Brad Barton

Brad Barton asked about the broad competitive environment in siding, particularly regarding affordability concerns and potential shifts to vinyl. He followed up by asking how LP plans to ramp up marketing spend and investments for ExpertFinish as new capacity comes online, specifically in terms of timeline and magnitude compared to the $11 million investment in 2025.

Answer

CEO Jason Ringblom expressed confidence in LP's continued market share gains across all segments, citing strong evidence from recent years. He acknowledged challenges from softer housing starts in late 2025 but highlighted LP's low share position and dedicated sales force as opportunities in new construction and R&R. He noted that marketing spend and field sales resources for ExpertFinish have increased over several years and were not paused during allocation, confirming these investments will continue, driven by strong ExpertFinish growth and the new Green Bay facility.

Brad Barton from Bank of America Securities asked about the broader competitive environment in siding, beyond affordability concerns and shifts to vinyl. He also inquired about the planned ramp-up of marketing spend and investments for ExpertFinish capacity, specifically its timeline and magnitude relative to the $11 million investment in 2025.

Answer

Jason Ringblom, Chief Executive Officer, expressed confidence in LP's market share gains across all siding segments, supported by past performance. He acknowledged challenges in softer markets but emphasized opportunities in new construction and R&R due to LP's low share and strong sales organization. He confirmed that increased marketing spend and field sales resources for ExpertFinish have been continuous and will proceed as planned, not paused during allocation.

Brad Barton, on behalf of Bank of America, inquired about the operating rates across the business and the forward outlook for EWP pricing, asking what might signal a bottom. He also requested an update on the labor strike at the company's Billings, Montana facility.

Answer

Troy Little, EVP of Wood Products, stated that EWP operating rates were in the low 80s in Q2 but are expected to decline to a 65-70% range depending on demand. Joanna Barney, EVP of Building Materials Distribution, addressed the strike, confirming it involved 19 union employees at the Billings BMD location. She noted that business continuity plans are in place to avoid customer disruptions and the situation is not expected to have a material impact.

Brad Barton, on behalf of George Staphos at Bank of America, asked about current operating rates across the business, the forward outlook for EWP pricing, and for an update on the labor strike at the Billings, Montana facility.

Answer

Troy Little, EVP of Wood Products, stated that EWP operating rates were in the low 80s in Q2 but are expected to decline to a 65-70% range depending on demand. Joanna Barney, EVP of Building Materials Distribution, addressed the strike, confirming it involves 19 union employees at one of 38 BMD locations. She assured that business continuity plans are in effect and no material impact is anticipated.

Brad Barton, on for George Staphos, inquired about the catalysts needed to reverse the downward trend in Engineered Wood Products (EWP) pricing and whether the recent appreciation in real estate prices per acre was due to mix or underlying value changes.

Answer

CEO Devin Stockfish identified a pickup in single-family housing construction as the primary catalyst for an EWP pricing recovery. CFO David Wold attributed the higher real estate price per acre in Q2 to transaction mix, specifically a higher proportion of Western acres, while reaffirming long-term conviction in the appreciating value of timberlands.