UFP Industries has announced its first-quarter (Q1) 2025 results, which saw net sales of $410m in its packaging segment, a decrease of 3% compared to the first quarter of 2024.
UFP Industries is a holding company that serves three markets: packaging, retail, and construction.
The company said that a 3% decline in organic unit sales and a 1% decline in selling prices were partially offset by a 1% increase from an acquisition.
For the three months ending March 2025, the company noted that its packaging segment posted a 5% decline in organic unit sales for Structural Packaging and a 1% decline in organic unit sales for PalletOne.
The company also reported a 13% increase in organic unit sales for protective packaging due to capacity increases.
In the latest quarter, the company’s gross profit for its packaging segment was $70m or 17% of sales compared to $85m or 20.1% of sales in the first quarter last year.
The company attributed the decline in gross profit primarily due to softer demand, lower unit sales, and competitive pricing and higher material costs in the PalletOne and Structural Packaging business units.
During the first quarter of 2025, the company posted net sales of $1.60bn, which declined 2.7% due to a 0.7% decrease in selling prices and a 2% drop in organic unit sales.
In the latest quarter, the company posted net earnings attributable to controlling interests of $78.8m, which represents a 35% decrease from last year.
During Q1 2025, the company’s adjusted earnings before interest, taxes, depreciation, and amortisation were $142.2m or 8.9% of sales, compared to $180.8m or 11% of sales for the same period a year ago.
