Louisiana-Pacific (LPX) Q2 Earnings & Net Sales Beat, Up Y/Y

Core Viewpoint - Louisiana-Pacific Corporation (LPX) reported strong second-quarter 2024 results, with earnings and net sales exceeding expectations and showing year-over-year growth [1][4]. Performance Highlights - Adjusted earnings per share (EPS) reached $2.09, surpassing the Zacks Consensus Estimate of $1.86 by 12.4%, and increased 280% from the previous year's figure of 55 cents [4]. - Net sales totaled $814 million, exceeding the consensus estimate of $802 million by 1.5% and growing 33% year-over-year, driven by solid Siding and OSB sales [4]. - Adjusted EBITDA was $229 million, up 146.2% from the prior-year quarter, supported by higher OSB selling prices and reduced inflationary costs [5]. Segment Analysis - Siding: Sales increased 30% year-over-year to $415 million, with a 6% rise in average net selling price and a 22% increase in volume. Adjusted EBITDA rose 78% to $105 million [6]. - OSB: Sales surged 53% year-over-year to $351 million, driven by a 34% increase in OSB prices and higher shipment volumes. Adjusted EBITDA increased 239% to $125 million [7]. - LP South America (LPSA): Sales decreased 12% to $46 million due to lower average selling prices, with adjusted EBITDA dropping 17% to $10 million [8]. Financial Position - As of June 30, 2024, Louisiana-Pacific had $867 million in liquidity, with cash and cash equivalents at $317 million, up from $222 million at the end of 2023. Long-term debt remained stable at $347 million [9]. - Net cash provided by operations was $317 million, a significant increase from $30 million used in operating activities a year ago [9]. Share Repurchase Activity - During the second quarter, the company repurchased 1.2 million common shares for $102 million, leaving 71 million shares outstanding. An additional $64 million was spent on repurchasing 0.7 million shares after the quarter ended [10]. Future Outlook - For Q3, the company expects Siding Solutions' revenues to grow between 16-18% year-over-year and anticipates consolidated adjusted EBITDA in the range of $105-$125 million [11]. - The 2024 guidance for Siding Solutions' revenues has been revised to a growth range of 14-16%, up from the previous 11-13% [12]. - Consolidated adjusted EBITDA is now projected to be between $580-$620 million, down from the prior estimate of $655-$685 million [13].