular and manufactured homes, was valued at approximately USD 36.14 billion in 2024 and is anticipated to reach USD 60.03 billion by 2033, demonstrating a CAGR of 5.8%.

• UFP Retail Solutions:

  • The U.S. pressure-treated wood production market, a key offering in their retail segment, was valued at approximately USD 10.1 billion in 2025.

  • The U.S. market size for Lumber & Building Material Stores, which represents the retail channel for many of UFP Industries' products like decking, fencing, and other building materials, was approximately USD 160.8 billion in 2025.

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UFP Industries (UFPI) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:

1. Expansion of Value-Added Products and Innovation: UFP Industries is strategically focused on innovation and developing new, value-added products. The company aims for new product sales to eventually constitute 10% of total sales. This includes the successful growth of brands like Deckorators, with its mineral-based composite decking (Surestone), where UFP Industries plans to double its market share in composite decking and railing over five years, supported by new manufacturing facilities becoming operational by the first quarter of 2026.
2. Strategic Acquisitions: The company plans to pursue disciplined mergers and acquisitions (M&A) opportunities to expand its geographic presence and enhance its product offerings. UFP Industries has a strong balance sheet and liquidity to support these inorganic growth strategies.
3. International Market Expansion: UFP Industries is poised to further grow its international footprint, particularly in emerging markets. By leveraging its existing global operations in regions such as Mexico, Canada, Spain, India, the United Arab Emirates, and Australia, the company seeks to tap into new avenues for growth and diversify its revenue streams.
4. Market Share Gains: UFP Industries is actively working to gain market share, even amidst competitive market conditions. This includes strategies like competitive pricing, especially in its packaging segment, and increasing capacity for high-performing product lines like Deckorators, which is expected to significantly benefit sales and margins in 2026.

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Share Repurchases

• As of October 2025, UFP Industries repurchased approximately $350 million in company shares year-to-date.
• On July 23, 2025, the Board of Directors approved a new share repurchase authorization totaling $300 million, effective through July 31, 2026.
• In 2024, the company repurchased approximately $160 million in shares across the year.

Share Issuance

• Share issuances are primarily for equity-based compensation programs, with the company aiming to offset dilution through share repurchases.
• In Q3 2025, the issuance of common stock was a comparatively minor amount, totaling $1.867 million and $2.122 million in different reported figures.

Outbound Investments

• UFP Industries completed three strategic bolt-on acquisitions in 2025, focused on enhancing product offerings and expanding geographic reach.
• The company announced a plan to invest up to $1 billion in growth capital through 2028, with a preference for strategic mergers and acquisitions.
• In 2021, UFP Industries acquired nine companies, including the net operating assets of Spartanburg Forest Products and its affiliates for approximately $17 million for property, plants, and equipment, plus an estimated $80 million for net working capital.

Capital Expenditures

• Expected capital expenditures for 2025 are approximately $300 million to $325 million.
• Year-to-date through Q3 2025, capital expenditures totaled $206 million, with $124 million allocated for expansionary projects.
• The primary focus of capital expenditures includes automation, technology upgrades, geographic expansion, and increasing capacity at existing facilities, particularly for Deckorators, Site Built, and Packaging segments, with $200 million earmarked for automation.