Louisiana-Pacific Corp (NYSE:LPX) reported second-quarter 2024 net sales growth of 33.2% year-over-year to $814 million on Wednesday, beating the consensus of $797.264 million.
Siding revenue grew 30% YoY due to higher volumes and prices. OSB revenue increased 53% due to higher prices and volumes.
The gross profit increased 121% YoY to $263 million, and the margin expanded 1,283 bps to 32.3%. Operating margin for the quarter recovered 2,252 bps to 23.8%.
Adjusted EPS was $2.09, up from $0.55 YoY, beating the consensus of $1.93.
Adjusted EBITDA was $229 million, up from $93 million YoY, and the margin expanded to 28.1% from 15.2%.
Net cash provided by operating activities for the quarter totaled $212 million, compared to $88 million a year ago. Cash and equivalents totaled $317 million at the end of the quarter.
LPX paid $102 million to repurchase 1.2 million of LP's common shares during the quarter and $19 million in cash dividends.
"LP's Siding business continued to gain share and outperform the underlying markets we serve, setting records for sales and EBITDA in the quarter and notching another record quarter for LP SmartSide ExpertFinish Trim & Siding," commented LP Chairperson and CEO Brad Southern.
Q3 Outlook: LPX expects Siding net sales growth of 16%- 18% YoY and consolidated Adjusted EBITDA of $105 million—$125 million.
2024 Outlook, raised: The company expects Siding net sales to grow by 14%-16% (prior 11%-13%) and sees consolidated Adjusted EBITDA of $580 million–$620 million (prior $655 million–$685 million) and capital expenditures of $200 million to $220 million.
Price Action: LPX shares are trading lower by 2.1% to $92.00 during the premarket on Wednesday.
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