Louisiana-Pacific Corporation Reports Unchanged Net Sales and Decreased Net Income in Q1 2025

Louisiana-Pacific Corporation (LP) reported its financial results for the first quarter of 2025, revealing net sales of $724 million, unchanged from the same period in 2024. However, the company's net income decreased to $91 million, or $1.30 per diluted share, compared to $108 million, or $1.48 per diluted share, in the prior year. The decline in profitability was attributed to increased costs, including a $2 million impact from new tariffs, and higher selling, general, and administrative expenses, which rose to $75 million from $69 million year-over-year.

In terms of operational performance, LP's Siding segment saw a notable increase in net sales, rising 11% to $402 million, driven by strong demand for its engineered wood siding products. The Adjusted EBITDA for this segment also improved by 17% to $106 million. Conversely, the OSB segment experienced a 15% decline in net sales to $267 million, primarily due to lower selling prices and reduced sales volumes, resulting in a 40% drop in Adjusted EBITDA to $54 million. The LPSA segment, which operates in South America, reported an 11% increase in net sales to $52 million, reflecting higher sales volumes despite unfavorable currency fluctuations.

The company’s balance sheet as of March 31, 2025, showed total assets of $2.57 billion, slightly up from $2.57 billion at the end of 2024. Cash and cash equivalents decreased to $256 million from $340 million, while total liabilities fell to $878 million from $899 million. LP's stockholders' equity increased to $1.69 billion, up from $1.67 billion, supported by retained earnings growth.

Strategically, LP has been active in managing its capital structure, recently amending its credit agreement to increase the credit facility from $550 million to $750 million, extending the maturity date to March 20232. The company also repurchased $61 million of its common stock during the quarter under its 2024 Share Repurchase Program, which has a remaining authorization of $177 million. Looking ahead, LP anticipates continued challenges from macroeconomic factors, including fluctuating material prices and supply chain disruptions, but remains focused on leveraging its market position in engineered wood products to drive growth.