LP shares fell 2.4% after earnings, a roughly flat reaction. Siding growth and sales above the company’s guided range were offset by flat total EBITDA and inflationary headwinds; the transcript also points to continued pressure in OSB, though the excerpt does not include the full updated outlook.
- Net sales were $691 million, up $28 million year over year, driven by siding; total EBITDA was $82 million, flat year over year.
- Siding volume rose 2% and net sales grew 7%, setting a quarterly record and exceeding the high end of the company’s guided range. Average selling prices increased 5%.
- Siding EBITDA grew modestly despite raw-material and freight inflation. Expert Finish volume dipped slightly and represented 10% of siding volume and 16% of siding revenue.
- OSB utilization was 81%; LP announced curtailments at its Jasper and Maniwaki mills.
- Operating cash flow was $112 million; capital expenditures were $56 million, and LP returned $21 million to shareholders through dividends.
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