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Mar 31, 2024

Louisiana-Pacific Q1 2024 Earnings Report

Reported a strong first quarter of 2024 with increased sales and net income compared to the first quarter of 2023, and the company increased its second quarter and full year outlook for 2024.

Key Takeaways

LP Building Solutions reported a 24% increase in consolidated net sales to $724 million and a net income of $108 million for Q1 2024, driven by strong demand for Siding and OSB.

Siding net sales increased by 9% to $361 million.

Oriented Strand Board (OSB) net sales increased by 65% to $313 million.

Net income was $108 million, an increase of $85 million.

The company increased its second quarter and full-year outlook.

Total Revenue
$724M
Previous year: $584M
+24.0%
EPS
$1.53
Previous year: $0.34
+350.0%
OSB - Structural Solutions Sales
443M
Previous year: 327M
+35.5%
OSB - Commodity Sales Volume
415M
Previous year: 382M
+8.6%
Siding Solutions Sales Volume
399M
Previous year: 383M
+4.2%
Gross Profit
$213M
Previous year: $101M
+110.9%
Cash and Equivalents
$244M
Previous year: $126M
+93.7%
Free Cash Flow
$64M
Previous year: -$233M
-127.5%
Total Assets
$2.49B
Previous year: $2.26B
+10.1%

Louisiana-Pacific

Louisiana-Pacific

Louisiana-Pacific Revenue by Segment

Forward Guidance

The Company is providing financial guidance for the second quarter of 2024 and full year 2024.

Positive Outlook

  • Siding Net sales year-over-year growth: 20% to 25% (Q2 2024)
  • Siding Net sales year-over-year growth: 11% to 13% (Full Year 2024)
  • Siding Adjusted EBITDA: $95 million to $105 million (Q2 2024)
  • Siding Adjusted EBITDA: $340 million to $360 million (Full Year 2024)
  • OSB Adjusted EBITDA: $125 million to $135 million (Q2 2024)

Challenges Ahead

  • OSB Adjusted EBITDA is assumed to be at our cycle average run rate of $200 million per year for the third and fourth quarters of 2024.
  • LP South America Adjusted EBITDA fully offsets Corporate and Other Adjusted EBITDA.
  • Capital expenditures related to strategic growth and sustaining maintenance projects are expected to be between $50 million to $60 million
  • Capital expenditures related to strategic growth and sustaining maintenance projects are expected to be between $150 million to $160 million
  • Guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks

Revenue & Expenses

Visualization of income flow from segment revenue to net income