Emergency exercise, building on CenterPoint's year-round emergency preparedness activities and drills, simulated a response to a major hurricane to strengthen future preparedness, coordination with local emergency agencies and first responders, as well as public and customer communications
, /PRNewswire/ -- Today, as part of an ongoing effort to strengthen its overall emergency preparedness and response efforts, CenterPoint Energy conducted its annual full-scale emergency response exercise in preparation for the upcoming hurricane season. The emergency exercise, held at CenterPoint's Emergency Operations Center, simulated a Category 3 hurricane impacting the Greater Houston area and included more than 400 members of CenterPoint teams – from Electric and Gas Operations, Emergency Planning & Response, Customer, Communications and others – executing the company's emergency response plan. About 100 state and local officials, emergency management officials, first responder partners and emergency experts observed the drill.
"For CenterPoint, preparing for natural disasters before they happen and simulating the effectiveness of our response and plans is vital to continuously improving and strengthening our response when future storms and hurricanes strike. Today's emergency exercise builds on the series of preparedness actions we've already taken throughout the year, as well as the continued infrastructure investments made as part of our Greater Houston Resiliency Initiative to strengthen the electric grid. The combination of actions we've taken are to help us better achieve the high level of performance expected of us, so we can restore power safely and more quickly for the millions of customers and families who depend on us," said Jesus Soto Jr., Executive Vice President and Chief Operating Officer, CenterPoint Energy.
2026 Preparedness: Focus of annual full-scale exercise
The 2026 emergency exercise focused on executing a series of critical emergency response activities, including reviewing weather forecasts and impacts, analyzing damage prediction models to deploy resources, coordinating with emergency responders to support unified response operations, and communicating accurate and timely information to customers, as well as local and state leaders, on the scale of restoration efforts and progress.
The exercise simulated a Category 3 hurricane and included third-party expert evaluators that observed and provided feedback. CenterPoint will use the feedback to further improve, enhance and strengthen CenterPoint's emergency response preparedness, reflecting its year-round commitment to implementing the latest best practices and lessons learned following all emergency events, including hurricanes and other extreme storms.
More than 100 officials observed the exercise, including elected leaders, representatives from regional emergency management offices, Houston-area utilities, as well as key stakeholders from local education, healthcare and business communities.
2026 Preparedness: Scope of emergency actions to date
CenterPoint has taken a series of actions throughout 2026 to prepare for the upcoming hurricane season. Actions include:
Opened a new Emergency Operations Center to support CenterPoint's year-round situational awareness and emergency response readiness and closely coordinate with emergency response partners, local and state officials, media and other key stakeholders. Completed more than 25,000 hours of FEMA trainings across more than 800 employees. Increased the number of frontline workers CenterPoint can call upon to support emergency responses by up to 20 times its normal workforce. Improved the damage assessment process with faster damage identification and power restoration. Enhanced real-time weather monitoring with 150 new advanced weather stations. Greater Houston Resiliency Initiative (GHRI): Strengthening the grid
Since launching GHRI in 2024, CenterPoint has made a series of critical infrastructure investments to strengthen the grid to better withstand more extreme weather and improve day-to-day reliability for its customers. These ongoing actions, as part of GHRI, have included:
Installing 65,000+ stronger, more storm-resilient poles; Clearing 10,000+ miles of higher-risk vegetation near power lines; Undergrounding 500+ miles of power lines; and Installing 600+ automation devices capable of self-healing. Throughout 2026, CenterPoint will continue to make additional investments to further strengthen system resiliency and emergency preparedness. These combined resiliency actions will prevent CenterPoint customers from experiencing 150 million fewer outage minutes by the end of 2026.
To learn more about CenterPoint's preparedness actions and critical resiliency improvements across Greater Houston, visit: www.CenterPointEnergy.com/TakingAction.
About CenterPoint Energy, Inc.
As the only investor owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Minnesota, Ohio and Texas. As of March 31, 2026, the company owned approximately $47.8 billion in assets. With approximately 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.
For more information, contact:
Communications
[email protected]
CenterPoint Energy is rated a "Buy," driven by its robust Texas-focused growth pipeline and strong earnings outlook. CNP targets 7%-9% annual EPS growth through 2035, supported by rapid population gains, industrial demand, and a favorable regulatory environment. Despite ongoing equity issuance to fund a $65.5 billion cap-ex plan, CNP expects to deliver 8%-9% EPS growth and a 2.2% dividend yield.
Multi‑hazard intelligence strengthens storm readiness and restoration planning across CenterPoint's service territories
, /PRNewswire/ -- As extreme weather events grow more frequent and complex, CenterPoint Energy is continuing to strengthen how it plans, prepares for and responds to severe weather across its electric and gas service territory in Texas, Indiana, Ohio, and Minnesota, where the company serves approximately 7 million metered customers.
To support faster service restoration for customers following storms, CenterPoint is leveraging a new, first-of-its-kind integrated planning and operations platform developed in collaboration with Technosylva to deliver better outcomes for its customers and communities.Technosylva is a leading provider of wildfire, flooding, and extreme weather modeling and decision‑support software used by utilities, insurers, and public agencies to better anticipate risk and support operational response.
The platform brings together outage forecasting, high‑wind and winter storm modeling, flood risk insights, and wildfire intelligence into a single, system‑wide view. This integrated approach allows CenterPoint teams to monitor evolving conditions days in advance, align the right crews and resources ahead of impact, and improve restoration planning and response - while keeping customer safety at the forefront and helping reduce outage duration and restoration costs.
"Preparing for extreme weather today requires earlier insight and better coordination than ever before," said Jason Wells, Chair, President and Chief Executive Officer of CenterPoint Energy. "Our goal is to build the most resilient coastal grid in the nation to benefit our customers and communities. Technosylva's product gives us much clearer visibility into where impacts are most likely and allows us to mobilize crews more efficiently, support neighboring utilities when possible, and restore service faster for our customers."
CenterPoint's electric and natural gas systems are exposed to a wide range of weather‑related threats, including hurricanes, flooding, high winds, extreme heat and cold, and winter storms. The platform supports the company's long‑term strategy to strengthen grid resilience, improve operational readiness, and better prepare for increasingly complex weather events, all while reinforcing CenterPoint's continued commitment to its customers who depend on safe, reliable electric and natural gas service.
During recent weather events, CenterPoint teams used the platform's multi‑day outage forecasts and storm impact modeling to assess potential system impacts ahead of time, set appropriate emergency response levels, and pre‑position crews. In recent high‑wind events, outage forecasts closely aligned with actual system impacts, helping teams translate weather data into actionable response plans with greater confidence.
"CenterPoint Energy's leadership is visionary, investing to get ahead of extreme weather risk, not just to respond to it," said Bryan Spear, CEO of Technosylva. "Serving customers and communities who face the full spectrum of extreme weather, this enhanced risk intelligence platform helps CenterPoint to anticipate and prepare for events, including hurricanes, flooding, severe winds, and wildfire. We are grateful to them for their collaboration in developing our AI-powered platform, which delivers outage forecasting, restoration planning, flood insights, and wildfire intelligence, to help keep the lights on and restore power faster when it matters most."
Beyond immediate storm response, the platform also supports longer‑term planning by improving how flood and extreme weather risk are incorporated into infrastructure and capital investment decisions. As weather patterns evolve and infrastructure ages, asset‑level risk visibility is increasingly important for investments to deliver resilience benefits for customers over time.
About CenterPoint Energy, Inc.
As the only investor owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Minnesota, Ohio and Texas. As of March 31, 2026, the company owned approximately $47.8 billion in assets. With approximately 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.
About Technosylva
Technosylva is the leading provider of wildfire and extreme weather modeling, risk mitigation, and operational response software. Technosylva's market-leading solutions, enhanced by AI and machine learning capabilities, provide real-time and predictive insights into developing wildfire and extreme weather risks to support electric utility, insurance, and government agency customers. Founded in 1997, Technosylva has offices in La Jolla, CA, León, Spain, and Calgary, Canada. Learn more at www.Technosylva.com.
Media Contacts
CenterPoint Energy
[email protected]
Technosylva
Mahoney Communications Group
Emily Torrans
[email protected]
Ph. 212.220.6045
Choosing between Algonquin Power & Utilities (AQN +0.42%) and CenterPoint Energy (CNP +0.95%) requires balancing income potential against geographical reach. Both companies provide essential services, making them popular choices for everyday investors.
Algonquin operates a mix of regulated water, gas, and electric services across 13 states and multiple countries. CenterPoint focuses on massive delivery networks in major hubs like Houston, Minnesota, and Indiana. This comparison explores their financial health and valuations to help you decide which stock fits your strategy.
Algonquin manages a diverse portfolio through its Liberty brand, serving approximately 1.3 million customer connections. It provides electricity, natural gas, water, and wastewater services across North America, Chile, and Bermuda. Its operations span 13 U.S. states and one Canadian province, allowing the utility to benefit from diverse revenue streams and varied regulatory environments.
In FY 2025, revenue reached nearly $2.4 billion, representing a growth rate of close to 4.9% compared to the previous year. The company reported net income of approximately $208 million, which corresponds to a net margin of roughly 8.5%. This net margin reflects the percentage of total revenue remaining as profit after all expenses and taxes are paid, providing a look at the bottom-line efficiency.
As of its December 2025 balance sheet, the debt-to-equity ratio is nearly 1.4x. This ratio measures total debt against shareholder equity, where a higher number indicates more reliance on borrowed funds for expansion. The company reported a current ratio of roughly 1.0x, which shows its ability to cover short-term liabilities with current assets. Free cash flow was negative $249 million, which is calculated as operating cash minus capital spending. This metric is a key focus for those investing in utility stocks because it indicates the cash available for dividends or debt repayment.
The case for CenterPoint EnergyCenterPoint serves approximately 7 million metered customers through its electric and natural gas delivery networks in major regions. Its primary markets include Greater Houston and several Midwestern states like Minnesota and Indiana. Two major customers, NRG Energy and Vistra, account for nearly 60% of billed receivables in its Houston electric segment. Customer concentration like this adds a layer of risk to the business, as the company depends on these entities to remit payments on a timely basis.
For FY 2025, revenue reached nearly $9.4 billion, showing a year-over-year increase of approximately 8.3%. Net income for the period was roughly $1.1 billion, resulting in a net margin of close to 11.2%. This net margin signifies how much of every dollar in sales the utility kept as profit, and it remained relatively consistent compared to the previous year. These results highlight the scale of the company's delivery network in high-demand urban centers.
According to its December 2025 balance sheet, the company carries a debt-to-equity ratio of 2.1x. This indicates that its total liabilities are more than double its shareholder equity, a common trait for utilities with large infrastructure projects. The current ratio is approximately 0.9x, showing its liquidity position relative to short-term obligations.
Risk profile comparisonAlgonquin faces significant regulatory and operational risks as it manages water and electric services across diverse regions. Frequent rate case filings are necessary to recover the heavy costs of infrastructure maintenance and environmental compliance. Any failure to secure favorable terms from regulators can lead to lower net margins and reduced cash flow.
CenterPoint deals with regulatory lag and the risk that regulators may deny full cost recovery for its infrastructure projects. Severe weather in the Houston area often causes physical damage and leads to litigation or regulatory scrutiny regarding service reliability. The company also depends on NRG Energy and Vistra for a significant portion of its billing receivables, creating concentration risk if those entities face financial trouble.
Valuation comparisonCenterPoint carries a higher Forward P/E, comparing price to future earnings estimates, and a higher P/S ratio, which measures price against revenue.
MetricAlgonquin Power & UtilitiesCenterPoint EnergySector BenchmarkForward P/E16.5x22.5x20.3xP/S ratio1.9x3.0xSector benchmark uses the SPDR XLU sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?I'd go with CenterPoint Energy. Both companies offer the kind of steady, predictable utility business that long-term investors tend to appreciate. But one of them has an unusually exciting growth story underneath the surface.
CenterPoint serves the Greater Houston area, and right now Houston is one of the fastest-growing electricity markets in the country. Data centers, industrial expansion, and advanced manufacturing are flooding into the region, and CenterPoint is the utility at the center of it all. The company has a massive capital investment plan in place to meet that demand, raised its outlook, and is delivering consistent earnings growth. That's an eye-catching combination in the normally sleepy utility sector.
Algonquin, by contrast, is a turnaround story. It has made genuine progress by selling off its renewables business, cutting debt, and refocusing on core regulated utility operations. But it's still in recovery mode, and the dividend history gives long-term investors reason to be cautious.
When choosing between a utility in turnaround mode and one riding a genuine growth wave, I'll take the growth.
UFP Industries, Inc. (NASDAQ: UFPI - Get Free Report) shares hit a new 52-week low during mid-day trading on Friday. The company traded as low as $87.11 and last traded at $86.4840, with a volume of 59035 shares changing hands. The stock had previously closed at $89.68. Key Headlines Impacting UFP Industries Here are the
, /PRNewswire/ -- UFP Packaging debuted Slot-Lock and Clamp-Lock 100, two new industrial crate systems engineered for nail-gun-free assembly. The additions expand its pneumatic-free product portfolio alongside U-Loc 200, introduced in 2025.
The new systems improve workplace safety and efficiency by eliminating the need for nail and staple guns, providing safer alternatives to traditional pneumatic construction.
UFP Packaging’s nail-gun-free crate line—featuring new Slot-Lock and Clamp-Lock 100 systems alongside the previously announced U-Loc 200—improves workplace safety and efficiency by eliminating nail and staple guns.
Slot-Lock is a closed-style crate that uses CNC-routed interlocking panels and secures with strapping. It is suited for aerospace and defense components, medical technology equipment, and sensitive electronics.
Clamp-Lock 100 is an open-style crate that uses patent-pending steel L-bracket fasteners designed for hand application during assembly. It is suited for commercial equipment, building materials, and infrastructure components. "Even in mature markets like crating, innovation can meaningfully improve how work gets done," said Robert Bilbrough, director of product development. "We are proud to develop solutions that address safety, efficiency and employee satisfaction within our customers' manufacturing environments."
The new crates exceed safety standards without compromising strength or durability. Each system can be disassembled without damaging components, supporting reuse and reducing waste.
Slot-Lock
Slot-Lock is a closed-style crate that uses CNC-routed interlocking panels and secures with strapping. It is suited for aerospace and defense components, medical technology equipment, and sensitive electronics.
Clamp-Lock 100
Clamp-Lock 100 is an open-style crate that uses patent-pending steel L-bracket fasteners designed for hand application during assembly. It is suited for commercial equipment, building materials, and infrastructure components.
U-Loc 200
U-Loc 200 is an open-style crate featuring patented polyamide fasteners designed for hand application and removal. This system is ideal for automotive components as well as heavy machinery and equipment.
UFP Packaging's in-house engineering and design teams provide customizable configurations of each system. For more information, visit https://ufppackaging.com/products/nail-gun-free-crates.
About Robert Bilbrough
Robert Bilbrough is the director of product development at UFP Packaging. Over 12 years at UFP Industries, he has led the development of packaging solutions that address industry pain points and holds multiple patents for his designs. He began his career in 2014 as a specialist after earning his degree in industrial and product design from Auburn University.
About UFP Packaging
UFP Packaging is a leading North American provider of industrial packaging solutions and the largest producer of wooden pallets and crates in the United States. With expertise in metal fabrication, corrugated conversion and labeling, UFP Packaging offers a full range of packaging services, positioning itself as a comprehensive provider. Headquartered in Grand Rapids, Mich., UFP Packaging is a subsidiary of UFP Industries, Inc. (Nasdaq: UFPI).
It has been about a month since the last earnings report for UFP Industries (UFPI - Free Report) . Shares have lost about 16.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is UFP Industries due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for UFP Industries, Inc. before we dive into how investors and analysts have reacted as of late.
UFP Industries Q4 Earnings & Sales Miss Estimates, Both Down Y/YUFP Industries reported lower than expected fourth-quarter 2025 results, with adjusted earnings and net sales missing the Zacks Consensus Estimate and also declining year over year.
Earnings & Sales Performance in Q4Adjusted EPS of 70 cents missed the Zacks Consensus Estimate of $1.03 by 32%. In the year-ago quarter, it had reported an EPS of $1.12.
Quarterly net sales of $1.33 billion missed the consensus mark of $1.4 billion by 5.3% and declined by 9% year over year from $1.46 billion.
UFPI’s Margins & ProfitabilityGross profit totaled $216.5 million, down from $239.5 million in the year-ago quarter, with gross margin contracting to 16.3% from 16.4% a year earlier.
Adjusted EBITDA came in at $107 million, down from $132.7 million. Adjusted EBITDA margin contracted to 8.1% from 9.1% year over year.
Q4 Segment HighlightsUFP Retail Solutions: Net sales of $444 million, down 15.4% from last year. Segment adjusted EBITDA declined 44.4% to $24.5 million year over year.
UFP Packaging: Sales declined 1.4% to $370.1 million due to soft industrial activity and volatile lumber pricing. Adjusted EBITDA contracted 26.9% to $27.5 million compared to the year-ago quarter.
UFP Construction: Net sales of $439.8 million, down 9.7% year over year due to soft housing demand and weak consumer sentiment. Adjusted EBITDA tumbled year over year by 26.3% to $33.2 million.
Balance Sheet & LiquidityCash and cash equivalents were $914.2 million as of the fourth quarter of 2025, down from $1.17 billion at 2024-end. The current liquidity level is sufficient to meet the short-term obligation of $0.9 million. The long-term debt was $228.9 million as of the fourth quarter 2025-end, slightly down from $229.8 million at 2024-end.
As of Dec. 27, 2025, the company repurchased 4.5 million shares for $443 million (or $98.39 per share).
UFPI’s FY25 HighlightsIn 2025, UFPI reported net sales of $6.32 billion, down 5% from the fiscal 2024 level.
The annual gross profit was $1.06 billion, down from $1.23 billion reported in the prior year, while gross margin contracted 160 basis points year over year to 16.8%.
Adjusted EBITDA totaled $563.6 million, down from $682.3 million in fiscal 2024, while the adjusted EBITDA margin contracted 140 basis points year over year to 8.9%.
UFPI’s Long-Term Outlook For 2026The company expects market conditions to remain challenging in 2026, with demand likely to stay flat to slightly down across segments. Residential construction-related markets are expected to remain weak, while other end markets may stabilize. However, the company believes market share gains, cost-reduction efforts and growth in its Deckorators and Surestone businesses will help it outperform the broader market.
UFP Industries remains committed to its long-term growth strategy. The company still aims to achieve annual unit sales growth of 7-10%, including contributions from bolt-on acquisitions, while driving at least 10% of total sales from new products. Additionally, UFP Industries targets EBITDA margins of 12.5%.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a flat trend in fresh estimates.
VGM ScoresCurrently, UFP Industries has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook UFP Industries has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
SG Americas Securities LLC grew its holdings in shares of UFP Industries, Inc. (NASDAQ:UFPI – Free Report) by 454.4% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 21,499 shares of the construction company’s stock after purchasing an additional 17,621 shares during the period. SG Americas Securities LLC’s holdings in UFP Industries were worth $1,957,000 at the end of the most recent quarter.
Other hedge funds also recently made changes to their positions in the company. AlphaQuest LLC grew its position in UFP Industries by 822.7% during the third quarter. AlphaQuest LLC now owns 8,480 shares of the construction company’s stock worth $793,000 after buying an additional 7,561 shares in the last quarter. Caxton Associates LLP acquired a new position in UFP Industries in the 2nd quarter valued at $1,099,000. New York State Common Retirement Fund lifted its position in shares of UFP Industries by 117.5% during the 3rd quarter. New York State Common Retirement Fund now owns 86,589 shares of the construction company’s stock valued at $8,095,000 after acquiring an additional 46,775 shares during the period. Deprince Race & Zollo Inc. bought a new stake in shares of UFP Industries during the 3rd quarter valued at $41,962,000. Finally, Numerai GP LLC acquired a new stake in shares of UFP Industries during the 3rd quarter worth $3,562,000. 81.81% of the stock is owned by institutional investors.
Wall Street Analyst Weigh In A number of research analysts recently commented on UFPI shares. Zacks Research downgraded UFP Industries from a “hold” rating to a “strong sell” rating in a research note on Tuesday, March 17th. Weiss Ratings reiterated a “hold (c-)” rating on shares of UFP Industries in a research note on Tuesday, January 27th. Finally, DA Davidson decreased their target price on shares of UFP Industries from $112.00 to $110.00 and set a “buy” rating on the stock in a report on Tuesday, March 10th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $106.67.
Check Out Our Latest Research Report on UFPI
UFP Industries Stock Performance Shares of UFPI opened at $90.37 on Monday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 3.13 and a current ratio of 4.59. UFP Industries, Inc. has a 52-week low of $84.82 and a 52-week high of $118.00. The firm has a market cap of $5.13 billion, a price-to-earnings ratio of 18.11 and a beta of 1.44. The business’s fifty day moving average is $100.54 and its 200-day moving average is $96.07.
UFP Industries (NASDAQ:UFPI – Get Free Report) last announced its quarterly earnings data on Monday, February 23rd. The construction company reported $0.70 earnings per share for the quarter, missing the consensus estimate of $1.03 by ($0.33). UFP Industries had a return on equity of 9.27% and a net margin of 4.66%.The business had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter in the prior year, the company earned $1.12 earnings per share. UFP Industries’s quarterly revenue was down 9.0% compared to the same quarter last year. Equities analysts anticipate that UFP Industries, Inc. will post 7.08 EPS for the current fiscal year.
UFP Industries Increases Dividend The business also recently declared a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 2nd were paid a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Monday, March 2nd. This is an increase from UFP Industries’s previous quarterly dividend of $0.35. UFP Industries’s dividend payout ratio is 28.86%.
UFP Industries Company Profile (Free Report)
UFP Industries, Inc, founded in 1955 and headquartered in Grand Rapids, Michigan, designs, manufactures, and distributes a broad range of wood and wood-alternative products. The company operates through two primary segments: UFP Retail Solutions, which supplies building materials and components to home improvement retailers and lumber dealers, and UFP Distribution Solutions, which offers packaging, pallets, skids, and other industrial products for a variety of end markets. Its product portfolio includes treated and untreated lumber, engineered wood, decking, railing, fencing, vinyl sheets and profiles, and custom-designed packaging solutions.
With manufacturing facilities and distribution centers across the United States, Canada, Mexico and Europe, UFP Industries serves professional contractors, industrial customers, and do-it-yourself consumers.
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, /PRNewswire/ -- Deckorators®, a leading brand in the outdoor living industry and a division of UFP Industries, today announced it has acquired the remaining operating assets for MoistureShield decking, a respected brand in the decking and outdoor living market.
The acquisition represents a strategic step forward for Deckorators as it continues to expand its wood plastic composite manufacturing capabilities, strengthen its product portfolio, and accelerate innovation in the rapidly growing outdoor living category.
Deckorators, the first name in decking, railing and accessories, invented the low-maintenance aluminum balusters category and has since led the industry with innovative decking and railing products. With dependably on-trend designs, Deckorators lets DIYers and builders extend their creative ideas from a home’s interior to its outdoor living spaces. Deckorators is a brand of UFP Retail Solutions, LLC, a UFP Industries company. The newly acquired Arkansas facility brings strong expertise in traditional composite decking, complementing Deckorators' industry-leading Surestone® technology and design leadership. Together, the combined organization will be well positioned to deliver expanded product offerings and enhanced value to dealers, contractors, distributors, and homeowners.
"The addition of MoistureShield strengthens our ability to innovate and serve our customers," said Ryan Kemp, Executive Vice President of Deckorators. "By combining our technologies, product development capabilities, and market reach, we will accelerate growth and continue delivering high-performance outdoor solutions."
The outdoor living category continues to see strong demand as homeowners invest in outdoor spaces for relaxation, entertainment, and everyday living. Deckorators plans to leverage the acquisition to expand its product offerings, strengthen its reach with dealers and contractors, and accelerate product development across its decking portfolio.
"This acquisition allows us to support customers more effectively today while creating the runway we need to expand our product mix and grow the Deckorators brand over the long term," said Landon Tarvin, President of UFP Retail Solutions, which includes the Deckorators brand in its portfolio. "The facility provides immediate capacity for additional sales with opportunities to add capacity in the future as sales growth objectives are achieved. We expect that with both this investment and additional capital investments at this location, we will have the ability to double Deckorators' overall capacity of WPC to a total of $200M by 2027."
The purchase strengthens Deckorators' core business with the acquisition of manufacturing assets, certain product brands and proprietary CoolDeck® composite decking technology— which is designed to reduce heat absorption compared to standard composite decking— previously operated by Oldcastle APG.
About Deckorators
Deckorators, the first name in decking, railing and accessories, invented the low-maintenance aluminum balusters category and has since led the industry with innovative decking and railing products. With dependably on-trend designs, Deckorators lets DIYers and builders extend their creative ideas from a home's interior to its outdoor living spaces. Deckorators is a brand of UFP Retail Solutions, LLC, a UFP Industries company.
To learn more about Deckorators® decking and railing accessories, visit www.deckorators.com or call 800-556-8449.
UFP Industries, Inc., formerly Universal Forest Products, is a holding company whose operating subsidiaries—UFP Packaging, UFP Construction and UFP Retail Solutions—manufacture, distribute, and sell a wide variety of wood and alternative material building and industrial products worldwide. Founded in 1 955, the company is headquartered in Grand Rapids, Michigan, with affiliates throughout North America, Europe, Asia, and Australia. For more about UFP Industries, go to www.ufpi.com.
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 PeersUFP 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 TrendShares 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.
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.
Image Source: Zacks Investment Research
Earnings Estimate Revision of UFPIUFPI’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.
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GRAND RAPIDS, Mich., April 8, 2026 /PRNewswire/ -- UFP Industries (Nasdaq: UFPI) will announce first quarter 2026 results after the market close on Wednesday, April 29, 2026.
A conference call to discuss these results will take place on Thursday, April 30, 2026, at 10:00 a.m. Eastern Time, hosted by Will Schwartz, President and Chief Executive Officer, and Mike Cole, Chief Financial Officer.
A live audio webcast of the call along with supporting materials can be accessed using the following link or on the UFP Industries Investor Relations website. (www.ufpinvestor.com).
A replay of the call will be made available on the company's website for at least 90 days.
, /PRNewswire/ -- As UFP Industries (NASDAQ: UFPI) accelerates its acquisition strategy, President and CEO Will Schwartz today announced the creation of a new executive role designed to maximize the value of newly acquired businesses and strengthen the performance of existing operations across the enterprise.
President of UFP Construction Patrick Benton is set to assume a new role as Executive Vice President of Operations Integration, starting July 1.
Current Executive Vice President of UFP Site Built Mike Ellerbrook will take over as President of UFP Construction, effective July 1. The newly created position of Executive Vice President of Operations Integration will be filled by current UFP Construction President Patrick Benton, effective July 1. Throughout his 33- year career at UFP Industries, Benton has firmly established himself as an expert operator with rich experience in all three of UFP Industries' core segments.
"As UFPI becomes more active and disciplined in M&A, we're intentionally pursuing strategic acquisitions that are well‑positioned for growth and capable of delivering stronger long‑term returns," said Schwartz. "Patrick has a proven track record of maximizing operations, driving efficiencies, and leading complex integrations, all while building a strong culture. He's a highly effective, well‑rounded operator with experience across all three segments. With this role, we'll drive greater value from our growth opportunities and strengthen our operational resiliency across the enterprise. This role is laser‑focused on results."
"As we grow the UFP business, I am excited to get synergy plans developed quicker and getting new companies fully integrated into our winning UFP culture right away," said Benton. "Getting to both the start and finish line quicker will make a big difference in maximizing the value of our acquisitions."
Benton joined UFP Industries in 1993 as a production trainee in Saginaw, Texas. He held positions of increasing responsibility, eventually becoming Vice President of Operations (South Texas) in 2008. He was subsequently named Executive Vice President of UFP Eastern Division-North in 2014 and president of the Northern Division in 2017.
In 2019, as part of UFP Industries' reorganization to focus on end-markets, he was named president of UFP Construction.
He is a native of Texas and currently resides in Charlotte, N.C. with his wife. They have 3 adult children.
Ellerbrook Named New UFP Construction President
Schwartz also today named current UFP Site Built Executive Vice President Mike Ellerbrook to the position of President of UFP Construction, also effective July 1.
"Beyond growth and efficiency, innovation and talent are essential to our long-term success, and Mike Ellerbrook is a master of both," said Schwartz. "Mike is an exceptional team builder who develops leaders from within, has deep industry relationships, and brings a vision for excellence that makes him the ideal choice to lead our Construction segment. Like many of UFP's leaders, Mike has come up through this company, and that experience gives him a deep understanding of our culture, our people, and what it takes to win."
"Our people and our culture are everything. They're what make UFP the best place to work and the strongest company in the business," said Ellerbrook. "I want to thank Patrick for his leadership, mentorship, and friendship. He's been a trusted ally and counselor every step of the way, and I wouldn't be here without him. As President of UFP Construction, my focus is simple: grow the business, create opportunities, and make sure our people grow and advance right along with it."
Ellerbrook began his career with UFP Industries just before his 19th birthday at UFP's Belchertown location. He ascended the leadership ranks by serving in both sales and operations roles, advancing through roles of increasing responsibility, until being named Vice President of the Northeast Region in 2014 and subsequently Executive Vice President of UFP Site Built in 2020.
In that role he has brought alternative materials, such as steel and aluminum, to the business unit's traditional wood component operations. Most recently he oversaw the launch of Frame Forward Systems, Site Built's concept-to-construction prefabricated wood brand.
He holds a business degree from the University of Southern Maine. Ellerbrook is a Boston native where he resides with his wife and 2 children.
, /PRNewswire/ -- UFP Industries (NASDAQ: UFPI) today announced the acquisition of the operating assets, including real estate, of Berry Pallets, Inc., a pallet manufacturer based in Waseca, Minnesota for approximately $20 million. The transaction expands UFP Packaging's pallet manufacturing footprint and strengthens UFP Packaging's ability to serve customers across the upper Midwest.
Berry Pallets designs and manufactures new pallets from its facility in Waseca. The acquisition adds approximately $23 million in annual sales and brings 75 experienced employees into the UFP family, further deepening UFP Packaging's geographic presence in a key region.
This acquisition strengthens a core business for UFP Industries and positions UFP Packaging for continued growth in the wood-based industrial packaging market. The transaction provides immediate capacity and long-term optionality to serve a growing customer base.
"This acquisition is fundamentally about strengthening our core business and adding capacity where we see long-term opportunity," said Will Schwartz, CEO of UFP Industries. "Berry Pallets has built a well-run operation with a talented team, loyal customers and a track record of consistent performance. Bringing them into the PalletOne network expands our presence in the upper Midwest, enhances our ability to serve national customers across the region, and is consistent with our strategy of disciplined investment in businesses that align with our strengths."
The Berry Pallets facility will be integrated into UFP Packaging's existing pallet manufacturing network, creating opportunities to leverage UFP's operational scale, procurement advantages, and national customer relationships — while maintaining the local expertise and customer focus that has defined Berry Pallets' success.
"We're excited to welcome the Berry Pallets team to our UFP family and build on their strengths and experience," said Scott Worthington, President, UFP Packaging. "This represents a strong strategic fit for UFP Packaging and positions us well for continued success, greater services to our customers and future opportunities throughout the region."
The acquisition underscores UFP Industries' continued focus on investing in core businesses, expanding manufacturing capacity to serve national customers, and strengthening the competitive position of its operating companies across packaging and industrial markets.
The transaction is expected to close on or around May 18, 2026.
, /PRNewswire/ -- UFP Packaging, a division of UFP Industries (NASDAQ: UFPI), announced this week the acquisition of Berry Pallets, Inc., a pallet manufacturer based in Waseca, Minn.
The transaction extends UFP Packaging's national pallet manufacturing network into the Upper Midwest — and reflects a deliberate effort to building a business that can grow alongside national customers to every corner of the country and North America.
"The way we build a truly national network isn't by planting a flag and moving on, it's by finding the right businesses in the right markets, investing in them, and scaling from a strong foundation," said Scott Worthington, President of UFP Packaging. "Berry Pallets has exactly the kind of base we look for: a well-run operation, deep customer loyalty, and a team that has earned the trust of their market. That's what gives us the platform to grow in the Upper Midwest and well beyond. And as that network scales across regions, the efficiencies we create translate directly into value for our customers."
"Berry Pallets brings exactly what we look for in an acquisition: a well-run facility, a loyal customer base, and a team that knows their market," said Justin Elwell, Executive Vice President of PalletOne, UFP Packaging's national pallet business. "Our role is to provide the operation with the stability, investment, and broader resources to grow — without disrupting what has made them successful. When you build into a region the right way, you create the kind of strength that national customers can depend on."
The acquisition advances UFP Industries' capital allocation strategy, which prioritizes investments in core, higher-margin businesses, disciplined M&A, and the expansion of manufacturing capacity in markets that support national customers across packaging and industrial end uses. For UFP Packaging, the strategy is as much about depth as it is about reach — acquiring businesses with proven track records, investing in their growth, and building a multi-region platform where scale drives efficiency and customers benefit from more competitive, consistent service from the Upper Midwest to every corner of North America.
About UFP Packaging UFP Packaging is a leading North American provider of industrial packaging solutions and the largest producer of wooden pallets and crates in the United States. Headquartered in Grand Rapids, Mich., UFP Packaging is a member of the UFP Industries (NASDAQ: UFPI) family of companies.
About PalletOne A UFP Packaging company, PalletOne is the nation's largest single-source pallet manufacturer. Headquartered in Bartow, Fla., the company manufactures pallets, provides pallet repair programs, recycles used pallets, and produces a variety of other wood products — including customized services such as Pallet Concierge™ and wood packaging design, engineering, and testing. PalletOne is an industry leader in robotic and automated pallet manufacturing. For more information, visit www.palletone.com.
About UFP Industries UFP Industries' operating subsidiaries manufacture, distribute, and sell a wide variety of value-added products used in residential and commercial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia, and Australia. For more information, visit www.ufpi.com.
, /PRNewswire/ -- UFP Industries, Inc. (Nasdaq: UFPI) a leading manufacturer focused on delivering value-added products across its Retail, Packaging, and Construction segments reported results for the first quarter 2026.
Net Sales of $1.46 billion decreased by 8 percent compared to $1.6 billion a year ago due to a 1 percent decrease in price and a 7 percent decline in organic units. Diluted earnings per share of $0.89 compared to $1.30 a year ago, and Net Earnings Attributable to Controlling Interests of $51 million compared to $79 million a year ago. Earnings were primarily impacted by a weaker residential construction market, adverse weather, and higher healthcare and fuel costs. Adjusted EBITDA1 was $111.4 million in the quarter, or 7.6 percent of net sales compared to 8.9 percent a year ago. New product sales were 7.8 percent of total net sales. Cash flows used in operating activities in 2026 was $104 million. Free cash flow1 of $87 million was used to repurchase nearly $30 million of our shares. Will Schwartz, President and CEO of UFP Industries, commented, "After seeing stabilization earlier in the quarter, geopolitical tensions, unfavorable weather, and rising input costs added volatility to our operations in March, which accounted for more than half of the year-over-year decline in profits in the quarter. While we believe these headwinds will be temporary, we are actively working to offset these higher costs, particularly transportation. Despite the current backdrop, we have made considerable progress managing the things under our control and executing our strategies to position the business for long-term success. We are on track to deliver the remaining $25 million or more from our initial $60 million cost out program by year end. At the same time, we have continued to invest through the cycle. By combining greenfield expansion with disciplined M&A, we are strengthening our core businesses, introducing innovative products, and structurally lowering our cost base. I'm incredibly proud of our team for their continued hard work. Our scale, diversified portfolio, and deep customer relationships have consistently positioned us well during periods like these and we continue to strengthen our position to drive above market growth and returns when markets recover."
Schwartz continued, "We have maintained a patient and disciplined approach to deploying capital this cycle while staying focused on finding the best and highest returns for our capital. This remains central to how we operate. After the quarter closed, we completed one transaction that strengthens our core businesses and supports our strategy to expand our footprint and drive higher-margin growth, and we expect to close an additional transaction in May. Our M&A pipeline remains active, and we continue to pursue strategic targets and organic investments, while opportunistically returning cash to our shareholders given our robust financial position. Following $56 million in a recent acquisition, $30 million in share repurchases, and a 3% dividend increase, we continue to maintain ample liquidity and financial flexibility. We are confident in our diversified business model and balanced capital allocation approach, which we believe puts us in a strong position to continue to drive shareholder value."
1
Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.
First Quarter 2026 Highlights
UFP Consolidated
(In thousands)
Quarter Period and Year to Date
2026
2025
% Change
Net sales
$
1,461,267
$
1,595,519
(8.4)
%
Net earnings
51,097
79,423
(35.7)
Net margin
3.5
%
5.0
%
Adjusted EBITDA
111,356
142,151
(21.7)
Adjusted EBITDA margin
7.6
%
8.9
%
Percentage change in net sales:
Organic units
(7)
%
Acquisitions
—
Selling prices
(1)
UFP Retail
(In thousands)
Quarter Period and Year to Date
2026
2025
% Change
Net sales
$
531,176
$
607,383
(12.5)
%
Net earnings
18,672
20,663
(9.6)
Net margin
3.5
%
3.4
%
Adjusted EBITDA
34,832
35,849
(2.8)
Adjusted EBITDA margin
6.6
%
5.9
%
Percentage change in net sales:
Organic units
(13)
%
Acquisitions
—
Selling prices
1
ProWood organic unit sales declined 15 percent in the quarter from year ago levels due to unfavorable winter weather, the absence of storm-related demand which carried over from the fall of 2024 into early 2025, the loss of low margin commodity sales which commenced in the second quarter of 2025, and generally weaker consumer sentiment. Deckorators' organic unit sales grew 2 percent in the quarter from year ago levels. Our Surestone decking sales increased 27 percent and our traditional wood plastic composite decking increased 4 percent, both from the same quarter a year ago. UFP Edge organic unit sales declined 20 percent due to the closure of the Bonner facilities at the end of 2025 and rationalizing the product portfolio to those that can achieve profitability targets. UFP Packaging
(In thousands)
Quarter Period and Year to Date
2026
2025
% Change
Net sales
$
394,093
$
410,008
(3.9)
%
Net earnings
11,659
16,917
(31.1)
Net margin
3.0
%
4.1
%
Adjusted EBITDA
27,790
35,045
(20.7)
Adjusted EBITDA margin
7.1
%
8.5
%
Percentage change in net sales:
Organic units
(3)
%
Acquisitions
1
Selling prices
(2)
Structural Packaging organic unit sales were flat in the quarter compared to year ago levels. PalletOne organic unit sales declined 11 percent in the quarter from year ago levels due to weaker demand, which was partially offset by a 4 percent contribution from acquisitions. Protective Packaging organic unit sales increased 5 percent in the quarter from a year ago levels as a result of the Jeffersonville, Indiana facility, which became fully operational in the third quarter of 2025. UFP Construction
(In thousands)
Quarter Period and Year to Date
2026
2025
% Change
Net sales
$
465,513
$
515,940
(9.8)
%
Net earnings
11,723
21,944
(46.6)
Net margin
2.5
%
4.3
%
Adjusted EBITDA
25,687
37,310
(31.2)
Adjusted EBITDA margin
5.5
%
7.2
%
Percentage change in net sales:
Organic units
(5)
%
Acquisitions
—
Selling prices
(5)
Site Built organic unit sales declined 14 percent in the quarter from year ago levels due to soft demand caused by economic uncertainty, housing affordability challenges, and unfavorable weather. Factory Built organic unit sales declined 8 percent in the quarter from year ago levels due to the loss of low margin commodity sales, partially offset by a 1 percent contribution from acquisitions. Despite the decline, gross profits improved. Concrete Forming Solutions' organic unit sales grew 14 percent in the quarter from year ago levels driven by market share gains associated with value-added product sales. Commercial organic sales grew 15 percent in the quarter from year ago levels as overall demand has improved. Capital Structure, Leverage and Liquidity Information
UFP Industries maintains a strong balance sheet and as of March 28, 2026, had liquidity of approximately $2.0 billion consisting of over $715 million of cash and $1.3 billion of remaining availability under its revolving credit facility and a shelf agreement with certain lenders. The company's return-focused approach to capital allocation includes the following:
Organic Growth. The company invests in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. The company expects to invest approximately $250 million to $275 million on capital projects in 2026. Acquisitions and Inorganic Growth. In April, the company closed one transaction, expanding production capacity and expanding our geographic reach in one of our core businesses, and announced another transaction expected to close in May. On April 6, 2026, the company acquired the operating assets of the composite decking manufacturing facility of MoistureShield, Inc., a leading player in the growing wood plastic composite industry, for $56 million in cash. The acquisition expands our manufacturing capacity to meet the growing demand for our Deckorators product offering. In 2025, MoistureShield had sales of approximately $50 million. On April 28, 2026, the company announced the plan to acquire Berry Pallets, Inc., a wood pallet manufacturer, in May 2026 for an estimated $20 million in cash. In 2025, Berry Pallets had sales of approximately $23 million. Dividend Payments. On April 22, 2026, the Board declared a quarterly cash dividend of $0.36 per share. This dividend is payable on June 15, 2026, to shareholders of record on June 1, 2026. The per share cash dividend amount represents a 3% increase from the 2025 dividend rate. We continue to consider our payout ratio and yield when determining the appropriate dividend rate and have a long-term objective of increasing our dividend in line with our future earnings and free cash flow growth. Share Repurchases. During the quarter ended March 28, 2026, we repurchased 334,541 shares for $30 million, at an average share price of $89.76. 2026 Outlook and Long-Term Targets
We anticipate that the current, more challenging market environment will continue in 2026 and that overall demand for the balance of the year will likely be towards the lower end of our prior guidance, which called for flat to slightly down unit expectations in each of our segments based on our sales mix. Input cost, primarily tied to energy and transportation, will remain a headwind, and while we have mechanisms in place to offset these higher costs, we expect to make progress gradually through the remainder of the year. Markets tied to new residential construction are expected to remain more challenging, while we expect stabilization across our other end markets will serve as an offset. Despite these conditions, we believe we are positioned to perform better than our markets as a result of share gains across our portfolio and the execution of our cost out program. In addition, initial stocking orders, upgraded manufacturing capacity, and expanded distribution are expected to support momentum in our Deckorators and Surestone businesses in 2026.
The company's long-term goals remain unchanged and include: 1) achieving 7-10 percent unit sales growth annually (including bolt-on acquisitions) with at least 10 percent of all sales coming from new products; 2) achieving 12.5 percent adjusted EBITDA margins; 3) earning an incremental return on new investments over our hurdle rate; and 4) maintaining a conservative capital structure.
Conference Call
UFP Industries will host a conference call on Thursday, April 30, 2026, to discuss these results and outlook. The conference call will begin at 10:00 a.m. Eastern Time and will be hosted by CEO Will Schwartz and CFO Michael Cole. Interested investors can access the webcast directly with this link (here). A replay of the call will be available through the UFP Investor Relations website at www.ufpinvestor.com for at least 90 days following the call.
UFP Industries, Inc.
UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. For more about UFP Industries, go to www.ufpi.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "likely," "plans," "projects," "should," variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in currency and inflation; fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; changes in tariffs, import/export regulations, and other trade policies; concentration of sales to customers; the success of vertical integration strategies; excess capacity or supply chain challenges; inbound and outbound transportation costs; alternatives to replace treated wood products; government regulations, particularly involving environmental and safety regulations; our ability to make successful business acquisitions; cybersecurity breaches; and potential pandemics. Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.
Non-GAAP Financial Information
This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management uses Adjusted EBITDA and Free cash flow, non-GAAP financial measures, in order to evaluate historical and ongoing operations. Management believes that these non-GAAP financial measures are useful in order to enable investors to perform meaningful comparisons of historical and current performance. Adjusted EBITDA and Free cash flow are intended to supplement and should be read together with the financial results. Adjusted EBITDA and Free cash flow should not be considered alternatives or substitutes for, and should not be considered superior to, the reported financial results. Accordingly, users of this financial information should not place undue reliance on the non-GAAP financial measures. See the table below for a reconciliation of Net earnings to Adjusted EBITDA and a reconciliation of Cash flow from operations to Free cash flow.
Net earnings
Net earnings refers to net earnings attributable to controlling interest unless specifically noted.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND
COMPREHENSIVE INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2026/2025
Quarter Period and Year to Date
(In thousands, except per share data)
2026
2025
Net sales
$
1,461,267
100.0
%
$
1,595,519
100.0
%
Cost of sales
1,225,378
83.9
1,327,323
83.2
Gross profit
235,889
16.1
268,196
16.8
Operating expenses
Selling, general and administrative expenses
172,883
11.8
176,254
11.0
Net gain on disposition and impairments of assets
(1,652)
(0.1)
(76)
—
Other losses (gains), net
577
—
(234)
—
Total operating expenses
171,808
11.8
175,944
11.0
Earnings from operations
64,081
4.4
92,252
5.8
Interest and other
(2,863)
(0.2)
(8,429)
(0.5)
Earnings before income taxes
66,944
4.6
100,681
6.3
Income taxes
15,847
1.1
21,258
1.3
Net earnings
51,097
3.5
79,423
5.0
Less net earnings attributable to noncontrolling interest
(323)
—
(670)
—
Net earnings attributable to controlling interest
$
50,774
3.5
$
78,753
4.9
Earnings per share - basic
$
0.90
$
1.30
Earnings per share - diluted
$
0.89
$
1.30
Comprehensive income
$
50,194
$
82,604
Less comprehensive income attributable to noncontrolling interest
(258)
(637)
Comprehensive income attributable to controlling interest
$
49,936
$
81,967
CONDENSED CONSOLIDATED STATEMENTS
OF EARNINGS BY SEGMENT (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 2026/2025
Quarter Period and Year to Date 2026
(In thousands)
Retail
Packaging
Construction
All Other
Corporate
Total
Net sales
$
531,176
$
394,093
$
465,513
$
68,505
$
1,980
$
1,461,267
Cost of sales
450,614
333,745
387,896
56,782
(3,659)
1,225,378
Gross profit
80,562
60,348
77,617
11,723
5,639
235,889
Selling, general and administrative expenses
56,046
45,203
61,826
8,978
830
172,883
Net loss (gain) on disposition and impairments of
assets
68
(170)
13
1
(1,564)
(1,652)
Other losses (gains), net
55
—
423
106
(7)
577
Earnings from operations
24,393
15,315
15,355
2,638
6,380
64,081
Interest and other
(70)
40
(3)
(1,820)
(1,010)
(2,863)
Earnings before income taxes
24,463
15,275
15,358
4,458
7,390
66,944
Income taxes
5,791
3,616
3,635
904
1,901
15,847
Net earnings
$
18,672
$
11,659
$
11,723
$
3,554
$
5,489
$
51,097
Quarter Period and Year to Date 2025
(In thousands)
Retail
Packaging
Construction
All Other
Corporate
Total
Net sales
$
607,383
$
410,008
$
515,940
$
60,298
$
1,890
$
1,595,519
Cost of sales
526,088
340,434
425,140
49,666
(14,005)
1,327,323
Gross profit
81,295
69,574
90,800
10,632
15,895
268,196
Selling, general and administrative expenses
55,355
47,769
62,784
8,462
1,884
176,254
Net loss (gain) on disposition and impairments of
assets
24
32
120
—
(252)
(76)
Other (gains) losses, net
(218)
—
80
(54)
(42)
(234)
Earnings from operations
26,134
21,773
27,816
2,224
14,305
92,252
Interest and other
(60)
328
(1)
(947)
(7,749)
(8,429)
Earnings before income taxes
26,194
21,445
27,817
3,171
22,054
100,681
Income taxes
5,531
4,528
5,873
669
4,657
21,258
Net earnings
$
20,663
$
16,917
$
21,944
$
2,502
$
17,397
$
79,423
RECONCILIATION OF NET EARNINGS TO
ADJUSTED EBITDA BY SEGMENT (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 2026/2025
Quarter Period and Year to Date 2026
(In thousands)
Retail
Packaging
Construction
All Other
Corporate
Total
Net earnings
$
18,672
$
11,659
$
11,723
$
3,554
$
5,489
$
51,097
Interest and other
(70)
40
(3)
(1,820)
(1,010)
(2,863)
Income taxes
5,791
3,616
3,635
904
1,901
15,847
Expenses associated with share-based compensation
arrangements
1,778
2,226
2,870
112
1,486
8,472
Net loss (gain) on disposition and impairments of
assets
68
(170)
13
1
(1,564)
(1,652)
Depreciation expense
7,757
8,316
6,774
1,010
11,228
35,085
Amortization of intangibles
836
2,103
675
1,640
116
5,370
Adjusted EBITDA
$
34,832
$
27,790
$
25,687
$
5,401
$
17,646
$
111,356
Net earnings as a percentage of net sales
3.5 %
3.0 %
2.5 %
5.2 %
*
3.5 %
Adjusted EBITDA as a percentage of net sales
6.6 %
7.1 %
5.5 %
7.9 %
*
7.6 %
* Not meaningful
Quarter Period and Year to Date 2025
(In thousands)
Retail
Packaging
Construction
All Other
Corporate
Total
Net earnings
$
20,663
$
16,917
$
21,944
$
2,502
$
17,397
$
79,423
Interest and other
(60)
328
(1)
(947)
(7,749)
(8,429)
Income taxes
5,531
4,528
5,873
669
4,657
21,258
Expenses associated with share-based compensation
arrangements
1,424
2,164
2,825
264
4,884
11,561
Net loss (gain) on disposition and impairments of
assets
24
32
120
—
(252)
(76)
Gain from reduction of estimated earnout liability
—
—
(344)
—
—
(344)
Depreciation expense
7,310
8,897
6,191
944
9,599
32,941
Amortization of intangibles
957
2,179
702
1,601
378
5,817
Adjusted EBITDA
$
35,849
$
35,045
$
37,310
$
5,033
$
28,914
$
142,151
Net earnings as a percentage of net sales
3.4 %
4.1 %
4.3 %
4.1 %
*
5.0 %
Adjusted EBITDA as a percentage of net sales
5.9 %
8.5 %
7.2 %
8.3 %
*
8.9 %
* Not meaningful
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
MARCH 2026/2025
(In thousands)
Assets
2026
2025
Liabilities and equity
2026
2025
Current assets
Current liabilities
Cash and cash equivalents
$
714,453
$
903,562
Accounts payable
$
255,982
$
277,690
Restricted cash
13,952
1,061
Accrued liabilities and other
226,913
214,751
Investments
40,104
30,725
Current portion of debt
6,027
4,085
Accounts receivable
647,770
712,990
Inventories
767,131
754,913
Total current liabilities
488,922
496,526
Other current assets
86,330
61,140
Long-term debt and finance lease
obligations
228,310
229,936
Total current assets
2,269,740
2,464,391
Other liabilities
213,406
159,488
Other assets
277,732
266,949
Temporary equity
485
5,280
Intangible assets, net
478,775
495,921
Property, plant and equipment,
net
1,005,567
923,025
Shareholders' equity
3,100,691
3,259,056
Total assets
$
4,031,814
$
4,150,286
Total liabilities and equity
$
4,031,814
$
4,150,286
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2026/2025
(In thousands)
2026
2025
Cash flows used in operating activities:
Net earnings
$
51,097
$
79,423
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation
35,085
32,941
Amortization of intangibles
5,370
5,817
Expense associated with share-based and grant compensation arrangements
8,472
11,561
Deferred income taxes
(1,822)
(17)
Unrealized (gain) loss on investment and other
(921)
672
Impairment of investments
4,000
—
Equity in loss of investee
(53)
19
Net gain on sale, disposition and impairment of assets
(1,652)
(76)
Gain from reduction of estimated earnout liability
—
(344)
Changes in:
Accounts receivable
(172,087)
(211,709)
Inventories
(45,312)
(33,830)
Accounts payable
45,358
52,902
Accrued liabilities and other
(31,154)
(46,166)
Net cash used in operating activities
(103,619)
(108,807)
Cash flows used in investing activities:
Capital expenditures
(48,265)
(67,268)
Proceeds from sale of property, plant and equipment
6,110
758
Acquisitions and purchases of non-controlling interest, net of cash received
—
(3,735)
Purchases of investments
(7,836)
(7,191)
Proceeds from sale of investments
2,470
2,304
Other
(307)
(418)
Net cash used in investing activities
(47,828)
(75,550)
Cash flows used in financing activities:
Borrowings under revolving credit facilities
10,968
4,798
Repayments under revolving credit facilities
(6,175)
(4,752)
Contingent consideration payments and other
(83)
(221)
Proceeds from issuance of common stock
577
650
Dividends paid to shareholders
(20,456)
(21,322)
Distributions to noncontrolling interest
(1,082)
—
Purchase of remaining noncontrolling interest of subsidiary
(3,937)
—
Payments to taxing authorities in connection with shares directly withheld from employees
(1,205)
(9,547)
Repurchase of common stock
(23,993)
(60,553)
Other
26
21
Net cash used in financing activities
(45,360)
(90,926)
Effect of exchange rate changes on cash
141
312
Net change in cash and cash equivalents
(196,666)
(274,971)
All cash and cash equivalents, beginning of period
925,071
1,179,594
All cash and cash equivalents, end of period
$
728,405
$
904,623
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period
$
914,199
$
1,171,828
Restricted cash, beginning of period
10,872
7,766
All cash and cash equivalents, beginning of period
$
925,071
$
1,179,594
Cash and cash equivalents, end of period
$
714,453
$
903,562
Restricted cash, end of period
13,952
1,061
All cash and cash equivalents, end of period
$
728,405
$
904,623
RECONCILIATION OF NET CASH FROM OPERATING
ACTIVITIES TO FREE CASH FLOW (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 2026/2025
(In thousands)
2026
2025
Net cash used in operating activities
$
(103,619)
$
(108,807)
Increase in investment in net working capital
203,195
238,803
Maintenance capital expenditures(1)
(15,000)
(18,980)
Interest expense, net of taxes
2,002
2,106
Free cash flow
$
86,578
$
113,122
(1) Breakdown of Capital expenditures from the condensed consolidated statements of cash flows:
UFP Industries (UFPI - Free Report) came out with quarterly earnings of $0.89 per share, missing the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $1.3 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -22.83%. A quarter ago, it was expected that this wood and materials provider for the construction industry would post earnings of $1.03 per share when it actually produced earnings of $0.7, delivering a surprise of -32.04%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
UFP Industries, which belongs to the Zacks Building Products - Wood industry, posted revenues of $1.46 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 4.79%. This compares to year-ago revenues of $1.6 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
UFP Industries shares have added about 5.2% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for UFP Industries?While UFP Industries has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for UFP Industries was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.58 on $1.8 billion in revenues for the coming quarter and $5.19 on $6.23 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Wood is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Trex (TREX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This maker of fencing and decking products is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -15%. The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level.
Trex's revenues are expected to be $339.28 million, down 0.2% from the year-ago quarter.
, /PRNewswire/ -- UFP Industries (NASDAQ: UFPI) today announced the acquisition of the operating assets of John Rock, Inc., a new pallet manufacturer headquartered in Coatesville, Pa., for approximately $48 million. The transaction fills a key gap in PalletOne, Inc.'s geographic reach and strengthens UFP Packaging's ability to serve national customers with a presence in the northeast region.
John Rock, a subsidiary of Kamps Pallets, designs and manufactures new pallets across Pennsylvania and Virginia. UFP Industries is purchasing three of the four operating locations: Coatesville, Pa., Mifflintown, Pa. and Bowling Green, Va. The remaining sawmill at Dilwyn, Va. will remain with the seller. The acquisition of the three locations adds approximately $82 million in annual sales and brings nearly 250 employees into the UFP family.
This acquisition strengthens a core business for UFP Industries and expands PalletOne's scale in a strategically important geography. The transaction includes all key operating assets of John Rock, allowing for immediate manufacturing and service continuity while providing a strong platform for operational improvement and long‑term growth.
"This acquisition is fundamentally about strengthening our core packaging business and expanding our footprint in a region where we see long‑term opportunity," said Will Schwartz, Chief Executive Officer of UFP Industries. "John Rock has built a well‑established pallet manufacturing operation with strong customer relationships and experienced teams. Bringing this business into PalletOne enhances our ability to serve customers across the northeast and positions us to unlock value through operational synergies and scale."
The acquired operations will be integrated into PalletOne's existing manufacturing network, creating opportunities to improve efficiency, enhance service levels, leverage UFP's procurement and operational capabilities, and growth with national customers — while maintaining the local expertise and customer focus that has defined John Rock's success.
"John Rock is a well‑known name in the northeast pallet market, with a strong team and a diverse customer base," said Scott Worthington, President, UFP Packaging. "We are excited to welcome their employees to PalletOne and look forward to building on the foundation they have established as we integrate the business into our network."
The acquisition underscores UFP Industries' continued focus on investing in its core businesses, expanding manufacturing capacity in key markets, enhancing its ability to serve national customers, and strengthening the competitive position of its operating companies across packaging and industrial markets.
, /PRNewswire/ -- UFP Packaging a division of UFP Industries (NASDAQ: UFPI), has brought two strategic acquisitions into its network that significantly expand UFP Packaging's national pallet manufacturing into the Northeast and Upper Midwest and advance its ability to deliver consistent, large-scale pallet solutions to national customers across the country.
As of this week, UFP Packaging has acquired the operating assets of three locations of John Rock, Inc., a pallet manufacturer headquartered in Coatesville, Pa. This is in addition to the acquisition of Berry Pallets, Inc., a pallet manufacturer based in Waseca, Minn., announced last week. Together, the transactions extend the geographic reach of UFPP's pallet business into two high-demand supply chain corridors.
"These acquisitions are a direct reflection of our strategy — building a network that gives national customers the consistency, reliability, and reach they need, no matter where they operate," said Scott Worthington, President of UFP Packaging. "Adding John Rock and Berry Pallets closes critical gaps in our Northeast and Upper Midwest footprint and strengthens our ability to serve large, multi-region customers at the scale and speed the market demands. Together, they make the PalletOne platform meaningfully stronger."
John Rock designs and manufactures new and recycled pallets — including stringer, combo and heat-treated pallets — across three locations in Pennsylvania and Virginia, adding approximately $82 million in annual revenue and nearly 250 employees to the UFP Packaging network.
Berry Pallets designs and manufactures new and recycled pallets from its Waseca, Minnesota facility, contributing approximately $23 million in annual revenue and 75 employees to the organization. Combined, the two acquisitions add more than $105 million in annual revenue and approximately 375 employees to UFP Packaging's PalletOne network, the nation's largest single-source pallet manufacturer.
"John Rock has spent decades building a strong, multi-site operation with deep customer relationships across the Northeast. That kind of regional density and expertise is exactly what we look for," said Justin Elwell, Executive Vice President of PalletOne. "Berry Pallets brings the same qualities to the Upper Midwest: a well-run facility, a loyal customer base, and a team that knows their market. Our role is to provide both operations with the stability, investment, and broader resources to grow — without disrupting what has made them successful."
The transactions further advance UFP Industries' capital allocation strategy, which prioritizes investments in core, higher-margin businesses, disciplined M&A, and the expansion of manufacturing capacity in markets that support national customers across packaging and industrial end uses.
About UFP Packaging
UFP Packaging is a leading North American provider of industrial packaging solutions and the largest producer of wooden pallets and crates in the United States. With expertise in metal fabrication, corrugated conversion and labeling, UFP Packaging offers a full range of packaging services, positioning itself as a comprehensive provider. Headquartered in Grand Rapids, Mich., UFP Packaging is a subsidiary of UFP Industries, Inc. (Nasdaq: UFPI).
For more information, visit https://ufppackaging.com/.
Latest expansion makes newest enhanced treated lumber product available to builders across nearly half of the U.S.
, /PRNewswire/ -- ProWood®, a leading manufacturer of pressure-treated lumber and part of UFP Industries, Inc. (Nasdaq: UFPI), is once again expanding availability of TrueFrame™ Joist, the first product of its kind in the new enhanced treated lumber category. Previously available in Colorado and across the Great Lakes and Midwest states, TrueFrame Joist is now available throughout the Northeast and South Atlantic.
ProWood Expands Availability of TrueFrame™ Joist TrueFrame Joist is built to deliver consistently straight, stable performance, helping deck builders reduce jobsite variability and achieve predictable results build after build.
"TrueFrame Joist reduces the variability inherent in the deck framing process, so crews can move faster and install with greater confidence and predictability," said Luke Snyder, product manager at ProWood.
Each TrueFrame Joist is manufactured from #1 grade Southern Yellow Pine, infused with proprietary next-generation stabilizer additive, kiln-dried after treatment (KDAT) for improved stability and easier handling, and factory-planed to within 1/16 inch for flat edges and consistent sizing.
TrueFrame Joist is:
Backed by a Limited Lifetime Warranty Manufactured to meet UC4A Ground Contact standards Available in nominal 2x8-, 2x10-, and 2x12-inch lengths of 12, 14, 16, and 20 feet (Actual sizes: 1 1/2x7, 1 1/2x9, and 1 1/2x11 inches) Color-infused for lasting beauty with no staining or sealing required at installation "TrueFrame Joist bridges the gap between traditional treated lumber and other framing alternatives," said Ashley VanderWall, brand marketing manager at ProWood. "It's a practical solution for quality-focused deck builders who want elevated performance without an over-engineered substructure."
Sean Collinsgru, ProWood ambassador and owner of Premier Outdoor Living in New Jersey, sourced TrueFrame Joist for his latest decking project. He says the product's light weight and consistent sizing made framing easier and faster for his crew. He plans to use it for all his projects in 2026.
"There's been so much talk in the industry over the last few years about alternative framing options," Collinsgru said. "But ProWood took a time-tested, sustainable, and economic material and made it better."
To learn more or find a TrueFrame dealer, visit https://www.prowood.com/c/trueframe-joist.
ABOUT PROWOOD
ProWood, a brand of UFP Retail Solutions, LLC, a UFP Industries company, is the industry's foremost manufacturer-distributor of lumber products and premier building materials. With a nationwide presence and a diverse range of products tailored for both building professionals and DIY homeowners, we deliver solutions that meet every need. Backed by industry-leading warranties and a relentless commitment to innovation, ProWood leads the way in education and product expertise, ensuring an exceptional customer experience at every touchpoint.
To learn more about ProWood, visit www.prowood.com or call 844-529-5882.
UFP INDUSTRIES, INC. (NASDAQ: UFPI)
UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. For more about UFP Industries, go to www.ufpi.com.
It has been about a month since the last earnings report for UFP Industries (UFPI - Free Report) . Shares have lost about 8.9% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is UFP Industries due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for UFP Industries, Inc. before we dive into how investors and analysts have reacted as of late.
UFP Industries Q1 Earnings & Sales Miss Estimates, Both Down Y/YUFP Industries reported weaker-than-expected first-quarter 2026 results, with adjusted earnings and net sales missing the Zacks Consensus Estimate and also declining year over year.
Earnings & Sales Performance in Q1Adjusted EPS of 89 cents missed the Zacks Consensus Estimate of $1.15 by 22.6%. In the year-ago quarter, it had reported adjusted EPS of $1.30.
Quarterly net sales of $1.46 billion missed the consensus mark of $1.54 billion by 4.8% and declined 8.4% year over year from $1.60 billion. Lower organic unit sales, adverse weather conditions and weaker residential construction demand hurt quarterly performance.
UFPI’s Margins & ProfitabilityGross profit totaled $235.9 million, down from $268.2 million in the year-ago quarter, with gross margin contracting to 16.1% from 16.8% a year earlier. Higher healthcare and fuel costs, along with lower fixed-cost absorption, weighed on profitability during the quarter.
Adjusted EBITDA came in at $111.4 million, down from $142.2 million. Adjusted EBITDA margin contracted to 7.6% from 8.9% year over year. Net earnings attributable to controlling interest declined to $50.8 million from $78.8 million in the year-ago quarter.
Q1 Segment HighlightsUFP Retail: Net sales of $531.2 million, down 12.5% from last year. Segment adjusted EBITDA declined 2.8% to $34.8 million year over year. ProWood organic unit sales declined 15% due to unfavorable winter weather, weaker consumer sentiment and lower storm-related demand.
Deckorators organic unit sales increased 2% year over year. Surestone decking sales climbed 27%, while traditional wood plastic composite decking sales increased 4% from the prior-year quarter. UFP Edge organic unit sales declined 20% due to facility closures and portfolio rationalization efforts.
UFP Packaging: Sales declined 3.9% to $394.1 million due to weaker industrial demand and lower selling prices. Adjusted EBITDA contracted 20.7% to $27.8 million compared with the year-ago quarter. Structural Packaging organic unit sales remained flat, while PalletOne organic unit sales declined 11%.
Protective Packaging organic unit sales increased 5% year over year, aided by contributions from the Jeffersonville, IN, facility that became fully operational in third-quarter 2025.
UFP Construction: Net sales of $465.5 million, down 9.8% year over year due to housing affordability challenges, economic uncertainty and unfavorable weather conditions. Adjusted EBITDA tumbled 31.2% year over year to $25.7 million.
Site Built organic unit sales declined 14% during the quarter. Factory Built organic unit sales fell 8% due to the loss of low-margin commodity sales. Meanwhile, Concrete Forming Solutions’ organic unit sales grew 14% and Commercial’s organic sales rose 15% year over year.
Balance Sheet & LiquidityCash and cash equivalents were $714.5 million as of first-quarter 2026-end, down from $914.2 million at 2025-end. The current liquidity level remains strong, with total liquidity of nearly $2 billion, including $1.3 billion available under its revolving credit facility and shelf agreement.
The long-term debt and finance lease obligations were $228.3 million as of first-quarter 2026-end compared with $229.8 million at 2025-end. During the quarter, the company repurchased 334,541 shares for nearly $30 million at an average share price of $89.76.
UFPI’s 2026 Outlook & Long-Term TargetsManagement expects the challenging market environment to continue in 2026, with overall demand likely trending toward the lower end of prior guidance for flat to slightly down unit expectations across segments. Residential construction-related markets are expected to remain weak, while other end markets may stabilize gradually.
The company expects market share gains, execution of its cost-out initiatives and growth in its Deckorators and Surestone businesses to support performance. UFP Industries reiterated its long-term targets of achieving 7-10% annual unit sales growth, generating at least 10% of total sales from new products and maintaining adjusted EBITDA margins of 12.5%.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.3% due to these changes.
VGM ScoresAt this time, UFP Industries has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise UFP Industries has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
UFP Industries remains a 'buy' despite recent revenue, profit, and cash flow declines driven by weak housing and end-market conditions. UFPI's strong balance sheet, with $534.2 million in net cash, provides stability and flexibility during ongoing market softness. Forward valuation is less attractive than last year, but UFPI trades at a reasonable EV/EBITDA multiple versus peers, supporting continued upside.
Stewart Information Services (NYSE: STC - Get Free Report) and American Financial Group (NYSE: AFG - Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability. Dividends Stewart Information Services pays an
American Financial Group (NYSE: AFG - Get Free Report) and Essent Group (NYSE: ESNT - Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability. Insider and Institutional Ownership 64.4% of American
CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) announced that it has declared a regular dividend of $0.88 per share of American Financial Group Common Stock. The dividend is payable on April 24, 2026, to holders of record on April 15, 2026.
About American Financial Group, Inc.
American Financial Group is an insurance holding company based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.
Shares of American Financial Group, Inc. (NYSE:AFG – Get Free Report) have received an average rating of “Hold” from the five research firms that are currently covering the company, Marketbeat reports. Three investment analysts have rated the stock with a hold rating and two have given a buy rating to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $145.25.
A number of analysts have recently weighed in on AFG shares. Weiss Ratings raised American Financial Group from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, March 16th. Wells Fargo & Company decreased their price target on American Financial Group from $165.00 to $160.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th. Finally, Keefe, Bruyette & Woods raised their price target on American Financial Group from $134.00 to $140.00 and gave the stock a “market perform” rating in a report on Wednesday, March 25th.
Check Out Our Latest Stock Analysis on AFG
Insiders Place Their Bets In other American Financial Group news, CFO Brian S. Hertzman sold 1,663 shares of the business’s stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $133.70, for a total transaction of $222,343.10. Following the sale, the chief financial officer owned 12,073 shares of the company’s stock, valued at approximately $1,614,160.10. The trade was a 12.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 17.40% of the company’s stock.
Institutional Trading of American Financial Group Several large investors have recently made changes to their positions in AFG. Royal Bank of Canada lifted its holdings in shares of American Financial Group by 11.1% in the 1st quarter. Royal Bank of Canada now owns 75,421 shares of the insurance provider’s stock valued at $9,905,000 after buying an additional 7,554 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in American Financial Group during the first quarter worth about $2,330,000. Jones Financial Companies Lllp grew its holdings in American Financial Group by 145.8% during the first quarter. Jones Financial Companies Lllp now owns 1,278 shares of the insurance provider’s stock worth $168,000 after acquiring an additional 758 shares during the period. JPMorgan Chase & Co. raised its position in American Financial Group by 50.9% during the second quarter. JPMorgan Chase & Co. now owns 307,874 shares of the insurance provider’s stock valued at $38,857,000 after acquiring an additional 103,826 shares in the last quarter. Finally, American Century Companies Inc. lifted its stake in shares of American Financial Group by 23.0% in the 2nd quarter. American Century Companies Inc. now owns 182,284 shares of the insurance provider’s stock valued at $23,006,000 after purchasing an additional 34,027 shares during the period. 64.37% of the stock is owned by hedge funds and other institutional investors.
American Financial Group Trading Up 1.5% NYSE AFG opened at $129.70 on Tuesday. American Financial Group has a 52 week low of $114.73 and a 52 week high of $150.02. The company has a 50 day moving average price of $129.14 and a 200 day moving average price of $134.30. The company has a quick ratio of 0.23, a current ratio of 0.23 and a debt-to-equity ratio of 0.38. The firm has a market cap of $10.80 billion, a PE ratio of 12.88 and a beta of 0.69.
American Financial Group (NYSE:AFG – Get Free Report) last released its quarterly earnings results on Wednesday, February 4th. The insurance provider reported $3.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.18 by $0.47. The business had revenue of $2.06 billion for the quarter, compared to analyst estimates of $1.79 billion. American Financial Group had a net margin of 10.30% and a return on equity of 18.64%. The business’s revenue for the quarter was down 4.0% on a year-over-year basis. During the same period in the previous year, the company earned $3.12 earnings per share. As a group, sell-side analysts forecast that American Financial Group will post 10.5 EPS for the current fiscal year.
American Financial Group Announces Dividend The business also recently announced a special dividend, which was paid on Wednesday, February 25th. Investors of record on Monday, February 16th were paid a $1.50 dividend. The ex-dividend date was Friday, February 13th. American Financial Group’s dividend payout ratio (DPR) is 34.96%.
American Financial Group Company Profile (Get Free Report)
American Financial Group, Inc (NYSE: AFG) is a diversified holding company primarily engaged in property and casualty insurance and reinsurance. Through its flagship subsidiary, Great American Insurance Company, the firm underwrites a broad range of specialty insurance products for commercial and industrial clients, including inland marine, excess and surplus lines, executive liability, and environmental liability coverage. In addition, American Financial Group offers supplemental accident and health insurance and assumes reinsurance risks from other insurers, helping to diversify its underwriting portfolio.
The company traces its roots to 1946, when it was founded by Carl Lindner, Sr.
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SG Americas Securities LLC grew its position in American Financial Group, Inc. (NYSE:AFG – Free Report) by 59.8% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 18,806 shares of the insurance provider’s stock after purchasing an additional 7,040 shares during the period. SG Americas Securities LLC’s holdings in American Financial Group were worth $2,570,000 at the end of the most recent quarter.
Several other institutional investors have also recently modified their holdings of AFG. Royal Bank of Canada boosted its position in American Financial Group by 11.1% in the first quarter. Royal Bank of Canada now owns 75,421 shares of the insurance provider’s stock valued at $9,905,000 after buying an additional 7,554 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in American Financial Group during the 1st quarter worth approximately $2,330,000. Jones Financial Companies Lllp raised its position in American Financial Group by 145.8% during the 1st quarter. Jones Financial Companies Lllp now owns 1,278 shares of the insurance provider’s stock worth $168,000 after buying an additional 758 shares during the last quarter. Prudential Financial Inc. lifted its stake in American Financial Group by 16.5% during the 2nd quarter. Prudential Financial Inc. now owns 7,690 shares of the insurance provider’s stock valued at $971,000 after acquiring an additional 1,087 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in shares of American Financial Group by 452.4% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 19,871 shares of the insurance provider’s stock valued at $2,508,000 after acquiring an additional 16,274 shares during the last quarter. 64.37% of the stock is currently owned by hedge funds and other institutional investors.
American Financial Group Trading Down 0.0% Shares of American Financial Group stock opened at $129.70 on Friday. The firm has a 50-day simple moving average of $129.18 and a two-hundred day simple moving average of $134.23. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.23 and a current ratio of 0.23. American Financial Group, Inc. has a fifty-two week low of $114.73 and a fifty-two week high of $150.02. The company has a market cap of $10.80 billion, a P/E ratio of 12.88 and a beta of 0.69.
American Financial Group (NYSE:AFG – Get Free Report) last posted its earnings results on Wednesday, February 4th. The insurance provider reported $3.65 EPS for the quarter, beating analysts’ consensus estimates of $3.18 by $0.47. American Financial Group had a return on equity of 18.64% and a net margin of 10.30%.The firm had revenue of $2.06 billion for the quarter, compared to analysts’ expectations of $1.79 billion. During the same period last year, the firm earned $3.12 EPS. The company’s quarterly revenue was down 4.0% on a year-over-year basis. As a group, equities analysts predict that American Financial Group, Inc. will post 10.5 earnings per share for the current fiscal year.
American Financial Group Dividend Announcement The firm also recently disclosed a special dividend, which was paid on Wednesday, February 25th. Stockholders of record on Monday, February 16th were given a $1.50 dividend. The ex-dividend date was Friday, February 13th. American Financial Group’s payout ratio is 34.96%.
Analyst Upgrades and Downgrades Several brokerages recently issued reports on AFG. Keefe, Bruyette & Woods raised their target price on shares of American Financial Group from $134.00 to $140.00 and gave the stock a “market perform” rating in a report on Wednesday, March 25th. Weiss Ratings raised American Financial Group from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, March 16th. Finally, Wells Fargo & Company reduced their price objective on American Financial Group from $165.00 to $160.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $145.25.
Get Our Latest Analysis on AFG
Insider Buying and Selling at American Financial Group In other news, CFO Brian S. Hertzman sold 1,663 shares of the stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $133.70, for a total transaction of $222,343.10. Following the transaction, the chief financial officer owned 12,073 shares in the company, valued at $1,614,160.10. This trade represents a 12.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 17.40% of the stock is currently owned by insiders.
About American Financial Group (Free Report)
American Financial Group, Inc (NYSE: AFG) is a diversified holding company primarily engaged in property and casualty insurance and reinsurance. Through its flagship subsidiary, Great American Insurance Company, the firm underwrites a broad range of specialty insurance products for commercial and industrial clients, including inland marine, excess and surplus lines, executive liability, and environmental liability coverage. In addition, American Financial Group offers supplemental accident and health insurance and assumes reinsurance risks from other insurers, helping to diversify its underwriting portfolio.
The company traces its roots to 1946, when it was founded by Carl Lindner, Sr.
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CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) expects to release its 2026 first quarter results after 5:00 p.m. (ET) on Wednesday, April 29, 2026. The release will be available shortly thereafter on AFG’s website at www.AFGinc.com.
In conjunction with its release, AFG will hold a conference call to discuss 2026 first quarter results at 11:30 a.m. (ET) on Thursday, April 30, 2026. There are two ways to access the call.
By Telephone
Participants should register for the call here now or any time up to and during the time of the call, and will immediately receive the dial-in number and a unique PIN to access the call. Registration details are also available by visiting https://www.AFGinc.com/news-and-events/event-calendar.
While you may register at any time up to and during the time of the call, you are encouraged to join the call 10 minutes prior to the start of the event.
Via the Internet
The conference call and accompanying webcast slides will also be broadcast live over the internet. To access the event, click on the following link: https://www.AFGinc.com/news-and-events/event-calendar. A replay of the webcast will be available via the same link on our website, approximately two hours after the completion of the call.
About American Financial Group, Inc.
American Financial Group is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.
Key Takeaways AFG benefits from new business, pricing strength and Crop Risk Services, boosting growth prospects. AFG posted 35 straight quarters of renewal rate increases, aiming to exceed loss ratio trends. AFG's 20-year dividend growth streak and 12.4% CAGR reflect strong profitability and capital management. American Financial Group, Inc. (AFG - Free Report) has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of April 15, 2026, was $130.59, down 13% from its 52-week high of $150.02.
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.
Image Source: Zacks Investment Research
With a market capitalization of $10.87 billion, the average volume of shares traded in the last three months was 0.6 million. AFG has a solid earnings surprise history. It beat estimates in three of the last four quarters and missed in one, the average being 3.89%.
Price PerformanceShares of AFG have gained 2.5% year to date against the industry’s decline of 6.8%.
AFG has outperformed its peers, W.R. Berkley Corporation. (WRB - Free Report) , RLI Corp. (RLI - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) . WRB, RLI and KNSL have lost 3.4%, 24.6% and 26%, respectively, in the same time frame.
Image Source: Zacks Investment Research
AFG’s Growth Projection EncouragesThe Zacks Consensus Estimate for American Financial’s 2026 earnings per share indicates a year-over-year increase of 6.7%. The consensus estimate for revenues is pegged at $8.33 billion, implying a year-over-year improvement of 4.3%.
The consensus estimate for 2027 earnings per share and revenues indicates an increase of 6.8% and 5.4%, respectively, from the corresponding 2026 estimates.
Average Target Price for AFG Suggests UpsideBased on short-term price targets offered by six analysts, the Zacks average price target is $140.83 per share. The average suggests a potential 7.8% upside from the last closing price.
Image Source: Zacks Investment Research
AFG’s Favorable Return on CapitalAmerican Financial’s return on equity has also been improving over the last few quarters, reflecting its efficiency in utilizing shareholders’ funds. The trailing 12 months ROE was 18.6%, which compared favorably with the industry average of 7.3%.
Factors Favoring AFGNew business opportunities, increased exposure and a good renewal rate environment, coupled with additional crop premiums from the Crop Risk Services acquisition, position AFG well for growth.
American Financial, a niche player in the P&C market, is likely to benefit from strategic acquisitions and improved pricing. Improved industry fundamentals drive overall growth.
American Financial witnessed average renewal pricing across the entire P&C Group. It intends to maintain satisfactory rates in P&C renewal pricing going forward. AFG has reported overall renewal rate increases for 35 consecutive quarters, and it is expected to achieve overall renewal rate increases in excess of prospective loss ratio trends to meet or exceed targeted returns. The property and casualty insurer expects to achieve overall renewal rate increases in excess of prospective loss ratio trends to meet or exceed targeted returns.
Its combined ratio has been better than the industry average for more than two decades. Specialty niche focus, product line diversification and underwriting discipline should help AFG outperform the industry’s underwriting results.
Wealth DistributionAmerican Financial has increased its dividend for 20 straight years, apart from paying special dividends occasionally. This reflects its financial stability, which stems from robust operating profitability in the P&C segment, stellar investment performance and effective capital management.
Notably, the 10-year compound annual growth rate for the company's regular annual dividends is pinned at an impressive 12.4%. This track record underscores its prudent financial management and stability. The dividend yield is 2.7%, better than the industry average of 0.2%.
Wrapping Up: Keep on HoldingAmerican Financial’s prudent capital deployment, increased exposures, good renewal rate environment and improved combined ratio make it an attractive stock. It intends to maintain satisfactory rates in P&C renewal pricing going forward.
American Financial also has a VGM Score of B. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Its impressive dividend history as well as attractive valuations are other positives.
American Financial should benefit from strategic acquisitions, new business opportunities, stronger underwriting profit and favorable growth estimates. It is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street expects a year-over-year increase in earnings on higher revenues when American Financial Group (AFG - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on April 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis property and casualty insurer is expected to post quarterly earnings of $2.55 per share in its upcoming report, which represents a year-over-year change of +40.9%.
Revenues are expected to be $1.99 billion, up 7.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.37% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for American Financial?For American Financial, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.52%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that American Financial will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that American Financial would post earnings of $3.18 per share when it actually produced earnings of $3.65, delivering a surprise of +14.78%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
American Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Insurance - Property and Casualty industry, RenaissanceRe (RNR - Free Report) , is soon expected to post earnings of $11.36 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +862.4%. This quarter's revenue is expected to be $2.92 billion, down 6.8% from the year-ago quarter.
The consensus EPS estimate for RenaissanceRe has been revised 1.9% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +4.62%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that RenaissanceRe will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) today reported 2026 first quarter net earnings of $191 million ($2.29 per share) compared to $154 million ($1.84 per share) for the 2025 first quarter. Net earnings included after-tax non-core net realized losses on securities of $15 million ($0.18 per share loss). By comparison, net earnings for the 2025 first quarter included net after-tax gains of $2 million ($0.03 per share). Annualized return on equity was 15.8% and 13.3% for the first quarters of 2026 and 2025, respectively, and is calculated excluding accumulated other comprehensive income (AOCI). Other details may be found in the table on the following page.
Core net operating earnings were $206 million ($2.47 per share) for the 2026 first quarter compared to $152 million ($1.81 per share) in the 2025 first quarter. The year-over-year increase reflects higher property and casualty (P&C) insurance underwriting profit, which was partially offset by lower returns in AFG’s alternative investment portfolio. Additional details for the 2026 and 2025 first quarters may be found in the table below. Core net operating earnings for the first quarters of 2026 and 2025 generated annualized returns on equity of 17.0% and 13.1%, respectively, which is calculated excluding AOCI.
Three months ended March 31,
Components of Pretax Core Operating Earnings
2026
2025
2026
2025
2026
2025
In millions, except per share amounts
Before Impact of
Alternative
Core Net Operating
Alternative Investments
Investments
Earnings, as reported
P&C Pretax Core Operating Earnings
$
312
$
234
$
(3
)
$
12
$
309
$
246
Other expenses
(29
)
(33
)
—
—
(29
)
(33
)
Holding company interest expense
(23
)
(19
)
—
—
(23
)
(19
)
Pretax Core Operating Earnings
260
182
(3
)
12
257
194
Related provision (credit) for income taxes
52
39
(1
)
3
51
42
Core Net Operating Earnings
$
208
$
143
$
(2
)
$
9
$
206
$
152
Core Operating Earnings Per Share
$
2.50
$
1.70
$
(0.03
)
$
0.11
$
2.47
$
1.81
Weighted Avg Diluted Shares Outstanding
83.3
83.8
83.3
83.8
83.3
83.8
AFG’s book value per share was $56.30 at March 31, 2026. AFG repurchased $60 million of its Common Stock (average price of $127.12 per share) and paid cash dividends of $2.38 per share during the first quarter, including a $1.50 per share special dividend paid in February. For the three months ended March 31, 2026, AFG’s growth in book value per share plus dividends was 1.6%.
Book value per share excluding AOCI was $57.83 per share at March 31, 2026, compared to $58.38 at the end of 2025. For the three months ended March 31, 2026, AFG’s growth in book value per share excluding AOCI plus dividends was 3.1%.
AFG’s net earnings, determined in accordance with U.S. generally accepted accounting principles (GAAP), include certain items that may not be indicative of its ongoing core operations. The table below identifies such items and reconciles net earnings to core net operating earnings, a non-GAAP financial measure. AFG believes that its core net operating earnings provides management, financial analysts, ratings agencies, and investors with an understanding of the results from the ongoing operations of the Company by excluding the impact of net realized gains and losses and other items that are not necessarily indicative of operating trends. AFG’s management uses core net operating earnings to evaluate financial performance against historical results because it believes this provides a more comparable measure of its continuing business. Core net operating earnings is also used by AFG’s management as a basis for strategic planning and forecasting.
In millions, except per share amounts
Three months ended March 31,
2026
2025
Components of net earnings:
Core operating earnings before income taxes
$
257
$
194
Pretax non-core items:
Realized gains (losses)
(18
)
3
Earnings before income taxes
239
197
Provision for income taxes:
Core operating earnings
51
42
Non-core items
(3
)
1
Total provision for income taxes
48
43
Net earnings
$
191
$
154
Net earnings:
Core net operating earnings(a)
$
206
$
152
Non-core items:
Realized gains (losses)
(15
)
2
Net earnings
$
191
$
154
Components of earnings per share:
Core net operating earnings(a)
$
2.47
$
1.81
Non-core items:
Realized gains (losses)
(0.18
)
0.03
Diluted net earnings per share
$
2.29
$
1.84
Footnote (a) is contained in the accompanying Notes to Financial Schedules at the end of this release.
S. Craig Lindner and Carl H. Lindner III, AFG’s Co-Chief Executive Officers, issued this statement: “We are pleased to report a core net operating ROE of 17% in the first quarter. Our specialty P&C businesses produced strong underwriting profitability against a backdrop of lower returns in our alternative investments portfolio. We returned nearly $260 million to our shareholders through a combination of regular dividends, special dividends and share repurchases. Our entrepreneurial, opportunistic culture and disciplined operating philosophy continue to position us well for long-term success.”
Messrs. Lindner continued: “AFG continued to have significant excess capital at March 31, 2026. Returning capital to shareholders in the form of regular and special cash dividends and through opportunistic share repurchases is an important and effective component of our capital management strategy. In addition, our capital will be deployed into AFG’s core businesses as we identify the potential for healthy, profitable organic growth, and opportunities to expand our specialty niche businesses through acquisitions and start-ups that meet our target return thresholds.”
Specialty Property and Casualty Insurance Operations
The Specialty P&C insurance operations generated a strong 90.3% combined ratio in the first quarter of 2026, an improvement of 3.7 points from the 94.0% reported in the first quarter of 2025. First quarter 2026 results include 2.2 points related to catastrophe losses, compared to 4.5 points in the first quarter of 2025. First quarter 2026 results benefited from 4.4 points of favorable prior year reserve development, compared to 1.3 points in the first quarter of 2025. Underwriting profit was $156 million for the 2026 first quarter compared to $94 million in the comparable 2025 period, with each of our Specialty P&C groups reporting higher year-over-year underwriting profit.
First quarter 2026 gross and net written premiums were 6% and 3% higher, respectively, than the comparable period in 2025. We continued to benefit from the diversification across our 36 businesses and achieved premium growth in many of them as a result of a combination of new business opportunities, a good renewal rate environment, and increased exposures – while maintaining discipline and focusing on underwriting profitability.
Average renewal pricing across our P&C Group, excluding workers’ compensation, was up approximately 5% for the quarter, in line with the previous quarter. Average renewal rates including workers’ compensation were up approximately 3% overall. We believe we are achieving overall renewal rate increases that enable us to meet or exceed targeted returns.
The Property and Transportation Group reported an underwriting profit of $65 million in the first quarter of 2026 compared to $37 million in the first quarter of 2025. Nearly all the businesses in this group reported higher year-over-year profitability, led by our agricultural and transportation businesses. Catastrophe losses in this group were $12 million in the first quarter of 2026, compared to $10 million in the first quarter of 2025. The businesses in the Property and Transportation Group achieved an excellent 87.6% calendar year combined ratio overall in the first quarter of 2026, an improvement of 4.9 points from the 92.5% reported in the comparable 2025 period.
First quarter 2026 gross and net written premiums in this group were 11% and 6% higher than the comparable prior year period. The increase is primarily attributable to growth in crop insurance products with higher premium cessions, along with new business opportunities, higher exposures, and a favorable rate environment in several of our transportation businesses. Overall renewal rates in this group increased approximately 6% on average in the first quarter of 2026, consistent with the prior two quarters.
The Specialty Casualty Group reported an underwriting profit of $34 million in the first quarter of 2026 compared to $20 million in the comparable 2025 period. Higher profitability in our targeted markets, workers compensation, and executive and professional liability businesses were the principal drivers of these improved results. Catastrophe losses for this group were $11 million in the first quarter of 2026 compared to $27 million in the prior year quarter. The businesses in the Specialty Casualty Group achieved a 95.8% calendar year combined ratio in the first quarter of 2026, an improvement of 1.8 points from the 97.6% reported in the comparable period in 2025.
First quarter 2026 gross and net written premiums both increased 2% when compared to the same prior year period. Growth from new business opportunities and higher renewals in our targeted markets and workers’ compensation businesses were partially offset by heightened competitive conditions in our excess and surplus lines business. Excluding workers’ compensation, renewal pricing for this group was up approximately 6% in the first quarter, consistent with the prior quarter. Pricing in this group, including workers’ compensation, was up about 3%.
The Specialty Financial Group reported an underwriting profit of $57 million in the first quarter of 2026, compared to $37 million in the comparable 2025 period. While nearly all businesses in this group reported higher year-over-year underwriting profits, the drivers of the higher profitability were our fidelity/crime and financial institutions businesses. Catastrophe losses for this group were $12 million in the first quarter of 2026 compared to $35 million in the first quarter of 2025. This group reported an exceptional 80.0% calendar year combined ratio for the first quarter of 2026, an improvement of 7.0 points from the comparable period in 2025.
Gross and net written premiums increased by 6% and 1%, respectively, in the 2026 first quarter when compared to the same 2025 period, primarily due to growth in our lender services businesses. Net written premiums were tempered by our decision to cede more of the coastal-exposed property business in our financial institutions business beginning in the second quarter of 2025. Renewal pricing in this group was up about 1% in the first quarter of 2026, consistent with the prior quarter and reflecting the strong margins overall earned on these businesses.
Carl Lindner III stated, “Our Specialty P&C businesses are off to a strong start in 2026, producing a 66% year-over-year increase in underwriting profit, with the vast majority reporting growth during the quarter. We are continuing to achieve strong pricing in our social inflation exposed businesses and are confident about the strength of our reserves.”
Further details about AFG’s Specialty P&C operations may be found in the accompanying schedules and in our Quarterly Investor Supplement, which is posted on our website.
Investments
Net Investment Income – Excluding the impact of alternative investments, net investment income in our property and casualty insurance operations for the three months ended March 31, 2026, increased 8% year-over-year primarily as a result of the impact of higher balances of invested assets. Property and casualty net investment income including the impact of alternative investments was approximately 1% lower than the comparable 2025 period.
The annualized return on alternative investments was (0.4%) in first quarter of 2026 compared to 1.8% for the prior year quarter. Earnings from alternative investments may vary from quarter to quarter based on the reported results of the underlying investments and generally are reported on a quarter lag. The average annual return on alternative investments over the five calendar years ended December 31, 2025, was approximately 11%. Longer term, we continue to remain optimistic regarding the prospects of attractive returns from our alternative investment portfolio, with an expectation of annual returns averaging 10% or better.
In April 2026, AFG reached definitive agreements to sell the Charleston Harbor Resort & Marina. Subject to receipt of necessary third-party approvals and satisfaction of customary closing conditions, the transaction is expected to close in the second or third quarter of 2026. AFG currently expects to recognize a pretax core operating gain of approximately $125 million on the sale. This transaction was not contemplated in AFG’s original business plan assumptions.
Non-Core Net Realized Gains (Losses) – AFG recorded first quarter 2026 net realized losses of $15 million ($0.18 per share loss) after tax, which included $13 million ($0.16 per share loss) in after-tax net losses to adjust equity securities that the Company continued to own at March 31, 2026, to fair value. AFG recorded net realized gains of $2 million ($0.03 per share) after tax in the comparable 2025 period.
After-tax unrealized losses related to fixed maturities were $101 million at March 31, 2026. Our portfolio continues to be high quality, with 96% of our fixed maturity portfolio rated investment grade and 98% of our P&C fixed maturity portfolio with a National Association of Insurance Commissioners’ designation of NAIC 1 or 2, its highest two categories.
More information about the components of our investment portfolio may be found in our Quarterly Investor Supplement, which is posted on our website.
About American Financial Group, Inc.
American Financial Group is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.
Forward Looking Statements
This press release, and any related oral statements, contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this press release not dealing with historical results are forward-looking and are based on estimates, assumptions, and projections. Examples of such forward-looking statements include statements relating to: the Company's expectations concerning market and other conditions and their effect on future premiums, revenues, earnings, investment activities and the amount and timing of share repurchases or special dividends; recoverability of asset values; expected losses and the adequacy of reserves for asbestos, environmental pollution and mass tort claims; rate changes; and improved loss experience.
Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements for a variety of reasons including, but not limited to: the risks and uncertainties AFG describes in the “Risk Factors” section of its most recent Annual Report on Form 10-K, as updated by its other reports filed with the Securities and Exchange Commission; whether or not the sale of Charleston Harbor Resort & Marina closes and AFG’s net gain as a result of the sale; changes in financial, political and economic conditions, including changes in interest and inflation rates and impacts from tariffs or other trade actions, currency fluctuations and extended economic recessions or expansions in the U.S. and/or abroad; performance of securities markets; new legislation or declines in credit quality or credit ratings that could have a material impact on the valuation of securities in AFG’s investment portfolio; the availability of capital; changes in insurance law or regulation, including changes in statutory accounting rules, including modifications to capital requirements; changes in the legal environment affecting AFG or its customers; tax law and accounting changes; levels of natural catastrophes and severe weather, terrorist activities (including any nuclear, biological, chemical or radiological events), incidents of war or losses resulting from pandemics, civil unrest and other major losses; disruption caused by cyber-attacks or other technology breaches or failures by AFG or its business partners and service providers, which could negatively impact AFG’s business or reputation and/or expose AFG to litigation; development of insurance loss reserves and establishment of other reserves, particularly with respect to amounts associated with asbestos and environmental claims; availability of reinsurance and ability of reinsurers to pay their obligations; competitive pressures; the ability to obtain adequate rates and policy terms; changes in AFG’s credit ratings or the financial strength ratings assigned by major ratings agencies to AFG’s operating subsidiaries; and the impact of the conditions in the international financial markets and the global economy relating to AFG’s international operations.
The forward-looking statements herein are made only as of the date of this press release. The Company assumes no obligation to publicly update any forward-looking statements.
Conference Call
The Company will hold a conference call to discuss 2026 first quarter results at 11:30 a.m. (ET) tomorrow, Thursday, April 30, 2026. There are two ways to access the call.
Participants should register for the call here now, or any time up to and during the time of the call, and will immediately receive the dial-in number and a unique pin to access the call. While you may register at any time up to and during the time of the call, you are encouraged to join the call 10 minutes prior to the start of the event.
The conference call and accompanying webcast slides will also be broadcast live over the internet. To access the event, click the following link: https://www.afginc.com/news-and-events/event-calendar. Alternatively, you can choose Events from the Investor Relations page at www.AFGinc.com.
A replay of the webcast will be available via the same link on our website approximately two hours after the completion of the call.
(Financial summaries follow)
This earnings release and AFG’s Quarterly Investor Supplement are available in the Investor Relations section of AFG’s website: www.AFGinc.com.
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
SUMMARY OF EARNINGS AND SELECTED BALANCE SHEET DATA
(In Millions, Except Per Share Data)
Three months ended
March 31,
2026
2025
Revenues
Net earned premiums
$
1,609
$
1,580
Net investment income
187
173
Realized gains (losses) on securities
(18
)
3
Income of managed investment entities:
Investment income
67
76
Gain (loss) on change in fair value of
assets/liabilities
(20
)
(3
)
Other income
29
27
Total revenues
1,854
1,856
Costs and expenses
Losses & loss adjustment expenses
906
965
Commissions and other underwriting expenses
556
530
Interest charges on borrowed money
23
19
Expenses of managed investment entities
58
68
Other expenses
72
77
Total costs and expenses
1,615
1,659
Earnings before income taxes
239
197
Provision for income taxes
48
43
Net earnings
$
191
$
154
Diluted earnings per common share
$
2.29
$
1.84
Average number of diluted shares
83.3
83.8
Selected Balance Sheet Data:
March 31, 2026
December 31, 2025
Total Cash and investments
$17,143
$17,182
Long-term debt
$1,820
$1,820
Shareholders' equity(b)
$4,678
$4,820
Shareholders' equity (excluding AOCI)
$4,805
$4,870
Book value per share(b)
$56.30
$57.78
Book value per share (excluding AOCI)
$57.83
$58.38
Common Shares Outstanding
83.1
83.4
Footnote (b) is contained in the accompanying Notes to Financial Schedules at the end of this release.
AMERICAN FINANCIAL GROUP, INC.
SPECIALTY P&C OPERATIONS
(Dollars in Millions)
Three months ended March 31,
Pct. Change
2026
2025
Gross written premiums
$
2,435
$
2,291
6
%
Net written premiums
$
1,664
$
1,611
3
%
Ratios (GAAP):
Loss & LAE ratio
56.3
%
61.0
%
Underwriting expense ratio
34.0
%
33.0
%
Specialty Combined Ratio
90.3
%
94.0
%
Combined Ratio – P&C Segment
90.4
%
94.1
%
Supplemental Information (c):
Gross Written Premiums:
Property & Transportation
$
999
$
897
11
%
Specialty Casualty
1,089
1,068
2
%
Specialty Financial
347
326
6
%
$
2,435
$
2,291
6
%
Net Written Premiums:
Property & Transportation
$
596
$
563
6
%
Specialty Casualty
789
772
2
%
Specialty Financial
279
276
1
%
$
1,664
$
1,611
3
%
Combined Ratio (GAAP):
Property & Transportation
87.6
%
92.5
%
Specialty Casualty
95.8
%
97.6
%
Specialty Financial
80.0
%
87.0
%
Aggregate Specialty Group
90.3
%
94.0
%
Three months ended March 31,
2026
2025
Reserve Development (Favorable)/Adverse:
Property & Transportation
$
(47
)
$
(19
)
Specialty Casualty
—
12
Specialty Financial
(23
)
(13
)
Specialty Group
(70
)
(20
)
Other
—
—
Total Reserve Development
$
(70
)
$
(20
)
Points on Combined Ratio:
Property & Transportation
(9.0
)
(3.9
)
Specialty Casualty
—
1.6
Specialty Financial
(7.9
)
(4.6
)
Aggregate Specialty Group
(4.4
)
(1.3
)
Total P&C Segment
(4.3
)
(1.3
)
Footnote (c) is contained in the accompanying Notes to Financial Schedules at the end of this release.
AMERICAN FINANCIAL GROUP, INC.
Notes to Financial Schedules
a) Components of core net operating earnings (in millions):
Three months ended March 31,
2026
2025
Core Operating Earnings before Income Taxes:
P&C Insurance Segment
$
309
$
246
Interest and other corporate expenses
(52
)
(52
)
Core operating earnings before income taxes
257
194
Related income taxes
51
42
Core net operating earnings
$
206
$
152
b) Shareholders’ Equity at March 31, 2026, includes ($127 million) ($1.53 per share loss) in Accumulated Other Comprehensive Income (Loss) compared to ($50 million) ($0.60 per share loss) in Accumulated Other Comprehensive Income (Loss) at December 31, 2025.
c) Supplemental Notes:
Property & Transportation includes primarily physical damage and liability coverage for buses and trucks and other specialty transportation niches, inland and ocean marine, agricultural-related products, and other commercial property coverages. Specialty Casualty includes primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance. Specialty Financial includes risk management insurance programs for lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance. More News From American Financial Group, Inc.
American Financial Group (AFG - Free Report) came out with quarterly earnings of $2.47 per share, missing the Zacks Consensus Estimate of $2.55 per share. This compares to earnings of $1.81 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -2.95%. A quarter ago, it was expected that this property and casualty insurer would post earnings of $3.18 per share when it actually produced earnings of $3.65, delivering a surprise of +14.78%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
American Financial, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $1.83 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 8.29%. This compares to year-ago revenues of $1.86 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
American Financial shares have lost about 3.9% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for American Financial?While American Financial has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for American Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.45 on $2.01 billion in revenues for the coming quarter and $10.98 on $8.33 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Mercury General (MCY - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 5.
This auto insurance company is expected to post quarterly earnings of $2.15 per share in its upcoming report, which represents a year-over-year change of +193.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Mercury General's revenues are expected to be $1.46 billion, up 6.2% from the year-ago quarter.
American Financial Group (AFG - Free Report) reported $1.83 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 1.7%. EPS of $2.47 for the same period compares to $1.81 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.99 billion, representing a surprise of -8.29%. The company delivered an EPS surprise of -2.95%, with the consensus EPS estimate being $2.55.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Property and Casualty combined ratio - Specialty - Loss and LAE Ratio: 56.3% compared to the 60.5% average estimate based on four analysts.Property and Casualty combined ratio - Specialty - Underwriting Expense Ratio: 34% versus 32.1% estimated by four analysts on average.Property and Casualty combined ratio - Specialty - Combined Ratio - Specialty: 90.3% versus the four-analyst average estimate of 92.8%.Specialty Casualty - Loss and LAE Ratio: 64.7% versus 66.5% estimated by three analysts on average.Specialty Casualty - Underwriting Expense Ratio: 31.1% compared to the 29% average estimate based on three analysts.Revenues- Net investment income: $187 million compared to the $210.21 million average estimate based on four analysts. The reported number represents a change of +8.1% year over year.Revenues- Net earned premiums: $1.61 billion versus the four-analyst average estimate of $1.77 billion. The reported number represents a year-over-year change of +1.8%.Specialty Casualty- Net earned premium: $799 million versus the three-analyst average estimate of $843.8 million. The reported number represents a year-over-year change of +0.6%.Property and Transportation- Net earned premium: $526 million versus $639.68 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Specialty Financial- Net earned premium: $284 million versus the three-analyst average estimate of $307.92 million. The reported number represents a year-over-year change of -0.7%.Revenues- Other income: $29 million versus the two-analyst average estimate of $28.88 million. The reported number represents a year-over-year change of +7.4%.Revenues- Income of managed investment entities- Investment income: $67 million versus the two-analyst average estimate of $70.11 million. The reported number represents a year-over-year change of -11.8%.View all Key Company Metrics for American Financial here>>>
Shares of American Financial have returned +2.9% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
American Financial Group, Inc. (AFG - Free Report) reported first-quarter 2026 net operating earnings per share of $2.47, which missed the Zacks Consensus Estimate of $2.55. However, the bottom line increased 36.5% year over year, driven by underwriting income.
Total revenues of $1.8 billion decreased 1.7% year over year. The decline was due to lower investment income and realized gains (losses) on securities. The top line also missed the Zacks Consensus Estimate by 8.3%.
AFG’s first-quarter results were weighed down by weaker performance in its alternative investment portfolio, which offset strong underwriting results in its Specialty Property & Casualty (“P&C”) insurance segment.
American Financial Group, Inc. price-consensus-eps-surprise-chart | American Financial Group, Inc. Quote
Behind the HeadlinesNet earned premiums rose 1.8% year over year to $1.6 billion in the first quarter of 2026. The figure was below both the Zacks Consensus Estimate and our estimate of $1.8 billion.
Net investment income rose 8.1% year over year to $187 million in the quarter under review. The figure was lower than our estimate of $199.8 million and also missed the Zacks Consensus Estimate of $210.2 million.
Total costs and expenses decreased 2.7% year over year to $1.6 billion due to lower losses & loss adjustment expenses, interest charges on borrowed money and expenses of managed investment entities. The figure was lower than our estimate of $1.8 billion.
Segmental UpdateThe Specialty P&C Insurance segment generated $1.7 billion in net written premiums, which improved 3% year over year, driven by new business, favorable renewal rates and higher exposures, supported by diversified operations and disciplined underwriting.
Net written premiums in the Property & Transportation Group increased 6% year over year to $596 million in the quarter.
Net written premiums at the Specialty Casualty Group increased 2% year over year to $789 million. Further, net written premiums at Specialty Financial Group rose 1% year over year to $279 million.
The Specialty P&C Insurance segment’s underwriting profit increased 66% year over year to $156 million in the quarter, driven by higher underwriting profit across all three groups. The figure exceeded our estimate of $145 million. Pre-tax core operating earnings before income taxes of the P&C Insurance segment were $309 million, up 25.6% year over year.
In the Specialty Financial Group, a higher year-over-year underwriting profit of $57 million was primarily driven by stronger performance in its fidelity/crime and financial institutions businesses. Catastrophe losses in Specialty Financial Group totaled $12 million in the reported quarter, narrower than the year-ago loss of $35 million. The current combined ratio of 80% improved 70 basis points year over year. The results benefited from favorable prior-year reserve development.
Financial UpdateAmerican Financial exited the first quarter of 2026 with total cash and investments of $17.1 billion, which decreased 0.2% from the 2025-end level. Long-term debt of $1.82 billion in the first quarter of 2026 remained the same as the 2025-end level.
As of March 31, 2026, the company’s book value per share, excluding accumulated other comprehensive income (AOCI), was $57.83 compared to $58.38 at the end of 2025. Annualized return on equity was 15.8% in the first quarter, which increased 250 basis points year over year.
AFG’s Prudent Capital DeploymentAmerican Financial returned $259 million to shareholders in the first quarter of 2026, consisting of $125 million in special dividends and $60 million in share repurchases. It paid total cash dividends of $2.38 per share, which included a $1.50 per share special dividend paid in February 2026.
AFG’s Zacks RankAmerican Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other InsurersThe Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year. Net premiums written were $23.6 billion in the quarter, up 6.5% from $22.2 billion a year ago.
PGR's Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%. Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenue. The top line missed the Zacks Consensus Estimate by 1.2%.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year. Total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.3%.
W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure missed our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
Chubb Limited (CB - Free Report) reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line decreased 85.2% year over year. Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%.
CB's Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, and our estimate was $2 billion.
CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) is pleased to announce the promotion of Andrea I. Raible to Assistant Vice President & Controller. Ms. Raible succeeds Robert (Bob) A. Dee, who will retire in June after 41 years of service to the company.
Ms. Raible joined AFG in 2005 and has held positions of increasing responsibility within the company’s finance and accounting areas. In her new role, she will oversee accounting policies and procedures in accordance with Generally Accepted Accounting Principles (GAAP) and other applicable regulations, as well as financial reporting to the Securities and Exchange Commission (SEC).
Ms. Raible earned a bachelor’s degree in accounting from the University of Cincinnati and is a Certified Public Accountant (CPA) in the state of Kentucky.
About American Financial Group, Inc.
American Financial Group is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.
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Key Takeaways AFG saw specialty gross written premiums rise 6% on new business and favorable renewals.American Financial posted renewal rate increases for the 35th straight quarter in Q1 2026.AFG returned $259M to shareholders while facing catastrophe, inflation and regulatory risks. American Financial Group, Inc. (AFG - Free Report) has been trading above its 200-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of May 21, 2026, was $137.24, down 13% from its 52-week high of $150.02.
Image Source: Zacks Investment Research
The 200-day SMA is a long-term technical indicator that averages a stock's closing price over the last 200 trading days to smooth out volatility and identify the broader trend direction. When the stock price crosses above the 200-day SMA, it can signal a buy or hold opportunity.
With a market capitalization of $10.87 billion, the average volume of shares traded in the last three months was 0.6 million. The insurer is trading at a price-to-book multiple of 2.44X, higher than the industry average of 1.38X.
AFG’s Price PerformanceShares of AFG have gained 12.1% year to date against the industry’s decline of 4.6%.
Image Source: Zacks Investment Research
AFG has outperformed some of the other insurers, W.R.such as Berkley Corporation. (WRB - Free Report) , RLI Corp. (RLI - Free Report) ) and Kinsale Capital Group, Inc. (KNSL - Free Report) . WRB, RLI and KNSL have lost 6.5%, 26.4% and 31.1%, respectively, in the same time frame.
AFG’s Encouraging Growth ProjectionsThe Zacks Consensus Estimate for American Financial’s 2026 earnings per share(EPS) indicates a year-over-year increase of 9%. The consensus estimate for revenues is pegged at $8.02 billion, implying a year-over-year improvement of 0.4%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 5.5% and 7.9%, respectively, from the corresponding 2026 estimates.
Average Target Price for AFG Suggests UpsideBased on short-term price targets offered by six analysts, the Zacks average price target is $142 per share. The average suggests a potential 3.4% upside from the last closing price.
Image Source: Zacks Investment Research
AFG’s Favorable Return on CapitalReturn on equity in the trailing 12 months was 19.5%, which compared favorably with the industry average of 7.4%, reflecting AFG’s efficiency in utilizing shareholders’ funds.
Factors Favoring AFGNew business opportunities, increased exposure and a good renewal rate environment, coupled with additional crop premiums from the Crop Risk Services acquisition, position AFG well for growth.
American Financial, a niche player in the P&C market, is likely to benefit from strategic acquisitions and improved pricing. Specialty gross written premiums increased 6% and net written premiums rose 3% year over year, reflecting new business opportunities, a favorable renewal environment and higher exposures in several lines.
American Financial witnessed average renewal pricing across the P&C group rising approximately 3% in the first quarter of 2026. It intends to maintain satisfactory rates in P&C renewal pricing going forward. AFG has reported overall renewal rate increases for 35 consecutive quarters. The property and casualty insurer expects to achieve overall renewal rate increases in excess of prospective loss ratio trends to meet or exceed targeted returns.
Its combined ratio has been better than the industry average for more than two decades. Specialty niche focus, product line diversification and underwriting discipline should help AFG outperform the industry’s underwriting results.
AFG has a long history of returning capital through regular and special dividends and share repurchases, and it has increased its dividend in each of the past 20 years. The company returned approximately $259 million to shareholders during the quarter. Management expects operations to generate excess capital through the remainder of 2026, which can support growth initiatives and shareholder returns.
Risks for AFGCatastrophe losses, rising inflation, higher claims costs, and reserve pressures in longer-tail lines could hurt underwriting profitability if expenses grow faster than premiums.
Insurance and investment activities are heavily regulated at the state and federal levels. New rules can increase compliance costs and restrict product or capital actions.
End NotesAmerican Financial’s prudent capital deployment, increased exposures, good average renewal rate and improved combined ratio make it an attractive stock. However, catastrophe losses, rising expenses, inflation and strict regulations pose near-term headwinds.
American Financial has increased its dividend for 20 straight years. Notably, the 10-year compound annual growth rate for the company's regular annual dividends is an impressive 12.4%. The dividend yield is 2.7%, better than the industry average of 0.2%.
American Financial should benefit from strategic acquisitions, new business opportunities, stronger underwriting profit and favorable growth estimates. It is, therefore, wise to retain this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It has been about a month since the last earnings report for American Financial Group (AFG - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is American Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
AFG Q1 Earnings Miss Estimates, Revenues Decline 1.7% Y/Y
American Financial Group reported first-quarter 2026 net operating earnings per share of $2.47, which missed the Zacks Consensus Estimate of $2.55. However, the bottom line increased 36.5% year over year, driven by underwriting income.
Total revenues of $1.8 billion decreased 1.7% year over year. The decline was due to lower investment income and realized gains (losses) on securities. The top line also missed the Zacks Consensus Estimate by 8.3%.
AFG’s first-quarter results were weighed down by weaker performance in its alternative investment portfolio, which offset strong underwriting results in its Specialty Property & Casualty (“P&C”) insurance segment.
Behind the HeadlinesNet earned premiums rose 1.8% year over year to $1.6 billion in the first quarter of 2026. The figure was below both the Zacks Consensus Estimate and our estimate of $1.8 billion.
Net investment income rose 8.1% year over year to $187 million in the quarter under review. The figure was lower than our estimate of $199.8 million and also missed the Zacks Consensus Estimate of $210.2 million.
Total costs and expenses decreased 2.7% year over year to $1.6 billion due to lower losses & loss adjustment expenses, interest charges on borrowed money and expenses of managed investment entities. The figure was lower than our estimate of $1.8 billion.
Segmental UpdateThe Specialty P&C Insurance segment generated $1.7 billion in net written premiums, which improved 3% year over year, driven by new business, favorable renewal rates and higher exposures, supported by diversified operations and disciplined underwriting.
Net written premiums in the Property & Transportation Group increased 6% year over year to $596 million in the quarter.
Net written premiums at the Specialty Casualty Group increased 2% year over year to $789 million. Further, net written premiums at Specialty Financial Group rose 1% year over year to $279 million.
The Specialty P&C Insurance segment’s underwriting profit increased 66% year over year to $156 million in the quarter, driven by higher underwriting profit across all three groups. The figure exceeded our estimate of $145 million. Pre-tax core operating earnings before income taxes of the P&C Insurance segment were $309 million, up 25.6% year over year.
In the Specialty Financial Group, a higher year-over-year underwriting profit of $57 million was primarily driven by stronger performance in its fidelity/crime and financial institutions businesses. Catastrophe losses in Specialty Financial Group totaled $12 million in the reported quarter, narrower than the year-ago loss of $35 million. The current combined ratio of 80% improved 70 basis points year over year. The results benefited from favorable prior-year reserve development.
Financial UpdateAmerican Financial exited the first quarter of 2026 with total cash and investments of $17.1 billion, which decreased 0.2% from the 2025-end level. Long-term debt of $1.82 billion in the first quarter of 2026 remained the same as the 2025-end level.
As of March 31, 2026, the company’s book value per share, excluding accumulated other comprehensive income (AOCI), was $57.83 compared to $58.38 at the end of 2025. Annualized return on equity was 15.8% in the first quarter, which increased 250 basis points year over year.
AFG’s Prudent Capital DeploymentAmerican Financial returned $259 million to shareholders in the first quarter of 2026, consisting of $125 million in special dividends and $60 million in share repurchases. It paid total cash dividends of $2.38 per share, which included a $1.50 per share special dividend paid in February 2026.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
VGM ScoresCurrently, American Financial has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, American Financial has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Key Takeaways AFG's investment income is supported by higher interest rates and growth in invested assets. Its portfolio includes fixed-income securities, alternative investments, equities and equity-method holdings. Management expects stronger alternative investment returns to support net investment income in 2026. American Financial Group, Inc.’s (AFG - Free Report) investment income is an important earnings driver because the company invests the premiums it collects before claims are paid.
AFG maintains a large investment portfolio, primarily consisting of high-quality fixed-income securities, with allocations to alternative investments, including private equity funds, limited partnerships and real estate-related investments.
AFG’s investment portfolio as of March 31, 2026, contained $11.40 billion in fixed maturity securities classified as available for sale and carried at fair value with unrealized gains and losses included in accumulated other comprehensive income (loss) and $80 million in fixed maturities classified as trading with holding gains and losses included in net investment income. In addition, AFG’s investment portfolio includes $555 million in equity securities carried at fair value with holding gains and losses included in realized gains (losses) on securities and $198 million in equity securities carried at fair value with holding gains and losses included in net investment income. AFG’s investment portfolio also includes $2.44 billion in investments accounted for using the equity method.
Growth in net investment income continues to be supported by higher interest rates and increased invested assets, particularly within its property and casualty insurance operations. Excluding fluctuations from alternative investments, recurring investment income has benefited from the reinvestment of assets at higher yields.
Investment income is a significant tailwind because it enhances operating earnings without requiring premium growth alone. Higher yields on new investments can continue to support earnings for several years. The metric also provides an additional source of shareholder value alongside underwriting profits and capital returns.
The liquidity requirements of AFG’s insurance subsidiaries relate primarily to the policyholder claims, underwriting expenses and payments of dividends and taxes to AFG. Historically, cash flows from premiums and investment income have generally provided more than sufficient funds to meet these requirements.
Management expects overall premium growth and strong underwriting results in the current property and casualty insurance market. In addition, management anticipates that improved returns on alternative investments, relative to returns earned in 2025 and the first quarter of 2026, will positively impact net investment income beginning in the second half of 2026.
AFG's conservative bond portfolio, combined with its exposure to higher-return alternative investments, makes investment income a meaningful contributor to long-term earnings growth and shareholder returns.
What About Other Insurers?Chubb Limited's (CB - Free Report) net investment income is an important earnings contributor. The metric benefits from higher interest rates and stronger portfolio yields, providing a steady source of earnings beyond underwriting profits. This helps improve profitability, offset claim volatility and strengthen overall financial performance.
The Travelers Companies, Inc.’s (TRV - Free Report) net investment income is a material contributor to the company’s results of operations, consistently providing a reliable source of earnings that complements its underwriting activities. Net investment income acts as a second earnings engine for this property and casualty insurer after underwriting profit. Thus, even if underwriting profit weakens because of higher catastrophe losses, solid net investment income can help offset earnings pressure.
AFG’s Price PerformanceShares of AFG have gained 2.7% in the past year, outperforming the industry.
Image Source: Zacks Investment Research
AFG’s OvervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 2.28, higher than the industry average of 1.34. It carries a Value Score of A.
Image Source: Zacks Investment Research
Estimate Movement for AFGThe Zacks Consensus Estimate for AFG’s second-quarter 2026 has moved down 2%, and the third-quarter 2026 EPS has moved up 13.1% in the past 30 days. The same for full-year 2026 and 2027 EPS has moved up 3.5% and 2%, respectively, in the past 30 days.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: American Financial Group (AFG - Free Report) Founded in 1872 and headquartered in Cincinnati, OH, American Financial Group, Inc. is a holding company which, through its subsidiaries, engages primarily in property and casualty insurance, with focus on specialized commercial products for businesses. The company also engages in the sale of traditional fixed, fixed-indexed and variable-indexed annuities in the retail, financial institutions, registered investment advisor and education markets.
AFG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Finance stock. AFG has a Momentum Style Score of B, and shares are up 0.9% over the past four weeks.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.37 to $11.37 per share. AFG boasts an average earnings surprise of +7.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AFG should be on investors' short list.
This weekly update tracks some of the largest cryptocurrencies by market share: bitcoin and ether. While both are considered to be high-risk when it comes to investing, the two have foundational differences that investors should know. We’ve also included XRP, as it was one of the largest cryptocurrencies when this series began. According to Wikipedia, a cryptocurrency is “a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.”
Bitcoin Bitcoin was the world’s first cryptocurrency and decentralized digital currency. The first bitcoin transaction occurred in early 2009 and has since grown worldwide to a mainstream financial asset. It is often considered volatile, as seen in our first chart, but one can argue that it is also resilient. Learn more about some bitcoin basics for new investors.
Bitcoin’s closing price continued to inch higher as it hovered above $77,000 for most of this past week, even reaching its highest level in 12 weeks. However, BTC is currently down ~13% year-to-date and ~39% below its record close from October 2025.
Recent data suggests that while spot Bitcoin ETF flows weakened earlier in 2026, demand has started to stabilize despite a broader pullback from speculative assets.
Ether Ether is a cryptocurrency run on the Ethereum blockchain platform and was launched in July 2015. It has the second largest market share, despite being the newest of the three discussed in this article.
Ether’s closing price spent most of the past week around $2,300. ETH is currently down ~23% year-to-date and is now ~53% below its record close from August 2025.
XRP XRP, which is owned by Ripple, was launched in 2012 and was one of the larger cryptocurrencies for some time until new coins joined the market.
Bitcoin vs. Ether vs. XRP An index has been created in order to chart these three cryptocurrencies together, considering their significantly different pricing histories. A logarithmic scale is used on the y-axis of this chart to better illustrate the relative percentage changes and long-term growth of these cryptocurrencies, as opposed to their absolute price fluctuations. The chart tells us which cryptocurrency’s price has changed the most since November 9, 2017. At one point or another, all three have been at the top. At the time of writing, bitcoin is in the lead.
On January 10th, 2024, the SEC approved spot bitcoin ETFs from a range of issuers such as Grayscale Bitcoin Trust ETF (GBTC), iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Coinshares Valkyrie Bitcoin Fund (BRRR). Here are some of the quick takeaways from the spot bitcoin ETF launch.
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Bitcoin (CRYPTO: BTC) hit an all-time high of $126,000 in October 2025, then crashed 52% to $60,000 by early February after the U.S. and Israel struck Iran. Now the BTC price is at $80,200, up 19% over the past 30 days, and trading above $80,000 for the first time since January.
The current rally is being driven by easing tensions in the Iran war, with Brent crude pulling back from a $126 spike last week to around $110 and lifting the bearish pressure that has weighed on the crypto market all year. With the Bitcoin price now holding above $80K, is this the start of a real recovery, and is the bear market finally over?
How Bitcoin Climbed From $66,000 to $80,000 in 30 Days
For most of 2026, Bitcoin had been stuck between $65,000 and $73,000, with most traders betting the price would fall further and oil prices weighing on the market. That changed on April 6, when an Axios report dropped that the U.S., Iran, and regional mediators were negotiating a 45-day ceasefire. The Bitcoin price jumped from $66,000 to $69,000 afterwards, wiping out $196 million in bets against BTC.
When Iran and the U.S. agreed to the ceasefire two days later, Brent crude tumbled 16% and BTC pushed to $71,600. The rally had more than just the geopolitical catalyst behind it—institutional money showed up alongside the easing tensions. Morgan Stanley’s spot Bitcoin ETF launched on April 8 with $34 million in day-one inflows, giving traders their first way to buy BTC through a major U.S. bank.
Moreover, Strategy’s April 22 purchase was the move that made the rally stick. The company bought 34,164 BTC for $2.54 billion on the same day Trump extended the Iran ceasefire indefinitely. The two events pushed BTC back above $77,000 and gave the market its first real reason to keep going higher since October.
By the end of April, Bitcoin had closed the month up 12%, marking its best month since the October 2025 peak. The 19% climb over the past 30 days is what happens when a market full of bets against Bitcoin gets caught off guard, institutional money steps in, and the news turns from threat to relief—all at once.
Three Signals That Suggest the Bitcoin Bear Market Could Be Ending
Bitcoin’s 19% rally shows the market dynamics is changing, but rallies are not the same as bottoms. So the better question is whether the on-chain data has actually shifted, or whether this is just price moves without anything backing them up. Here are three data points that say something has actually changed.
Bull Score Index Hit Neutral for the First Time in Six Months CryptoQuant’s Bitcoin Bull Score Index has spent the most part of the year below 40—the threshold used to mark firmly bearish conditions. However, on April 22, the index climbed to 50, hitting neutral for the first time since BTC peaked at $126,000 in October. The index tracks ten on-chain indicators including blockchain activity, investor profitability, and liquidity. When half of them flip back to bullish,it signals that something has changed underneath the price.
The score pulled back to 40 by the end of April, and CryptoQuant’s research head Julio Moreno noted that a similar neutral reading in March 2022 turned into a fakeout before the bear market continued. So this signal is not a green light, but the fact that it left the bear zone at all is the first genuine improvement this cycle.
Bitcoin Stabilised at Its Previous Cycle High In November 2021, Bitcoin hit a then-all-time high of $69,000 before crashing 78% over the following year. When BTC peaked at $126,000 last October and started falling, the question was where the bottom would form. The price briefly dipped to $60,000 in early February before recovering to the $70,000 zone, and has held that range through every escalation in the Iran war.
In Bitcoin’s earlier bear markets in 2014 and 2018, the price never returned to its prior cycle peak. Only the 2022 bear market dipped below the 2017 high of $20,000, and analysts at the time called it an anomaly tied to the FTX collapse and crypto deleveraging. The fact that BTC has held the 2021 peak instead of breaking decisively below it suggests the market is treating $69,000–$70,000 as a real support for this cycle.
Strategy Kept Buying Through the Worst of the Crash Most institutional money panicked when the bear market hit. Spot Bitcoin ETFs saw roughly $6 billion in net outflows between November 2025 and February 2026 as funds pulled capital exactly when the price was bottoming. Strategy did the opposite—Michael Saylor’s company bought 89,618 BTC in Q1 2026 alone, its second-biggest quarter on record, paying an average of $75,500 even as BTC dipped as low as $60,000.
The buying continued through April, with more than 42,000 BTC added across the month and total holdings now past 818,000 BTC. When the largest corporate Bitcoin holder keeps stacking through the worst stretch of a bear market and pays above what the rest of the market was panic-selling at, that signals deep conviction in where Bitcoin is heading next.
Three Signals That Reflect the Bear Market Isn’t Over Yet
For every signal pointing toward a bottom, there is one pointing the other way. Three patterns from on-chain data and Bitcoin’s history suggest the rally is uncertain and the bear market may have another leg to run.
The 50/100-Week MA Crossover Hasn’t Triggered One long-term Bitcoin indicator has marked every major bottom since 2015—the moment the 50-week moving average crosses below the 100-week moving average. The crossover has flashed exactly three times in BTC’s history: April 2015, February 2019, and September 2022. Each time, this happened near a major bottom that the price has never revisited since.
The two averages have been moving closer together for months, but the 50-week is still holding above the 100-week and the crossover has not happened yet. The signal is a lagging one—it confirms that selling has already reached full capitulation, the moment forced sellers are out and the bottom is in. Until that happens, history says the real bottom probably has not formed.
This Same Setup Preceded the 2022 Bear Market CryptoQuant’s April report showed the 19% climb was driven entirely by perpetual futures demand, while spot demand—the actual buyers of Bitcoin on exchanges—stayed negative all month. The rally was leverage, not buying.
This exact demand structure appeared at the start of the 2022 bear market. Futures demand expanded while spot stayed weak, and the rally that followed eventually rolled over and Bitcoin slid back to new lows. CryptoQuant’s research team flagged the parallel directly, noting that rallies built on this kind of structure tend to be self-limiting. Without fresh spot buyers stepping in, this one could play out the same way.
Bitcoin Has Never Had 3 Green Months in a Bear-Market Year Across every prior Bitcoin bear market—2014, 2018, 2022—the BTC price has never closed three consecutive months in the green. Rallies always faded before reaching the third month. So far in 2026, BTC closed January down 10.1%, February down 14.8%, March barely positive at 0.19%, and April up 11.87%. That makes April the second consecutive green month, and May becomes the test.
If May closes in green, this would be the first time in Bitcoin’s history that a bear-market year has produced three consecutive monthly gains. This reflects that history is against it, but May will tell us whether the pattern breaks or the pattern plays out again.
What Would Actually Confirm the Bear Market Is Over We don’t think the Bitcoin bear market is officially over yet. The signals are too mixed for a clean call, which is exactly what a market in transition looks like. The level that would actually confirm the bottom is the 200-day moving average at $82,228—the line that has separated bear-market bounces from real trend reversals in every prior cycle.
Moreover Glassnode’s RHODL ratio—the metric measures how much Bitcoin is held by long-term investors versus short-term ones—is currently at 4.5. That is a level high enough to suggest the weak hands have already sold and most BTC is now in the hands of long-term holders.
The only times this ratio has been higher were the 2015 bottom at 5.0 and the 2022 bottom at 7.0. So while nothing has officially confirmed the bottom yet, BTC is showing the same on-chain conditions it had at the end of every previous bear market. So, a green May close or BTC reclaiming $82,000 would be the first signal that the bottom is in. Until that happens, the worst might be behind us, but the bear market is not officially over.
Bitcoin portfolios are entering a new phase as traditional financial giants build the plumbing that’s transforming digital assets from a speculative bet into a fundamental part of the financial stack. During a VettaFi webinar sponsored by CoinShares, industry experts outlined how 2026 marks a turning point where on-chain rails and traditional finance collide to create what they call “hybrid finance.”
Key Takeaways Stablecoin market cap surged from $25 billion to $300 billion in five years. Morgan Stanley and Merrill Lynch recommend up to 5% bitcoin allocations. CLARITY Act moved closer to Senate vote after breakthrough on yield provisions. The shift is measurable. Stablecoin market capitalization has surged from $25 billion five years ago to over $300 billion today, according to Matthew Kimmell, digital asset research analyst at CoinShares. Tokenized assets have jumped from $6 billion in early 2025 to $30 billion — a fivefold increase in 16 months.
These aren’t fringe numbers. Stablecoin issuers now rank as a top 15 holder of U.S. debt globally, Kimmell said.
“It’s less about hype and more about fundamentals,” Calvin Tintle, senior manager of national accounts and distribution at CoinShares, said during the session. The conversation among advisors has evolved from “what is bitcoin” to “why does this technology matter and how does this get implemented.”
Major wealth platforms are putting money behind that question. Morgan Stanley and Merrill Lynch now recommend up to 5% allocations to bitcoin across their platforms, according to Kimmell. Both firms are actively hiring and discussing digital assets internally.
The regulatory environment has accelerated the transition. Last summer’s Genius Act established rules for stablecoins and reserve requirements, Kimmell noted. Meanwhile, the CLARITY Act, a market structure bill, defines whether assets fall under Securities and Exchange Commission or Commodity Futures Trading Commission oversight.
The bill moved closer to a Senate floor vote following a breakthrough in the Senate Banking Committee, according to Kimmell. The main sticking point had been stablecoin yield provisions. “There seems to be a compromise,” Kimmell said, referring to the resolution between banking industry lobbyists and crypto firms.
The timing matters. With midterm elections approaching, the congressional calendar gets crowded, making early-year progress on financial legislation more valuable.
Institutional Bitcoin Infrastructure Takes Shape The Depository Trust & Clearing Corporation announced plans to begin trading tokenized securities in a pilot program launching in July, with full deployment in October. Participants include BlackRock, JPMorgan, Goldman Sachs and Nasdaq — institutions that handle trillions in daily settlement, Kimmell said.
“It’s no longer ‘The institutions are coming,’” Kimmell said. “They’re here.”
That presence is visible in quarterly 13F filings, Tintle said. Professional investor allocations to bitcoin ETFs have shown steady upticks. The list spans endowments, sovereign wealth funds, registered investment advisors, and hedge funds.
Bitcoin Portfolios Built on Utility Not Speculation The fundamental case has changed. Bitcoin now trades on fundamentals rather than hype, Tintle argued, noting the asset’s resilience during the recent Iran conflict. The characteristics that matter are store of value, transferability, and decentralization, which advisors examine when evaluating portfolio fit.
Poll results during the webinar showed that 47% of attendees are watching from the sidelines, with 20% actively investing and others researching without allocating. When asked which instrument would have the biggest impact on traditional finance over the next three years, 42% chose tokenized traditional assets, 33% selected stablecoins, 20% picked bitcoin and 4% cited crypto-native financial services.
For those who feel they’ve missed early gains, Kimmell pushed back. Bitcoin remains a scarce, geopolitically neutral asset paired with its own settlement system designed for 24/7 global commerce. The story resonates most in emerging markets facing high inflation, he said.
“The party is just getting started,” Tintle added. Instant settlement and 24/7 trading markets are still being built. Companies are spending heavily on infrastructure. “This is still very much so early innings.”
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
The structural shift that began when the SEC approved spot Bitcoin ETFs in January 2024 has reshaped how institutions hold the asset. iShares Bitcoin Trust ETF (NASDAQ:IBIT) accumulated over $54 billion in AUM, the fastest ETF launch in history, while Grayscale Bitcoin Trust (NYSE:GBTC) was forced to convert from a closed-end trust into a competitive spot fund. The third durable vehicle, ProShares Bitcoin ETF (NYSEARCA:BITO), predates them both and still serves a different audience entirely.
These three ETFs cover the spectrum of how institutional and retail capital now reaches Bitcoin: a low-cost, spot-flagship ETF, a legacy incumbent that had to adapt, and a futures-based product with a built-in income wrapper. Bitcoin trades around $82,836, off 12% over the past year but up 19% in the past month, and the relative behavior of these three funds during that move tells the story.
Why the access vehicle matters more than it used to Before January 2024, getting Bitcoin into a portfolio meant navigating a messy set of choices. Investors either held coins directly and dealt with custody, bought GBTC while it traded at a persistent NAV discount, or accepted the roll costs that came with a futures product. Once spot ETFs were approved, that entire menu collapsed. Pension funds, RIAs, and 401(k) platforms could finally access Bitcoin through the same operational rails they already used for equities. The shift marked the real start of the institutional era, and it had far more to do with access infrastructure than with price.
What comes next depends on the structure you choose. The funds below differ in fee levels, product design, and tax treatment, and those differences shape long‑term outcomes far more than any single quarter of price action.
IBIT: the flagship that set the new benchmark IBIT is the cleanest expression of the institutional thesis as it holds spot Bitcoin in custody, charges a 0.25% expense ratio, and, according to BlackRock’s most recent fact sheet, has 99.93% of assets in the underlying trust with the rest in cash. There is no derivatives overlay, no roll mechanism, and no discount-to-NAV history to manage around.
The mechanism connecting IBIT to the institutional theme is distribution. BlackRock’s iShares platform is found on virtually every major brokerage and in model portfolios across the United States, which is why the fund surpassed $54 billion in AUM faster than any ETF in history. Allocators who wanted Bitcoin exposure inside an existing iShares-heavy book could add it without onboarding a new issuer.
Performance has tracked Bitcoin closely. IBIT trades at $46 after a 21% move over the past month, with a 13% decline over the trailing year. The trade-off is inherent to any spot Bitcoin product: investors bear the full volatility of the asset, and the fund’s only job is to track it. There is no income, no hedge, no cushion.
GBTC: the incumbent that had to reinvent itself GBTC’s role on this list is structural rather than cost-competitive. The Grayscale Bitcoin Trust spent years as the only mainstream Bitcoin vehicle available in brokerage accounts, traded at large premiums and then large discounts to NAV, and converted to a spot ETF on the same day IBIT and its peers launched. The conversion ended the discount problem but inherited a fee structure built for a different era.
That history is the reason it belongs here. GBTC is the case study for what the institutional era did to incumbents: forced fee compression, eliminated structural arbitrage, and turned a captive product into one option among many. Its higher expense ratio relative to newer spot peers means a long-term holder pays more in fees per dollar of Bitcoin held, which compounds against returns.
The fund still has a use case. GBTC trades at $63, up 22% in the past month and down 14% over the past year, and existing holders sitting on embedded gains face a tax cost from rotating into a cheaper vehicle. Grayscale also launched a lower-fee Bitcoin Mini Trust to retain assets that would otherwise migrate. For new capital, the fee differential is the reason most allocators default elsewhere. The trade-off is paying a higher expense ratio for the same underlying exposure that is available more cheaply nearby.
BITO: the futures wrapper for accounts that need it BITO is the contrarian inclusion on this list because it holds CME Bitcoin futures contracts and seeks to track the Bloomberg Bitcoin Index. The fund launched in October 2021, more than two years before spot approval, and was the first US-listed Bitcoin-linked ETF.
The mechanism that justifies BITO’s spot on the list is account compatibility. Some retirement plans, separately managed accounts, and institutional sleeves have rules that permit futures-based commodity products but disallow spot crypto vehicles. BITO is also structured to make monthly distributions, which gives it a profile closer to an income product than a pure tracker. That is meaningful for investors who specifically want Bitcoin exposure paired with cash flow.
The cost of the futures structure appears in two places. The expense ratio is 0.95%, well above IBIT, and the fund bears the cost of rolling expiring contracts forward, which in contango markets erodes returns relative to spot. BITO trades at $11, up 21% over the past month and down 43% over the past year; over five years, it’s down roughly 73%. The trade-off is direct: investors pay higher fees and roll costs in exchange for a structure that fits accounts where spot Bitcoin cannot go.
Picking among the three For most first‑time ETF investors entering Bitcoin, IBIT is the natural starting point. The 0.33% expense ratio, the depth of liquidity, and the straightforward spot exposure make it an easy vehicle to hold over multi‑year stretches without overthinking the mechanics.
GBTC speaks to a much narrower crowd. Existing holders managing their tax basis, or investors who specifically want Grayscale as the issuer, tend to stay put. Anyone bringing in fresh capital has to weigh the higher fee against the fact that the underlying exposure is identical to cheaper alternatives.
BITO fills a different need entirely. Some accounts simply cannot hold spot crypto products, and others want the monthly distribution profile that the futures structure creates. That flexibility comes with a cost. The five‑year performance gap versus spot Bitcoin is the number that matters most when deciding whether BITO makes sense over IBIT.
This weekly update tracks some of the largest cryptocurrencies by market share: bitcoin and ether. While both are considered to be high-risk when it comes to investing, the two have foundational differences that investors should know. We’ve also included XRP, as it was one of the largest cryptocurrencies when this series began. According to Wikipedia, a cryptocurrency is “a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.”
Bitcoin Bitcoin was the world’s first cryptocurrency and decentralized digital currency. The first bitcoin transaction occurred in early 2009 and has since grown worldwide to a mainstream financial asset. It is often considered volatile, as seen in our first chart, but one can argue that it is also resilient. Learn more about some bitcoin basics for new investors.
Bitcoin’s closing price broke through $80,000 for the first time since the end of January. However, BTC is currently down ~8% year-to-date and ~35% below its record close from October 2025.
Ether Ether is a cryptocurrency run on the Ethereum blockchain platform and was launched in July 2015. It has the second largest market share, despite being the newest of the three discussed in this article.
Ether’s closing price inched higher this past week. ETH is currently down ~20% year-to-date and is now ~51% below its record close from August 2025.
XRP XRP, which is owned by Ripple, was launched in 2012 and was one of the larger cryptocurrencies for some time until new coins joined the market.
Bitcoin vs. Ether vs. XRP An index has been created in order to chart these three cryptocurrencies together, considering their significantly different pricing histories. A logarithmic scale is used on the y-axis of this chart to better illustrate the relative percentage changes and long-term growth of these cryptocurrencies, as opposed to their absolute price fluctuations. The chart tells us which cryptocurrency’s price has changed the most since November 9, 2017. At one point or another, all three have been at the top. At the time of writing, bitcoin is in the lead.
On January 10th, 2024, the SEC approved spot bitcoin ETFs from a range of issuers such as Grayscale Bitcoin Trust ETF (GBTC), iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Coinshares Valkyrie Bitcoin Fund (BRRR). Here are some of the quick takeaways from the spot bitcoin ETF launch.
On July 23rd, 2024, a handful of spot ether ETFs launched from a range of issuers such as Grayscale Ethereum Trust (ETHE), Franklin Ethereum ETF (EZET), Bitwise Ethereum ETF (ETHW), iShares Ethereum Trust (ETHA), Fidelity Ethereum ETF (FETH). Here’s what investors need to know.
Originally published on Advisor Perspectives.
For more news, information, and analysis, visit VettaFi | ETF Trends.
The Grayscale Bitcoin Trust ETF now faces significant competitive disadvantages due to its high 1.5% expense ratio versus peers charging 0.15–0.25%. GBTC's structural drag guarantees long-term underperformance relative to both spot Bitcoin and lower-cost ETFs like IBIT and FBTC. Legacy holders remain due to tax implications and institutional inertia, but these are frictional, not fundamental, advantages.
This weekly update tracks some of the largest cryptocurrencies by market share: bitcoin and ether. While both are considered to be high-risk when it comes to investing, the two have foundational differences that investors should know. We’ve also included XRP, as it was one of the largest cryptocurrencies when this series began. According to Wikipedia, a cryptocurrency is “a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.”
Bitcoin Bitcoin was the world’s first cryptocurrency and decentralized digital currency. The first bitcoin transaction occurred in early 2009 and has since grown worldwide to a mainstream financial asset. It is often considered volatile, as seen in our first chart, but one can argue that it is also resilient. Learn more about some bitcoin basics for new investors.
Bitcoin maintained its momentum this past week, consistently closing above $80,000 and hitting its highest mark since late January. Despite the recent strength, BTC remains down approximately 8% year-to-date and sits ~35% below its October 2025 record high.
Ether Ether is a cryptocurrency run on the Ethereum blockchain platform and was launched in July 2015. It has the second largest market share, despite being the newest of the three discussed in this article.
Ether’s closing price was essentially unchanged for a third straight week, hovering around the $2,300 mark. ETH is currently down ~23% year-to-date and is now ~53% below its record close from August 2025.
XRP XRP, which is owned by Ripple, was launched in 2012 and was one of the larger cryptocurrencies for some time until new coins joined the market.
Bitcoin vs. Ether vs. XRP An index has been created in order to chart these three cryptocurrencies together, considering their significantly different pricing histories. A logarithmic scale is used on the y-axis of this chart to better illustrate the relative percentage changes and long-term growth of these cryptocurrencies, as opposed to their absolute price fluctuations. The chart tells us which cryptocurrency’s price has changed the most since November 9, 2017. At one point or another, all three have been at the top. At the time of writing, bitcoin is in the lead.
On January 10th, 2024, the SEC approved spot bitcoin ETFs from a range of issuers such as Grayscale Bitcoin Trust ETF (GBTC), iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Coinshares Valkyrie Bitcoin Fund (BRRR). Here are some of the quick takeaways from the spot bitcoin ETF launch.
On July 23rd, 2024, a handful of spot ether ETFs launched from a range of issuers such as Grayscale Ethereum Trust (ETHE), Franklin Ethereum ETF (EZET), Bitwise Ethereum ETF (ETHW), iShares Ethereum Trust (ETHA), Fidelity Ethereum ETF (FETH). Here’s what investors need to know.
Originally published on Advisor Perspectives.
For more news, information, and analysis, visit the Cryptocurrency Content Hub.
This weekly update tracks some of the largest cryptocurrencies by market share: bitcoin and ether. While both are considered to be high-risk when it comes to investing, the two have foundational differences that investors should know. We’ve also included XRP, as it was one of the largest cryptocurrencies when this series began. According to Wikipedia, a cryptocurrency is “a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.”
Bitcoin Bitcoin was the world’s first cryptocurrency and decentralized digital currency. The first bitcoin transaction occurred in early 2009 and has since grown worldwide to a mainstream financial asset. It is often considered volatile, as seen in our first chart, but one can argue that it is also resilient. Learn more about some bitcoin basics for new investors.
Bitcoin struggled this past week, falling back below $80,000 and hitting its lowest level in nearly three weeks. BTC is currently down approximately 12% year-to-date and sits ~38% below its October 2025 record high.
Ether Ether is a cryptocurrency run on the Ethereum blockchain platform and was launched in July 2015. It has the second largest market share, despite being the newest of the three discussed in this article.
Ether’s closing price also faltered this week, dropping over 10% to its lowest level in six weeks. ETH is currently down ~29% year-to-date and is now ~56% below its record close from August 2025.
XRP XRP, which is owned by Ripple, was launched in 2012 and was one of the larger cryptocurrencies for some time until new coins joined the market.
Bitcoin vs. Ether vs. XRP An index has been created in order to chart these three cryptocurrencies together, considering their significantly different pricing histories. A logarithmic scale is used on the y-axis of this chart to better illustrate the relative percentage changes and long-term growth of these cryptocurrencies, as opposed to their absolute price fluctuations. The chart tells us which cryptocurrency’s price has changed the most since November 9, 2017. At one point or another, all three have been at the top. At the time of writing, bitcoin is in the lead.
On January 10th, 2024, the SEC approved spot bitcoin ETFs from a range of issuers such as Grayscale Bitcoin Trust ETF (GBTC), iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Coinshares Valkyrie Bitcoin Fund (BRRR). Here are some of the quick takeaways from the spot bitcoin ETF launch.
On July 23rd, 2024, a handful of spot ether ETFs launched from a range of issuers such as Grayscale Ethereum Trust (ETHE), Franklin Ethereum ETF (EZET), Bitwise Ethereum ETF (ETHW), iShares Ethereum Trust (ETHA), Fidelity Ethereum ETF (FETH). Here’s what investors need to know.
Originally published on Advisor Perspectives.
For more news, information, and analysis, visit the Cryptocurrency Content Hub.
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Bitcoin exchange-traded funds (ETFs) let you ride Bitcoin (CRYPTO: BTC) price movements through your regular brokerage account, with no crypto wallets or seed phrases. You get the upside of a Bitcoin rally without touching the actual asset, and your investment stays inside a regulated structure that most traditional portfolios can actually hold.
U.S. spot Bitcoin ETFs now hold over $98 billion, and with a potential bull cycle gaining serious momentum in 2026, the genuine question you might need an answer to is which fund deserves your money.
Why Bitcoin ETFs Have Become a Popular Way to Gain Crypto Exposure
Before January 2024, institutional investors managing pension funds and retirement portfolios had no compliant way into Bitcoin. The regulatory and compliance requirements around direct ownership made it practically off the table for most of them. But now, Spot Bitcoin ETFs have changed that narrative.
Bitcoin ETFs can be held inside Individual Retirement Accounts (IRAs) and other tax-sheltered accounts, something you simply can’t do holding Bitcoin directly on an exchange. For long-term investors building retirement portfolios, that difference carries serious financial weight.
According to SoSoValue, cumulative net inflows are around $56.75 billion since launch. Goldman Sachs holds over $1 billion in Bitcoin through spot ETFs, and CalPERS allocated $500 million in Q1 2026. At that level of institutional commitment, Bitcoin ETFs have clearly earned their place.
Spot Bitcoin ETFs vs. Futures ETFs
The difference between sopt Bitcoin ETFs and Futures ETFs comes down to what the fund actually holds. Spot ETFs like IBIT and FBTC hold real Bitcoin in institutional custody. Every share you buy represents a fractional claim on actual BTC held in a cold storage vault. When Bitcoin’s price goes up, your investment goes up by the same amount, minus fees.
Futures ETFs work completely differently. Products like ProShares’ BITO don’t hold a single Bitcoin. They hold CME futures contracts, agreements to buy Bitcoin at a set price on a future date, and those contracts have to be rolled over every month as they expire. That rolling process costs money every time, and when the market is in contango, meaning future prices are higher than current ones, those costs compound into a meaningful drag on returns.
For a bull cycle where you want to capture as much of Bitcoin’s upside as possible, a futures ETF is the wrong tool for the job.
Which Bitcoin ETF Is Best Positioned for the Next Bull Cycle?
Three things separate the best Bitcoin ETFs from the rest: fees, liquidity, and who’s actually buying in. The table below gives you the full picture, with every metric that matters when picking a fund for this cycle.
ETF Net Assets BTC Share Expense Ratio Value Traded Net Flow Since Launch IBIT $60.75B 3.98% 0.25% $3.65B +$64.58B FBTC $13.92B 0.91% 0.00%* $291.54M +$10.71B GBTC $11.25B 0.74% 1.50% $127.15M −$26.49B ARKB $2.53B 0.17% 0.21% $77.40M +$1.28B BITB $2.82B 0.18% 0.20% $96.01M +$2.04B MSBT $264.30M 0.02% 0.14% $8.89M +$233.81M Fidelity is currently waiving FBTC’s fee, so its effective expense ratio is 0.00%, but the standard 0.25% applies once the waiver ends.
GBTC is the outlier here. It launched as an ETF with nearly $30 billion already in it, so the $26.49 billion in net outflows is really long-time holders rotating into cheaper funds over the years. It says more about GBTC’s 1.50% fee than about demand for Bitcoin. The newer funds all started from zero and built up.
Meanwhile, IBIT still dominates the category, holding well over half its total assets and trading far more each day than every rival combined. GBTC also charges 1.50% a year in a market where IBIT charges 0.25%, and that gap compounds against you every year you stay in the fund.
The Key Risks of Investing in Bitcoin ETFs
Buying a Bitcoin ETF is simpler than buying Bitcoin directly, but simpler doesn’t mean risk-free. The fund still moves with Bitcoin’s price every day, and Bitcoin can drop 20% to 30% in a single week when markets turn uncertain.
There’s also a concentration risk that doesn’t get talked about enough. Most of the major spot Bitcoin ETFs use the same custodian to hold their Bitcoin, which means a problem with that single institution could hit multiple funds at once. So, regulators have started paying attention to this, and investors probably should too.
What to Know Before You Invest Picking the right Bitcoin ETF is only half the equation. Position management is what separates investors who capture a bull cycle from those who give the gains back.
Macro events, ETF inflow data, and regulatory developments all feed directly into Bitcoin’s price, and keeping track of them gives you a real edge over investors who buy and walk away. Bitcoin rarely moves without reason, so knowing what’s driving it at any given moment beats holding and hoping.
So, pick a low-fee, liquid fund like IBIT or FBTC, size the position so a 30% drop won’t shake you out, and let the cycle do the rest.
