LP Building Solutions Reports Fourth Quarter and Full Year 2024 Results, and Provides First Quarter and Full Year Outlook for 2025

Louisiana-Pacific Corporation (LP), a leading manufacturer of high-performance building products, reported its financial results for the fourth quarter and year ended December 31, 2024.

Key Highlights for the Fourth Quarter of 2024, Compared to the Fourth Quarter of the Prior Year

Siding net sales increased by 9% to $362 million
Oriented Strand Board (OSB) net sales decreased by 2% to $267 million
Consolidated net sales increased by 3% to $681 million
Net income was $63 million, an increase of $4 million
Net income per diluted share was $0.89 per share, an increase of $0.08 per diluted share
Adjusted EBITDA⁽¹⁾ was $125 million, a decrease of $5 million
Adjusted Diluted EPS⁽¹⁾ was $1.03 per diluted share, an increase of $0.32 per diluted share
Cash provided by operating activities was $105 million, a decrease of $54 million

Key Highlights for the Full Year 2024, Compared to the Prior Year

Siding net sales increased by 17% to $1.6 billion
OSB net sales increased by 15% to $1.2 billion
Consolidated net sales increased by 14% to $2.9 billion
Net income was $420 million, an increase of $243 million
Net income per diluted share was $5.89 per share, an increase of $3.43 per diluted share
Adjusted EBITDA⁽¹⁾ was $688 million, an increase of $210 million
Adjusted Diluted EPS⁽¹⁾ was $5.88 per diluted share, an increase of $2.66 per diluted share
Cash provided by operating activities was $605 million, an increase of $289 million

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This is a non-GAAP financial measure. See “Use of Non-GAAP Information” and “Reconciliation of Net Income to Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income, and Non-GAAP Adjusted Diluted EPS” below for additional information regarding the Non-GAAP financial measures.

Capital Allocation Update

Paid $212 million to repurchase 2.4 million of LP’s common shares during 2024, leaving 70 million common shares outstanding and $238 million remaining repurchase authorization under the existing share repurchase program
Since year end, paid an additional $51 million for 0.5 million shares
Invested $183 million in capital expenditures in 2024
Paid $74 million in cash dividends in 2024
Announced a quarterly cash dividend of $0.28 per share for the first quarter of 2025, up 8% from the previous $0.26 per share quarterly dividend
Total liquidity of approximately $900 million at end of 2024

“LP’s Siding business delivered a strong end to a record year, with 9% revenue growth in the quarter and 17% growth for the year,” said LP Chairperson and Chief Executive Officer Brad Southern. “Growth, margin expansion, and a very strong balance sheet leave LP well positioned for further investments in demand creation and Siding capacity expansion.”

Fourth Quarter 2024 Highlights

Net sales for the fourth quarter of 2024 increased year-over-year by $22 million (or 3%) to $681 million. Siding revenue increased by $29 million (or 9%) to $362 million, due to 3% higher volumes and 6% higher prices. OSB net sales decreased by $5 million (or 2%) to $267 million, driven by 7% lower prices partially offset by 6% higher volumes.

Net income increased year-over-year by $4 million to $63 million ($0.89 per diluted share). This increase primarily reflects a decrease in Adjusted EBITDA of $5 million (or 4%) and a $15 million increase in tax provision, offset by a decrease in foreign currency loss. The year-over-year decrease in Adjusted EBITDA includes $18 million due to lower OSB selling prices, partially offset by higher Siding net sales and higher OSB sales volumes.

Full Year 2024 Highlights

Net sales for 2024 increased year-over-year by $360 million (or 14%) to $2.9 billion. Siding revenue increased by $230 million (or 17%) to $1.6 billion, due to 11% higher volumes and 6% higher prices. OSB revenue increased by $159 million (or 15%) to $1.2 billion, due to 10% higher volumes and 4% higher prices.

Net income increased year-over-year by $243 million (or 137%) to $420 million ($5.89 per diluted share). The increase primarily reflects a $210 million increase in Adjusted EBITDA, a $46 million improvement in business exit credits and charges, and the non-recurrence of OSB patent-related settlement claims of $16 million paid in 2023. This was partially offset by a $66 million increase in the provision for income taxes. The year-over-year increase in Adjusted EBITDA includes $143 million from higher Siding net sales, $55 million from higher OSB sales volumes, and $35 million due to higher OSB selling prices.

Segment Results

Siding

The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia, including LP^® SmartSide^® Trim & Siding, LP^® SmartSide^® ExpertFinish^® Trim & Siding, LP BuilderSeries^® Lap Siding, and LP^®Outdoor Building Solutions^® (collectively referred to as Siding Solutions).

The year-over-year net sales increase for the Siding segment for the three and twelve months ended December 31, 2024, reflects increased sales volumes and higher average selling prices. Approximately half of the 6% price improvement was the result of annual list price increases, and half due to favorable mix. ExpertFinish accounted for 8% and 9% of volume and 12% and 13% of sales in the three and twelve months ended December 31, 2024, respectively, contributing significantly to this favorable mix.

Fourth quarter 2024 Adjusted EBITDA increased year-over-year by $1 million, primarily reflecting the impacts of the net sales increase, partially offset by ongoing investments in sales and marketing and maintenance costs at the Company’s Houlton, Maine facility. For the twelve months ended December 31, 2024, the full year increase in Adjusted EBITDA of $121 million primarily reflects the impact of the net sales increase.

Oriented Strand Board (OSB)

The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP^® Structural Solutions (which includes LP^® TechShield^® Radiant Barrier, LP WeatherLogic^® Air & Water Barrier, LP Legacy^® Premium Sub-Flooring, LP NovaCore^® Thermal Insulated Sheathing, LP^® FlameBlock^® Fire-Rated Sheathing, and LP^® TopNotch^® 350 Durable Sub-Flooring).

Fourth quarter 2024 net sales for the OSB segment decreased year-over-year by $5 million (or 2%), reflecting an $18 million decrease in revenue due to lower OSB selling prices, partially offset by a $13 million increase in sales volumes. For the twelve months ended December 31, 2024, the year-over-year increase in net sales of $159 million (or 15%) reflects a $106 million increase in sales volumes and a $35 million increase in revenue due to higher OSB selling prices.

Adjusted EBITDA for the fourth quarter of 2024 decreased year-over-year by $9 million, primarily due to lower OSB prices offset by higher volumes. Adjusted EBITDA for the twelve months ended December 31, 2024 increased year-over-year by $78 million, due to higher average selling prices and volumes.

LPSA

The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction. The LPSA segment carries out manufacturing operations in Chile and Brazil and operates sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.

The year-over-year net sales decrease and Adjusted EBITDA increase for the three months ended December 31, 2024, reflect lower selling prices and unfavorable currency fluctuations, partially offset by higher OSB volumes. The year-over-year net sales decrease and flat Adjusted EBITDA for the twelve months ended December 31, 2024, reflect lower selling prices and unfavorable currency fluctuations, partially offset by higher sales volumes and the non-recurrence of equipment transfer costs from the prior year.

For full results click here.

About LP Building Solutions

As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX) manufactures engineered wood products that meet the demands of builders, remodelers and homeowners worldwide. LP’s extensive portfolio of innovative and dependable products includes Siding Solutions (LP^® SmartSide^® Trim & Siding, LP^® SmartSide^® ExpertFinish^® Trim & Siding, LP BuilderSeries^® Lap Siding and LP^® Outdoor Building Solutions^®), LP^® Structural Solutions (LP^® TechShield^® Radiant Barrier, LP WeatherLogic^® Air & Water Barrier, LP Legacy^® Premium Sub-Flooring, LP^® FlameBlock^® Fire-Rated Sheathing, LP NovaCore^® Thermal Insulated Sheathing and LP^® TopNotch^® 350 Durable Sub-Flooring) and oriented strand board (OSB). In addition to product solutions, LP provides industry-leading customer service and warranties. Since its founding in 1972, LP has been Building a Better World™ by helping customers construct beautiful, durable homes while shareholders build lasting value. Headquartered in Nashville, Tennessee, LP operates 22 plants across the U.S., Canada, Chile and Brazil. For more information, visit LPCorp.com.

Contact:

Emily O’Connor – Media Contact – media.relations@lpcorp.com

Source: Louisiana-Pacific Corporation

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