Abstract

UFP Industries will report quarterly results on February 23, 2026 Post Market, and this preview reviews consensus expectations for revenue, earnings, and margins, assesses segment dynamics, evaluates key stock drivers for the print and guide, and summarizes recent institutional tones observed during the January 1, 2026 to February 16, 2026 window.

Market Forecast

Consensus for the quarter to be reported points to revenue of $1.40 billion, implying a year-over-year decrease of 1.58%, with adjusted EPS of $1.08, down 12.82% year over year; the EBIT estimate stands at $74.81 million, down 16.92% year over year. Margin guidance is not indicated in the preview datasets, but investors will be watching the balance between product-mix gains and any commodity-linked drag for clues on gross profit margin and net profitability, alongside the EPS cadence.

The main business remains anchored by the company’s core retail-facing operations, with stable order intake and mix upgrades expected to support unit economics despite top-line normalization. The segment with the largest near-term potential to shape upside is Construction Solutions, where last quarter revenue was $496.47 million; execution on value-added project work and disciplined pricing are the levers to watch.

Last Quarter Review

In the previous quarter, UFP Industries generated revenue of $1.56 billion, down 5.44% year over year, with a gross profit margin of 16.84%; GAAP net income attributable to the parent company was $75.35 million, translating into a 4.83% net profit margin, and adjusted EPS was $1.29, down 21.34% year over year.

Execution detail shows a modest shortfall versus expectations: revenue missed the prior consensus by $52.16 million (about 3.24%), EPS missed by $0.08, and EBIT of $89.47 million fell $9.15 million below estimates; sequentially, net income declined 25.20% quarter over quarter, underscoring the continued normalization of price and volume.

By business mix, retail-focused operations led at $593.99 million, followed by Construction Solutions at $496.47 million and Industrial Solutions at $394.95 million, with the balance across corporate and other lines; this mix shaped a resilient gross margin profile relative to historical commodity cycles, even as total revenue contracted 5.44% year over year.

Current Quarter Outlook

Main business: Retail-driven revenue base and mix resilience

Within UFP Industries’ revenue base, the retail-oriented operations remain the largest contributor, evidenced by last quarter’s $593.99 million intake and an approximate share of 38% of consolidated sales. The core debate for the print is how price/mix dynamics balanced against normalization in unit volumes during the quarter to be reported. Consensus sees a modest revenue contraction of 1.58% year over year for the consolidated company, which suggests that any price deflation tailwind for customers still weighed on dollar revenue even as value-added product penetration helped protect gross profit per unit. A focal point is whether the company sustained the 16.84% gross margin from the prior quarter or delivered incremental improvement via product-mix discipline and commercial execution, including SKU rationalization where appropriate and ticket-size optimization in key retail channels. On operating efficiency, investors will parse commentary around logistics, procurement savings, and plant throughput initiatives that previously supported EBIT delivery, especially as the EBIT baseline is set to $74.81 million for the quarter per estimates. The stock reaction will likely hinge on confirmation that retail sell-through remained stable enough to align with the EPS consensus of $1.08, and on any indication that inventory carry and working capital discipline continued to underpin cash conversion. Given the company’s steady cadence of process improvement in prior periods, a flat-to-slightly better gross margin outcome versus the prior quarter would be regarded as a constructive signal relative to the consensus framing of modest EPS degradation year over year.

Most promising business: Construction Solutions execution and value-add mix

Construction Solutions, with last quarter revenue of $496.47 million (about 31.83% of total), is poised to be the swing factor for incremental upside if project backlogs and value-added content progress as planned. This business tends to reflect the company’s ability to engineer tailored solutions, coordinate multi-site deliveries, and capture premium on service reliability, all of which support margin outcomes even when commodity benchmarks drift. For the quarter to be reported, performance will depend on the conversion of committed project pipelines and the balance between small- and large-ticket orders; the former can provide steadier cadence while the latter can inject revenue lumpiness that challenges short-interval forecasting. Investors should look for commentary on pricing retention in multi-quarter contracts, the pace of installation or delivery milestones, and any sign of cycle-time improvement in engineered components and assemblies. If Construction Solutions delivered improved mix and maintained pricing integrity across projects that moved from bid to shipment during the quarter, then the company could outperform the EBIT estimate despite the consolidated top-line headwind of 1.58% year-over-year decline. The degree to which Construction Solutions can sustain or expand contribution margins will be central to the debate on the outlook for the next quarter’s EPS trajectory, especially as the consensus frames a year-over-year step-down in current-quarter EPS to $1.08. Attention will also be on whether the company comments on new program wins or early-year order momentum, which can inform shipment visibility into the next quarter and frame the durability of value-added growth.

Stock drivers this quarter: Margins, cadence of EPS vs. consensus, and capital allocation signals

Three proof points appear most relevant for the stock at the print. The first is the gross margin trajectory relative to the prior quarter’s 16.84% and the pattern implied by consensus, which does not explicitly model margin but embeds an EPS estimate of $1.08 and EBIT of $74.81 million; if gross margin is steady-to-better and operating cost control is evident, the market may reward the stock despite a slight top-line contraction. The second is EPS delivery versus consensus and management tone on the cadence into the subsequent quarter; an in-line EPS coupled with constructive commentary on order visibility and cost containment could be enough to offset any residual revenue deflation. The third is capital allocation, recently highlighted by the board’s decision to raise the quarterly dividend to $0.36 per share, payable on March 16, 2026 to shareholders of record on March 2, 2026, which signals confidence in cash generation and can improve investor receptivity to the guide. Beyond these core proof points, investors will parse sequential trends in net income after a 25.20% quarter-on-quarter decline last quarter, looking for stabilization. Bridge analysis will center on mix and price, overhead absorption, and procurement efficiencies; evidence that the company is capturing incremental cost savings or leveraging automation to improve throughput could offset any lingering volume softness. Lastly, commentary around bolt-on M&A appetite and organic capacity debottlenecking will be watched as potential EPS accretive vectors for the balance of the year, even if they do not materially affect the quarter to be reported.

Analyst Opinions

Across the January 1, 2026 to February 16, 2026 review window, publicly available rating changes and detailed third-party previews were scarce; within the visible items, we did not identify bearish initiations or downgrades, and the observable tone tilted constructive, aided by the company’s recent increase of the quarterly dividend to $0.36 per share, payable on March 16, 2026 to holders of record on March 2, 2026. On the balance of visible commentary, the orientation is bullish, with 100% of the identified items leaning positive and 0% negative in the observed period. The constructive case emphasizes that consensus already embeds a modest top-line decline of 1.58% year over year and a 12.82% year-over-year decline in adjusted EPS to $1.08, setting a bar that appears achievable if gross margin remains close to the prior quarter’s 16.84% and operating cost discipline protects EBIT near the $74.81 million implied by estimates. Proponents of this view highlight the company’s consistent focus on value-added products and disciplined pricing as supportive of unit economics, which can decouple gross profit from pure commodity price prints and improve conversion even when reported revenue normalizes. They also point to capital allocation signals—specifically the dividend increase—as evidence of balance-sheet strength and confidence in cash flow durability, which can underpin valuation resilience during periods of mixed revenue optics. While the street’s quantitative expectations imply year-over-year EPS compression, the bullish interpretation is that the earnings base is defensible, downside surprises are less likely given the already tempered revenue estimate of $1.40 billion, and mix improvements could deliver a modest upside surprise on margin. In this framing, the most important variables for the stock reaction are not absolute revenue growth but the quality of earnings, trajectory of gross margin, and the tenor of forward-looking commentary on demand cadence and pricing retention. With consensus already calibrated to a slight decline, bulls argue that execution aligned to the company’s established operational playbook could be sufficient to validate the constructive stance for the quarter to be reported.