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Can Deckorators Deal Boost UFP Industries' Position in Outdoor Living?

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Key Takeaways

  • UFP Industries acquired MoistureShield assets to boost Deckorators' composite decking capabilities.
  • The deal adds CoolDeck tech, expands capacity and supports innovation in outdoor living products.
  • UFPI expects WPC capacity could double to $200M by 2027, backed by strong demand trends.

UFP Industries, Inc. (UFPI - Free Report) is strengthening its position in outdoor living through a strategic move by its Deckorators division. The company acquired the remaining operating assets of MoistureShield, a well-known brand in the decking market.

The acquisition marks a step to expand wood plastic composite manufacturing capabilities, enhance the product portfolio and support faster innovation. The Arkansas facility adds strong expertise in traditional composite decking. This complements Deckorators’ Surestone technology and design capabilities, improving the overall offering.

The combined platform is expected to deliver broader product options and better value to dealers, contractors, distributors and homeowners. The company also gains proprietary CoolDeck technology, which helps reduce heat absorption compared with standard composite decking. This addition strengthens product differentiation in a competitive market.

The deal also supports capacity expansion. The facility provides immediate room for additional sales and future scaling opportunities. The company expects that with further investments, Deckorators’ WPC capacity could double to $200 million by 2027. This reflects a clear growth path supported by manufacturing expansion.

Demand in outdoor living remains strong as homeowners continue to invest in outdoor spaces for daily use and leisure. The company plans to use this demand to expand product offerings, strengthen dealer and contractor reach, and accelerate product development.

In the fourth quarter of 2025, the company highlighted steady demand trends across key segments. Overall, the Deckorators deal appears to position UFP Industries to capture rising demand, expand the product mix and strengthen its competitive standing in outdoor living markets.

How UFP Industries Stacks Up Against Industry Peers

UFP Industries operates in a competitive outdoor living and composite decking market. The company faces competition from players such as Trex Company, Inc. (TREX - Free Report) and Simpson Manufacturing Co., Inc. (SSD - Free Report) , both of which serve key parts of the decking and construction value chain.

Trex remains a major competitor with a strong presence in composite decking and railing products. The company continues to benefit from steady demand for low-maintenance and sustainable outdoor solutions. Trex focuses on product innovation and brand strength, which supports its leadership in the composite decking space.

Simpson Manufacturing supplies structural connectors, fasteners and building solutions used in decking and outdoor construction. The company benefits from steady residential construction and repair activity. Simpson Manufacturing’s products play a critical role in supporting deck installations and outdoor structures.

UFP Industries is strengthening its position through the Deckorators acquisition. The added capacity, expanded product mix and new technologies may help the company compete more effectively across the outdoor living value chain.

UFPI Stock’s Price Performance & Valuation Trend

Shares of this global distributor of wood and composite products have declined 7.2% in the past three months, underperforming the Zacks Building Products-Wood industry, the broader Construction sector and the S&P 500 Index.

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Image Source: Zacks Investment Research

UFPI stock is currently trading at a discount compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 16.85, as evidenced by the chart below.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings Estimate Revision of UFPI

UFPI’s earnings estimates for 2026 have trended downward in the past 30 days to $5.19 per share. The Zacks Consensus Estimate for UFPI’s  2026 revenues indicates a 1.5% year-over-year decrease, while the same for EPS implies 3.8% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

UFPI currently carries a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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