Financial Analysis

C. BUSINESS COMBINATIONS We completed the following business combinations in fiscal 2025 and 2024, which were accounted for using the purchase method (in thousands). Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment National Supply, LLC (NS) July 14, 2025 $6,531 consideration for 100% asset purchase $ 3,045 $ 3,486 Construction Located in Elkhart, IN, NS is a material supplier in the RV industry. RWP West, LLC (RWP) June 16, 2025 $7,360 consideration for 100% asset purchase $ 77 $ 7,283 Construction Located in Twin Falls, ID and established in 2007, RWP serves the western portion of the US and is a manufacturer and distributor for the manufactured housing, RV, and cargo markets. C&L Wood Products (C&L) December 23, 2024 $29,901 consideration for 100% asset purchase $ 12,662 $ 17,239 Packaging Located in Hartselle, AL and founded in 1975, C&L is a manufacturer of machine-built pallets, mulch, and other wood products. On August 8, 2024 we purchased the remaining 20% equity interest in UFP Palets from Palets Suller, SL. The estimated fair values of assets acquired and liabilities assumed are based on available information at the acquisition date and assumptions deemed reasonable by management, supplemented by the expertise of third-party valuation specialists engaged to assist in determining fair value for intangible assets, including goodwill. As of December 27, 2025, the valuations for the fair value determination …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

L. COMMITMENTS, CONTINGENCIES, AND GUARANTEES We are self-insured for environmental impairment liability, including certain liabilities which are insured through a wholly owned subsidiary, Ardellis Insurance Ltd., a licensed captive insurance company. On December 27, 2025, we were parties either as plaintiff or defendant to a number of lawsuits and claims arising through the normal course of our business. In the opinion of management, our consolidated financial statements will not be materially affected by the outcome of these contingencies and claims. On December 27, 2025, we had outstanding purchase commitments on commenced capital projects of approximately $135.4 million. We provide a variety of warranties for products we manufacture. Historically, warranty claims have not been material. We also distribute products manufactured by other companies. While we do not warrant these products, we have received claims as a distributor of these products when the manufacturer no longer exists or has the ability to pay. Historically, these costs have not had a material effect on our consolidated financial statements. As part of our operations, we supply building materials and labor to site-built construction projects or we jointly bid on contracts with framing companies for such projects. In some instances, we are required to post payment and performance bonds to ensure the products and installation services are completed in accordance with our contractual obligations. We have agreed …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

E. DEBT As of December 6, 2022, we entered into a five-year, $750 million unsecured revolving credit facility with a syndicate of U.S. banks. This facility includes up to $60 million which may be advanced in the form of letters of credit, and up to $100 million (U.S. dollar equivalent) which may be advanced in Canadian dollars, Australian dollars, Sterling, Euros and such other foreign currencies as may subsequently be agreed upon among the parties. Cash borrowings are charged interest based upon an index selected by the Company, plus a margin that is determined based upon the index selected and upon the financial performance of the Company and certain of its subsidiaries. We are charged a facility fee on the entire amount of the lending commitment, at a per annum rate ranging from 15.0 to 30.0 basis points, also determined based upon our performance. The facility fee is payable quarterly in arrears. Outstanding letters of credit extended on our behalf on December 27, 2025 and December 28, 2024 aggregated $40.4 million and $39.7 million, respectively. These letters of credit as of December 27, 2025 are comprised of $39.2 million issued under the revolving credit facility, including approximately $3.3 million related to industrial development revenue bonds, and $1.2 million issued outside of the facility. We had no amount outstanding on the revolver at December 27, 2025, and December 28, 2024. After considering letters of credit, we had $710.8 million and $712.7 million in rem …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our net sales disaggregated by revenue source (in thousands): Year Ended December 27, December 28, December 30, 2025 vs. 2024 2024 vs. 2023 2025 2024 2023 % Change % Change Point in Time Revenue $ 6,177,299 $ 6,489,190 $ 7,069,690 (4.8)% (8.2)% Over Time Revenue 143,044 163,119 148,694 (12.3)% 9.7% Total Net Sales $ 6,320,343 $ 6,652,309 $ 7,218,384 (5.0)% (7.8)% …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"H. COMMON STOCK We maintain and administer our shareholder approved Employee Stock Purchase Plan. The Employee Stock Purchase Plan allows eligible employees to purchase shares of our stock at a share price equal to 85% of fair market value on the purchase date. We have expensed the fair value of the compensation associated with these awards, which approximates the discount. The amount of expense is nominal. We maintain and administer our shareholder approved Director Compensation Plan. The Director Compensation Plan allows eligible members of the Board of Directors to defer the cash portion of their retainer and committee fees, credited in the form of stock units, and receive shares of our stock at the time of or following their retirement, disability or death. The number of shares to be received is equal to the amount of the cash portion of their retainer and committee fees deferred multiplied by 110%, divided by the fair market value of a share of our stock at the time of deferral. The number of units is increased by the amount of dividends paid on our common stock. The units are immediately vested as of the grant date, since they are considered payment for services rendered quarterly. We recognized expense for this plan of $1.7 million in 2025, $2.0 million in 2024, and $1.9 million in 2023. This plan also allows directors to defer payment of the annual retainer paid in the form of our common stock. The number of shares to be received for their portion of the retainer tha …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"B. FAIR VALUE We apply the provisions of ASC 820, Fair Value Measurements and Disclosures, to assets and liabilities measured at fair value. Assets and liabilities measured at fair value are as follows (in thousands): December 27, 2025 December 28, 2024 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Prices with Active Observable Unobservable Active Observable Unobservable Markets Inputs Inputs Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 182,051 $ 26,450 $ $ 208,501 $ 356,700 $ 21,150 $ $ 377,850 Fixed income funds 5,365 44,227 49,592 5,272 33,076 38,348 Treasury securities 345 345 344 344 Equity securities 18,492 28,000 46,492 16,431 26,000 42,431 Alternative investments 4,186 4,186 4,044 4,044 Mutual funds: Domestic stock funds 10,436 10,436 9,534 9,534 International stock funds 816 816 641 641 Target funds 11 11 10 10 Bond funds 6 6 6 6 Alternative funds 490 490 477 477 Total mutual funds 11,759 11,759 10,668 10,668 Total $ 218,012 $ 70,677 $ 32,186 $ 320,875 $ 389,415 $ 54,226 $ 30,044 $ 473,685 From the assets measured at fair value as of December 27, 2025, listed in the table above, $207.9 million of money market funds are held in Cash and cash equivalents, $34.3 million of mutual funds, equity securities, and alternative investments are held in Investments, $28.0 million of equity securities are held in Other assets, $0.2 million of mutual funds are held in Other a …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

D. GOODWILL AND OTHER INTANGIBLE ASSETS As described in Note M Segment Reporting, our segment structure is based upon the markets we serve and goodwill has been allocated to the segments using a relative fair value approach. The changes in the net carrying amount of goodwill by reporting segment for the years ended December 27, 2025 and December 28, 2024, are as follows (in thousands): Retail Packaging Construction All Other Corporate Total Balance as of December 30, 2023 $ 84,204 $ 141,042 $ 87,805 $ 23,262 $ $ 336,313 2024 Acquisitions 5,705 5,705 Foreign Exchange, Net (88) (404) (1,687) (2,179) Balance as of December 28, 2024 $ 84,116 $ 146,747 $ 87,401 $ 21,575 $ $ 339,839 2025 Acquisitions 761 761 2025 Purchase Accounting Adjustments 1,357 1,357 Foreign Exchange, Net 58 235 1,671 1,964 Balance as of December 27, 2025 $ 84,174 $ 148,104 $ 88,397 $ 23,246 $ $ 343,921 As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of September 27, 2025, all reporting units had fair values that were substantially in excess of their carrying values. Indefinite-lived intangible assets totaled $7.3 million as of December 27, 2025 and December 28, 2024 related to the commercial unit within the Construction segment, the international unit within the All Other segment, and the Deckorators unit within the Retail segment. The following amounts were included in other amortizable intangible assets, net as of December 27, 2025 and December 28, 2024 (i …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"RECENTLY ISSUED ACCOUNTING GUIDANCE In September 2025, the FASB issued ASU 2025-06, Intangible - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU removes all references to prescriptive and sequential software development stages. The ASU requires entities to begin capitalizing software costs when management authorizes and commits to funding the software project, and it is probable that the project will be completed, and the software will be used for its intended purpose. The amendments in this ASU are effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, using a prospective, retrospective or modified transition approach, with early adoption permitted. We are currently evaluating the impact of adopting this guidance on the consolidated financial statements and related disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. This ASU provides guidance to expand disclosures related to the disaggregation of income statement expenses. Also, this ASU requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses which includes purchases of inventory, employee …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

I. RETIREMENT PLANS We have a profit sharing and 401(k) plan for the benefit of substantially all of our employees, excluding the employees of certain wholly-owned subsidiaries. Amounts contributed to the plan are made at the discretion of the Board of Directors. We matched 25% of employee contributions in 2025, 2024, and 2023, on a discretionary basis, totaling $7.0 million, $7.7 million, and $8.8 million respectively. Included within the total employee matched contribution was an additional matched contribution for hourly employees of $1.8 million for 2023 based on meeting certain performance goals during those years. There was no additional matched contribution for hourly employees in 2025 and 2024. The basis for matching contributions may not exceed the lesser of 6% of the employees annual compensation or the IRS limitation. We maintain an Executive Retirement Plan for certain officers of the Company (who have at least 20 years of service with the Company and at least 10 years of service as an officer) whereby we will pay, upon retirement, certain benefits including health care benefits, for a specified period of time if certain eligibility requirements are met. Approximately $17.0 million and $16.9 million are accrued in Other liabilities for this plan on December 27, 2025 and December 28, 2024, respectively. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"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 Companys 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, effici …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OPERATIONS We are a holding company whose subsidiaries supply products primarily made from wood, wood and non-wood composites, and other materials through three segments: retail, construction and packaging. Founded in 1955, we are headquartered in Grand Rapids, Michigan, with affiliates throughout the United States, Mexico, Canada, Spain, India and Australia. PRESENTATION CURRENCY The accompanying consolidated financial statements are presented in United States dollars (US dollars or USD), unless otherwise indicated. PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and with the rules and regulations of the Securities and Exchange Commission (the ""SEC""), represent our assets and liabilities and operating results. The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships. All significant intercompany balances and transactions have been eliminated in consolidation. We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

O. SUBSEQUENT EVENTS No subsequent events were identified as of February 25, 2026. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing