In This Article:
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Net Sales: $724 million, flat compared to the prior year.
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EBITDA: Decreased by $20 million due to lower OSB prices.
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Siding Revenue Growth: 11% growth driven by 9% higher volumes and 2% higher prices.
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Siding EBITDA Margin: 26% in the first quarter.
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Tariff Impact on Siding EBITDA: $2 million in the first quarter.
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Cash Flow: Ending cash balance of $256 million.
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Liquidity: $1 billion, including an undrawn $750 million revolving credit facility.
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Capital Expenditures: $64 million invested in capital projects.
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Share Repurchases: $61 million spent on repurchasing shares.
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Dividends Paid: $20 million.
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Updated Siding Revenue Guidance: Full year revenue expected to be about $1.7 billion.
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Updated Siding EBITDA Guidance: Full year EBITDA expected between $425 million and $435 million.
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OSB Revenue Impact: $32 million reduction due to lower prices.
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OSB EBITDA Guidance: Full year EBITDA estimated between $110 million and $120 million.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Louisiana-Pacific Corp (NYSE:LPX)'s Siding business continues to grow, expand margins, gain share, and realize higher prices despite economic volatility.
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The company introduced new specialized products, such as the two-tone ExpertFinish products, which have received enthusiastic customer responses.
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Siding business delivered a 26% EBITDA margin in the first quarter, with expectations for similar performance in the second quarter.
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LPX has $1 billion in liquidity, providing flexibility to mitigate potential tariff impacts.
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The company is seeing strong order files and expects record volume and revenue for Siding in the second quarter.
Negative Points
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Tariff uncertainty has weakened consumer sentiment and contributed to a 6% decline in single-family starts in the first quarter.
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Commodity OSB prices have softened, leading to a $32 million reduction in revenue and EBITDA.
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The EBITDA impact of tariffs in the first quarter was about $2 million for Siding, with an expected $12 million impact for the full year if current tariffs persist.
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OSB segment experienced a mix shift from structural solutions to commodity, resulting in a net reduction of $13 million in revenue and $7 million in EBITDA.
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The company faces challenges from inflationary pressures and potential impacts on margins, particularly in the OSB segment.
Q & A Highlights
Q: Congrats on a strong quarter in Siding. Can you talk about the key drivers for this out-performance versus single-family starts? How is the R&R demand holding up? A: We saw strength across our entire order file, particularly in shed orders compared to last year. The R&R sector showed improvement, evidenced by the volumes of ExpertFinish sold. Our new construction and two-step distribution business also held up well.