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Jun 30, 2023
Louisiana-Pacific Q2 2023 Earnings Report
Reported a decrease in net sales and net income due to lower OSB prices and sales volumes, partially offset by higher siding prices.
Key Takeaways
LP Building Solutions reported a decrease in net sales by 46% to $611 million and a net loss of $20 million for Q2 2023, compared to a net income of $384 million in Q2 2022. The decrease was primarily driven by lower OSB prices and sales volumes, although siding prices increased. Adjusted EBITDA decreased to $93 million from $491 million year-over-year, and adjusted diluted EPS decreased to $0.55 per share from $4.19 per share.
Siding Solutions net sales decreased by 11% to $318 million due to lower volumes partially offset by higher prices.
Oriented Strand Board (OSB) net sales decreased by 66% to $229 million, primarily due to lower prices.
Consolidated net sales decreased by 46% to $611 million.
Income attributed to LP from continuing operations decreased by $367 million to $(20) million.
Revenue by Segment
Forward Guidance
LP provided guidance for the full year 2023 and the third quarter of 2023 based on current plans and expectations.
Positive Outlook
- OSB third quarter 2023 revenue is expected to be sequentially higher than the second quarter 2023 by at least 50%, assuming that OSB prices published by Random Lengths remain unchanged from those published on July 28, 2023.
- Under these assumptions, third quarter 2023 Adjusted EBITDA is expected to be in the range of $160 million and $180 million.
Challenges Ahead
- Siding Solutions full year 2023 revenue is expected to decrease year-over-year by approximately 10%.
- Capital expenditures for 2023 are expected to be in the range of $290 million to $310 million, including $120 million to $130 million for mill conversions, $120 million to $125 million for sustaining maintenance, and $50 million to $55 million for other strategic growth projects.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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