Tue, May 6, 5:44 PM (13 days ago)
**Louisiana-Pacific Corporation (LPX) Q1 2025 Financial Summary** Louisiana-Pacific Corporation (LPX) reported mixed financial results for the first quarter of 2025, ending March 31, 2025. The company's net sales remained flat at $724 million, compared to $724 million in Q1 2024. Gross profit decreased to $197 million from $214 million in the same period last year, reflecting higher cost of sales at $526 million compared to $511 million. Operating income fell to $120 million from $145 million, and net income decreased to $91 million from $108 million. Earnings per share (EPS) also declined, with basic EPS at $1.30 compared to $1.49 in Q1 2024. **Segment Performance:** - **Siding:** Net sales increased by 11% to $402 million, driven by strong order files and price realization. Adjusted EBITDA rose by 17% to $106 million. - **OSB:** Net sales decreased by 15% to $267 million due to lower selling prices and sales volumes. Adjusted EBITDA dropped by 40% to $54 million. - **LPSA:** Net sales increased by 11% to $52 million, with Adjusted EBITDA rising by 22% to $12 million. **Financial Health and Cash Flow:** - Cash provided by operating activities was $64 million, down from $105 million in Q1 2024. - Capital expenditures increased to $64 million from $41 million, with a total expected spend of $410 million for 2025. - The company repurchased $61 million worth of common stock and paid $20 million in dividends. - As of March 31, 2025, LPX had no outstanding borrowings under its amended credit facility, which was increased to $750 million with a maturity date extended to March 26, 2032. **Future Outlook and Uncertainties:** - LPX faces uncertainties due to global economic conditions, geopolitical tensions, and supply chain disruptions. - The company is monitoring the impact of new or increased tariffs, which are estimated to add $12 million in incremental costs for 2025. - LPX is focused on strategic acquisitions, capital investments, and maintaining a strong liquidity position to support future operations. **Conclusion:** Louisiana-Pacific Corporation's Q1 2025 results reflect a challenging environment with mixed segment performance and increased costs. The company is taking steps to mitigate these challenges through strategic initiatives and maintaining financial flexibility. Investors should monitor the company's progress in addressing these issues and its ability to execute on its strategic plans.