Core Viewpoint - Louisiana-Pacific (LPX) reported quarterly earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, but down from $2.09 per share a year ago, indicating a significant decline in profitability [1][2] Financial Performance - The company achieved revenues of $755 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.34%, although this is a decrease from $814 million in the same quarter last year [2] - Over the last four quarters, Louisiana-Pacific has consistently surpassed consensus EPS estimates [2] Stock Performance and Outlook - Louisiana-Pacific shares have declined approximately 8.3% year-to-date, contrasting with the S&P 500's gain of 7.1% [3] - The company's earnings outlook is uncertain, with current consensus EPS estimates at $0.95 for the upcoming quarter and $3.79 for the current fiscal year [7] Industry Context - The Building Products - Wood industry, to which Louisiana-Pacific belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8]

Q2 2025 Earnings Overview [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Highlights%20for%20Second%20Quarter%202025) LP Building Solutions reported a decrease in consolidated net sales and net income for Q2 2025 compared to Q2 2024, primarily due to challenges in the OSB market, despite strong growth in the Siding segment Key Financial Highlights (Q2 2025 vs. Q2 2024) ($ Millions): | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------- | :------ | :------ | :----- | | Siding Net Sales | $460 | $415 | +$45 (11%) | | OSB Net Sales | $250 | $351 | -$101 | | Consolidated Net Sales | $755 | $815 | -$60 | | Net Income | $54 | $160 | -$106 | | Net Income per Diluted Share | $0.77 | $2.23 | -$1.46 | | Adjusted EBITDA | $142 | $228 | -$86 | | Adjusted Diluted EPS | $0.99 | $2.09 | -$1.10 | - Cash provided by operating activities was **$162 million** in Q2 2025[2](index=2&type=chunk) [Capital Allocation](index=1&type=section&id=Capital%20Allocation%20Update) LP invested $68 million in capital expenditures and paid $19 million in cash dividends during Q2 2025, while maintaining strong liquidity. A quarterly cash dividend of $0.28 per share was announced - Invested **$68 million** in capital expenditures during Q2 2025[3](index=3&type=chunk) - Paid **$19 million** in cash dividends during Q2 2025[3](index=3&type=chunk) - Announced a quarterly cash dividend of **$0.28 per share** payable on August 29, 2025[3](index=3&type=chunk) - Total liquidity was **$1.1 billion** as of June 30, 2025[3](index=3&type=chunk) Outlook [Financial Guidance](index=2&type=section&id=Financial%20Guidance) LP provided financial guidance for the third quarter and full year 2025, projecting continued growth in Siding net sales and Adjusted EBITDA, while anticipating negative Adjusted EBITDA for OSB due to market conditions Financial Guidance (Third Quarter 2025) ($ Millions): | Metric | Value | | :-------------------------------- | :-------------------- | | Siding Net Sales Year-Over-Year Growth | ~$430 (~3% growth) | | Siding Adjusted EBITDA | ~$110 (~26% margin) | | OSB Adjusted EBITDA | ~$(45) | | Consolidated Adjusted EBITDA | ~$65 | Financial Guidance (Full Year 2025) ($ Millions): | Metric | Value | | :-------------------------------- | :-------------------- | | Siding Net Sales Year-Over-Year Growth | ~$1.7B (~9% growth) | | Siding Adjusted EBITDA | ~$430 (~25% margin) | | OSB Adjusted EBITDA | ~$(25) | | Consolidated Adjusted EBITDA | ~$405 | | Capital Expenditures | ~$350 | - Full year 2025 capital expenditures are expected to be approximately **$180 million** for strategic growth and **$170 million** for sustaining maintenance projects[6](index=6&type=chunk) Detailed Financial Review [Second Quarter 2025 Performance](index=2&type=section&id=Second%20Quarter%202025%20Highlights) Consolidated net sales decreased by $60 million to $755 million, primarily due to a $101 million decline in OSB revenue driven by lower prices. Siding revenue, however, increased by $45 million (11%) due to higher volumes and prices. Net income decreased significantly by $106 million to $54 million, impacted by lower Adjusted EBITDA, asset impairments, and reorganization costs - Consolidated net sales decreased by **$60 million** to **$755 million** compared to the prior-year period[7](index=7&type=chunk) - Siding revenue increased by **$45 million (11%)**, driven by **8% higher volumes** and **2% higher prices**[7](index=7&type=chunk) - OSB revenue decreased by **$101 million**, primarily due to a decline in prices[7](index=7&type=chunk) - Net income decreased year-over-year by **$106 million** to **$54 million** (**$0.77 per diluted share**), reflecting an **$86 million decrease in Adjusted EBITDA**, **$17 million in asset impairments**, and **$3 million in reorganization costs**[8](index=8&type=chunk) [First Six Months of 2025 Performance](index=2&type=section&id=First%20Six%20Months%20of%202025%20Highlights) For the first six months of 2025, consolidated net sales decreased by $60 million to $1.5 billion. Siding revenue grew by $86 million (11%), while OSB revenue declined by $147 million due to lower prices and volumes. Net income decreased by $123 million to $145 million, mainly reflecting a $106 million decrease in Adjusted EBITDA and impairment charges - Consolidated net sales for the first six months of 2025 decreased year-over-year by **$60 million** to **$1.5 billion**[9](index=9&type=chunk) - Siding revenue increased by **$86 million (11%)**, due to **9% higher volumes** and **2% higher prices**[9](index=9&type=chunk) - OSB revenue decreased by **$147 million**, driven by lower prices and a slight decline in volumes[9](index=9&type=chunk) - Net income decreased year-over-year by **$123 million** to **$145 million** (**$2.07 per diluted share**), primarily reflecting a **$106 million decrease in Adjusted EBITDA**, **$17 million of impairment charges**, and **$5 million in reorganization costs**[10](index=10&type=chunk) Segment Performance Analysis [Siding Segment](index=2&type=section&id=Siding) The Siding segment demonstrated strong growth, with net sales increasing by 11% for both the three and six months ended June 30, 2025, driven by higher sales volumes and selling prices. Adjusted EBITDA also saw significant increases, despite strategic investments and tariff expenses Siding Segment Performance (Three Months Ended June 30) ($ Millions): | Metric | 2025 | 2024 | % Change | | :---------------- | :----- | :----- | :------- | | Net sales | $460 | $415 | 11 % | | Adjusted EBITDA | $125 | $105 | 19 % | | Average Net Selling Price | | | 2 % | | Unit Shipments | | | 8 % | Siding Segment Performance (Six Months Ended June 30) ($ Millions): | Metric | 2025 | 2024 | % Change | | :---------------- | :----- | :----- | :------- | | Net sales | $862 | $776 | 11 % | | Adjusted EBITDA | $230 | $195 | 18 % | | Average Net Selling Price | | | 2 % | | Unit Shipments | | | 9 % | - ExpertFinish net sales increased by **17%** for the three months and **20%** for the six months ended June 30, 2025[12](index=12&type=chunk) [OSB Segment](index=3&type=section&id=OSB) The OSB segment experienced significant declines in both net sales and Adjusted EBITDA for the three and six months ended June 30, 2025, primarily due to lower OSB prices OSB Segment Performance (Three Months Ended June 30) ($ Millions): | Metric | 2025 | 2024 | % Change | | :------------------------------------ | :----- | :----- | :------- | | Net sales | $250 | $351 | (29)% | | Adjusted EBITDA | $19 | $125 | (85)% | | OSB - Structural Solutions Average Net Selling Price | | | (27)% | | OSB - commodity Average Net Selling Price | | | (33)% | OSB Segment Performance (Six Months Ended June 30) ($ Millions): | Metric | 2025 | 2024 | % Change | | :------------------------------------ | :----- | :----- | :------- | | Net sales | $517 | $664 | (22)% | | Adjusted EBITDA | $73 | $215 | (66)% | | OSB - Structural Solutions Average Net Selling Price | | | (19)% | | OSB - commodity Average Net Selling Price | | | (23)% | - Decreases in net sales and Adjusted EBITDA were primarily driven by **lower OSB prices**[14](index=14&type=chunk)[15](index=15&type=chunk) [LPSA Segment](index=3&type=section&id=LPSA) The LPSA segment saw a slight decline in Q2 2025 net sales and Adjusted EBITDA due to lower OSB prices. However, for the first six months of 2025, net sales and Adjusted EBITDA increased, driven by higher Siding volume and prices, partially offset by lower OSB prices LPSA Segment Performance (Three Months Ended June 30) ($ Millions): | Metric | 2025 | 2024 | % Change | | :---------------- | :----- | :----- | :------- | | Net sales | $43 | $46 | (7)% | | Adjusted EBITDA | $9 | $10 | (13)% | LPSA Segment Performance (Six Months Ended June 30) ($ Millions): | Metric | 2025 | 2024 | % Change | | :---------------- | :----- | :----- | :------- | | Net sales | $95 | $93 | 2 % | | Adjusted EBITDA | $21 | $20 | 4 % | - The Q2 decline was primarily due to **lower OSB prices**[17](index=17&type=chunk) - The YTD increase was driven by **higher Siding volume and prices**, partially offset by **lower OSB prices**[18](index=18&type=chunk) Company Information & Disclosures [Conference Call Details](index=4&type=section&id=Conference%20Call) LP held a conference call on August 6, 2025, at 11 a.m. ET to discuss the Q2 2025 results. A recorded webcast and presentation are available on the investor relations website - Conference call held on August 6, 2025, at **11 a.m. Eastern Time**[19](index=19&type=chunk) - Recorded webcast and accompanying presentation are available at investor.lpcorp.com[19](index=19&type=chunk) [About LP Building Solutions](index=4&type=section&id=About%20LP%20Building%20Solutions) Louisiana-Pacific Corporation (LP Building Solutions) is a leading manufacturer of high-performance engineered wood products, including Siding Solutions, Structural Solutions, and Oriented Strand Board. Founded in 1972 and headquartered in Nashville, Tennessee, LP operates over 20 manufacturing facilities globally - LP manufactures engineered wood products for builders, remodelers, and homeowners worldwide[20](index=20&type=chunk) - Product portfolio includes Siding Solutions, LP Structural Solutions, and LP Oriented Strand Board[20](index=20&type=chunk) - Founded in **1972**, headquartered in Nashville, Tennessee, operating over **20 manufacturing facilities** across the U.S., Canada, Chile, and Brazil[20](index=20&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines that the news release contains forward-looking statements subject to various risks and uncertainties, including changes in economic conditions, commodity prices, interest rates, and regulatory policies. LP disclaims any obligation to update these statements - The news release contains forward-looking statements based on management's beliefs and assumptions[21](index=21&type=chunk) - Factors that could cause actual results to differ materially include changes in governmental policies, economic conditions, commodity prices, capital costs, housing market activity, competition, raw material costs, energy and transportation costs, and geopolitical conflicts[21](index=21&type=chunk)[22](index=22&type=chunk) - LP undertakes no obligation to update any forward-looking statements to reflect new information, subsequent events, or circumstances, except as required by law[23](index=23&type=chunk) [Use of Non-GAAP Information](index=5&type=section&id=Use%20of%20Non-GAAP%20Information) LP uses non-GAAP financial measures like Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS to provide additional insights into performance, believing they offer meaningful comparisons. These measures are not defined by U.S. GAAP and may not be comparable to similarly titled measures from other companies - Non-GAAP financial measures (Adjusted EBITDA, Adjusted Income, Adjusted Diluted EPS) are used to provide additional meaningful comparison to prior reported results[24](index=24&type=chunk) - Adjusted EBITDA excludes items such as interest expense, income taxes, depreciation, amortization, stock-based compensation, and impairment losses[24](index=24&type=chunk) - These non-GAAP measures are not substitutes for U.S. GAAP measures and may not be comparable to similarly titled measures reported by other companies[25](index=25&type=chunk)[26](index=26&type=chunk) Consolidated Financial Statements [Condensed Consolidated Statements of Income](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(UNAUDITED)) The condensed consolidated statements of income show a significant year-over-year decline in net sales, gross profit, and net income for both the three and six months ended June 30, 2025, primarily driven by increased cost of sales and impairment losses Condensed Consolidated Statements of Income (Amounts in Millions, Except Per Share Amounts): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $755 | $814 | $1,478 | $1,539 | | Gross profit | $178 | $263 | $375 | $477 | | Income from operations | $80 | $194 | $200 | $339 | | Net income | $54 | $160 | $145 | $267 | | Diluted EPS | $0.77 | $2.23 | $2.07 | $3.71 | - Loss on impairment was **$17 million** for both the three and six months ended June 30, 2025[27](index=27&type=chunk) [Condensed Consolidated Balance Sheet](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET%20(UNAUDITED)) As of June 30, 2025, LP's total assets increased slightly to $2,656 million compared to December 31, 2024, with an increase in current assets, property, plant, and equipment. Total liabilities also increased, while stockholders' equity grew to $1,742 million Condensed Consolidated Balance Sheet (Amounts in Millions): | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Total current assets | $895 | $855 | | Property, plant, and equipment, net | $1,639 | $1,592 | | Total assets | $2,656 | $2,569 | | Total current liabilities | $315 | $299 | | Long-term debt | $348 | $348 | | Total liabilities | $914 | $899 | | Total stockholders' equity | $1,742 | $1,671 | [Condensed Consolidated Statements of Cash Flow](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOW%20(UNAUDITED)) Cash provided by operating activities decreased for both the three and six months ended June 30, 2025, compared to the prior year. Investing activities saw a significant increase in property, plant, and equipment additions, leading to higher net cash used in investing. Financing activities also used less cash due to reduced stock repurchases Condensed Consolidated Statements of Cash Flow (Amounts in Millions) - Three Months Ended June 30: | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net cash provided by operating activities | $162 | $212 | | Net cash used in investing activities | $(68) | $(20) | | Net cash used in financing activities | $(17) | $(118) | | Cash, cash equivalents, and restricted cash at end of period | $333 | $317 | Condensed Consolidated Statements of Cash Flow (Amounts in Millions) - Six Months Ended June 30: | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net cash provided by operating activities | $226 | $317 | | Net cash used in investing activities | $(132) | $(61) | | Net cash used in financing activities | $(105) | $(157) | | Cash, cash equivalents, and restricted cash at end of period | $333 | $317 | - Property, plant, and equipment additions increased significantly to **$68 million** in Q2 2025 (from $36 million in Q2 2024) and **$132 million** YTD 2025 (from $77 million YTD 2024)[29](index=29&type=chunk) Key Performance Indicators [Housing Starts](index=10&type=section&id=Housing%20starts) U.S. housing starts, particularly single-family, showed a slight decrease for both the three and six months ended June 30, 2025, compared to the prior year, while multi-family starts increased Housing Starts (in thousands): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Single-Family | 257 | 281 | 486 | 522 | | Multi-Family | 109 | 89 | 198 | 169 | | Total | 367 | 370 | 684 | 692 | - Housing starts are a leading external indicator of residential construction in the United States that correlates with the demand for many of LP's products[31](index=31&type=chunk) [Sales Volumes](index=10&type=section&id=Sales%20Volume) Siding Solutions sales volumes increased for both the three and six months ended June 30, 2025. OSB Structural Solutions volumes slightly decreased, while OSB commodity volumes increased for both periods Sales Volume (in MMSF) - Three Months Ended June 30: | Sales Volume | Siding | OSB | LPSA | Total | | :---------------------- | :----- | :---- | :--- | :---- | | Siding Solutions (2025) | 498 | — | 7 | 505 | | Siding Solutions (2024) | 459 | — | 6 | 465 | | OSB - Structural Solutions (2025) | — | 450 | 128 | 578 | | OSB - Structural Solutions (2024) | — | 452 | 136 | 588 | | OSB - commodity (2025) | — | 430 | — | 430 | | OSB - commodity (2024) | — | 415 | — | 415 | Sales Volume (in MMSF) - Six Months Ended June 30: | Sales Volume | Siding | OSB | LPSA | Total | | :---------------------- | :----- | :---- | :--- | :---- | | Siding Solutions (2025) | 932 | — | 19 | 950 | | Siding Solutions (2024) | 858 | — | 18 | 876 | | OSB - Structural Solutions (2025) | — | 848 | 279 | 1,127 | | OSB - Structural Solutions (2024) | — | 895 | 266 | 1,161 | | OSB - commodity (2025) | — | 856 | — | 856 | | OSB - commodity (2024) | — | 830 | — | 830 | [Overall Equipment Effectiveness (OEE)](index=11&type=section&id=Overall%20Equipment%20Effectiveness%20(OEE)) OEE for the Siding and OSB segments showed slight improvements in Q2 2025 compared to Q2 2024, while LPSA's OEE decreased. Year-to-date OEE remained stable for Siding and OSB, but declined for LPSA OEE by Segment: | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Siding | 78 % | 77 % | 78 % | 78 % | | OSB | 79 % | 78 % | 77 % | 78 % | | LPSA | 70 % | 76 % | 68 % | 76 % | - OEE is a composite metric that considers asset uptime, production rates, and finished product quality to track improvements in manufacturing asset utilization and productivity[34](index=34&type=chunk) Selected Segment Sales Data [Net Sales by Business Segment](index=12&type=section&id=Net%20Sales%20by%20Business%20Segment) This section provides a consolidated view of net sales by business segment, reinforcing the trends observed in the detailed segment results, with Siding sales increasing and OSB sales decreasing Net Sales by Business Segment (Amounts in Millions): | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Siding | $460 | $415 | $862 | $776 | | OSB | $250 | $351 | $517 | $664 | | LPSA | $43 | $46 | $95 | $93 | | Other | $2 | $2 | $4 | $5 | | Total Sales | $755 | $814 | $1,478 | $1,539 | Non-GAAP Reconciliations [Reconciliation of Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Non-GAAP%20Adjusted%20EBITDA,%20Non-GAAP%20Adjusted%20Income,%20and%20Non-GAAP%20Adjusted%20Diluted%20EPS) This section provides detailed reconciliations of net income to non-GAAP Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS for both the three and six months ended June 30, 2025 and 2024, showing the adjustments made from GAAP figures Reconciliation of Net Income to Adjusted EBITDA (Amounts in Millions): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $54 | $160 | $145 | $267 | | Provision for income taxes | $19 | $53 | $45 | $94 | | Depreciation and amortization | $36 | $31 | $70 | $62 | | Loss on impairment | $17 | — | $17 | — | | Adjusted EBITDA | $142 | $229 | $304 | $411 | Segment Adjusted EBITDA (Amounts in Millions): | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Siding | $125 | $105 | $230 | $195 | | OSB | $19 | $125 | $73 | $215 | | LPSA | $9 | $10 | $21 | $20 | | Other | $(10) | $(11) | $(20) | $(19) | | Total Adjusted EBITDA | $142 | $229 | $304 | $411 | Reconciliation of Net Income to Adjusted Income and Adjusted Diluted EPS (Amounts in Millions, except per share): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $54 | $160 | $145 | $267 | | Loss on impairment | $17 | — | $17 | — | | Reported tax provision | $19 | $53 | $45 | $94 | | Adjusted Income | $69 | $150 | $158 | $261 | | Adjusted Diluted EPS | $0.99 | $2.09 | $2.26 | $3.62 |

Company Performance - Louisiana-Pacific (LPX) closed at $88.56, with a daily increase of 1.4%, outperforming the S&P 500's gain of 0.54% [1] - Over the past month, LPX's stock has risen by 0.94%, which is below the Construction sector's gain of 4.35% and the S&P 500's gain of 4.2% [1] Upcoming Earnings - The upcoming earnings report for Louisiana-Pacific is scheduled for August 6, 2025, with projected EPS of $1.03, indicating a 50.72% decline from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is $727.7 million, reflecting a 10.6% decrease from the previous year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $4.08 per share and revenue of $2.82 billion, representing declines of 30.61% and 4.03%, respectively, compared to the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Louisiana-Pacific indicate changing near-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations [4] Zacks Rank - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Louisiana-Pacific at 5 (Strong Sell), with a consensus EPS projection that has decreased by 6.85% in the past 30 days [6] Valuation Metrics - Louisiana-Pacific has a Forward P/E ratio of 21.41, which is lower than the industry average Forward P/E of 28.8 [7] - The company has a PEG ratio of 1.39, compared to the Building Products - Wood industry's average PEG ratio of 2.59 [7] Industry Context - The Building Products - Wood industry, part of the Construction sector, holds a Zacks Industry Rank of 229, placing it in the bottom 8% of over 250 industries [8]

Company Performance - Louisiana-Pacific (LPX) stock closed at $92.91, reflecting a -3.7% change from the previous day's closing price, underperforming the S&P 500, which had a daily loss of 0.33% [1] - Over the past month, LPX shares gained 6.65%, outperforming the Construction sector's gain of 5.56% and the S&P 500's gain of 4.07% [1] Earnings Estimates - Louisiana-Pacific is expected to release earnings on August 6, 2025, with a predicted EPS of $1.06, indicating a 49.28% decline compared to the same quarter last year [2] - The consensus estimate for revenue is $747.25 million, reflecting an 8.2% decrease from the same quarter last year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $4.17 per share and revenue of $2.93 billion, representing changes of -29.08% and -0.49% from the prior year, respectively [3] - Recent analyst estimate revisions indicate evolving short-term business trends, with positive revisions reflecting optimism about business and profitability [3][4] Zacks Rank and Valuation - Louisiana-Pacific currently holds a Zacks Rank of 4 (Sell), with a consensus EPS projection moving 4.74% lower in the past 30 days [5] - The company is trading at a Forward P/E ratio of 23.12, which is a discount compared to the industry average Forward P/E of 29.32 [6] - LPX has a PEG ratio of 1.5, compared to the Building Products - Wood industry's average PEG ratio of 2.71 [6] Industry Context - The Building Products - Wood industry, part of the Construction sector, has a Zacks Industry Rank of 205, placing it in the bottom 18% of all industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Louisiana-Pacific (LPX) shares decreased by 2.5% to $89.48, underperforming the S&P 500's daily loss of 0.79% [1] - Over the past month, LPX shares appreciated by 0.07%, lagging behind the Construction sector's gain of 5.56% and the S&P 500's gain of 5.22% [1] Earnings Projections - The upcoming EPS for Louisiana-Pacific is projected at $1.08, indicating a 48.33% decline compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is $747.25 million, down 8.2% from the previous year [2] - For the full year, analysts expect earnings of $4.24 per share and revenue of $2.93 billion, reflecting changes of -27.89% and -0.49% respectively from last year [3] Analyst Estimates and Rankings - Recent changes in analyst estimates for Louisiana-Pacific are crucial as they reflect short-term business dynamics [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Louisiana-Pacific at 3 (Hold) [6] - Over the past month, there has been a 3.31% decline in the Zacks Consensus EPS estimate [6] Valuation Metrics - Louisiana-Pacific is trading at a Forward P/E ratio of 21.67, which is lower than the industry average Forward P/E of 28.22 [7] - The company has a PEG ratio of 1.41, compared to the Building Products - Wood industry's average PEG ratio of 2.49 [7] Industry Overview - The Building Products - Wood industry is part of the Construction sector and holds a Zacks Industry Rank of 90, placing it in the top 37% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1 - Louisiana-Pacific (LPX) is primarily a manufacturing business focused on building materials, which may appear unremarkable at first glance [1] - Warren Buffett holds approximately 8% of LPX through Berkshire Hathaway, indicating a level of confidence in the company's potential [1] - The company has received minimal media attention despite its significant backing and potential investment opportunities [1] Group 2 - The author identifies as a German value investor, emphasizing a strategy of investing in companies with a high margin of safety and below intrinsic value [1] - The investment portfolio is concentrated, typically consisting of 8-12 companies, with a preference for small, underfollowed public companies [1] - A contrarian view is presented, suggesting that risk and return can be inversely correlated, leading to larger bets when the risk/reward ratio is favorable [1]

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].