UFP Industries Announces Third Quarter 2026 Results

UFP Industries Announces Third Quarter 2026 Results GRAND RAPIDS, Mich., Oct. 28, 2026 /PRNewswire/ -- UFP Industries, Inc. (Nasdaq: UFPI), a leading manufacturer focused on delivering value-added products across its Retail, Packaging, and Construction segments, reported results for the third quarter 2026.

Will Schwartz, President and CEO of UFP Industries, commented, "Organic unit growth strengthened in the third quarter despite continued pressure across several of our end markets, which speaks to the successes we are seeing with our product and market-share initiatives. New products increased to 8.7 percent of net sales, led by continued momentum in our Deckorators, Structural Packaging, and Construction value-added offerings. The breadth of this growth demonstrates the benefits of our balanced portfolio and the investments we have made to drive above-market growth and gain share, even as underlying demand across many of our end markets remains challenged.

Profitability continued to be affected by elevated transportation and material costs, which limited the earnings benefit from higher volumes and an improved earnings profile. We continue to focus on what we can control. We now expect to meet or exceed our initial $60 million cost-savings objective by year-end, and we continue to pursue additional productivity, capacity consolidation, and cost reduction opportunities. We also see further profit-improvement opportunities as we integrate recent acquisitions, improve utilization of our newer facilities, and increase the mix of new and value-added products across our portfolio.

Importantly, the progress we have made in strengthening the underlying profitability of the business remains intact. Our profitability today is meaningfully stronger than it was before our management structure change in 2019, even though transportation costs have increased significantly as a percentage of net sales since then. These higher costs have masked some of the earnings improvement we have made across the portfolio, but we believe our cost actions and operating initiatives provide meaningful opportunities to improve profitability without relying on a near-term market recovery.

Schwartz continued, "Our financial position remains a competitive advantage. We ended the quarter with approximately $2 billion of liquidity and no borrowings outstanding under our revolving credit facility, giving us the flexibility to invest through the cycle. So far this year, we have completed three acquisitions, announced a fourth, and returned more than $240 million to shareholders through dividends and share repurchases. Our M&A pipeline remains active, and we will stay disciplined, pursuing opportunities that strengthen our core businesses, expand our value-added portfolio, and meet our return criteria."

____________________

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

Third Quarter 2026 Highlights

UFP Consolidated

(In thousands)

Quarter Period

Year to Date

2026

2025

% Change

2026

2025

% Change

Net sales

1,732,836

1,559,627

11.1

5,077,040

4,990,520

1.7

Net earnings

58,633

75,542

(22.4)

192,901

255,836

(24.6)

Net margin

3.4

4.8

3.8

5.1

Adjusted EBITDA

119,255

140,019

(14.8)

385,091

456,317

(15.6)

Adjusted EBITDA margin

6.9

9.0

7.6

9.1

Percentage change in net sales:

Organic units

—

Acquisitions

Selling prices

UFP Retail

(In thousands)

Quarter Period

Year to Date

2026

2025

% Change

2026

2025

% Change

Net sales

634,514

593,985

6.8

1,984,433

1,989,592

(0.3)

Net earnings

16,101

15,741

2.3

71,791

77,532

(7.4)

Net margin

2.5

2.7

3.6

3.9

Adjusted EBITDA

34,125

39,985

(14.7)

132,891

139,812

(5.0)

Adjusted EBITDA margin

5.4

6.7

7.0

Percentage change in net sales:

Organic units

—

(4)

Acquisitions

Selling prices

UFP Packaging

(In thousands)

Quarter Period

Year to Date

2026

2025

% Change

2026

2025

% Change

Net sales

465,845

394,949

18.0

1,318,183

1,233,626

6.9

Net earnings

11,411

21,358

(46.6)

34,385

58,908

(41.6)

Net margin

2.4

5.4

2.6

4.8

Adjusted EBITDA

27,250

34,284

(20.5)

82,973

108,125

(23.3)

Adjusted EBITDA margin

5.8

8.7

6.3

8.8

Percentage change in net sales:

Organic units

Acquisitions

Selling prices

—

UFP Construction

(In thousands)

Quarter Period

Year to Date

2026

2025

% Change

2026

2025

% Change

Net sales

552,423

496,465

11.3

1,544,713

1,563,995

(1.2)

Net earnings

21,141

24,682

(14.3)

52,495

74,189

(29.2)

Net margin

3.8

5.0

3.4

4.7

Adjusted EBITDA

37,691

41,878

(10.0)

99,423

124,668

(20.2)

Adjusted EBITDA margin

6.8

8.4

6.4

8.0

Percentage change in net sales:

Organic units

(1)

Acquisitions

—

Selling prices

—

Capital Structure, Leverage and Liquidity Information

UFP Industries maintains a strong balance sheet as of September 26, 2026 and had liquidity of approximately $2.0 billion, consisting of more than $677 million of Cash and cash equivalents and $1.3 billion of remaining availability under its revolving credit facility and a shelf agreement with certain lenders. The company's return-focused approach to capital allocation includes the following:

2026 Outlook and Long-Term Targets

Our full year 2026 outlook remains unchanged. We continue to expect overall industry unit demand for the year to be slightly down in each of our segments based on our sales mix. While we have mechanisms to offset these costs, energy and transportation are expected to remain elevated for the balance of the year. Demand tied to new residential construction is expected to remain challenging, while stabilization across most of our other end markets should partially offset that pressure. Accordingly, we are not assuming a meaningful improvement in underlying market demand through year-end. Despite these conditions, we expect to continue outperforming our markets through share gains, growth in new and value-added products, and continued execution of our cost-out initiatives. We also see opportunities to improve profitability through additional cost savings, better utilization of recent investments, and the integration of acquisitions. In addition, initial stocking orders, upgraded manufacturing capacity, and expanded distribution are expected to support continued momentum in our Deckorators' Surestone business.

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

Conference Call

UFP Industries will host a conference call on Thursday, October 29, 2026, to discuss these results and outlook. The conference call will begin at 10:00 a.m. Eastern Time and will be hosted by CEO Will Schwartz and CFO Michael Cole. Interested investors can access the live webcast directly with this link ( here). A replay of the call will be available through the UFP Investor Relations website www.ufpinvestor.com for at least 90 days following the call.

UFP Industries, Inc.

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

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements, including statements regarding our 2026 outlook, cost-savings objectives, capital allocation, the pending Apache Products acquisition, expected conversion of working capital, and long-term targets, are based on management's beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "likely," "plans," "projects," "should," variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in currency and inflation; fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; changes in tariffs, import/export regulations, and other trade policies, including the timing and amount of tariff refunds; concentration of sales to customers; the success of vertical integration strategies; excess capacity or supply chain challenges; inbound and outbound transportation costs and our ability to pass those costs through to customers; alternatives to replace treated wood products; government regulations, particularly involving environmental and safety regulations; our ability to make successful business acquisitions; cybersecurity breaches; artificial intelligence; and potential pandemics. Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.

Non-GAAP Financial Information

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

Adjusted EBITDA margin is a non-GAAP financial measure. In calculating adjusted EBITDA, we make certain adjustments, including for interest and other (which includes interest and investment income and equity in earnings of investee), share-based compensation expense, net gains or losses on the disposition and impairment of assets, and impairment of intangible assets. The most directly comparable GAAP financial measure is net earnings as a percentage of net sales (net margin). For the nine months ended September 26, 2026, our net margin was 3.8 percent, and our adjusted EBITDA margin, calculated as described above, was 7.6 percent. We have not provided a quantitative reconciliation of the forward-looking adjusted EBITDA margin target to the most directly comparable GAAP measure because certain reconciling items and certain discrete tax items cannot be reasonably predicted due to the long-term nature of this target and the inherent variability and uncertainty of such items. These items could individually or in the aggregate be significant to the difference between adjusted EBITDA margin and the comparable GAAP measure.

Free cash flow is defined as net cash from operating activities, adjusted to exclude the change in investment in net working capital, less maintenance capital expenditures, plus interest expense, net of taxes. Free cash flow does not deduct expansionary and efficiency capital expenditures, acquisitions, dividends, or mandatory debt service, and therefore does not represent residual cash flow available for discretionary expenditures.

# # #

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND

COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED

SEPTEMBER 2026/2025

Quarter Period

Year to Date

(In thousands, except per share data)

2026

2025

2026

2025

Net sales

1,732,836

100.0

1,559,627

100.0

5,077,040

100.0

4,990,520

100.0

Cost of sales

1,487,915

85.9

1,296,946

83.2

4,305,995

84.8

4,146,909

83.1

Gross profit

244,921

14.1

262,681

16.8

771,045

15.2

843,611

16.9

Operating expenses

Selling, general and administrative expenses

178,091

10.3

170,030

10.9

536,694

10.6

531,279

10.6

Net (gain) loss on disposition and impairments of

assets

(3,184)

(0.2)

2,458

0.2

(4,534)

(0.1)

6,212

0.1

Other (gains) losses, net

(142)

—

722

—

1,232

—

1,306

—

Total operating expenses

174,765

10.1

173,210

11.1

533,392

538,797

Earnings from operations

70,156

4.0

89,471

5.7

237,653

4.7

304,814

6.1

Interest and other

(6,716)

(0.4)

(9,663)

(0.6)

(19,025)

(0.4)

(26,946)

(0.5)

Earnings before income taxes

76,872

4.4

99,134

6.4

256,678

5.1

331,760

6.6

Income taxes

18,239

1.1

23,592

1.5

63,777

1.3

75,924

1.5

Net earnings

58,633

3.4

75,542

4.8

192,901

3.8

255,836

5.1

Less net earnings attributable to noncontrolling

interest

(668)

—

(196)

—

(1,290)

—

(1,003)

—

Net earnings attributable to controlling interest

57,965

3.3

75,346

4.8

191,611

3.8

254,833

5.1

Earnings per share - basic

1.05

1.29

3.43

4.29

Earnings per share - diluted

1.05

1.29

3.43

4.28

Comprehensive income

57,723

76,049

190,839

271,262

Less comprehensive income attributable to

noncontrolling interest

(396)

(487)

(1,479)

(2,878)

Comprehensive income attributable to

controlling interest

57,327

75,562

189,360

268,384

CONDENSED CONSOLIDATED STATEMENTS

OF EARNINGS BY SEGMENT (UNAUDITED)

FOR THE THREE MONTHS ENDED SEPTEMBER 2026/2025

Quarter Period 2026

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net sales

634,514

465,845

552,423

78,029

2,025

1,732,836

Cost of sales

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 impairments of

assets

801

150

165

(4,320)

(3,184)

Other (gains) losses, net

(336)

—

107

(142)

Earnings from operations

20,846

12,917

27,854

3,684

4,855

70,156

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

Quarter Period 2025

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net sales

593,985

394,949

496,465

72,482

1,746

1,559,627

Cost of sales

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 impairments of

assets

9,983

(5,970)

(59)

(1,559)

2,458

Other losses (gains), net

462

—

(3)

203

722

Earnings from operations

20,745

27,560

32,322

3,739

5,105

89,471

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

CONDENSED CONSOLIDATED STATEMENTS

OF EARNINGS BY SEGMENT (UNAUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 2026/2025

Year to Date 2026

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net sales

1,984,433

1,318,183

1,544,713

223,461

6,250

5,077,040

Cost of sales

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 impairments of

assets

2,649

240

(7,579)

(4,534)

Other losses, net

123

—

659

399

1,232

Earnings from operations

94,985

42,905

69,441

8,786

21,536

237,653

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

Year to Date 2025

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net sales

1,989,592

1,233,626

1,563,995

197,806

5,501

4,990,520

Cost of sales

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 impairments 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 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

RECONCILIATION OF NET EARNINGS TO

ADJUSTED EBITDA BY SEGMENT (UNAUDITED)

FOR THE THREE MONTHS ENDED SEPTEMBER 2026/2025

Quarter Period 2026

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net earnings

16,101

11,411

21,141

3,090

6,890

58,633

Interest and other

(103)

(2,071)

(9)

(253)

(4,280)

(6,716)

Income taxes

4,848

3,577

6,722

847

2,245

18,239

Expenses associated with share-based

compensation arrangements

1,254

1,798

2,559

109

1,067

6,787

Net loss (gain) on disposition and impairments of

assets

801

150

165

(4,320)

(3,184)

Depreciation expense

10,298

10,191

6,481

858

12,015

39,843

Amortization of intangibles

926

2,194

777

1,640

116

5,653

Adjusted EBITDA

34,125

27,250

37,691

6,456

13,733

119,255

Net earnings as a percentage of net sales

2.5 %

2.4 %

3.8 %

4.0 %

3.4 %

Adjusted EBITDA as a percentage of net sales

5.4 %

5.8 %

6.8 %

8.3 %

6.9 %

* Not meaningful

Quarter Period 2025

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net earnings

15,741

21,358

24,682

4,893

8,868

75,542

Interest and other

(70)

(381)

(7)

(2,845)

(6,360)

(9,663)

Income taxes

5,074

6,583

7,647

1,691

2,597

23,592

Expenses associated with share-based

compensation arrangements

855

1,609

2,173

171

2,728

7,536

Net loss (gain) on disposition and impairments of

assets

7,583

(5,970)

(59)

(1,559)

Impairment of intangibles

2,400

—

2,400

Depreciation expense

7,523

8,946

6,667

1,027

10,470

34,633

Amortization of intangibles

879

2,139

775

1,701

427

5,921

Adjusted EBITDA

39,985

34,284

41,878

6,701

17,171

140,019

Net earnings as a percentage of net sales

2.7 %

5.4 %

5.0 %

6.8 %

4.8 %

Adjusted EBITDA as a percentage of net sales

6.7 %

8.7 %

8.4 %

9.2 %

9.0 %

* Not meaningful

RECONCILIATION OF NET EARNINGS TO

ADJUSTED EBITDA BY SEGMENT (UNAUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 2026/2025

Year to Date 2026

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net earnings

71,791

34,385

52,495

12,858

21,372

192,901

Interest and other

(541)

(2,849)

(409)

(7,486)

(7,740)

(19,025)

Income taxes

23,735

11,369

17,355

3,414

7,904

63,777

Expenses associated with share-based

compensation arrangements

4,614

5,769

7,891

338

3,645

22,257

Net loss (gain) on disposition and impairments of

assets

2,649

240

(7,579)

(4,585)

Impairment of intangibles

—

Depreciation expense

27,962

27,815

19,895

2,721

34,816

113,209

Amortization of intangibles

2,681

6,398

2,126

4,953

348

16,506

Adjusted EBITDA

132,891

82,973

99,423

17,038

52,766

385,091

Net earnings as a percentage of net sales

3.6 %

2.6 %

3.4 %

5.8 %

3.8 %

Adjusted EBITDA as a percentage of net sales

6.7 %

6.3 %

6.4 %

7.6 %

* Not meaningful

Year to Date 2025

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net earnings

77,532

58,908

74,189

9,409

35,798

255,836

Interest and other

(184)

(848)

(8)

(6,304)

(19,602)

(26,946)

Income taxes

23,010

17,482

22,017

2,779

10,636

75,924

Expenses associated with share-based

compensation arrangements

3,146

5,390

7,173

609

11,588

27,906

Net loss (gain) on disposition and impairments of

assets

8,690

(4,713)

272

2,679

(3,116)

3,812

Impairment of intangibles

2,400

—

2,400

Gain from reduction of estimated earnout liability

—

(1,511)

(344)

—

(1,855)

Depreciation expense

22,425

26,933

19,188

3,080

29,948

101,574

Amortization of intangibles

2,793

6,484

2,181

4,973

1,235

17,666

Adjusted EBITDA

139,812

108,125

124,668

17,225

66,487

456,317

Net earnings as a percentage of net sales

3.9 %

4.8 %

4.7 %

4.8 %

5.1 %

Adjusted EBITDA as a percentage of net sales

7.0 %

8.8 %

8.0 %

8.7 %

9.1 %

* Not meaningful

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

SEPTEMBER 2026/2025

(In thousands)

Assets

2026

2025

Liabilities and equity

2026

2025

Current assets

Current liabilities

Cash and cash equivalents

677,446

1,008,632

Accounts payable

279,768

231,905

Restricted cash

1,093

3,062

Accrued liabilities and other

299,154

294,923

Investments

47,526

33,926

Current portion of debt

5,247

5,386

Accounts receivable

684,638

607,537

Inventories

747,529

667,418

Total current liabilities

584,169

532,214

Other current assets

98,929

66,509

Long-term debt and finance lease

obligations

229,114

229,007

Total current assets

2,257,161

2,387,084

Other liabilities

264,122

166,057

Other assets

328,805

283,796

Temporary equity

476

5,018

Intangible assets, net

477,046

488,774

Property, plant and equipment,

net

1,070,954

975,897

Shareholders' equity

3,056,085

3,203,255

Total assets

4,133,966

4,135,551

Total liabilities and equity

4,133,966

4,135,551

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE NINE MONTHS ENDED

SEPTEMBER 2026/2025

(In thousands)

2026

2025

Cash flows from operating activities:

Net earnings

192,901

255,836

Adjustments to reconcile net earnings to net cash from operating activities:

Depreciation

113,209

101,574

Amortization of intangibles

16,506

17,666

Expense associated with share-based and grant compensation arrangements

22,257

27,906

Deferred income taxes

(2,470)

(393)

Unrealized gain on investment and other

(4,241)

(2,195)

Impairment of investments

4,000

—

Equity in earnings of investee

(3,066)

(1,072)

Net (gain) loss on sale, disposition and impairment of assets

(4,585)

3,812

Impairment of intangibles

2,400

Gain from reduction of estimated earnout liability

—

(1,855)

Changes in:

Accounts receivable

(199,161)

(104,813)

Inventories

(1,405)

61,025

Accounts payable

67,016

6,243

Accrued liabilities and other

33,504

32,988

Net cash from operating activities

234,516

399,122

Cash flows used in investing activities:

Capital expenditures

(122,715)

(205,504)

Proceeds from sale of property, plant and equipment

19,188

17,308

Acquisitions and purchases of non-controlling interest, net of cash received

(123,097)

(17,626)

Purchases of investments

(28,379)

(27,388)

Proceeds from sale of investments

15,702

14,464

Other

3,201

1,535

Net cash used in investing activities

(236,100)

(217,211)

Cash flows used in financing activities:

Borrowings under revolving credit facilities

35,594

23,299

Repayments under revolving credit facilities

(30,718)

(22,469)

Contingent consideration payments and other

(1,939)

(221)

Proceeds from issuance of common stock

1,824

1,867

Dividends paid to shareholders

(60,199)

(62,490)

Distributions to noncontrolling interest

(3,083)

(1,280)

Purchase of remaining noncontrolling interest of subsidiary

(3,937)

—

Payments to taxing authorities in connection with shares directly withheld from employees

(1,458)

(9,582)

Repurchase of common stock

(181,281)

(280,987)

Other

(182)

Net cash used in financing activities

(245,124)

(352,045)

Effect of exchange rate changes on cash

176

2,234

Net change in cash and cash equivalents

(246,532)

(167,900)

Cash, cash equivalents, and restricted cash, beginning of period

925,071

1,179,594

Cash, cash equivalents, and restricted cash, end of period

678,539

1,011,694

Reconciliation of cash and cash equivalents and restricted cash:

Cash and cash equivalents, beginning of period

914,199

1,171,828

Restricted cash, beginning of period

10,872

7,766

Cash, cash equivalents, and restricted cash, beginning of period

925,071

1,179,594

Cash and cash equivalents, end of period

677,446

1,008,632

Restricted cash, end of period

1,093

3,062

Cash, cash equivalents, and restricted cash, end of period

678,539

1,011,694

RECONCILIATION OF NET CASH FROM OPERATING

ACTIVITIES TO FREE CASH FLOW (UNAUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 2026/2025

(In thousands)

2026

2025

Net cash from operating activities

234,516

399,122

Increase in investment in net working capital

100,046

4,557

Maintenance capital expenditures (1)

(52,910)

(80,947)

Interest expense, net of taxes

5,515

6,279

Free cash flow

287,167

329,011

(1) Breakdown of Capital expenditures from the condensed consolidated statements of cash flows:

Maintenance capital expenditures

52,910

80,947

Expansionary and efficiency capital expenditures

69,805

124,557

Total Capital expenditures

122,715

205,504

SOURCE UFP Industries, Inc.