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Sep 30, 2023
Louisiana-Pacific Q3 2023 Earnings Report
Reported a decrease in consolidated net sales and income from continuing operations compared to the same quarter last year, while reaffirming full year siding guidance.
Key Takeaways
LP Building Solutions reported a decrease in net sales by 15% to $728 million, and a decrease in income from continuing operations by $11 million to $118 million, compared to Q3 2022. The company reaffirmed its full-year siding guidance and expects OSB net sales to be sequentially lower in Q4 2023.
Siding net sales decreased by 13% to $345 million due to lower volumes, partially offset by higher prices.
OSB net sales decreased by 14% to $335 million, primarily due to lower volumes.
Consolidated net sales decreased by 15% to $728 million.
Income from continuing operations decreased by $11 million to $118 million.
Revenue by Segment
Forward Guidance
LP anticipates a year-over-year decrease in siding net sales for the full year 2023, and a sequential decrease in OSB net sales for the fourth quarter of 2023. Adjusted EBITDA for the fourth quarter is expected to be between $60 million and $80 million, and capital expenditures for 2023 are projected to range from $280 million to $295 million.
Challenges Ahead
- Siding full-year 2023 Net sales is expected to decrease year-over-year by approximately 10%.
- OSB fourth quarter 2023 Net sales is expected to be sequentially lower than the third quarter 2023 by approximately 30%, assuming that OSB prices published by Random Lengths remain unchanged from those published on October 27, 2023
- Under these assumptions, fourth quarter 2023 Adjusted EBITDA is expected to be $60 million to $80 million
- Given our current outlook, capital expenditures for 2023 are expected to be in the range of $280 million to $295 million, including $100 million to $105 million for mill conversions, $130 million to $135 million for sustaining maintenance, and $50 million to $55 million for other strategic growth projects.
- Guidance is subject to a number of known and unknown uncertainties and risks
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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