For every $100 of sales, UFP Industries kept $15.40 in gross profit this time, down from $17 a year earlier. That is the simplest way to read a three-month period in which the lumber and wood-products maker sold more and earned less from each sale.
Revenue rose 2.6% to $1.9 billion. Gross profit fell 7.2%, operating income dropped 16%, and net income declined 17.7%. The result was a 1.48 diluted EPS figure, down from 1.70 in the comparable three months ended June 28, 2025.
The pressure came most clearly from housing-related businesses. UFP said Site-Built housing gross profit fell $15 million, while Factory-Built gross profit declined $2 million. Commercial construction added $6 million, and Concrete-Forming added $1 million, but those gains did not cover the housing shortfall.
UFP described the mechanism in unusually plain terms:
"The gross profit of our Site-Built housing business unit decreased by $15 million, primarily due to weak demand and competitive pricing as housing starts have declined due to affordability challenges and economic uncertainty. The gross profit of our Factory-Built business unit decreased by $2 million primarily due to lost market share of certain low margin commodity products."
UFP Industries, 10-Q, Aug. 5, 2026.
This is not just a volume problem. The company also said Site-Built selling prices fell 3% because of competitive pressure, while organic unit sales declined 2%. UFP's gross margin consequently fell to 15.4% from 17.0%, and its operating margin fell to 5.5% from 6.7%.
Management's other message is that the order book has not disappeared. It said:
"Despite the softer near-term demand outlook, our backlog has increased as a result of several newly awarded projects for which contracts are in place, with projected margins generally consistent with those of other recent projects."
UFP Industries, 10-Q, Aug. 5, 2026.
That creates the filing's central tension: signed work is accumulating, but the latest revenue still carries weaker pricing and lower profitability. Commercial construction is supplying some offset, while housing demand and commodity-product market share are pulling the other way.
The balance sheet adds a cash question. Cash fell 29.1% year over year to $597.3 million. Inventory rose 3.6% and accounts receivable rose 6.4%, both faster than revenue, while free-cash-flow margin slipped to negative 0.8%. The 10-Q does not disclose a single cause for the cash movement. UFP still had net cash of $685.3 million.
The annual record gives the current squeeze some history. UFP's revenue went from $9.6 billion in 2022 to $6.3 billion in 2025, while operating margin moved from 9.9% to 5.8%. The latest three months fit that broader pattern: the business is still large, but the margin cushion is thinner than it was during its stronger recent years.
The unresolved point is specific: The next quarterly report can show whether Site-Built pricing and volume stabilize while inventory and receivables stop running ahead of sales. Until then, the company has described a backlog with projected margins, not the realized margins on that backlog.
Source: UFP Industries 10-Q filed Aug. 5, 2026.