Q1 2024 Louisiana-Pacific Corp Earnings Call Transcript
Key Points
- Louisiana-Pacific Corp reported a strong start to 2024 with a 24% increase in sales, reaching $724 million.
- Adjusted EBITDA for Q1 2024 was $182 million, significantly higher than the $66 million in Q1 2023.
- The company successfully launched new products and expanded strategic partnerships, enhancing market share and customer base.
- Record operating efficiency in the OSB business contributed to increased sales volumes and profitability.
- Resumption of share repurchases, reflecting a strong balance sheet and confidence in ongoing financial health.
- The OSB business's dependency on commodity prices, which are outside of the company's control, introduces volatility to earnings.
- Incremental EBITDA margin from additional Siding volume was lower than expected due to the high volume of lower-margin ExpertFinish products.
- Increased mill overhead costs by $7 million due to the addition of Sagola and Bath to the network.
- Freight costs and raw material prices, although moderating, continue to impact cost structure and margins.
- Macroeconomic uncertainty remains a concern, potentially impacting future performance despite current guidance increases.
Good day, and thank you for standing by. Welcome to the Q1 2024 Louisiana-Pacific Corporation Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Aaron Howald, LP's Vice President of Investor Relations and Business Development.
Thank you, operator, and good morning, everyone. Thank you for joining us to discuss LP's results for the first quarter of 2024 as well as our updated outlook. My name is Aaron Howald, and I am LP's Vice President of Investor Relations and Business Development.
With me this morning are Brad Southern, LP's Chief Executive Officer; and Alan Haughie, LP's Chief Financial Officer. After prepared remarks, we will take one round of questions. During this morning's call, we will refer to a presentation that has been posted to LP's IR web page, which is investor.lpcorp.com. Our 8-K filing, earnings press release and other materials are also available
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