NASDAQ$UFPI

UFP Industries Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported record second quarter results with net sales increasing by 117 percent and earnings increasing by 161 percent.

UFP Industries reported record second quarter results, with net sales reaching $2.7 billion, a 117% increase year-over-year, and net earnings attributable to controlling interest of $173 million, a 161% increase year-over-year. EPS also reached a record $2.78 per diluted share. Recent acquisitions contributed significantly to net sales and EPS.

  • Net sales increased 117 percent to $2.7 billion, driven by higher selling prices and unit growth from acquisitions and organic sales.
  • Earnings from operations increased 157 percent to $236.9 million, including the impact of an inventory valuation reserve.
  • Adjusted EBITDA increased 137 percent, with the adjusted EBITDA margin expanding by 80 basis points to 9.7 percent.
  • The company maintains a strong balance sheet with liquidity of approximately $288 million, despite increased investment in net working capital.

Headline financials

Total Revenue

$2.7B

Previous: $1.24B+117.4%
EPS (adj)

$2.78

Previous: $1.08+157.4%
Adjusted EBITDA

$261M

Previous: $110M+136.8%
Capital Expenditures

-$79M

Previous: -$46.7M-69.1%
Free Cash Flow

$94.4M

Previous: $19.7M+378.2%
Net Income

$173M

Previous: $66.5M+160.9%
Operating Income

$237M

Previous: $92.4M+156.5%
Gross Profit

$421M

Previous: $205M+105.6%
Cash & Equivalents

$44.3M

Previous: $201M-77.9%
Total Assets

$3.23B

Previous: $2.06B+56.8%

Revenue & EPS history

UFP Industries · Revenue · Quarterly

$2.7B

Q2 2021+117.4%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

UFP Industries · $2.09B total across 3 segments · Q2 2021

  • Retail
    $1.26B+106.7%
  • Construction
    $739M+105.7%
  • All Other
    $91.4M+85.1%

Forward guidance

UFP Industries expects market conditions to normalize during the second half of 2021. While falling lumber prices and more normalized demand create challenging year-over-year profitability comparisons for our retail segment, the stabilized lumber market should benefit our industrial and construction segments. Furthermore, they expect all of our segments to benefit from more stable pricing in 2022.

Tailwinds

  • Expects market conditions to normalize during the second half of 2021.
  • Stabilized lumber market should benefit industrial and construction segments.
  • All segments are expected to benefit from more stable pricing in 2022.
  • Industrial and retail segments should continue to benefit from the integration of recent acquisitions.
  • Anticipates that as lumber prices and seasonal demand normalize, the increase in net working capital will be converted to cash.

Headwinds

  • Falling lumber prices create challenging year-over-year profitability comparisons for the retail segment.
  • More normalized demand creates challenging year-over-year profitability comparisons for the retail segment.
  • Increase in our seasonal investment in net working capital of $444 million, which resulted from unprecedentedly high lumber prices and market demand.
  • Net debt increased to $562 million from a net cash position of $37 million at the end of the second quarter of 2020, primarily due to these factors and the acquisitions of PalletOne and Spartanburg Forest Products.
  • Fluctuations in the price of lumber

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.6%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+1.3%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+18.5%

Q3 2019

Best reaction

-10.5%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%+0.6%-3.0%
Q4 2025+2.9%-3.2%-14.7%
Q3 2025+2.1%+1.7%+3.3%
Q2 2025+3.6%-1.8%-3.8%
Q1 2025-5.9%-4.3%-7.8%
Q4 2024-1.6%-6.7%-7.3%
Q3 2024-5.5%-5.4%+3.9%
Q2 2024+3.8%-4.0%-5.1%
Q1 2024-2.4%+0.7%+1.9%
Q4 2023-7.2%-5.7%+2.6%
Q3 2023-0.4%+7.7%+14.0%
Q2 2023-1.7%+0.5%+3.8%
Q1 2023+3.7%+2.6%-0.1%
Q4 2022-3.7%-2.1%-11.8%
Q3 2022-4.7%-3.0%+10.3%
Q2 2022+12.0%+15.6%+18.6%
Q1 2022+0.1%+1.3%-3.5%
Q4 2021+7.2%+8.0%+12.3%
Q3 2021+10.3%+13.1%+20.1%
Q2 2021+2.2%+3.1%+3.3%
Q1 2021+1.5%+8.2%+2.1%
Q4 2020-0.2%+4.6%+21.4%
Q3 2020-4.3%-8.4%-5.3%
Q2 2020+6.5%+12.4%+20.8%
Q1 2020+3.9%+13.6%+22.6%
Q4 2019+15.6%+11.6%-37.4%
Q3 2019+18.5%+19.6%+15.2%
Q2 2019+12.5%+16.6%+8.4%
Q1 2019+13.7%+19.6%+10.2%
Q4 2018-0.8%-1.4%-10.8%
Q3 2018-4.4%-11.9%-13.6%
Q2 2018-6.2%-7.0%-3.8%
Q1 2018-3.6%-1.6%+4.3%
Q4 2017-5.3%-5.2%-12.0%
Q3 2017+6.2%+9.5%+13.6%
Q2 2017-1.8%-6.3%-10.4%
Q1 2017-3.8%-2.2%-8.0%
Q4 2016-10.2%-8.9%-9.3%
Q3 2016-5.7%-4.6%+0.5%
Q2 2016-1.3%+4.7%+4.9%
Q1 2016-3.9%
Q4 2015+10.5%
Q3 2015+15.4%
Q2 2015+12.5%
Q1 2015+4.2%
Q4 2014-3.6%
Q3 2014+8.5%
Q2 2014-1.3%
Q1 2014+0.1%
Q4 2013+16.0%
Q3 2013+11.1%
Q2 2013+4.5%
Q1 2013+6.7%
Q4 2012+2.5%
Q3 2012-10.5%
Q2 2012+0.6%
Q1 2012-3.4%
Q1 2011-3.4%
Q4 2009+2.6%
Q4 2011+2.6%
Q3 2010+0.8%
Q3 2011+0.8%
Q2 2010-7.1%
Q4 2010-7.1%
Q2 2011-7.1%
Q1 2010+7.2%

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