Louisiana-Pacific Corporation (NYSE:LPX) Q1 2024 Earnings Conference Call May 8, 2024 11:00 AM ET

Company Participants

Aaron Howald - Vice President of Investor Relations & Business Development
Brad Southern - Chief Executive Officer
Alan Haughie - Chief Financial Officer

Conference Call Participants

Kurt Yinger - D.A. Davidson
Mark Weintraub - Seaport Research Partners
Susan Maklari - Goldman Sachs
Ketan Mamtora - BMO
Mike Roxland - Truist Securities
Brian Biros - TRG
Sean Steuart - TD Cowen
Matthew McKellar - RBC Capital Markets

Operator

Good day, and thank you for standing by. Welcome to the Q1 2024 Louisiana-Pacific Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Aaron Howald, LP’s Vice President of Investor Relations and Business Development.

Aaron Howald

Thank you, operator, and good morning, everyone. Thank you for joining us to discuss LP's results for the first quarter as well as our updated outlook. My name is Aaron Howald, and I am LP's Vice President of Investor Relations and Business Development. With me this morning are Brad Southern, LP's Chief Executive Officer; and Alan Haughie, LP's Chief Financial Officer. After prepared remarks we will take one round of questions.

During this morning's call, we will refer to a presentation that has been posted to LP's IR webpage, which is investor lpcorp.com. Our 8-K filing, earnings press release and other materials are also available there.

Today's discussion contains forward-looking statements and non-GAAP financial metrics as described on Slides 2 and 3 of the earnings presentation. The appendix to the presentation also contains reconciliations that are further supplemented by this morning's 8-K filing. I will incorporate those materials by reference rather than reading them.

And with that, I will turn the call over to Brad.

Brad Southern

Thanks, Aaron. Good morning and thank you for joining us to discuss LP's results for the first quarter and our ongoing growth, innovation and efficient capital allocation. LP's Siding and OSB businesses got off to a strong start in 2024 by launching new products, gaining share in new construction, repair and remodeling and growing strategic partnerships with our customers, all of which contributed to outstanding results in the first quarter. I'm confident that both businesses are poised to build on these gains in the second quarter and beyond.

In the first quarter, LP generated $724 million in sales, a 24% increase over last year. LP earned $182 million in adjusted EBITDA, $116 million more than in Q1 of 2023. Leverage from growth in Siding and the combined effect of higher prices and record operating efficiency in OSB drove improved margins. With the completion of capacity investments in Holton, Sagola and Bath, our strong balance sheet has allowed us to resume share repurchases consistent with our capital allocation strategy. Alan will discuss our results in greater detail in a moment. But first I'll provide the operational and strategic highlights for the quarter across our businesses.