Louisiana-Pacific Corporation (LP) (NYSE: LPX), a leading
manufacturer of high-performance building products, today 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
(1)
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."
First Quarter and Full Year 2025 Outlook
The Company is providing financial guidance for the first
quarter of 2025 and full year 2025 as set forth in the table below.
Guidance is based on current plans and expectations, and is subject
to a number of known and unknown uncertainties and risks, including
those set forth below under “Forward-Looking Statements.”
First Quarter 2025
Full Year 2025
Siding Net sales year-over-year growth
$390 million to $400 million
(+9-11% growth)
$1.65 billion to $1.7 billion
(+7-9%growth)
Siding Adjusted EBITDA(2)
$95 million to $105 million (~25%
margin3)
$415 million to $425 million
(~25% margin3)
OSB Adjusted EBITDA(2)(4)(5)
$35 million to $45 million
$200 million to $210 million
Consolidated Adjusted
EBITDA(2)(4)(5)(6)
$130 million to $150 million
$615 million to $635 million
Capital Expenditures(7)
~$410 million
(2)
This is a non-GAAP financial measure.
Reconciliation of Siding Adjusted EBITDA, OSB Adjusted EBITDA, and
consolidated Adjusted EBITDA guidance to the closest corresponding
GAAP measure on a forward-looking basis is not available without
unreasonable efforts. Our inability to reconcile these measures
results from the inherent difficulty in forecasting generally and
quantifying certain projected amounts that are necessary for such
reconciliation. In particular, sufficient information is not
available to calculate certain adjustments required for such
reconciliation, such as business exit credits and charges,
product-line discontinuance charges, other operating credits and
charges, net, loss on early debt extinguishment, investment income,
and other non-operating items, that would be required to be
included in the comparable forecasted U.S. GAAP measures. The
Company expects that these adjustments may potentially have a
significant impact on future GAAP financial results.
(3)
This is a non-GAAP financial measure and
is calculated as Adjusted EBITDA divided by net sales.
(4)
We determine the cycle average for OSB
Adjusted EBITDA by dividing the sum of the full year 2014 through
2020 and 2023-2024 OSB Adjusted EBITDA by total OSB sales volume
over the same periods to determine the average Adjusted EBITDA per
thousand square feet on a 3/8 basis ("Average Adjusted
EBITDA/MSF"). The Average Adjusted EBITDA/MSF is multiplied by the
total OSB production capacity multiplied by 85%, the average
capacity utilization over the same period.
(5)
For purposes of calculating the full year
2025 OSB Adjusted EBITDA and full year 2025 consolidated Adjusted
EBITDA amounts in the table above, the second quarter through the
fourth quarter of 2025 Adjusted EBITDA is assumed to be at our
cycle average run rate.
(6)
For purposes of calculating the first
quarter 2025 and full year 2025 consolidated Adjusted EBITDA, LP
has assumed that LP South America Adjusted EBITDA would fully
offset Other Adjusted EBITDA.
(7)
Capital expenditures related to strategic
growth and sustaining maintenance projects are expected to be
approximately $200 million and $210 million, respectively, for full
year 2025.
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).
Segment sales and Adjusted EBITDA for this segment were as
follows (dollar amounts in millions):
Quarter Ended December
31,
Year Ended December
31,
2024
2023
% Change
2024
2023
% Change
Net sales
$
362
$
332
9
%
$
1,558
$
1,328
17
%
Adjusted EBITDA
72
72
1
%
390
269
45
%
Quarter Ended December 31,
2024 versus 2023
Year Ended December 31, 2024
versus 2023
Average Net Selling Price
Unit Shipments
Average Net Selling Price
Unit Shipments
Siding Solutions
6 %
3 %
6 %
11 %
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).
Segment sales and Adjusted EBITDA for this segment were as
follows (dollar amounts in millions):
Quarter Ended December
31,
Year Ended December
31,
2024
2023
% Change
2024
2023
% Change
Net sales
$
267
$
272
(2
)%
$
1,184
$
1,026
15
%
Adjusted EBITDA
50
59
(15
)%
298
220
35
%
Quarter Ended December 31,
2024 versus 2023
Year Ended December 31, 2024
versus 2023
Average Net Selling Price
Unit Shipments
Average Net Selling Price
Unit Shipments
OSB - Structural Solutions
(7) %
— %
5 %
9 %
OSB - Commodity
(6) %
12 %
4 %
11 %
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.
Segment sales and Adjusted EBITDA for this segment were as
follows (dollar amounts in millions):
Quarter Ended December
31,
Year Ended December
31,
2024
2023
% Change
2024
2023
% Change
Net sales
$
50
$
52
(5
)%
$
190
$
205
(8
)%
Adjusted EBITDA
13
11
16
%
42
42
—
%
Quarter Ended December 31,
2024 versus 2023
Year Ended December 31, 2024
versus 2023
Average Net Selling Price
Unit Shipments
Average Net Selling Price
Unit Shipments
OSB - Structural Solutions
(14) %
11 %
(16) %
9 %
Siding Solutions
(4) %
(20) %
(18) %
6 %
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.
Conference Call
LP will hold a conference call to discuss this release today at
11 a.m. Eastern Time (8 a.m. Pacific Time). Investors will have the
opportunity to listen to the conference call live by going to
investor.lpcorp.com. For those who cannot listen to the live
broadcast, the recorded webcast and accompanying presentation will
be available to the public by going to investor.lpcorp.com and
clicking “Events” under the “News & Events” header.
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 NovaCore® Thermal
Insulated Sheathing, LP® FlameBlock® Fire-Rated 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.
Forward-Looking Statements
This news release contains statements concerning
Louisiana-Pacific Corporation's (LP) future results and performance
that are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
are based upon the current beliefs and assumptions of, and on
information available to, our management; assumptions upon which
such forward-looking statements are based are also forward-looking
statements. Forward looking statements can be identified by words
such as “may,” “will,” “could,” “should,” “believe,” “expect,”
“anticipate,” "assume," “intend,” “plan,” “estimate,” “project,”
“target,” “potential,” “continue,” “likely,” or “future,” as well
as similar expressions, or the negative or other variations
thereof, and include other statements regarding matters that are
not historical facts, including without limitation, plans for
product development, forecasts of future costs and expenditures,
possible outcomes of legal proceedings, capacity expansion and
other growth initiatives, the adequacy of reserves for loss
contingencies, and any statements regarding the Company's financial
outlook. Factors that could cause actual results to differ
materially from those expressed or implied by the forward-looking
statements include, but are not limited to, the following: changes
in governmental fiscal and monetary policies, including higher or
new tariffs and levels of employment; changes in general and global
economic conditions, including impacts from rising inflation,
supply chain disruptions, new, ongoing, or escalated geopolitical
or military conflicts or tensions including the conflict between
Russia and Ukraine, the conflict in Israel and the surrounding
areas, tensions between the United States and China and tensions
between China and Taiwan, and global pandemics and/or health
emergencies; the commodity nature of a segment of our products and
the prices for those products, which are determined in significant
part by external factors such as total industry capacity and wider
industry cycles affecting supply and demand trends; changes in the
cost and availability of capital; changes in the cost and
availability of financing for home mortgages; changes in the level
of home construction and repair and remodel activity; changes in
competitive conditions and prices for our products; changes in the
relationship between supply of and demand for building products;
changes in the financial or business conditions of third-party
wholesale distributors and dealers of building products; changes in
the relationship between the supply of and demand for raw
materials, including wood fiber and resins, used in manufacturing
our products; changes in the cost and availability of energy,
primarily natural gas, electricity, and diesel fuel; changes in the
cost and availability of transportation, including transportation
services provided by third parties; our dependence on third-party
vendors and suppliers for certain goods and services critical to
our business; operational and financial impacts from manufacturing
our products internationally; difficulties in the development,
launch or production ramp-up of new products; our ability to
attract and retain qualified executives, management and other key
employees; the need to formulate and implement effective succession
plans from time to time for key members of our management team;
impacts from public health issues (including global pandemics) on
the economy, demand for our products or our operations, including
the actions and recommendations of governmental authorities to
contain such public health issues; our ability to identify and
successfully complete and integrate acquisitions, divestitures,
joint ventures, capital investments and other corporate strategic
transactions; unplanned interruptions to our manufacturing
operations, such as explosions, fires, inclement weather, natural
disasters, accidents, equipment failures, labor shortages or
disruptions, transportation interruptions, supply interruptions,
public health issues (including pandemics and quarantines), riots,
civil insurrection or social unrest, looting, protests, strikes,
and street demonstrations; changes in global or regional climate
conditions, the impacts of climate change, and potential government
policies adopted in response to such conditions; changes in other
significant operating expenses; changes in currency values and
exchange rates between the U.S. dollar and other currencies,
particularly the Canadian dollar, Brazilian real, Chilean peso, and
Argentine peso; changes in, and compliance with, general and
industry-specific laws and regulations, including environmental and
health and safety laws and regulations, the U.S. Foreign Corrupt
Practices Act and anti-bribery laws, laws related to our
international business operations, and changes in building codes
and standards; changes in tax laws and interpretations thereof;
changes in circumstances giving rise to environmental liabilities
or expenditures; warranty costs exceeding our warranty reserves;
challenges to or exploitation of our intellectual property or other
proprietary information by our competitors or other third parties;
the resolution of existing and future product-related litigation,
environmental proceedings and remediation efforts, and other legal
or environmental proceedings or matters; the effect of covenants
and events of default contained in our debt instruments; the amount
and timing of any repurchases of our common stock and the payment
of dividends on our common stock, which will depend on market and
business conditions and other considerations; cybersecurity events
affecting our information technology systems or those of our
third-party providers and the related costs and impact of any
disruption on our business; and acts of public authorities, war,
political or civil unrest, natural disasters, fire, floods,
earthquakes, inclement weather, and other matters beyond our
control. For additional information about factors that could cause
actual results, events, and circumstances to differ materially from
those described in the forward-looking statements, please refer to
LP’s filings with the Securities and Exchange Commission (SEC). We
urge you to consider all of the risks, uncertainties, and factors
identified above or discussed in such reports carefully in
evaluating the forward-looking statements in this news release. We
cannot assure you that the results reflected in or implied by any
forward-looking statement will be realized or even if substantially
realized, that those results will have the forecasted or expected
consequences and effects for or on our operations or financial
performance. The forward-looking statements made today are as of
the date of this news release. Except as required by law, LP
undertakes no obligation to update any such forward-looking
statements to reflect new information, subsequent events, or
circumstances.
Use of Non-GAAP Information
In evaluating our business, we utilize non-GAAP financial
measures that fall within the meaning of SEC Regulation G and
Regulation S-K Item 10(e), which we believe provide users of the
financial information with additional meaningful comparison to
prior reported results. Non-GAAP financial measures do not have
standardized definitions and are not defined by U.S. GAAP. In this
press release, we disclose income attributed to LP from continuing
operations before interest expense, provision for income taxes,
depreciation and amortization, and excluding stock-based
compensation expense, loss on impairment attributed to LP, business
exit credits and charges, product-line discontinuance charges,
other operating credits and charges, net, loss on early debt
extinguishment, investment income, pension settlement charges, and
other non-operating items, as Adjusted EBITDA from continuing
operations (Adjusted EBITDA), which is a non-GAAP financial
measure. We have included Adjusted EBITDA in this report because we
view it as an important supplemental measure of our performance and
believe that it is frequently used by interested persons in the
evaluation of companies that have different financing and capital
structures and/or tax rates. We also disclose income attributed to
LP from continuing operations, excluding loss on impairment
attributed to LP, business exit credits and charges, product-line
discontinuance charges, interest expense outside of normal
operations, other operating credits and charges, net, loss on early
debt extinguishment, gain (loss) on acquisition, and pension
settlement charges, and adjusting for a normalized tax rate, as
Adjusted Income from continuing operations (Adjusted Income). We
also disclose Adjusted Diluted EPS from continuing operations
(Adjusted Diluted EPS), which is calculated as Adjusted Income
divided by diluted shares outstanding. We believe that Adjusted
Diluted EPS and Adjusted Income are useful measures for evaluating
our ability to generate earnings and that providing these measures
should allow interested persons to more readily compare the
earnings for past and future periods. Reconciliations of Adjusted
EBITDA, Adjusted Income and Adjusted Diluted EPS to their most
directly comparable U.S. GAAP financial measures, net income,
income attributed to LP and income attributed to LP per diluted
share, respectively, are presented below.
Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are
not substitutes for the U.S. GAAP measures of net income, income
attributed to LP from continuing operations, and income attributed
to LP from continuing operations per diluted share, or for any
other U.S. GAAP measures of operating performance. It should be
noted that other companies may present similarly titled measures
differently, and therefore, as presented by us, these measures may
not be comparable to similarly titled measures reported by other
companies. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted
EPS have material limitations as performance measures because they
exclude items that are actually incurred or experienced in
connection with the operation of our business.
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (UNAUDITED)
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE
AMOUNTS)
Quarter Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net sales
$
681
$
658
$
2,941
$
2,581
Cost of sales
(519
)
(499
)
(2,110
)
(1,988
)
Gross profit
162
159
832
593
Selling, general, and administrative
expenses
(76
)
(66
)
(291
)
(257
)
Impairment of long-lived assets
(5
)
(5
)
(5
)
(30
)
Other operating credits and charges,
net
(6
)
1
(4
)
(19
)
Income from operations
75
89
530
287
Interest expense
(2
)
(5
)
(14
)
(14
)
Investment income
5
8
22
18
Other non-operating income (expense)
7
(26
)
9
(43
)
Income before income taxes
85
65
547
248
Provision for income taxes
(23
)
(7
)
(140
)
(74
)
Equity in unconsolidated affiliate
—
1
13
3
Net income
$
63
$
59
$
420
$
178
Net income attributed to LP per share
of common stock:
Basic
$
0.89
$
0.81
$
5.91
$
2.47
Diluted
$
0.89
$
0.81
$
5.89
$
2.46
Average shares of common stock used to
compute net income (loss) per share:
Basic
70
72
71
72
Diluted
70
72
71
72
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
(AMOUNTS IN MILLIONS)
December 31,
2024
2023
ASSETS
Cash and cash equivalents
$
340
$
222
Receivables, net
131
155
Inventories
357
378
Prepaid expenses and other current
assets
27
23
Total current assets
855
778
Timber and timberlands
29
32
Property, plant, and equipment, net
1,592
1,540
Operating lease assets, net
25
25
Goodwill and other intangible assets
26
27
Investments in and advances to
affiliates
17
5
Other assets
20
20
Deferred tax asset
4
11
Total assets
$
2,569
$
2,437
LIABILITIES AND EQUITY
Accounts payable and accrued
liabilities
$
287
$
254
Income tax payable
11
5
Total current liabilities
299
259
Long-term debt
348
347
Deferred income taxes
145
162
Non-current operating lease
liabilities
24
25
Contingency reserves, excluding current
portion
27
25
Other long-term liabilities
57
61
Total liabilities
899
880
Stockholders’ equity:
Common stock
86
88
Additional paid-in capital
478
465
Retained earnings
1,615
1,479
Treasury stock
(386
)
(386
)
Accumulated comprehensive loss
(122
)
(89
)
Total stockholders’ equity
1,671
1,557
Total liabilities and stockholders’
equity
$
2,569
$
2,437
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW (UNAUDITED)
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
(AMOUNTS IN MILLIONS)
Quarter Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income
$
63
$
59
$
420
$
178
Adjustments to net income:
Depreciation and amortization
33
32
126
119
Impairment of goodwill and long-lived
assets
5
5
5
30
Loss (gain) on sale of assets, net
2
—
2
(7
)
Pension loss (gain) due to settlement
—
(2
)
—
4
Deferred taxes
(3
)
1
(4
)
44
Foreign currency remeasurement and
transaction loss
1
29
—
50
Other adjustments, net
7
(2
)
6
26
Changes in assets and liabilities (net of
acquisitions and divestitures):
Receivables
10
44
3
(8
)
Inventories
6
—
9
(46
)
Prepaid expenses and other current
assets
6
4
(5
)
(1
)
Accounts payable and accrued
liabilities
(5
)
(4
)
23
(40
)
Income taxes payable, net of
receivables
(19
)
(7
)
19
(33
)
Net cash provided by operating
activities
105
159
605
316
CASH FLOWS FROM INVESTING
ACTIVITIES:
Property, plant, and equipment
additions
(61
)
(64
)
(183
)
(300
)
Acquisition of facility assets
—
—
—
(80
)
Proceeds from sale of assets
—
—
1
9
Investment in affiliates
—
—
(17
)
—
Other investing activities, net
—
—
16
(4
)
Net cash used in investing
activities
(61
)
(64
)
(183
)
(376
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Repayment of long-term debt
—
—
—
(80
)
Borrowing of long-term debt
—
—
—
80
Payment of cash dividends
(18
)
(17
)
(74
)
(69
)
Purchase of stock
(24
)
—
(212
)
—
Other financing activities
1
2
(7
)
(8
)
Net cash used in financing
activities
(41
)
(15
)
(292
)
(77
)
EFFECT OF EXCHANGE RATE ON CASH, CASH
EQUIVALENTS, AND RESTRICTED CASH
(9
)
(18
)
(12
)
(24
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
(6
)
62
118
(161
)
Cash, cash equivalents, and restricted
cash at beginning of period
346
160
222
383
Cash, cash equivalents, and restricted
cash at end of period
$
340
$
222
$
340
$
222
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
KEY PERFORMANCE INDICATORS
The following tables present summary data
relating to: (i) housing starts within the United States, (ii) our
sales volumes, and (iii) our Overall Equipment Effectiveness (OEE)
performance. We consider the following items to be key performance
indicators for our business because LP’s management uses these
metrics to evaluate our business and trends in our industry,
measure our performance, and make strategic decisions. We believe
that the key performance indicators presented may provide
additional perspective and insights when analyzing our core
operating performance. These key performance indicators should not
be considered superior to, as a substitute for, or as an
alternative to, and should be considered in conjunction with, the
financial measures that were prepared in accordance with accounting
principles generally accepted in the United States of America (U.S.
GAAP). These measures may not be comparable to similarly titled
performance indicators used by other companies.
We monitor housing starts, which is an
indicator of residential construction in the United States that
correlates with the demand for many of our products. We believe
that this is a useful measure for evaluating our results and that
providing this measure should allow interested persons to more
readily compare our sales volume for past and future periods to an
external indicator of product demand. Other companies may present
housing start data differently, and therefore, as presented by us,
our housing start data may not be comparable to similarly titled
indicators reported by other companies.
The following table sets forth housing
starts for the quarter and year ended December 31, 2024 and
2023:
Quarter Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Housing starts1:
Single-Family
227
239
1,010
948
Multi-Family
92
102
355
472
319
341
1,364
1,420
1Actual U.S. housing starts data, in
thousands, reported by U.S. Census Bureau as published through
January 17, 2025.
We monitor sales volumes for our products
in our Siding, OSB, and LPSA segments, which we define as the
amount of our products sold within the applicable period measured
in million square feet (MMSF) on a standard 3/8" thickness basis.
Evaluating sales volume by product type helps us identify and
address changes in product demand, broad market factors that may
affect our performance, and opportunities for future growth. It
should be noted that other companies may present sales volume data
differently, and therefore, as presented by us, sales volume data
may not be comparable to similarly titled measures reported by
other companies. We believe that sales volumes can be a useful
measure for evaluating and understanding our business.
The following table sets forth sales
volumes for the quarter and year ended December 31, 2024 and
2023:
Quarter Ended December 31,
2024
Quarter Ended December 31,
2023
Sales Volume
Siding
OSB
LPSA
Total
Siding
OSB
LPSA
Total
Siding Solutions (MMSF)
401
—
6
407
389
—
8
397
OSB - Structural Solutions (MMSF)
—
408
147
555
—
408
132
540
OSB - Commodity (MMSF)
—
419
—
419
—
375
—
375
Year Ended December 31,
2024
Year Ended December 31,
2023
Sales Volume
Siding
OSB
LPSA
Total
Siding
OSB
LPSA
Total
Siding Solutions (MMSF)
1,719
—
35
1,754
1,547
—
33
1,580
OSB - Structural Solutions (MMSF)
—
1,705
548
2,253
—
1,559
502
2,061
OSB - Commodity (MMSF)
—
1,680
—
1,680
—
1,512
—
1,512
We measure OEE of each of our mills to
track improvements in the utilization and productivity of our
manufacturing assets. OEE is a composite metric that considers
asset uptime (adjusted for capital project downtime and similar
events), production rates, and finished product quality. We believe
that when used in conjunction with other metrics, OEE can be a
useful measure for evaluating our ability to generate profits, and
that providing this measure should allow interested persons to
monitor operational improvements. We use a best-in-class target
across all LP sites that allows us to optimize capital investments,
focus maintenance and reliability improvements, and improve overall
equipment efficiency. It should be noted that other companies may
present OEE data differently, and therefore, as presented by us,
OEE data may not be comparable to similarly titled measures
reported by other companies.
OEE for the quarter and year ended
December 31, 2024 and 2023 for each of our segments is listed
below:
Quarter Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Siding
75 %
77 %
77 %
77 %
OSB
78 %
76 %
78 %
75 %
LPSA
69 %
79 %
72 %
75 %
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(AMOUNTS IN MILLIONS)
Quarter Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
NET SALES
Siding
$
362
$
332
$
1,558
$
1,328
OSB
267
272
1,184
1,026
LPSA
50
52
190
205
Other
2
1
9
22
Total Sales
$
681
$
658
$
2,941
$
2,581
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
RECONCILIATION OF NET INCOME TO NON-GAAP
ADJUSTED EBITDA, NON-GAAP ADJUSTED INCOME, AND NON-GAAP ADJUSTED
DILUTED EPS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE
AMOUNTS)
Quarter Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net income
$
63
$
59
$
420
$
178
Add (deduct):
Provision for income taxes
23
7
140
74
Depreciation and amortization
33
32
126
119
Stock-based compensation expense
5
4
20
13
Loss on impairment attributed to LP
5
5
5
6
Other operating credits and charges,
net
6
2
8
18
Business exit credits and charges
—
(3
)
(14
)
32
Interest expense
2
5
14
14
Investment income
(5
)
(8
)
(22
)
(18
)
Pension settlement charges
—
(2
)
—
4
Other non-operating items
(7
)
28
(9
)
39
Adjusted EBITDA
$
125
$
129
$
688
$
478
Siding
$
72
$
72
$
390
$
269
OSB
50
59
298
220
LPSA
13
11
42
42
Other
(11
)
(12
)
(42
)
(53
)
Total Adjusted EBITDA
$
125
$
129
$
688
$
478
Quarter Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net income per share - diluted
$
0.89
$
0.81
$
5.89
$
2.46
Net income
$
63
$
59
$
420
$
178
Add (deduct):
Loss on impairment attributed to LP
5
5
5
6
Other operating credits and charges,
net
6
2
8
18
Business exit credits and charges
—
(3
)
(14
)
32
Pension settlement charges
—
(2
)
—
4
Reported tax provision
23
7
140
74
Adjusted income before tax
97
68
559
311
Normalized tax provision at 25%
(24
)
(17
)
(140
)
(78
)
Adjusted Income
$
72
$
51
$
419
$
233
Diluted shares outstanding
70
72
71
72
Adjusted Diluted EPS
$
1.03
$
0.71
$
5.88
$
3.22
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219922364/en/
Investor Contact Aaron Howald 615.986.5792
Aaron.Howald@lpcorp.com
Media Contact Breeanna Straessle 615.986.5886
Media.Relations@lpcorp.com
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