LPX Stock Gains on Q1 Earnings & Sales Beat, '25 Siding View Up

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].