Ufp Industries Inc (NASDAQ:UFPI) stock fell 2.31% (As on February 18, 11:14:05 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 24. New product sales of $102 million were 7.0 percent of total sales compared to 7.7 percent in the fourth quarter of 2023. Net earnings attributable to controlling interests of $68.0 million represents a 34 percent decrease from last year. Adjusted EBITDA was $132.7 million in the quarter or 9.1 percent of sales, compared to $165.6 million or 10.9 percent of sales for the same period a year ago. Meanwhile, on December 29, 2024, Will Schwartz replaced Matt Missad as CEO, and Landon Tarvin succeeded Will as president of UFP Retail Solutions. UFP Industries maintains a strong balance sheet with nearly $1.2 billion in cash as of December 28, 2024, compared to $1.1 billion in cash at the end of 2023. As of December 28, 2024, the company had approximately $2.5 billion of liquidity consisting of cash, remaining availability under the revolving credit facility, and remaining borrowing capacity provided by a shelf agreement with certain lenders.

Moreover, the company seeks strategic acquisitions and invests in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. On December 23, 2024, the company acquired C&L Wood Products, Inc. (C&L), a manufacturer of pallets based in Hartselle, Alabama. C&L expands the geographic footprint of the company’s PalletOne subsidiary into northern Alabama and central Tennessee. In 2024, the company had announced up to $1 billion in capital investments through 2028 for automation, technology upgrades, geographic expansion and increased capacity at existing facilities, specifically for its Deckorators and Site Built business units and its Packaging segment. The company expects to invest approximately $350 million in capital projects in 2025.

UFPI in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.12, missing the analysts’ estimates for the adjusted earnings per share of $1.23. The company had reported the adjusted revenue decline of 4 percent to $1.46 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $1.42 billion. This is due to a 4 percent decrease in selling prices. UFP Retail Solutions’ net sales of $525 million were flat compared to the fourth quarter of 2023. UFP Packaging net sales of $375 million were down 9 percent compared to the fourth quarter of 2023.