Company Performance - Louisiana-Pacific (LPX) closed at $90.46, reflecting a +1.64% increase from the previous day, outperforming the S&P 500's gain of 0.38% [1] - Over the past month, LPX shares have decreased by 3.99%, underperforming the Construction sector's gain of 3.24% and the S&P 500's gain of 6.6% [1] Financial Projections - The upcoming earnings per share (EPS) for Louisiana-Pacific is projected to be $1.13, indicating a 45.93% decrease from the same quarter last year [2] - Revenue is expected to be $747.25 million, reflecting an 8.2% decline compared to the corresponding quarter of the previous year [2] - Full-year Zacks Consensus Estimates predict earnings of $4.38 per share and revenue of $2.93 billion, representing year-over-year changes of -25.51% and -0.49%, respectively [3] Analyst Estimates and Rankings - Recent changes in analyst estimates for Louisiana-Pacific are crucial as they often indicate shifts in near-term business trends [3] - The Zacks Rank system currently rates Louisiana-Pacific at 3 (Hold), with the consensus EPS estimate remaining stagnant over the past month [5] Valuation Metrics - Louisiana-Pacific is trading with a Forward P/E ratio of 20.32, which is lower than the industry average Forward P/E of 25.77 [6] - The company has a PEG ratio of 1.32, compared to the industry average PEG ratio of 2.41 [6] Industry Context - The Building Products - Wood industry, part of the Construction sector, holds a Zacks Industry Rank of 194, placing it in the bottom 22% of over 250 industries [7]

Core Viewpoint - Louisiana-Pacific (LPX) shares have increased by approximately 2.8% since the last earnings report, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Estimates Movement - Estimates for Louisiana-Pacific have trended downward over the past month, with the consensus estimate shifting down by 26.47% [2] VGM Scores - Louisiana-Pacific has a subpar Growth Score of D and a Momentum Score of F, while it holds a middle-tier Value Score of C, resulting in an overall aggregate VGM Score of D [3] Outlook - The downward trend in estimates indicates a negative outlook for Louisiana-Pacific, which currently holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4] Industry Performance - Louisiana-Pacific is part of the Zacks Building Products - Wood industry, where Rayonier (RYN) has shown no change in share price over the past month. Rayonier reported revenues of $82.9 million for the last quarter, reflecting a year-over-year decline of 50.7% [5] - Rayonier is projected to earn $0.03 per share for the current quarter, indicating a year-over-year increase of 50%, although the Zacks Consensus Estimate has decreased by 11.1% over the last 30 days. Rayonier also holds a Zacks Rank of 3 (Hold) and has a VGM Score of F [6]

Financial Data and Key Metrics Changes - The meeting confirmed that the appointment of Deloitte and Touche as the independent registered public accounting firm for 2025 has been ratified [11] - The compensation of named executive officers has been approved on an advisory basis [11] Business Line Data and Key Metrics Changes - No specific data or metrics related to individual business lines were provided in the meeting [12] Market Data and Key Metrics Changes - No specific market data or metrics were discussed during the meeting [12] Company Strategy and Development Direction and Industry Competition - The company continues to focus on maintaining strong governance and transparency through the election of directors and the approval of compensation policies [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed gratitude for stockholder support and emphasized the importance of ongoing engagement with stockholders [11] Other Important Information - The meeting was conducted digitally, allowing stockholders to participate via a web portal [3][4] - A quorum was confirmed with holders of 69,642,741 shares of common stock entitled to vote [6] Q&A Session All Questions and Answers Question: What is the status of the independent registered public accounting firm? - The appointment of Deloitte and Touche has been ratified for 2025 [11] Question: How was the compensation of named executive officers determined? - The Compensation Committee is responsible for determining compensation policies, and the advisory vote on compensation was approved [11]

Core Viewpoint - Louisiana-Pacific Corporation (LPX) reported better-than-expected first-quarter 2025 results, with adjusted earnings and net sales surpassing the Zacks Consensus Estimate, although the bottom line declined year-over-year while the top line remained flat [1][4]. Financial Performance - Adjusted earnings per share (EPS) were $1.27, exceeding the Zacks Consensus Estimate of $1.13 by 12.4%, down from $1.53 in the prior year [4]. - Net sales reached $724 million, surpassing the consensus mark of $693 million by 4.5%, remaining flat year-over-year [4]. - Adjusted EBITDA was $162 million, down 11% from the prior-year quarter, primarily due to lower OSB selling prices and volumes, partially offset by higher Siding net sales [5]. Segment Analysis - **Siding Segment**: Sales increased 11% year-over-year to $402 million, driven by a 9% rise in volume and a 2% increase in average selling prices. Adjusted EBITDA for this segment was $106 million, up 17% from the previous year [6][7]. - **OSB Segment**: Sales decreased 15% year-over-year to $267 million, with a $32 million drop in selling prices and a $13 million decline in sales volumes. Adjusted EBITDA fell 40% year-over-year to $54 million [8]. - **LP South America (LPSA)**: Sales grew 11% year-over-year to $52 million, with adjusted EBITDA increasing 22% to $12 million, largely due to higher sales volumes despite unfavorable currency fluctuations [9]. Cash Flow and Balance Sheet - As of March 31, 2025, the company had $1 billion in liquidity, with cash and cash equivalents at $256 million, down from $340 million at the end of 2024. Long-term debt remained flat at $348 million [10]. - Net cash provided by operations was $64 million compared to $105 million in the same period last year [10]. - The company repurchased 0.6 million shares for $61 million during the first quarter, with $177 million remaining under share repurchase authorizations [11]. Future Outlook - For Q2 2025, LPX expects Siding net sales to range between $445 million and $455 million, reflecting 9-11% growth year-over-year, with adjusted EBITDA between $110 million and $120 million [12]. - For the full year, Siding's net sales are anticipated to grow over 9%, reaching approximately $1.7 billion, with adjusted EBITDA expected between $425 and $435 million [14]. - Consolidated adjusted EBITDA is now projected to be between $535 million and $555 million, down from previous expectations [15].

Financial Performance - For the three months ended March 31, 2025, net income was $91 million, down from $108 million in the same period in 2024, representing a decrease of approximately 15.7%[83] - Adjusted EBITDA for the same period was $162 million, compared to $182 million in 2024, reflecting a decline of about 11%[83] - Cash provided by operations decreased to $64 million in Q1 2025 from $105 million in Q1 2024, primarily due to lower net income and changes in working capital[105] - Selling, general, and administrative expenses increased to $75 million in Q1 2025, up from $69 million in Q1 2024, driven by higher employee compensation and marketing expenses[99] - The company recognized an estimated tax provision of $26 million in Q1 2025, down from $41 million in Q1 2024[100] Segment Performance - Siding segment Adjusted EBITDA increased to $106 million in Q1 2025 from $90 million in Q1 2024, marking a growth of approximately 17.8%[83] - Siding segment net sales increased by 11% to $402 million in Q1 2025, with Adjusted EBITDA rising 17% to $106 million[92] - OSB segment net sales decreased by 15% to $267 million in Q1 2025, with Adjusted EBITDA falling 40% to $54 million[94] - LPSA segment net sales grew by 11% to $52 million in Q1 2025, with Adjusted EBITDA increasing 22% to $12 million[97] Market Trends - Single-family housing starts decreased by 5.4% to 228,000 units in Q1 2025 from 241,000 units in Q1 2024, while multi-family housing starts increased by 11.3% to 89,000 units[87] - Total sales volume for Siding Solutions increased to 445 million square feet (MMSF) in Q1 2025 from 411 MMSF in Q1 2024, an increase of about 8.3%[88] - OSB - Structural Solutions sales volume decreased to 549 MMSF in Q1 2025 from 573 MMSF in Q1 2024, a decline of approximately 4.2%[88] - Average net selling prices for Siding Solutions rose by 2%, while unit shipments increased by 9% in Q1 2025 compared to Q1 2024[93] - OSB - Structural Solutions experienced a 9% decline in average net selling prices and a 10% drop in unit shipments in Q1 2025[94] Operational Challenges - The company continues to face challenges related to material prices, supply disruptions, and labor issues, impacting overall financial performance[73] - The company estimates incremental costs of approximately $12 million in 2025 due to new or increased tariffs, primarily affecting the Siding segment[74] - Overall Equipment Effectiveness (OEE) for the Siding segment was 76% in Q1 2025, down from 78% in Q1 2024[90] Financial Position and Credit Facilities - Capital expenditures in 2025 are expected to be approximately $410 million, funded through cash on hand and operations[107] - The Amended Credit Agreement increased the credit facility from $550 million to $750 million, with no outstanding borrowings as of March 31, 2025[111] - As of March 31, 2025, there were no outstanding borrowings under the company's Amended Credit Facility, indicating no current exposure to interest rate changes[120] Currency and Commodity Exposure - The company has transactional foreign currency exposures primarily related to the U.S. dollar against the Canadian dollar, Brazilian real, Chilean peso, and Argentine peso[118] - The company has translation exposure from converting foreign subsidiary financial statements into U.S. dollars[118] - The most significant commodity product sold by the company is OSB, with no material changes to production capacity or price sensitivity disclosed[119] - The company has historically not engaged in currency rate hedges for operational exposure but may do so in the future[118] - The company has little control over the sales prices of its commodity products, which fluctuate daily based on market factors[119] - The company currently has no derivative or hedging arrangements related to interest rate changes[120]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $724 million, flat compared to the prior year, as 11% growth in Siding offset lower OSB prices [8][9] - EBITDA decreased by $20 million, primarily due to lower OSB prices impacting overall performance [9][20] - The Siding business achieved a 26% EBITDA margin in Q1, with expectations for similar performance in Q2 [10][22] Business Line Data and Key Metrics Changes - Siding revenue grew by 11% due to 9% higher volumes and 2% higher prices, outperforming single-family starts by 15 points [16] - OSB revenue and EBITDA were negatively impacted by lower commodity prices, resulting in a $32 million reduction in revenue and $13 million in EBITDA [20] - The Expert Finish product line set records for both volume and revenue in Q1, contributing positively to the overall Siding growth [18][86] Market Data and Key Metrics Changes - Single-family starts fell by 6% in Q1 due to economic volatility and unfavorable weather conditions [7] - The Siding order file remains robust, with expectations for a record second quarter [8][22] - Tariff impacts on EBITDA were approximately $2 million for Siding in Q1, with an anticipated $12 million impact for the full year if current tariffs persist [12][23] Company Strategy and Development Direction - The company is focused on expanding its Siding business and introducing specialized products to drive growth and margin expansion [10][14] - There is a strategic emphasis on product innovation and market share gains, particularly in the repair and remodel sector [50][56] - The company maintains a strong liquidity position with $1 billion available, allowing for flexibility in operations and potential tariff impacts [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Siding business despite macroeconomic challenges, noting strong order files and growth potential [15][24] - The company anticipates year-over-year revenue growth of 9% to 10% for Siding, with EBITDA margins around 26% [22][23] - Management remains cautious about OSB pricing and market dynamics, indicating a conservative approach to forecasting [22][66] Other Important Information - The company has expanded its revolving credit facility to $750 million, which remains undrawn [21] - New product launches, such as the Naturals Collection, have received positive customer feedback and are expected to contribute to future growth [11][52] Q&A Session Summary Question: Key drivers for Siding outperformance - Management noted strength across the entire order file, particularly in shed orders and the R&R sector, contributing to strong performance [26][28] Question: Inventory levels in the channel - Management indicated that home center inventories were normalizing, with seasonal levels appropriate for the spring [30][32] Question: Siding margin progression - Management expects some margin expansion in the second half of the year, with no significant inflationary impacts materializing [40][41] Question: OSB capacity and market dynamics - Management remains bullish on OSB long-term but acknowledges current market pressures due to excess capacity and weak demand [45][46] Question: Marketing investments and order file success - Management highlighted ongoing investments in marketing and product development as key drivers for order file strength [50][52] Question: Impact of competitor mergers on market share - Management expressed confidence in their market position and ongoing efforts to gain share, regardless of competitor activities [87][100] Question: Future growth in new residential market share - Management indicated a focus on gaining market share with larger builders, with growth expected to be incremental and program-based [108][111]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $724 million, flat compared to the prior year, with an 11% growth in Siding offsetting lower OSB prices [7][20] - EBITDA decreased by $20 million, primarily due to lower OSB prices impacting overall revenue [7][18] - The Siding business achieved a 26% EBITDA margin in Q1, with expectations for similar performance in Q2 [8][20] Business Line Data and Key Metrics Changes - Siding revenue grew by 11% due to a 9% increase in volumes and a 2% increase in prices, outperforming single-family starts by 15 points [15][20] - OSB revenue and EBITDA were negatively impacted by lower commodity prices, resulting in a $32 million reduction in revenue and a $7 million reduction in EBITDA [18][20] Market Data and Key Metrics Changes - Single-family starts fell by 6% in Q1 due to economic volatility and unfavorable weather conditions [5][6] - The Siding order file remains strong, with expectations for a record second quarter, indicating resilience despite market challenges [6][20] Company Strategy and Development Direction - The company is focused on expanding its Siding business, introducing new specialized products to drive growth and margin expansion [6][8] - Management emphasized the importance of product innovation and market share gains, particularly in the Siding segment, while maintaining a cautious approach to OSB due to current market conditions [12][44] Management's Comments on Operating Environment and Future Outlook - Management noted that while tariff uncertainties and commodity price fluctuations pose challenges, the Siding business is well-positioned for growth [11][20] - The company remains confident in its ability to mitigate tariff impacts and is focused on operational efficiency and product innovation [13][20] Other Important Information - The company has $1 billion in liquidity, providing flexibility to navigate market uncertainties [19] - A new product line, the Naturals Collection, was introduced, contributing to a positive mix effect on pricing [9][20] Q&A Session Summary Question: Key drivers for Siding outperformance - Management highlighted strength across the entire order file, particularly in shed orders and the R&R sector, contributing to strong performance [24][26] Question: Inventory levels in the channel - Management indicated that home center inventories were normalizing, with seasonal levels appropriate for the spring market [27][29] Question: Siding margin progression - Management expressed cautious optimism for margin expansion in the second half of the year, with expectations for continued growth [36][39] Question: OSB capacity and market dynamics - Management acknowledged current market pressures due to increased capacity and emphasized a long-term bullish outlook for OSB as housing recovers [42][44] Question: Impact of marketing investments on order file - Management noted that investments in marketing and product development are yielding positive results, particularly in the R&R sector [46][49] Question: Siding pricing outlook - Management implemented price increases in January, with expectations for slight year-over-year pricing improvement in Q2 [60][62] Question: Competitive landscape following a merger in Siding - Management remains confident in their market position and sees no immediate risks from competitor mergers, focusing on their growth strategy [83][84] Question: OSB project returns amid inflation concerns - Management confirmed that the Holton expansion project remains a priority, with expected returns still above the cost of capital despite inflationary pressures [71][73]

Company Performance - Louisiana-Pacific (LPX) reported quarterly earnings of $1.27 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, but down from $1.53 per share a year ago, representing an earnings surprise of 12.39% [1] - The company posted revenues of $724 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.50%, with year-ago revenues also at $724 million [2] - Over the last four quarters, Louisiana-Pacific has consistently surpassed consensus EPS estimates [2] Stock Outlook - The stock has underperformed the market, losing about 15.5% since the beginning of the year compared to the S&P 500's decline of 3.9% [3] - The current consensus EPS estimate for the coming quarter is $1.53 on revenues of $773.6 million, and for the current fiscal year, it is $4.99 on revenues of $2.95 billion [7] Industry Context - The Building Products - Wood industry, to which Louisiana-Pacific belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Louisiana-Pacific's stock performance [5]

May 6, 2025 FORWARD-LOOKING STATEMENTS Q1 2025 Earnings Presentation This presentation contains statements concerning Louisiana-Pacific Corporation's (LP) future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and assumptions of, and on information available to, our management; assumptions upon which such forward-looking statements are based are also forward-looking sta ...

Sales Performance - Siding net sales increased by $41 million (11%) to $402 million, driven by 9% higher volumes and 2% higher prices[5] - OSB net sales decreased by $46 million (15%) to $267 million, due to 11% lower prices and 4% lower volumes[9] - Consolidated net sales remained flat at $724 million[9] - Net sales for Q1 2025 remained flat at $724 million compared to Q1 2024[22] - Net sales for the Siding segment increased to $402 million in Q1 2025 from $361 million in Q1 2024, while OSB segment sales decreased to $267 million from $313 million[31] Income and Profitability - Net income decreased by $17 million to $91 million, with net income per diluted share at $1.30, a decrease of $0.18[10] - Net income for Q1 2025 was $91 million, a decrease of 15.7% from $108 million in Q1 2024[22] - Gross profit decreased to $197 million in Q1 2025, down from $214 million in Q1 2024, representing a decline of approximately 7.9%[22] - Adjusted income decreased to $89 million in Q1 2025 from $111 million in Q1 2024, with adjusted diluted EPS falling to $1.27 from $1.53[32] EBITDA and Key Performance Measures - Adjusted EBITDA was $162 million, a decrease of $20 million year-over-year[5] - Adjusted EBITDA decreased to $162 million in Q1 2025 from $182 million in Q1 2024, with Siding segment adjusted EBITDA increasing to $106 million from $90 million[32] - Adjusted EBITDA is reported as a key performance measure, reflecting the company's operational performance[20] Future Guidance - The company expects Siding net sales for Q2 2025 to be between $445 million and $455 million, representing 9-10% growth[6] - Full year 2025 Siding net sales guidance is approximately $1.7 billion, indicating over 9% growth[6] - Capital expenditures for full year 2025 are expected to be around $410 million[6] Liquidity and Capital Management - Total liquidity as of March 31, 2025, was $1.0 billion[5] - Cash and cash equivalents decreased to $256 million as of March 31, 2025, down from $340 million at the end of 2024[23] - The company repurchased $61 million of common stock in Q1 2025, compared to $13 million in Q1 2024[24] Market Indicators - Housing starts in the U.S. are monitored as a leading indicator of demand for the company's products[25] - Housing starts for single-family homes decreased to 228,000 in Q1 2025 from 241,000 in Q1 2024, while multi-family starts increased to 89,000 from 80,000[27] - The total number of housing starts reported by the U.S. Census Bureau for Q1 2025 was 317,000, slightly down from 321,000 in Q1 2024[27] Operational Efficiency - Overall equipment effectiveness (OEE) for Siding segment decreased to 76% in Q1 2025 from 78% in Q1 2024, and for LPSA segment decreased to 67% from 76%[30] - The company aims to optimize capital investments and improve overall equipment efficiency through OEE tracking across all sites[29] - The company monitors sales volumes in million square feet (MMSF) to identify changes in product demand and market opportunities[28]