UFP Industries reported second-quarter 2026 net sales of $1.88 billion, up 3% from $1.84 billion a year earlier, driven by 1% organic unit growth and a 2% contribution from acquisitions. Diluted earnings per share declined to $1.48 from $1.70, while net earnings attributable to controlling interests fell to $83 million from $101 million. Adjusted EBITDA decreased to $155 million from $174 million. Higher transportation costs reduced earnings, while weaker residential construction demand was partly offset by improvements in other business units, according to UFP Industries.

Freight costs increased by $27 million compared with the second quarter of 2025 and represented an additional 1.6% of net sales. The company attributed the increase to higher transportation rates, tighter carrier capacity and elevated fuel costs. Spot freight rates increased by more than 30% during the quarter before stabilizing at elevated levels.

Retail segment sales increased 4% to $819 million, Packaging sales increased 7% to $458 million, while Construction sales declined 5% to $527 million. Packaging growth was supported by higher volumes in Structural Packaging and Protective Packaging, while Construction continued to face weaker residential demand.

The company reported higher volumes in several product lines. Structural Packaging organic unit sales increased 8%, Protective Packaging increased 15%, Concrete Forming Solutions increased 6% and Commercial increased 11%. Deckorators organic unit sales increased 9%, including a 37% increase in Surestone decking sales and an 85% increase in traditional wood-plastic composite decking sales. The Surestone order backlog totaled approximately $30 million at the end of the quarter.

For the first six months of 2026, cash flow from operating activities totaled $61 million, while free cash flow reached $198 million. The company repurchased approximately $142 million of its shares during the period.

As part of its 2026 investment program, UFP Industries expects to invest $175 million to $200 million in capital projects during the remainder of the year. The company also completed three acquisitions during the quarter, including the operating assets of MoistureShield's composite decking manufacturing facility, John Rock and Berry Pallets, to expand manufacturing capacity and geographic coverage. It maintained its full-year outlook and expects upgraded manufacturing capacity and expanded distribution to support continued growth of its Deckorators Surestone business.