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Louisiana-Pacific Q4 Earnings & Net Sales Top Estimates, Stock Down
LPXLouisiana-Pacific(LPX) ZACKS·2025-02-20 16:55

Core Insights - Louisiana-Pacific Corporation (LPX) reported better-than-expected fourth-quarter 2024 results, with earnings and net sales exceeding Zacks Consensus Estimates, driven by strong demand in the Siding segment and disciplined capital management [1][4][9] - The company achieved adjusted EPS of 1.03,surpassingtheconsensusestimateof79centsby30.41.03, surpassing the consensus estimate of 79 cents by 30.4%, and net sales of 681 million, which was 2.5% above the consensus estimate [4] - Despite challenges in the OSB market, LPX's strategic execution and operational efficiency helped mitigate pressures, leading to a successful year overall [1][10] Financial Performance - Adjusted EBITDA for the fourth quarter was 125million,down3.1125 million, down 3.1% year-over-year, primarily due to pricing pressures in the OSB segment [5] - The Siding segment's sales reached 362 million, a 9% increase from the prior year, supported by a 3% rise in volume and a 6% increase in average selling prices [6] - OSB segment sales decreased 2% year-over-year to 267million,impactedbya7267 million, impacted by a 7% decline in OSB prices, although volumes increased by 6% [7] Segment Analysis - The Siding segment maintained profitability with an adjusted EBITDA of 72 million, a slight increase of 1% from the previous year, despite higher sales and marketing expenses [6] - The OSB segment's adjusted EBITDA fell 15% year-over-year to 50millionduetolowerprices[7]−LPSouthAmerica(LPSA)reportedsalesof50 million due to lower prices [7] - LP South America (LPSA) reported sales of 50 million, a 5% decline year-over-year, but adjusted EBITDA increased 16% to 13millionduetocostmanagement[8]2024Highlights−Forthefullyear2024,LPX′sadjustedEPSwas13 million due to cost management [8] 2024 Highlights - For the full year 2024, LPX's adjusted EPS was 5.88, up 82.6% from 3.22in2023,withtotalrevenuesof3.22 in 2023, with total revenues of 2.9 billion, a 14% increase from the previous year [9] - The Siding business was a key driver of success, achieving a 17% increase for the year, outperforming the broader market [10] - The company maintained an EBITDA margin of 25% for the Siding segment, despite challenges in the repair and remodel market [10] Cash Flow and Shareholder Returns - At the end of 2024, LPX had 900millioninliquidity,withcashandcashequivalentsincreasingto900 million in liquidity, with cash and cash equivalents increasing to 340 million from 222millionin2023[12]−Thecompanyrepurchased2.4millionsharesfor222 million in 2023 [12] - The company repurchased 2.4 million shares for 212 million in 2024, with 238millionremainingundersharerepurchaseauthorizations[13]2025Outlook−ForQ12025,LPXexpectsSidingrevenuegrowthof9238 million remaining under share repurchase authorizations [13] 2025 Outlook - For Q1 2025, LPX expects Siding revenue growth of 9% to 11%, projecting revenue between 390 million and 400million[14]−Thecompanyanticipatesfull−yearSidingrevenuegrowthof7400 million [14] - The company anticipates full-year Siding revenue growth of 7% to 9%, with adjusted EBITDA expected to be between 415 million and 425million[16]−FortheOSBsegment,adjustedEBITDAisprojectedtobebetween425 million [16] - For the OSB segment, adjusted EBITDA is projected to be between 200 million and 210million,withafocusonmaintainingcostdisciplineandexpandinghigher−marginproducts[17]CapitalExpenditures−Capitalexpendituresin2024were210 million, with a focus on maintaining cost discipline and expanding higher-margin products [17] Capital Expenditures - Capital expenditures in 2024 were 183 million, with plans to increase investment to approximately $410 million in 2025, indicating confidence in future growth [18]