Tuesday, May 6, 2025 8:00 am
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NASHVILLE, Tenn. (News release) -- Louisiana-Pacific Corporation (LP) (NYSE: LPX), a leading manufacturer of high-performance building products, today reported its financial results for the three months ended March 31, 2025.
Key Highlights for First Quarter 2025, Compared to First Quarter 2024
- Siding net sales increased by $41 million (11%) to $402 million
- Oriented Strand Board (OSB) net sales decreased by $46 million to $267 million
- Consolidated net sales remained flat at $724 million
- Net income was $91 million, a decrease of $17 million
- Net income per diluted share was $1.30 per share, a decrease of $0.18 per share
- Adjusted EBITDA(1) was $162 million, a decrease of $20 million
- Adjusted Diluted EPS(1) was $1.27 per diluted share, a decrease of $0.26 per diluted share
- Cash provided by operating activities was $64 million
| (1) |
This is a non-GAAP financial measure. See "Use of Non-GAAP Information," "Reconciliation of Net Income to Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income, and Non-GAAP Adjusted Diluted EPS" below. |
Capital Allocation Update
- Invested $64 million in capital expenditures during the first quarter
- Paid $61 million to repurchase 0.6 million of LP's common shares during the first quarter, leaving 70 million common shares outstanding and $177 million remaining under the pre-existing share repurchase authorizations as of March 31, 2025
- Paid $20 million in cash dividends during the first quarter
- Announces a quarterly cash dividend of $0.28 per share. The dividend will be payable June 3, 2025 to stockholders of record as of May 20, 2025.
- Total liquidity of $1.0 billion as of March 31, 2025
"LP's Siding business delivered 11% revenue growth and margin expansion in the first quarter," said LP Chairperson and Chief Executive Officer Brad Southern. "Despite tariff uncertainty and a slow start to the building season, LP's Siding order file is on pace for a record second quarter, driven by ExpertFinish growth, share gains in new residential construction, and a recovering shed market."
Outlook
The Company is providing financial guidance for the second quarter of 2025 and full year 2025 as set forth in the table below. Guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under "Forward-Looking Statements."
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Second Quarter 2025 |
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Full Year 2025 |
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Siding Net Sales Year-Over-Year Growth |
$445 million to $455 million (9-10% growth) |
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~$1.7B (>9% growth) |
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Siding Adjusted EBITDA(2) |
$110-120M (~26% margin3) |
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$425-435M (>25% margin3) |
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OSB Adjusted EBITDA(2)(4) |
$15 million to $25 million |
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$110 million to $120 million |
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Consolidated Adjusted EBITDA(2)(4)(5) |
$125 million to $145 million |
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$535 million to $555 million |
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Capital Expenditures(6) |
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~$410 million |
|
(2) |
This is a non-GAAP financial measure. Reconciliation of Siding Adjusted EBITDA, OSB Adjusted EBITDA, and consolidated Adjusted EBITDA guidance to the closest corresponding GAAP measure on a forward-looking basis is not available without unreasonable efforts. Our inability to reconcile these measures results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliation. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliation, such as business exit credits and charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, and other non-operating items, that would be required to be included in the comparable forecasted U.S. GAAP measures. The Company expects that these adjustments may potentially have a significant impact on future GAAP financial results. |
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(3) |
This is a non-GAAP financial measure and is calculated as Adjusted EBITDA divided by net sales. |
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(4) |
The second quarter and full year OSB EBITDA are based on the assumption that OSB prices published by Random Lengths remain unchanged from those published on May 2, 2025 (this is an assumption for modeling purposes and not a price forecast). |
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(5) |
For purposes of calculating the second quarter of 2025 and full year 2025 consolidated Adjusted EBITDA, LP South America Adjusted EBITDA fully offsets Corporate and Other Adjusted EBITDA. |
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(6) |
Capital expenditures related to strategic growth and sustaining maintenance projects are expected to be approximately $200 million and $210 million, respectively, for full year 2025. |
First Quarter 2025 Highlights
Net sales for the first quarter of 2025 remained flat at $724 million. Siding revenue increased by $41 million (or 11%), due to 9% higher volumes and 2% higher prices. OSB revenue decreased by $46 million (or 15%), driven by 11% lower prices and 4% lower volumes.
Net income decreased year-over-year by $17 million to $91 million ($1.30 per diluted share). The decrease primarily reflects a $20 million decrease in Adjusted EBITDA. The year-over-year decrease in Adjusted EBITDA includes $39 million due to lower OSB selling prices and volumes, partially offset by a $23 million impact from higher Siding net sales.
Segment Results
Siding
The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia, including LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions® (collectively referred to as Siding Solutions).
Segment sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
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Three Months Ended March 31, |
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2025 |
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2024 |
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% Change |
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Net sales |
$ |
402 |
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$ |
361 |
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11 |
% |
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Adjusted EBITDA |
|
106 |
|
|
90 |
|
17 |
% |
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Three Months Ended March 31, 2025 versus 2024 |
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Average Net Selling Price |
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Unit Shipments |
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Siding Solutions |
2 |
% |
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9 |
% |
Strong order files and price realization resulted in higher net sales versus prior year. ExpertFinish products accounted for 10% of volume and 15% of net sales in the three months ended March 31, 2025, contributing to this favorable mix. The increase in Adjusted EBITDA of $16 million reflects the impacts of the net sales increase offset by investments in sales and marketing and $2 million of tariff impact.
OSB
The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP® Structural Solutions (which includes LP® TechShield® Radiant Barrier, LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, LP NovaCore® Thermal Insulated Sheathing, LP® FlameBlock® Fire-Rated Sheathing, and LP® TopNotch® 350 Durable Sub-Flooring).
Segment sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
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Three Months Ended March 31, |
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2025 |
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2024 |
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% Change |
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Net sales |
$ |
267 |
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$ |
313 |
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(15 |
)% |
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Adjusted EBITDA |
|
54 |
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|
90 |
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(40 |
)% |
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Three Months Ended March 31, 2025 versus 2024 |
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Average Net Selling Price |
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Unit Shipments |
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OSB - Structural Solutions |
(9 |
)% |
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(10 |
)% |
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OSB - commodity |
(13 |
)% |
|
3 |
% |
First quarter 2025 net sales for the OSB segment decreased year-over-year by $46 million (or 15%), reflecting a $32 million decrease from lower OSB selling prices and a $13 million decrease in sales volumes.
Adjusted EBITDA for the three months ended March 31, 2025 decreased year-over-year by $36 million, primarily reflecting the impact of lower OSB prices and volumes.
LPSA
The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region's transition to wood frame construction. The LPSA segment carries out manufacturing operations in Chile and Brazil and operates sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.
Segment sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
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Three Months Ended March 31, |
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|
2025 |
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2024 |
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% Change |
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Net sales |
$ |
52 |
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$ |
47 |
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11 |
% |
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Adjusted EBITDA |
|
12 |
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|
10 |
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22 |
% |
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Three Months Ended March 31, 2025 versus 2024 |
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Average Net Selling Price |
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Unit Shipments |
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OSB - Structural Solutions |
(1 |
)% |
|
17 |
% |
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Siding |
6 |
% |
|
(2 |
)% |
The year-over-year net sales and Adjusted EBITDA increases for the three months ended March 31, 2025 reflect higher sales volumes offset by unfavorable currency fluctuations.