Louisiana-Pacific Corporation Q2 FY2025 earnings call

• Siding segment delivered record volume, revenue, and EBITDA in Q2 despite challenging market, driven by SmartSide and ExpertFinish products across new construction, R&R, and off-site construction.
• OSB segment operations teams maintained high OEE (79%), and cost control efforts helped EBITDA outperform algorithmic guidance.
• Company culture highlighted with multiple safety awards (3rd consecutive APA safest company, New Waverly Transportation's 4th Platinum Award for Highway Safety) and being named a top workplace in Middle Tennessee.

Siding: Revenue grew 11% y-o-y, with 2% from price and 8% from volume. Volume increase added $35 million in revenue at nearly a 50% incremental EBITDA margin. EBITDA margin was 27%. SmartSide had record volume, revenue, and EBITDA. OSB: Commodity OSB prices fell to multi-year lows. EBITDA in Q2 was $19 million, but outlook is negative due to low prices; full-year OSB EBITDA could be negative $25 million if prices stay low.

• Reaffirmed full-year Siding guide: ~$1.7 billion revenue and ~$430 million EBITDA. Q3 Siding sales expected ~$430 million, +3% growth with EBITDA margin ~26%.
• OSB: Commodity prices at multi-year lows, well below EBITDA breakeven. If OSB prices remain flat at current lows, full-year OSB EBITDA could be negative $25 million.

• OSB segment exposed to low commodity prices, which are below EBITDA breakeven. Tariff situation unchanged, impacting OSB results.

Q: On high level of manufactured housing and sheds for Siding.

A: Shed demand back to normal strong levels; manufactured housing seen as opportunity with siding providing aesthetic and structural advantages.

Q: On new residential opportunity set and peer exclusivity agreements.

A: Nuanced approach to competition, pursuing opportunities with large builders, including multi-family units; BuilderSeries growth indicates continued share gains.