Louisiana-Pacific Q4 Earnings & Net Sales Top Estimates, Stock Down

Louisiana-Pacific Corporation’s LPX, or LP, reported better-than-expected fourth-quarter 2024 results, with earnings and net sales beating the respective Zacks Consensus Estimate. This was driven by robust demand in its Siding segment and disciplined capital management. The metrics also increased on a year-over-year basis. Despite a challenging macroeconomic backdrop, the company’s strategic execution and operational efficiency helped offset pressures from a declining Oriented Strand Board (OSB) market.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company delivered a strong 2024, driven by Siding segment expansion and disciplined capital management. While OSB pricing remains a wildcard, the company’s strategic focus on higher-margin products and share repurchases positions it well for sustained earnings growth in 2025.Yet, shares lost more than 10.1% yesterday during the trading session, most probably because of challenges such as housing market softness, potential tariffs, and inflation.Louisiana-Pacific Corporation Price, Consensus and EPS Surprise Louisiana-Pacific Corporation price-consensus-eps-surprise-chart | Louisiana-Pacific Corporation QuoteLouisiana-Pacific’s Quarterly Earnings & Revenue DiscussionLouisiana-Pacific reported adjusted earnings per share (EPS) of $1.03, which beat the Zacks Consensus Estimate of 79 cents by 30.4%. The bottom line increased 45.1% from the year-ago quarter’s figure of 71 cents.Net sales of $681 million topped the consensus estimate of $664 million by 2.5% and grew 3.5% from the prior-year figure.Adjusted EBITDA of $125 million was down 3.1% from the prior-year quarter. The slight downturn was primarily attributed to pricing pressures in the OSB segment, partially offset by strong performance in the Siding segment and cost discipline in Latin America.Segmental Analysis of LPX’s Q4 ReleaseSiding: The segment’s sales of $362 million increased 9% from the prior-year period, supported by a 3% rise in volume and a 6% increase in average selling prices.The Siding segment maintained its profitability, posting an adjusted EBITDA of $72 million, inching up 1% from the year-ago level. However, EBITDA growth was limited by higher sales and marketing expenses and maintenance costs at the company’s Houlton, ME, facility.OSB: Sales in the segment decreased 2% year over year to $267 million, owing to a 7% decline in OSB prices, partially offset by 6% higher volumes. Also, flat shipments in OSB-Structural Solutions were offset by 12% growth in OSB-Commodity.The segment’s adjusted EBITDA plunged 15% year over year to $50 million due to lower OSB prices.LP South America (LPSA): Sales of $50 million declined 5% year over year. Adjusted EBITDA, however, increased 16% from the year-ago quarter to $13 million. This improvement was largely due to cost management and efficiency gains, which offset weaker pricing and unfavorable foreign currency impacts.LPX’s 2024 HighlightsThe company’s adjusted EPS came in at $5.88, up 82.6% from $3.22 in 2023. Total revenues were $2.9 billion, up 14% from 2023.LPX’s success in 2024 was primarily driven by its Siding business, which performed well despite broader market headwinds. The segment recorded a 17% jump for the year, outperforming the broader market. While U.S. housing starts declined 4% for the year and 6% in the fourth quarter, single-family housing—where LPX is heavily indexed—remained more resilient, experiencing a 7% increase in starts for the year. With an EBITDA margin of 25% for the full year, the Siding segment hit its long-term margin target despite softness in the repair and remodel (R&R) market.While OSB prices were slightly higher than in 2023, the segment faced a tougher pricing environment in the fourth quarter. LPX responded by focusing on operational efficiency, disciplined capacity management, and cost controls. The company also emphasized growth in Structural Solutions, its higher-margin OSB product line. These efforts helped mitigate the impact of lower OSB prices, with the segment achieving EBITDA above its long-term cycle average.Louisiana-Pacific’s Toll Brothers’ Balance Sheet & Cash FlowAt 2024-end, Louisiana-Pacific had $900 million in liquidity. As of Dec. 31, 2024, cash and cash equivalents were $340 million, up from $222 million in 2023-end. Long-term debt was $348 million, which aligned with the 2023-end level.In 2024, net cash provided by operations was $605 million, up significantly from $316 million a year ago.During 2024, LPX repurchased 2.4 million of its common shares for a total of $212 million. As of 2024-end, about $238 million remained under the pre-existing share repurchase authorizations. The company paid $74 million in cash dividends.LPX’s Q1 2025 OutlookLPX expects a healthy start to the year, particularly in Siding, where it forecasts first-quarter revenue growth of 9% to 11%, reaching $390 million to $400 million. The company attributes this to a solid order pipeline and a seasonal rebound in demand. With full realization of its annual list price increases, LPX anticipates Siding EBITDA for the quarter to be between $95 million and $105 million, keeping the segment’s EBITDA margin in line with its long-term target of 25%.For OSB, LPX assumes pricing stability at current levels and projects first-quarter EBITDA within the $35 million to $45 million range. However, as broader market conditions influence OSB prices, the company remains flexible in its planning.Total adjusted EBITDA is expected to be between $130 million and $150 million.What LPX Expects for Fiscal 2025For the full year, LPX anticipates Siding revenue to increase between 7% and 9%, reaching a range of $1.65 billion to $1.7 billion. The company also forecasts Siding EBITDA of $415 million to $425 million, maintaining its EBITDA margin at approximately 25%.For the OSB segment, adjusted EBITDA is expected to be between $200 million and $210 million. For 2025, LPX expects another year of strategic execution in OSB, anticipating a flat housing market but a potential modest rebound in R&R spending. The company aims to maintain cost discipline while continuing to expand its Structural Solutions offerings.Consolidated adjusted EBITDA is expected to be between $615 million and $635 million.Capital expenditures reached $183 million in 2024, with plans to increase investment to approximately $410 million in 2025, signaling confidence in future growth.Zacks Rank & Recent Construction ReleasesLouisiana-Pacific currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.UFP Industries, Inc. UFPI reported mixed fourth-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. Both metrics declined year over year.UFP Industries’ quarterly results were affected by softer demand and broad-based pricing pressures. While economic challenges are expected to persist in 2025, the company remains confident that its balanced business model, variable incentive-compensation structure and ongoing growth initiatives will support continued success.Weyerhaeuser Company WY reported mixed results for the fourth quarter of 2024. Its earnings beat the Zacks Consensus Estimate, while net sales missed the same. On a year-over-year basis, both metrics declined due to lower fee harvest volumes in the West.For first-quarter 2025, for Timberland, Weyerhaeuser expects earnings and adjusted EBITDA to be approximately $20 million higher than the fourth quarter. In the Real Estate, Energy and Natural Resources segment, Weyerhaeuser expects first-quarter earnings and adjusted EBITDA to be comparable sequentially. Within the Wood Products segment, WY expects its first-quarter earnings before special items and adjusted EBITDA to slightly exceed fourth-quarter levels.PulteGroup Inc. PHM has reported remarkable fourth-quarter 2024 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate and grew year over year. The quarter’s result reflects the company’s success in addressing the affordability issues of the housing market due to a still high mortgage rate.By implementing several operational changes, including targeted sales incentives and faster construction cycle times, PulteGroup was able to drive its home sales and foster new orders. Also, the increase in the average selling price of homes closed aided the quarter’s top-line growth. In 2024, PHM invested about $5.3 billion into its business, returned $1.4 billion to its shareholders through stock repurchases and dividends and generated a return on equity of 27.5%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UFP Industries, Inc. (UFPI): Free Stock Analysis Report Weyerhaeuser Company (WY): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report Louisiana-Pacific Corporation (LPX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks