Louisiana-Pacific (LPX) Q2 2024 earnings summary

Executive summary

• Net sales reached $814 million in Q2 2024, up 33% year-over-year, with net income of $160 million and adjusted EBITDA of $229 million, driven by record Siding and OSB performance and margin expansion.

• Siding sales grew 30% to $415 million, with 22% higher volume and 6% higher prices, supported by record ExpertFinish results and significant margin improvement.

• OSB revenue rose 53% to $351 million, with adjusted EBITDA up 239% to $125 million, fueled by higher prices, improved product mix, and operational efficiency.

• Adjusted EPS was $2.09, up from $0.55 in Q2 2023; operating cash flow was $212 million, up $124 million year-over-year.

• Published 2024 Sustainability Report, highlighting carbon-negative products and sustainability leadership.

Financial highlights

• Gross profit for Q2 2024 was $263 million, up from $119 million in Q2 2023; net income was $160 million versus a $21 million loss last year.

• Siding net sales grew to $415 million (+30%), OSB net sales to $351 million (+53%), while South America declined to $46 million.

• Adjusted EBITDA for Q2 2024 was $229 million, up from $93 million in Q2 2023; Siding EBITDA margin was 25%, OSB margin 36%.

• Operating cash flow for Q2 was $212 million, up from $88 million in Q2 2023; ending cash balance was $317 million.

• Capital expenditures totaled $36 million in Q2; $120 million was returned to shareholders.

Outlook and guidance

• Siding Q3 revenue expected at $390–$410 million (+16–18% YoY), with full-year guidance of ~$1.5 billion (+14–16%) and EBITDA of $355–$375 million.

• OSB Q3 EBITDA projected at $10–$20 million due to price declines; full-year OSB EBITDA expected at $105–$125 million.

• Total company Q3 EBITDA guidance is $105–$125 million; full-year EBITDA expected between $580–$620 million.

• Full-year capital expenditures projected at $200–$220 million.

• No material impact expected from new Canadian global minimum tax legislation in 2024.