Louisiana-Pacific (LPX) Q3 2024 earnings summary

Executive summary

• Siding net sales grew 22% year-over-year to $420 million in Q3 2024, setting records for both sales and EBITDA, driven by higher volumes and improved margins, offsetting a 24% decline in OSB sales.

• Consolidated Q3 net sales were $722 million, nearly flat year-over-year, as Siding growth offset OSB declines; net income was $90 million ($1.28 per diluted share), down from $118 million in Q3 2023.

• Adjusted EBITDA for Q3 was $153 million, down from $190 million in Q3 2023; Siding Adjusted EBITDA rose 72% to $123 million, while OSB Adjusted EBITDA fell 72% to $33 million.

• Operating cash flow reached $184 million in Q3, with cash and cash equivalents at $346 million at quarter-end.

• Full-year 2024 guidance was raised, expecting strong Siding performance to continue and consolidated Adjusted EBITDA of $655–$675 million.

Financial highlights

• Siding net sales were $420 million in Q3 2024, up 22% year-over-year, with Adjusted EBITDA at $123 million and a margin of 29%.

• OSB net sales declined to $253 million, with Adjusted EBITDA dropping to $33 million and a margin of 13%.

• Q3 2024 gross profit was $193 million (26.7% margin), down from $214 million (29.4%) in Q3 2023.

• Adjusted diluted EPS for Q3 2024 was $1.22, down from $1.62 in Q3 2023.

• Capital expenditures for Q3 2024 were $44 million; full-year CapEx expected at $195–$205 million.

Outlook and guidance

• Q4 2024 Siding net sales expected at ~$365 million, up 9–10% year-over-year, with Adjusted EBITDA of $70–$80 million.

• Full-year 2024 Siding net sales projected at ~$1.55 billion (+17% YoY), Adjusted EBITDA $390–$400 million (~25% margin).

• Consolidated Adjusted EBITDA guidance for 2024 is $655–$675 million.

• CapEx for 2025–2026 expected to rise to $350–$375 million annually for Siding expansion.

• Siding price increase of 4–5% (net ~3%) effective January 1, 2025.