LP Building Solutions Reports Fourth Quarter and Full Year 2024 Results, and Provides First Quarter and Full Year Outlook for 2025
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
, an increase of$63 million $4 million -
Net income per diluted share was
per share, an increase of$0.89 per diluted share$0.08 -
Adjusted EBITDA(1) was
, a decrease of$125 million $5 million -
Adjusted Diluted EPS(1) was
per diluted share, an increase of$1.03 per diluted share$0.32 -
Cash provided by operating activities was
, a decrease of$105 million $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
, an increase of$420 million $243 million -
Net income per diluted share was
per share, an increase of$5.89 per diluted share$3.43 -
Adjusted EBITDA(1) was
, an increase of$688 million $210 million -
Adjusted Diluted EPS(1) was
per diluted share, an increase of$5.88 per diluted share$2.66 -
Cash provided by operating activities was
, an increase of$605 million $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
to repurchase 2.4 million of LP's common shares during 2024, leaving 70 million common shares outstanding and$212 million remaining repurchase authorization under the existing share repurchase program$238 million -
Since year end, paid an additional
for 0.5 million shares$51 million -
Invested
in capital expenditures in 2024$183 million -
Paid
in cash dividends in 2024$74 million -
Announced a quarterly cash dividend of
per share for the first quarter of 2025, up$0.28 8% from the previous per share quarterly dividend$0.26 -
Total liquidity of approximately
at end of 2024$900 million
"LP's Siding business delivered a strong end to a record year, with
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 |
|
|
|
Siding Adjusted EBITDA(2) |
|
|
|
OSB Adjusted EBITDA(2)(4)(5) |
|
|
|
Consolidated Adjusted EBITDA(2)(4)(5)(6) |
|
|
|
Capital Expenditures(7) |
|
|
|
(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 |
|
(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 |
|
(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 |
Fourth Quarter 2024 Highlights
Net sales for the fourth quarter of 2024 increased year-over-year by
Net income increased year-over-year by
Full Year 2024 Highlights
Net sales for 2024 increased year-over-year by
Net income increased year-over-year by
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
|
|
Year Ended December 31, 2024
|
||||
|
Average Net
|
|
Unit
|
|
Average Net
|
|
Unit
|
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
Fourth quarter 2024 Adjusted EBITDA increased year-over-year by
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
|
|
Year Ended December 31, 2024
|
||||
|
Average Net
|
|
Unit
|
|
Average Net
|
|
Unit
|
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
Adjusted EBITDA for the fourth quarter of 2024 decreased year-over-year by
LPSA
The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in
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
|
|
Year Ended December 31, 2024
|
||||
|
Average Net
|
|
Unit
|
|
Average Net
|
|
Unit
|
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
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
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
Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are not substitutes for the
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(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)
(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)
(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 |
|
KEY PERFORMANCE INDICATORS
The following tables present summary data relating to: (i) housing starts within
We monitor housing starts, which is an indicator of residential construction in 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 |
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 % |
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 |
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 |
|
(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
Source: Louisiana-Pacific Corporation