Financial Performance - Q2 2025 vs Q2 2024 - Net sales decreased by 7% from $814 million to $755 million[14, 34] - Adjusted EBITDA decreased by $(87) million from $229 million to $142 million[14, 35] - Adjusted EPS decreased by $(1.10) from $2.09 to $0.99[14, 36] Segment Performance - Siding - Siding Solutions sales increased by 11%[14] - Siding net sales increased from $415 million to $460 million[22, 37] - Siding adjusted EBITDA increased from $105 million to $125 million[21, 37] Segment Performance - OSB - OSB price impact decreased by $(102) million[14] - OSB net sales decreased from $351 million to $250 million, a (30)% decrease[25, 37] - OSB adjusted EBITDA decreased from $125 million to $19 million[25, 37] Cash Flow - Operating cash flow decreased from $212 million to $162 million[14, 27] - Capital expenditures increased from $36 million to $68 million[14, 27] - The company returned $19 million to shareholders[14] 2025 Guidance - Siding revenue is expected to be approximately $430 million in Q3 2025, representing approximately 3% growth[28] - Full year siding revenue is projected to be approximately $1.7 billion, representing approximately 9% growth[28] - Full year total LP adjusted EBITDA is expected to be approximately $405 million[28]

Financial Data and Key Metrics Changes - West Fraser generated $84 million of adjusted EBITDA in Q2 2025, representing an approximate 6% margin, continuing to operate within a cyclical downturn [4] - The company exited Q2 with nearly $1.7 billion of available liquidity and a strong cash position net of debts [5][6] - Cash flow from operations was $85 million in Q2, with a net cash balance of $310 million, up from $156 million in the prior quarter [9] Business Line Data and Key Metrics Changes - The lumber segment posted adjusted EBITDA of $15 million in Q2, down from $66 million in Q1, primarily due to lower pricing and higher fiber costs [8] - The North America EWP segment generated $68 million of adjusted EBITDA in Q2, down from $125 million in Q1, driven by lower OSB pricing [8] - The Pulp and Paper segment generated negative $1 million of adjusted EBITDA in Q2, compared to $7 million in Q1, largely due to an inventory write-down [8] - The European business posted $2 million of adjusted EBITDA in Q2, improving from negative $2 million in Q1, linked to higher OSB pricing and shipments [8] Market Data and Key Metrics Changes - U.S. housing starts averaged 1,320,000 units on a seasonally adjusted basis in Q2, reflecting a decline in new home construction due to elevated mortgage and interest rates [4] - Repair and remodeling demand remained subdued, impacted by broader macro factors [5] Company Strategy and Development Direction - The company aims to maintain a strong balance sheet and liquidity profile, allowing for counter-cyclical investments and growth opportunities [6] - West Fraser is focused on controlling costs and optimizing its mill portfolio to create a more resilient company [13] - The company is prepared to support discussions regarding softwood lumber tariffs and is actively scenario planning for various trade-related outcomes [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges with housing affordability and repair and remodeling markets, leading to modified shipment guidance for 2025 [10] - The company remains optimistic about the longer-term prospects for the industry despite a cloudy near-term outlook due to global trade complexities [17] Other Important Information - The U.S. Department of Commerce released preliminary combined rates for softwood lumber duties at 26.05%, which could result in an expense of $65 million if confirmed [12] - The company successfully amended and extended its $1 billion credit facility and increased its $300 million term loan [9] Q&A Session Summary Question: What have you learned about the substitutability between SPF and SYP? - Management noted that price spreads between products tend to close during high demand and separate during low demand, driven by supply and demand dynamics [20][21] Question: What are your views on a possible lumber export quota? - Management indicated that all options are on the table for discussions regarding lumber and that they are prepared to support the government in these discussions [24][25] Question: Are you cash flow positive in the North American lumber and OSB business? - Management refrained from discussing specific segment cash flow but emphasized the strength of their diversified product portfolio and counter-cyclical investments [27][29] Question: What do you need to do to improve the European business? - Management expressed confidence in their European assets and team, noting that they are well-positioned for recovery as demand improves [47][49] Question: What is the M&A opportunity set looking like? - Management stated they are ready to acquire quality assets if they become available, emphasizing a focus on quality and synergies rather than opportunistic purchases [68][70]

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 ...