UFPI - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the Q4 2024 UFP Industries Inc. Earnings Conference Call and Webcast. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, Mr. Stanley Elliott. Relations. Investor of Director ahead. go Please

Stanley Elliott

morning, everyone, discuss results. joining to you and fourth quarter thank our XXXX for and us Good full year

replay Joining website, is Will Media, website Relations call the Chairman me be our in Chief of Officer; the News Missad, This Cole, ufpi.com. to today Executive conference section posted all Officer. our investors call and are Mike Investor of simultaneously will our of through our Schwartz, Matt Board; A the Financial our Chief available Executive call the to on well. interested as

to turn me the and could Private subject and uncertainties to, press statements today's not call are XXXX. Litigation materially release I Before and include company's defined cause to include, risks as These the of in in over, press from are limited Securities also remind you uncertainties forward-looking statements presentation risks the and let Securities that results Reform that the the differ Exchange in with actual Act Commission. release These and but those identified factors expectations. filings

will turn I to call Matt. now over the

Matthew Missad

recognition line about ball and Thank our pass for the a will to XXXX and joining us the ]. I quarter discussion appreciate brief of detailed you, for our before will pass to earnings a plans morning, overview markets you will and and we more new Schwartz, our this for QX, talk Cole I Mike fourth then call. will Will questions. beyond. X-man CEO, Stanley, We for who open financial morning's XXXX season, [ weave good everyone. of In call a basketball year-end feature will give

cost operating have reductions and of profits. to projects declining facility are are trends, cost of factors and implemented return our risk the team reductions trend company. operating quarter been these compressed also identifying ensure leadership the efficiency prioritization saw and QX. most decreased the increased administrative regulations In continued This sequential fourth mandated not these response of areas that higher demand weak pressure. that competitive in of executing similar demand XXXX Both or and The our business. to additional They in a on for based and planning are factors highest initiatives we by outlined containment to those

And in and sales of the EBITDA with XX.X% finished $XXX.X a of spite million, these challenges, $X.X XXXX billion of EBITDA margin. team

exceptionally aggressively positions take an to of strong More the cash as to importantly, well pursue $X.X advantage to and priced and us amount with share billion of of continue capital is growth to cash in arise. M&A the opportunities also allows they form dividends equivalent company strategy its the returning reasonably liquidity This repurchases. capacity. balance in more as should sheet nearly debt It shareholders

highly motivated with not it value when in when new share incentive are performance with are overall This, however, to team they is compensation. to in our Obviously, teammates our happy drive all feel their we the the consistent not. and to Our reward which personally philosophy and is shareholder pain the heights. the great results business improve decline is to

As [ and feels down ] ] like the you leadership can Bowie them. on pressure [ our imagine, David team, coming Queen

pressure. will whose of under that them team, Fortunately, I like the the am are and spite have veins succeed seen pressure, in I very baby, confident Will and ice

Schwartz. Now to it Will turn over I'll

William Schwartz

an earlier this chapter. celebrated rich to incredibly and entrusted our to call. I'd for everyone, fourth like quarter Matt, you, the start shaping thank role. honored on morning, for next the and proud that anniversary having XXth forward I to CEO be and Good Thank I us couldn't saying more earnings month, by kind has with be this look joining you history, our words. UFP

friendship as for I his and company, impact am XX XX-plus to truly with years for he's UFP years his to transforming also I the career over in thank his had our and couldn't employees that globe. want the Matt plus CEO. be XX,XXX on support business of the of the indebted remarkable excited our opportunities more him Board mentorship, well, units. in the across support as over and leadership, about I as each exist

Retail unchanged to somewhat for negative largely Fourth unit sales X% growth X% year. in declined played X% from with in total were growth out. business in full framework construction We sales unit and XXXX our X% range entered expecting decline year. sales slightly That segment. cautiously, our in a international, for quarter, sales the would the slightly offsetting relatively Unit flat quarter the positive in Packaging and

so be to challenges on more felt packaging pricing than the and these businesses. challenging proved we and more across expected primarily construction initially our side, XXXX

variances year and profitability. exception With PalletOne and product our in conditions the the impacted a took pricing the manufacturing down negative pressures, mix half a of Factory step Built, commodity second deflation, and broad-based of where

the be quarters, past demand over mixed. continues mentioned we to few As customer

However, of portfolio our has volatility. us to broad-based some end market dampen allowed the

is products deliver XXXX points and we results better XXXX and EBITDA levels. higher actively are can, than XXX our While items This will, margin from XXXX down control. addressing levels, basis under portfolio of

of strategy. Looking our driving profitable will a ahead, growth overall remain part key

units the of but and be and aggressive grow to both opportunities. meet We continue our to high grow each are identified organic right threshold we inorganic that going sales. our We're have going on to runways and act across return business sales,

valuation narrow. active, seen team The and started past M&A and acquisition years the we've healthy. our over Our pipelines are extremely several to buyers remains has between gap sellers

we're what However, we remain pay. on willing to disciplined

wood January, Alabama. Wood a ], of in of Products CNL pallets we manufacturer leading in Earlier [ the acquisition announced

of reach. M&A into UFP or as most Packaging's when will expands identifying in key offerings the to our family. CNL acquisition both operate our of expansion our greenfield our business units. prefer We We welcome UFP excited criteria business expanding across are and part Expanding PalletOne geographies unit new to CNL targets cases. into or product geographic all

as a opportunities $X multiyear greenfield identified the calls. plan billion said, But part of on number capital mentioned we previous of that being have

create will us leave better capacity are new has us positioned our technology, The we We across development of structure growth our that in of investing to and growth shareholder heavily strength conservative sheet product positions financial automation, balance economic deploy cycle. our to us We well allowed value. expansion an believe phases which do maintaining margin highest navigate while all opportunities. can highest this capital to and through

sales. came for sales in million X.X% New product and of $XXX at XXXX

with see believe one seeing for to of XX% the across is the continue and pipeline we momentum products for to time. pleased current in sales We product company's over strongest history. a new of extremely strive I the are am and our our portfolio become pathway

will products introduce will the applications show We products showcase Vegas where in proprietary trade some at our of featuring mineral-based week, new technology. and next new [indiscernible] Surestone these Las we

Summit and One markets. point our capacities. a engineered and technology, Sherestone retailers manufacturing utilizing board. and small through both target product big-box This become we that of to price Designed as available course product over about excited distribution expand our but the continue we new to decking is contractor will independent are particularly at XXXX in DIY the

the launch help value drive with We to a and awareness designed campaign decorators for brand will technology. marketing behind support this proprietary the

other keenly drives we to our operations, We In costs return less decisions. the business Meeting XXXX, all look our business current capital with business. balance targets as underperforming remain on of strategic and closed we the on environment. of cost focused internal locations, our our side

We of our the and portfolio profit will explore entirety products of and evaluate alternatives short continue thresholds. assets to fall our for strategic that

marketing, opportunities transportation, to actions to purchasing continue identify the better more line reduce we drive performance. will Across we portfolio, pursue From efficient. and to become manufacturing that sales, a costs bottom and

and are cost ongoing. already of million $XX efforts cost We reductions, capacity these savings have identified from structural and

return time, include throughput not while costs our stop in and capacity to enhance higher-margin and mix which efficiencies to investments and product same products and lowering core, product expanding we will improve the believe At shareholders. we investments These improving manufacturing, through new our strategic our geographically making expanding runways, value-added will growth automation. develop our

a on I exterior Retail, is the the cost while building Turning new investing out mentioned also season. quickly space, in and identify continues is the opportunities products consolidation product in go-to-market its around grow facility while previously position to the optimism strategy of home and in applications adding applications the inside the our the composite home. ProWood yard, decking new to spring our to where there segments. expanding cautious strategies.

In years construction, our following of to site normalize robust build continues business demand.

drive favorable gains share forward. business, Our conditions financial anticipate our year. and factory We to cost actions continue during to strong build market in capitalize the results going took operations position our aggressive and improved commercial on we industry

labor our become policy see position to value-added value Concrete from and even resulting apparent will should volatility more construction to think proposition decisions. its Forming solutions. more business front-end continues any recent design We

Pricing Packaging in a Packaging. our than generally competitive, in highly more offset PalletOne markets, Protective Organic growth sales business. end more our stable. function remains are of material costs declines of and structural automated

Turning to our outlook.

to XXXX headwinds of a before in impacted R&R the year. first at the that for are Industry half affordability up remain expected over well We housing half housing equity of record challenge. with back business forecasts remain continue from to expect our starts Home forecast in the as Existing XXXX. as true with and to XXXX growth ranging mixed remain home year showing sales carry of half. down the consensus through for results conditions slightly estimates returning first also remains lack the slightly the levels will depressed. levels, a

by This recent news Canadian outlook on tariffs further lumber. is clouded around

imports in any wood well. sourced lumber inflation While less commodity species industry domestically in than Canada, from of the the creates XX% movement as

situation Regardless outcome, any purchasing the has our portfolio Canadian to in While days, tariffs with fluid. pricing ability of from lumber resulting XX navigate our paused confident balanced of the remain XX% we the strategies. on potential for been tariff remains

share scale, the patches the position UFP manufacturing lower and position softer strong cost allowed Historically, have our to gain financial utilize in marketplace. in to generally economy

of All is a uncertainty beyond to lack this the XXXX. first of of visibility half contributing

aggregate to year of lumber first to the margins given unit do We unit market. headwind across the through the in half recent trends be of deflation less expect expect the the year. We each a modest the business coming in declines on commodity

do term, underbuilt well. we the plan to change. down not approach, from we Longer take We that take an housing and trends shop everything returns-focused are company favorable the this to to share a driven advantage market. floor positioned is that boardroom of by and demographic of A hallmark market well will is as

and will We leaner, emerge uncertainty more a through nimble and company. profitable this more manage

pass At point, Mike to will I this to discuss Cole, the financials. CFO, our

Michael Cole

Thank Will. you,

this selling prices selling in $X.XX X% a primarily in billion, EBITDA a unit XX% in to decline driven our in results in pricing Our which a while The from by million, quarter demand, construction resulted include sales our prices margin $XXX segments. X.X%. decline our X% flat. sales consolidated This in adjusted reduction decline resulted EBITDA while to were more adjusted fell led and competitive to packaging headwind to weaker

and volumes competitive seasonally in trends. QX, pressured persisting pricing are margins margins more lower than While typical

adjusted of demand of spite Importantly, above an we to for and were the pricing EBITDA the able historical year. XX.X%, well deliver in throughout year levels margin challenges

our levels, our highlighting the was is XX.X%, on of market at even average more with weighted resilient well achieve Similarly, cost invested strong Xx conditions. which returns can return historical capital, capital and business when almost faced challenging our above

pursue with XXXX continue million for objectives almost balance grown ample a $X.X with our and us which financial gain into cash move to and $XXX billion, providing continues operating sheet We that's we strong year, to as flexibility to to totaled and surplus strategic generate beyond. cash strength our flows, the

declined certain a of with increase was X% Moving we while compared our to with Deckorators. a X% unit, X% Edge of business the increase and segment in in offset year, Retail to a ProWood, a unit customers, The by sales. X% volume unit Packaging with volume last retailers offset big to sales were decline by flat decline X% X%. our decline comprised increase box experienced By of a a million, in product independent by in Sales due transfers unit consisting increase in our on X% in segments. segment, $XXX

sales increased our Surestone, comprised our on XX%. efforts. XX% sales decking decking by this Within distribution, of increase benefit which expand will XX% from increased Surestone composite to quarter capacity product, efforts Deckorators, and bring and continue our new marketing decking our driven our which to total

of profits in gross margins our rationalization Offset result improved operating favorable in mix, retail due costs. of retail in $X lower costs primarily impact the million $X SKU additional by the a throughout a to profit, increase of in changes bonuses. by advertising gross improvement and and we've compensation and Our as discussed an product Operating and to year. the result million as in ProWood Surestone due SG&A decline in sustained a profits improved year-over-year improvements gross

segment in dropped X% of an increase units, X% of Moving share. a transfer certain Packaging. offset sales this in prices market the consisting this from we and X% selling environment more competitive to million, and a strategy remains a to of X% Sales to pricing to on in segment $XXX by our as soft, in a result decline Customer that's demand partially contributed gain as Retail. execute decrease

We also unit greatest had Structural this unfavorable mix most and profitable our change product decline volume. as an in quarter business the Packaging, in experienced largest

quarter, margin by result for a gross profits dropped by basis of these and points. the gross million As factors, year-over-year $XX dropped XXX

plant and income $X to quarter Packaging below SG&A. million expenses declined by profits reflected decrease million, the $XX total declined segment. line impairment gross of SG&A segment associated capacity reductions charges due as Operating the and $XX a to in $X in in profits for of for the the statement million with Packaging the only by a separate closures Year-over-year the quarter item million in

However, reduce $X to reduce and adjustment accrued adjustment an note annual incentives, liability. a million that $X prior year to earn-out to it's SG&A million important included a sales

primarily Excluding debt bonus bad million amounts, declined SG&A year-over-year, these by $XX to due lower expense. and

increase due declines offset our was and weaker was site increase as this were gains. in a prices $XXX Sales X% a our These was XX% in build commercial The due and unit to market increases business build increase industry gains. in partially million, concrete production units. increase due volume offset to to share demand. Construction. in The factory in decline units concrete volume market units. build segment selling to in forming an The in factory X% our was by to forming share increase due decreased to Turning in and partially by X%

comprised as site-built overall prices operating decrease $XX the a million business with each with Gross basis $XX of our to of our in with unit. selling prices in product decreased in down Site million, fell sales. bonus margin mix our $XX due our combined and our Selling profit the by a declined Built [ to of profits ] SG&A the the driven by greatest favorable year-over-year XXX unit gross lower quarter. When $XX lower a percentage total by points, impact in for million decline expense, million less

appropriately through manage sure investing still improving structure innovation, cost efficiency building product cycle, through for our while working relative right we're objectives technology. and this growth, find to achieve our we resources the mindful awareness of of our in to brand As balance needed making sized the and to company the demand, long-term is

reduce million, resulted expense. quarter SG&A year to an consolidated liability. decrease the for $XX earlier, increase $XX sales totaling annual accrued Our due to expenses earn-out bonus in declined a and million The remaining from million prior incentives I $X mentioned adjustments that

severances. Deckorators advertising million include increases $X and for $X current year Additionally, million for

cost XXXX. we've capacity $XX annual of million run of an from reductions Looking EBITDA rate improvements in and forward, targeted

SG&A highly when plan as offset we year, and bonus the new increase million. variable Our for This million spend anticipated of in innovation. advertising compared greenfield by is comprised reductions, building excluding associated improvements Surestone XXXX to is a invest next $X and and product And sales profitability, tied is with our brand. planned $XX incentives with decorators million expenses operations, increases, of flat cost of $XX in million primarily technology $XXX

a locations million on eliminate meeting to in anticipate totaling opportunities XXXX. we the and We not reduce favorable actions will will to we've these our have approximately gross profitability reductions, our actions the or on achieve profits we're taken impact we've goal. date are taken cost continued SG&A $XX actions Based capacity for of addition that In to targets. improvement, optimistic XXXX

flow cash our to on Moving statement.

Our capital in the from of net million million. elevated, $XXX cash reduction flow and flow our working adjusted nearly operating reduce inventories million Last the demand operating cash $XXX to was pandemic. $XXX we peak our year, a included of as was

$XXX $XXX Our CapEx. comprising expansionary expenditures, of maintenance million CapEx, in $XXX activities million in and million investing included capital

expansionary and manufacture geographic our primarily As acquisition Hartsville, value-added Products a reminder, areas. and expansion new core CNL X of unit. [ our higher-margin achieving through for efficiencies products, Investing focused key the in Expanding to included a businesses automation. pallets capacity on Alabama, machine which activities Wood also investments a manufacturer business in of located geographic gap ]. PalletOne are build fills our

through returning to Finally, share repurchases. $XX our of financing shareholders million dividends consisted of capital activities and primarily million $XXX almost of

an $XXX. repurchased at For approximately than shares million less we the price year, of average X.X

and structure capital resources. our to Turning

billion strong cash, total a sheet liquidity has billion. continue $X.X have to We $X.X our balance grown surplus while to nearly with in

available our liquidity includes Our to long-term borrow cash lending and amounts under agreements.

to continue respect approach. a balanced With to return-driven and pursue to plan allocation, capital we

to the that growth we've our returns. and priority past, for As discussed in is inorganic higher drive highest and capital results allocation margins in organic

stock strategy Our we free opportunistically more long-term growing share-based plans. with dilution in growth, anticipated cash and line compensation discounted our flow stock it's to includes continue back believe offset repurchasing value. also our dividends buy our from when at trading to a We'll

these end December, to approved With increase of at new Board paid an this $XXX, share another Board July, our X,XXX ago. approved from quarterly average repurchase authorization $X.XX XXXX. Last our a rate over a the $XXX year paid of under We've under expires price representing repurchased the authorization. million that share July a mind, at a shares in in be X% dividend points

higher-margin in segments. and estimated our the of our capital to to in plan on expenditures, growth opportunities see increase XXXX, million $XXX an to of million last we With each regard investments $XXX to indicated capitalize automation to we year, range we

longer target for $XXX equipment below site investments which needed time was million, our for selection lead in of and a of new result expenditures times capital the case the year as Our in locations. totaled this

XXXX be million. approved to in in $XXX will completed expected Projects that and total are XXXX

currently new to approximately $XXX capital million. approve projects In we plan expenditure addition, XXXX, totaling in

we growth strategic potential. higher that Finally, strong to continue providing opportunities fit, M&A a while are a and pursue of margin return pipeline

pursue these opportunities, we disciplined As remain valuation. we on will

outlook I'll comparisons unit period. environment slightly this to make of will our competitive challenging in the during year-over-year result should finish these of for year. Each believe demand profit year. more the down demand up continue each of with also in the more We comments be first the this will and first soft segments for We of pricing. about sales our factors half anticipate in half

business of While our some the to relevant the we'll with year may to from approach the we in and a things term, to half, market excess the to half underperforming more costs, this indicators suggest caution. year first reducing sense challenging conditions these conditions focus continue capacity divesting on our improve control the of eliminating assets. through With uncertainty, back in manage short

While in margin for and and drive ourselves eventual growth to demand positioning our improvements long-term market improvements. executing strategies

open that, With we'll questions. it up for

Operator

And Instructions] Davidson. Kurt our of D.A. with first will line [Operator Yinger come the question from

Kurt Yinger

to shelf any so wanted in on Pro as just start maybe distribution? maybe expand including I Deckorators changes space impact was level and level kind maybe more initiatives growth set and on any hoping big to the here us could XXXX, of side, strategies around well as the off I expected you box with at the

Matthew Missad

Yes. one we're extremely That's really good about. a excited question. that Certainly,

the the stores. That in in in year. is way. X,XXX-plus have a about half the way, be, way its You've big placement the will big in technology should lot making big and a product It box to second Surestone of we heard a currently

CapEx excited. and that We capacities build are continue investments our the we've through about talked on to

that come second So year the the of into really play. you'll see in half

Kurt Yinger

it. Got

on the Okay. And gross construction sense. That margins. makes just then

that the really kind versus and much there prior built, of of In year, factory terms the attributable pressure mix to Built? the strength Site versus of is how

bidding last of of gross mainly And versus quarters? that an kind couple dynamics cost the today competitive then Site describe and Built fixed Or dynamic? specifically, is unabsorbed margins would how there the you're you

William Schwartz

do Mike, to that you take one? want

Michael Cole

sure. Yes,

versus of about question is that the in decline declines. kind how of your price seen mix and first just related much pricing construction we've So

within you break we're insights business stay which each additional It's would kind hard you significant. unit, if to margins just there the I without level, that to I -- been into out, at the do. giving very have a know, Site Built for pricing high declines of reluctant were as Kurt, --

half a We -- feel into those of to feel feel year. bottom. those like are expect don't those continue We at sequentially like the getting are first those we like We the don't worse.

is also highest the and . carries impact a The margin than operating gross Site into operating margin get bit, significant. different gross [indiscernible] the business. details But structure our I unit little margin If Built and a highest built factory Site margin there much business Built is mix the

you. And so break further it I'm that is I a prominent sorry, impact too. can't for down

Site mix I -- impact should down mix We the into manufactured mix the half too, the more that expect being expect housing to of first year, group. say, continue Built that sequentially, that with we than

Kurt Yinger

it. Got

you expense about And here kind then lot that. different meaningful pretty core bonus sounded of play know a in It of into know kind like flat that of I QX, a factors tailwind there's and versus SG&A was Okay. that talked component I XXXX. XXXX

should of next standpoint, But as SG&A directionally, Or going into from flattish any be kind of I would be bonus a elements year? we guess aware would you specific that think well? consolidated

Michael Cole

a Yes. of bit number that's $XXX as quarters. that, that's lower I to, kind little you at The kind other from fixed guided quarter-to-quarter. than the of QX future the number is million, the look pretty generally a the core quarters, number a SG&A,

expense investment tier When I the locked on well still now. we're you X% past a incentives profit. Bonus the think I still lower you operating XX% level rate profit. pretty metrics. That say, at the XX%, in maybe Sales bit in at gross about is would of are sales are little and at return given now, of pre-bonus get into bonus we've incentives, good metrics

how way [ for should good good I'm pretty the bonus incentives, it the depends So year. suggesting SG&A get on use and variable to and elements you XXXX. you a for spread It and pretty gross those if million just looks the sales $XXX throughout profit profitability ] and of use kind

Operator

that from Markets. the Our next will Ketan question, with come BMO Mamtora Capital and line of

Ketan Mamtora

with side, of to a stabilization? sort we are are Maybe still those Are demand can seeing trends you what both of talk dynamics. pricing on about seeing, competitive Or start pressures continue? you standpoint the sort signs and packaging you from seeing of

Matthew Missad

Yes, first it's to we've really come our half takeaway some at of the a see year. We to continue Certainly, demand a to more and least good question. continues we for that expect increases The you we takeaway. from the believe and in we've bottom is reached pressure. as be to also pricing kind perspective, market when down until happen expect But expressed, there more pricing. of to we see the robust a

I hope gives you're of what that there. for So you kind looking

Ketan Mamtora

helpful. Yes, that's

that... fair So say to is it

Michael Cole

as is there as on but is packaging different expect than group there Maybe of lose to structure performed add structural side. of just share. from mix on quite you well. impact sight The The better don't has well, that there taking the Ketan, mix to a impact sequentially unit on to a continue lot margin Do as bit sales well. I PalletOne a to a on the want standpoint,

Ketan Mamtora

that the $X of then you what No, us And out that's can Mike the billion have remind is program? towards as in this program, how much $X kind already to about think that it. turning XXXX? billion, we And Got you helpful. CapEx spent year, of

Michael Cole

and through investment. that numbers recently, we neighborhood last planning approved billion $XXX $XXX in actually would million, for X-year here are $X those completed year, the billion of $X intact. We our cycle just is program had approve, The million. future I Yes. still that largely -- somewhere Of think and we said we went robust

a of much as of sophistication purchases didn't that that of but have as and them, lead greenfield. to through also have of times, -- relates long expected maybe equipment much because you spend line because then CapEx We this much so year just get the would the

much takes is longer. on the site selection close greenfield So and locations time it for

number a well carryover CapEx of So million. I referenced over $XXX had

just it I some next year. on takes why get think it that's was closure those $XXX into of the time projects. it's of to part And reason to million the

that spend, another business we Construction $XXX cycle within we Deckorators year, Really businesses. really all through of fits of Packaging into has with a have highest robust margin we unit about of each go Very had categories out robust segment. This the to approval before. million spend, and our those expect kind talked cycle the all segment units business stands in and the that

Matthew Missad

The only that's add commitment the to thing on based for capital. in really would inability was really the that a deploying that billion pricing. I around side M&A $X based And is

pricing You the that environment could on of change. see that a change side doesn't M&A capital but could deployment affect number,

Ketan Mamtora

And one it. last just then Got from me. one

right side. as incrementals about made way think decrementals the it construction, you and about think we cost to is What the As and the rationalization think some and now? packaging sort of you've do of footprint changes, on of sort

Michael Cole

I down. guided those times Ketan, in decrementals are or the when up decremental and there largely Yes. in And incremental intact. think hasn't about we've I pricing think robust been and past, changes when I the incremental and think

side kind XX% is Retail range. Deckorators. it of of that construction changing the packaging now than be probably That's I side more will prominent around is. being the XX% [indiscernible] with rate more as look at growth being and the as with the Pro

see So don't good think, change. this forward pretty percentages as the of It's because at element to I volume an use I pricing related, point. I more really think being are going those big

is big Mix is factor. a though, to caveat one that, The mix.

that changes, get changes in could that you result in if estimates. result those in so And mix could

Operator

Benchmark. Reuben Our next question, the and of that Garner will come with from line

Reuben Garner

yellow use lower opportunity that is or a might and on your Do source you situation. guys opportunity of potential Is an the lumber interesting there like offset side, cost the of markets the question kind help wood to some Site of penetration of tariff in an the Kind pine much there some pressure? increase Built? with very Southern pricing margin

guys that increasing it's something that? to seeing possible, Are been we've it's geographical it? -- just chance not not historically you in I certain is been of but know of Or any kind heard that And accelerate markets, late.

William Schwartz

answer that's pricing think think Reuben. question, a really yes, species And is other based good I the Yes, the adopted marketplace. in on I be will

Some few over last years. already happened that's the of

big would to be think You've in species, would production. a I see transition And Pine seen of continue expect the we south if I production start the further rate adoption Southern of pricing and other to that case grow. Yellow

Reuben Garner

And customers into of do you then What kind like last were on throughout noticeable the guys your like Was channel channel? the does you words, destocked QX in the are In a in other over look the a selling it Deckorators, Okay. was year? sell-through there today? what whether XXXX. into feel seeing follow-up difference they've or and

William Schwartz

I can't really good to significant The mix. product the excited and takeaway changes significant to speak is any of and that. But way. speak really no, we're product can't about really that I a product our respect. change in in

Reuben Garner

side. then Okay. term material going I'm longer one way on Any one, or And near to more changes term? either sneak that CapEx last the thinking in about the to you're

Michael Cole

that you can repeat one? Reuben, sorry, I'm

Reuben Garner

Yes.

it longer term? side, On how any into changes near whether about material you're be in the thinking capital expenditures the investing, or term

Michael Cole

The had, But seen the high overweighted for expand it automation commitment CapEx of and growth spend. efficiency No. to lots in as is career We've facilities. just as of is prominent. capital in And opportunities existing my kind I've the growth. deployment very also greenfield

And numbers X -- $XXX over the to so really and to too. commitments million. When big that's $XXX million I next look piece, the years, a the at

the than we've why more past. the much elevated in what seen are that's numbers So

that. And so still to very committed

to businesses, only earlier at the to Will's you it's possible pivot be, when thing to And look our M&A. greenfields and core would point always

But be there. that to just see to The obviously, deploying we capital. into we We greenfield need we to if know haven't can. if M&A opportunities going opportunities, We we're plan. built the be

Operator

Our next Jay line will question, from McCanless and come that the of with Wedbush.

James McCanless

I consideration? last where kind year-end the guess by strategic the is cost some $XX of actions guys the are that one, Or larger cost just first and plan talk still you review about quarter, now? there take in guess, million 'XX. guys the saves I could saves to under you the is highlighted Is

Matthew Missad

to constantly for sits savings. we and where that's a that Yes, today. are look gains, look evaluation business it on and based for at -- SG&A continue We'll I we looking it, consolidations, efficiency think constant opportunities at

So that's effort. an ongoing

Michael Cole

Yes.

around my 'XX heard Jay, in right. we will improvements had actions of $XX that be comments, think million to [ -- to that we've so we you taken ], And

not So in get to working identified. actively to occur full on Those try as year sure been said, get will identified, most, year to hard we impact if $XX million those We're expect ]. the to 'XX. full so by on it, that. And working have we all in we'll 'XX. make of impact -- [ those, and 'XX in Will throughout be executing we're the year have been The

James McCanless

like out budget be that, potential from line bit ], sounds then good all And on year that things And had have impact MH like I changes, first Concrete going well the are have on Great. thinking The industry [ what we a all I with something Forming things a you seen these shipments. to very it question more, it are some broadening there. really of seeing you item? about next quarter? little guess, early need any on

William Schwartz

certainly Yes, and grow. a with or to challenge affordability about that the believe We I'll to interest factory-built rate believe to will it's excited We're and cost related for building, is is start question. spot today, place a The whether continue there. going this continue just promising we it us. of a invest still that's be

it's that too early Concrete Forming that. any to Secondarily, I think realize question on of

speak nothing the today. in future, come to more So of to

Operator

no further Schwartz to closing for questions time. remarks. Will at this like call queue the showing would Mr. to I'm any over I turn in the now

William Schwartz

half the confident our Thanks to remain we opportunities made first you culture, our joining uncertain in an We of. your for strategies. again us challenging Ingrained Despite for have investment the what great outlook day. look in we this call term we're as at used us, tougher prove XXXX, truly on periods Thank a times, for and morning. tough in people.

Operator

concludes for This Thank program. today's participating. all you

disconnect. now may You

UFP Industries (UFPI) 18 Feb 252024 Q4 Earnings call transcript