M.SEGMENT REPORTING

ASC 280, Segment Reporting (“ASC 280”), defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Our CODM is the chief executive officer, as he has the ultimate decision-making authority related to assessing the Company’s performance and allocating resources. The CODM assesses performance for our segments and decides how to allocate resources based on net sales, cost of goods sold, earnings from operations and net earnings. These metrics are also reported on the Consolidated Statement of Earnings and Comprehensive Income. The measure of segment assets is reported on the Consolidated Balance Sheet as total consolidated assets. The CODM uses earnings from operations and net earnings to evaluate income generated from segment assets (return on investment) in determining wage increase allocations and bonus pools, and in deciding whether to reinvest profits into the business, such as for acquisitions or to pay dividends.

We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of UFP Retail Solutions, UFP Packaging and UFP Construction and align with the end markets we serve. This segment structure allows for a specialized and focused sales approach among Company operations, efficient use of resources and capital, and quicker introduction of new products and services. We manage the operations of our individual locations primarily through a market-centered reporting structure under which each location is included in a business unit and business units are included in our Retail, Packaging, and Construction segments. In the case of locations that serve multiple segments, results are allocated and accounted for by segment. Two customers, The Home Depot and Lowes, accounted for approximately 17% and 11%, respectively, of our total net sales in fiscal 2025, 17% and 11%, respectively, of our total net sales in fiscal 2024 and 17% and 12%, respectively, in 2023.

The exception to this market-centered reporting and management structure is our International segment, which comprises our packaging operations in Mexico, Canada, Spain, India, and Australia and sales and buying offices in other parts of the world, and our Ardellis segment, which represents our wholly owned fully licensed captive insurance company based in Bermuda. Our International and Ardellis segments do not meet the quantitative thresholds in order to be separately reported and accordingly, the International and Ardellis segments have been aggregated in the “All Other” segment for reporting purposes.

“Corporate” includes purchasing, transportation, corporate ventures, and administrative functions that serve our operating segments. Operating results of Corporate primarily consist of over (under) allocated costs and net sales to external customers initiated by UFP Purchasing, which manages supplier relationships and purchases lumber and other materials, UFP Transportation, which owns, leases and operates transportation equipment, and UFP Real Estate, which owns and leases real estate. Inter-company lease and service charges are assessed to our operating segments for the use of these assets and services at fair market value rates. Total assets in the Corporate column include unallocated cash and cash equivalents, certain prepaid assets, and certain property, equipment and other assets pertaining to the centralized activities of Corporate, UFP Real Estate, Inc., UFP Transportation, Inc., and UFP Purchasing, Inc. Real estate activities are conducted by the real estate company on behalf of the segments, and capital expenditures associated with real estate are allocated to the segments.

The following tables are presented in thousands:


	2025
							All
	Retail		Packaging		Construction		Other		Corporate		Total
Net sales to outside customers	$	2,433,556	$	1,603,723	$	2,003,785	$	271,550	$	7,729	$	6,320,343
Intersegment net sales		261,156		98,156		89,131		334,152		(782,595)		—
Cost of goods sold		2,087,657		1,338,247		1,645,998		212,499		(24,208)		5,260,193
Gross profit		345,899		265,476		357,787		59,051		31,937		1,060,150
Selling, general, administrative expenses		218,262		180,619		237,949		37,858		16,320		691,008
Net loss (gain) on disposition and impairment of assets		11,139		(2,887)		259		3,167		(8,550)		3,128
Other losses (gains), net		1,398		—		265		691		(241)		2,113
Earnings from operations		115,100		87,744		119,314		17,335		24,408		363,901
Interest expense		124		12		—		(906)		11,687		10,917
Interest and investment income		(427)		(3)		(11)		(7,252)		(30,855)		(38,548)
Equity in earnings of investee		—		(687)		—		(22)		—		(709)
Interest and other		(303)		(678)		(11)		(8,180)		(19,168)		(28,340)
Earnings before income taxes		115,403		88,422		119,325		25,515		43,576		392,241
Income taxes		28,724		22,008		29,699		4,973		10,845		96,249
Net earnings	$	86,679	$	66,414	$	89,626	$	20,542	$	32,731	$	295,992
Other significant items:
Amortization expense	$	3,630		8,562		2,909		5,980		1,610	$	22,691
Depreciation expense		30,438		36,706		25,863		4,165		41,188		138,360
Segment assets		867,700		773,495		614,966		330,938		1,435,794		4,022,893
Capital expenditures		128,824		73,426		30,243		3,094		33,790		269,377


	2024
							All
	Retail		Packaging		Construction		Other		Corporate		Total
Net sales to outside customers	$	2,597,994	$	1,636,563	$	2,113,844	$	298,190	$	5,718	$	6,652,309
Intersegment net sales		245,628		92,801		76,401		297,512		(712,342)		—
Cost of goods sold		2,209,195		1,335,304		1,675,346		240,518		(34,796)		5,425,567
Gross profit		388,799		301,259		438,498		57,672		40,514		1,226,742
Selling, general, administrative expenses		209,592		191,757		262,517		39,940		31,240		735,046
Net loss (gain) on disposition and impairment of assets		3,067		6,545		673		28		(4,156)		6,157
Other (gains) losses, net		(2,964)		—		(376)		(3,572)		209		(6,703)
Earnings from operations		179,104		102,957		175,684		21,276		13,221		492,242
Interest expense		116		14		50		(3,242)		15,771		12,709
Interest and investment income		(673)		(26)		(33)		(6,114)		(53,687)		(60,533)
Equity in earnings of investee		—		(89)		—		—		—		(89)
Interest and other		(557)		(101)		17		(9,356)		(37,916)		(47,913)
Earnings before income taxes		179,661		103,058		175,667		30,632		51,137		540,155
Income taxes		40,534		23,023		39,488		5,793		12,584		121,422
Net earnings	$	139,127	$	80,035	$	136,179	$	24,839	$	38,553	$	418,733
Other significant items:
Amortization expense	$	3,992	$	8,840	$	2,810	$	6,124	$	1,755	$	23,521
Depreciation expense		28,877		34,603		23,124		3,338		34,699		124,641
Segment assets		816,256		799,311		621,370		342,529		1,571,472		4,150,938
Capital expenditures		79,909		57,436		64,743		2,716		27,470		232,274


	2023
							All
	Retail		Packaging		Construction		Other		Corporate		Total
Net sales to outside customers	$	2,956,007	$	1,838,200	$	2,161,059	$	259,392	$	3,726	$	7,218,384
Intersegment net sales		565,325		83,549		96,729		268,210		(1,013,813)		—
Cost of goods sold		2,566,572		1,422,940		1,637,329		182,047		(9,442)		5,799,446
Gross profit		389,435		415,260		523,730		77,345		13,168		1,418,938
Selling, general, administrative expenses		213,288		219,323		279,107		51,548		3,367		766,633
Net loss (gain) on disposition and impairment of assets		800		8		9		(166)		(911)		(260)
Other losses, net		3,180		—		1,268		1,425		158		6,031
Earnings from operations		172,167		195,929		243,346		24,538		10,554		646,534
Interest expense		111		7		—		(3,020)		15,744		12,842
Interest and investment income		(168)		(6)		(10)		(5,747)		(33,985)		(39,916)
Equity in loss of investee		—		2,367		—		—		—		2,367
Interest and other		(57)		2,368		(10)		(8,767)		(18,241)		(24,707)
Earnings before income taxes		172,224		193,561		243,356		33,305		28,795		671,241
Income taxes		40,304		45,292		56,753		7,723		6,712		156,784
Net earnings	$	131,920	$	148,269	$	186,603	$	25,582	$	22,083	$	514,457
Other significant items:
Amortization expense	$	4,566	$	8,849	$	2,904	$	3,488	$	1,520	$	21,327
Depreciation expense		25,483		32,996		19,546		2,454		30,084		110,563
Segment assets		828,798		798,623		621,762		316,481		1,452,133		4,017,797
Capital expenditures		52,756		52,694		56,793		1,432		16,707		180,382

Information regarding principal geographic areas was as follows (in thousands):


	2025				2024				2023
			Long-Lived				Long-Lived				Long-Lived
			Tangible				Tangible				Tangible
	Net Sales		Assets		Net Sales		Assets		Net Sales		Assets
United States	$	6,037,902	$	1,004,281	$	6,359,540	$	906,549	$	6,935,431	$	779,748
Foreign		282,441		206,523		292,769		197,324		282,953		188,042
Total	$	6,320,343	$	1,210,804	$	6,652,309	$	1,103,873	$	7,218,384	$	967,790

The following table presents, for the periods indicated, our disaggregated net sales (in thousands) by business unit for each segment.


	2025		2024		2023
Retail
ProWood	$	2,028,949	$	2,154,398	$	2,495,493
Deckorators		299,931		297,217		309,419
UFP Edge		104,676		146,379		151,095
Total Retail	$	2,433,556	$	2,597,994	$	2,956,007

Packaging
Structural Packaging	$	999,344	$	1,045,149	$	1,225,204
PalletOne		521,949		517,906		530,642
Protective Packaging		82,430		73,508		82,354
Total Packaging	$	1,603,723	$	1,636,563	$	1,838,200

Construction
Factory Built	$	838,177	$	815,577	$	718,773
Site-Built		713,759		875,087		977,129
Commercial		265,657		248,777		265,079
Concrete Forming		186,192		174,403		200,078
Total Construction	$	2,003,785	$	2,113,844	$	2,161,059

All Other	$	271,550	$	298,190	$	259,392

Corporate	$	7,729	$	5,718	$	3,726

Total Net Sales	$	6,320,343	$	6,652,309	$	7,218,384

The following table presents, for the periods indicated, our percentage of value-added and commodity-based sales to total net sales by segment.


	2025		2024		2023
Value-Added
Retail		51.8%		52.8%		51.1%
Packaging		75.4%		75.5%		76.9%
Construction		81.0%		80.5%		83.2%
All Other		76.1%		76.6%		80.0%
Corporate		80.5%		61.6%		27.5%
Total		68.0%		68.1%		68.1%

Commodity-Based
Retail		48.2%		47.2%		48.9%
Packaging		24.6%		24.5%		23.1%
Construction		19.0%		19.5%		16.8%
All Other		23.9%		23.4%		20.0%
Corporate		19.5%		38.4%		72.5%
Total		32.0%		31.9%		31.9%

Note: Certain prior year product reclassifications and the change in designation of certain products as "value-added" resulted in a change in prior year's sales.

Historical Timeline

Fiscal Year	Filed
2025	Feb 25, 2026	Showing above
2024	Feb 26, 2025

2023	Feb 28, 2024

2022	Mar 1, 2023

2021	Feb 23, 2022

2020	Mar 3, 2021

2019	Feb 26, 2020

2018	Feb 27, 2019

2017	Feb 28, 2018

2016	Mar 1, 2017

2015	Feb 24, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

UFP INDUSTRIES INC Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures