GRAND RAPIDS, Mich. (News release) -- UFP Industries reported net sales of $6.7 billion for fiscal 2024, marking an 8% decline from 2023. The decrease resulted from a 1% drop in organic unit sales and a 7% reduction in selling prices, largely driven by a 14% decline in the price of Southern Yellow Pine, a key raw material. Net earnings attributable to controlling interests fell 19% to $415 million, while adjusted EBITDA decreased 16% to $682 million, representing 10.3% of sales, down from 11.2% in 2023. The company also announced ongoing cost-reduction measures, targeting $60 million in savings by 2026, as part of efforts to manage profitability in a challenging market environment. These results were disclosed in UFP Industries' fiscal 2024 financial report.

Fourth-quarter net sales declined 4% year over year to $1.46 billion, with a 4% drop in selling prices offsetting stable unit volumes. Net earnings fell 34% to $68 million, and adjusted EBITDA for the quarter declined 20% to $133 million, representing 9.1% of sales.

Segment-wise, UFP Retail Solutions saw full-year sales decline 12% to $2.6 billion due to a 5% decrease in both selling prices and organic unit sales. UFP Packaging recorded an 11% drop in sales to $1.6 billion, driven by an 8% price decrease and a 5% fall in unit sales. UFP Construction sales fell 2% to $2.1 billion, as a 7% decline in selling prices was partially offset by a 5% increase in organic unit sales, led by growth in Factory Built.

Despite market headwinds, UFP Industries expanded its geographic footprint with the acquisition of C&L Wood Products and announced up to $1 billion in capital investments through 2028 to enhance automation, technology, and capacity, including $350 million in planned capital projects for 2025. The company's liquidity remains strong, with nearly $1.2 billion in cash and $2.5 billion in total available resources.

The company expects continued challenges in 2025, citing softer demand and competitive pricing. However, long-term goals remain focused on achieving 7-10% annual unit sales growth, maintaining a 12.5% EBITDA margin, and expanding its portfolio of new products.