UFP Industries reverses sales decline as organic growth returns
Net sales rose 3% to $1.88 billion in the second quarter
UFP Industries (UFPI) reported a return to growth in the second quarter, with net sales increasing 3% year-over-year to $1.88 billion. The result marked a reversal from the first quarter of 2026, when the company saw an 8.4% year-over-year decline in sales.
Organic unit sales grew 1% year-over-year in the second quarter. This followed a 7% year-over-year decline in the prior quarter. Adjusted EBITDA margin for the period was 8.2%, which was lower than the 9.5% margin recorded a year ago, though it improved from the 7.6% margin reported in the first quarter.
Freight costs rose 1.6% as a percentage of net sales year-over-year. Freight spot rates rose more than 30% during the quarter.
New product sales accounted for 8.4% of total net sales, up from 6.5% a year ago and 7.8% in the first quarter. Within UFP Retail, organic unit sales for Deckorators grew 9% year-over-year, led by a 37% increase in Surestone decking sales. Conversely, UFP Edge organic unit sales fell 17% year-over-year following the closure of Bonner facilities at the end of 2025.
Performance varied across other segments. UFP Construction saw organic sales for Commercial grow 11% year-over-year, while Site Built and Factory Built organic unit sales declined 3% and 6% respectively. UFP Packaging's Adjusted EBITDA fell 28% year-over-year due to higher transportation costs and startup expenses for new greenfield locations in Protective Packaging.
UFP Industries completed three acquisitions during the quarter: MoistureShield for $55 million, John Rock for $47 million, and Berry Pallets for $20 million.
The company maintained its full-year 2026 outlook, though it expects demand to fall toward the lower end of prior guidance, with unit expectations flat to slightly down. UFP Industries is on track to deliver the remaining $25 million or more of an initial $60 million cost-out program by the end of the year.