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    Louisiana-Pacific Corp (LPX)

    Business Description

    Louisiana-Pacific Corporation (LPX) is a leading provider of high-performance building solutions, serving markets such as new home construction, repair and remodeling, and outdoor structures. The company specializes in manufacturing engineered wood products that offer durability, sustainability, and protection against environmental factors. LPX's product portfolio includes siding, structural panels, and other building materials designed to meet diverse customer needs.

    1. Siding - Manufactures engineered wood siding products, including LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, and LP BuilderSeries® Lap Siding, offering superior protection against hail, wind, moisture, fungal decay, and termites.

      • Outdoor Building Solutions - Provides siding solutions for outdoor structures like sheds.
    2. Oriented Strand Board (OSB) - Produces structural panel products such as LP® Structural Solutions, including LP TechShield® Radiant Barrier, LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, and LP FlameBlock® Fire-Rated Sheathing, used in construction for strength and durability.

    3. LP South America (LPSA) - Manufactures and distributes OSB and siding products in South America, supporting the region's transition to wood frame construction with companion products.

    4. Other Products - Offers additional building materials that complement the company's core product lines.

    Revenue by Segment - in Millions of USDFY 2013Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024
    Siding3313203453321,328361415420
    - Siding Solutions3373183423221,319359413418
    - Other11--4211
    OSB1892293352731,026313351253
    - OSB - Structural Solutions40464051177-4140
    - OSB - Commodity75100157114446134149112
    LPSA55534552205474647
    - Siding1465-124-46
    EWP--------
    - I-Joist--------
    - LVL--------
    - LSL--------
    Other894122322
    Total Revenue5846117286582,581724814722
    Revenue by Geography - in Millions of USDFY 2013Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021 [N/A]Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024
    United States----2,265---
    Canada----610---
    LPSA----241---
    South America55-------
    - Chile--------
    - Brazil--------
    Intercompany Sales----(535)---
    Other Regions529-------
    Total Revenue584---2,581---

    Questions to Ask Management

    1. With the competitive landscape intensifying, especially from fiber cement siding manufacturers, how is LP addressing the potential increase in price pressures to retain or grow its market share in SmartSide products?

    2. The Q4 Siding revenue guidance suggests an unusual sequential decline compared to historical trends; can you elaborate on any specific factors or challenges causing this anticipated drop and whether this indicates a potential reversal in outperforming normal revenue seasonality?

    3. Given the lower OSB Structural Solutions shipments compared to commodity shipments over the past two quarters, what are the underlying factors driving this trend, and how do you anticipate this dynamic evolving in the upcoming quarters?

    4. Considering the recent investment in the South American modular housing business, can you explain how material you expect the pick-up in South American volumes to be and provide more color on why this was seen as an attractive investment for LP?

    5. With plans to bring on new capacity in Siding over the next 1.5 to 2 years, despite some mills not running at full capacity, can you discuss the current operational levels of mills like Sagola and Houlton and justify the timing of this capacity expansion?

    Share Repurchase Program

    Program DetailsProgram 1Program 2
    Approval DateMay 3, 2022 May 7, 2024
    End Date/DurationN/AN/A
    Total additional amount$600 million $250 million
    Remaining authorization amount$0 million $262 million
    DetailsN/AProvides flexibility for repurchases based on market and business conditions