Louisiana-Pacific Corp ( LPX ) reported fourth-quarter net sales growth of 3.5% year-over-year to $681 million, beating the consensus of $666.753 million.

Siding revenue rose 9% to $362 million on higher volumes and prices, while OSB sales fell 2% to $267 million due to lower prices despite increased volumes.

Gross profit increased 1.9% YoY to $162 million, and the margin contracted 38 bps to 23.8%. Operating margin for the quarter declined to 11% from 13.5% YoY.

Adjusted EPS was $1.03, up from $0.71 YoY, beating the consensus of $0.86.

Net income rose $4 million to $63 million ($0.89 per share), driven by lower foreign currency losses, offsetting a $5 million EBITDA decline and a $15 million tax provision increase. Lower OSB prices reduced EBITDA by $18 million, partially offset by higher Siding sales and OSB volumes.

Adjusted EBITDA was $125 million (-3% YoY), and the margin contracted to 18.4% from 19.6%.

Operating cash flow for the quarter totaled $105 million, compared to $159 million a year ago.

Operating cash flow for fiscal 2024 totaled $605 million, up from $316 million in 2023. Cash and equivalents totaled $340 million at the end of the quarter.

LPX repurchased 2.4 million shares for $212 million in 2024, leaving 70 million shares outstanding and $238 million in remaining buyback authorization.

Last week, the company increased its quarterly dividend by 8% to $0.28 per share for the first quarter of 2025. LPX invested $183 million in capital expenditures, paid $74 million in cash dividends, and ended 2024 with $900 million in total liquidity.

Q1 Outlook: LPX expects Siding net sales of $390 million – $400 million and consolidated Adjusted EBITDA of $130 million – $150 million.

2025 Outlook: LPX sees Siding net sales of $1.65 billion – $1.7 billion and consolidated Adjusted EBITDA of $615 million – $635 million.

Price Action: LPX shares are trading lower by 8.83% to $102.97 at last check Wednesday.

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