LPX - Earnings call transcript Q2 2024 | Louisiana-Pacific Corporation

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Operator

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

I would now like to turn the conference over to your speaker for today, Aaron Howald, Vice President, VP -- I'm sorry, Investor Relations and Business Development. Please go ahead.

Aaron Howald

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

to web During this LP's has IR page, been is that morning's call, a we posted presentation will which refer investor.lpcorp.com. to

materials are our recently earnings press other including report. release Our available X-K our also and published filing, there sustainability XXXX

contains morning's statements, with over will statements described As reading X-K you X filing. that The always, I caution X reconciliations the will the contains Rather I reference. And incorporate Slides non-GAAP that this of as those them today's that, by I metrics Brad. of discussion earnings presentation. call also turn are appendix forward-looking financial the further to and by and presentation will on than supplemented

William Southern

year. over sales detailed performance X% result the Thanks, up the strategy the in Aaron, our Alan Siding XX% the on in quarter of by a XX% I business highlights executing the for million, quarter, margin in call and this higher $XXX a an ExpertFinish. and gains XX% growth, higher strong improved Siding operational update first from quarter and summarize same of for grew and few sales contributed value-added built X margins. quarter net the the quarter, of helped on us all which growth. both OSB, OSB share and higher second sales which more businesses on allocation. LP's and record and volume compared prices, in volume to prior quarter will of the reached that to strong of expansion before of mix and solutions, efficiency to contributed thank the increased results another turning the delivering time, In are on prices leverage factors OSB improved Page detail continued you structural quarter and the for revenue discuss presentation, morning. the to these LP of XXXX. were joining by capital At

LP adjusted flow adjusted earnings doubled EBITDA, the result, more to a share quarter As compared than cash of and operating per second XXXX.

years on return million led capital With shareholders. greater the allocation This and the X since capacity flow proportion with to CapEx as facilities in cash have quarter. repurchases continued past end, a projects repurchases fully million $XXX Therefore, our new now were expansion to share available through comparatively to strategy, in detail quarter. a light quarter moment. will consistent spent dividends operating of the for was the Alan $XX operational, and complete the Share LP's

left X, some of On see Page you will the other highlights. lower

and First than wins awards. LP safely. most operated more safety importantly, of share our has industry our business fair

to want total fact, is I Association, recent and of we in Siding Sagola, our in in the both home [indiscernible] safest best achieving named our XX% they facility reward business which our efficiency Wood measure the team Michigan, OSB, prefinished and operating OEE. up with OEE incident York. greenfield by were New ramping the the complexity the an Engineered quarter, X.X. APA operations impressive in despite of in for everyone every Bath, we Siding thank safely delivered company conversion category but at rate second The outstanding sending flat In the quarter held just the most day.

high to of was quarter. level cost X a The last OSB to business contributor efficiency increased major the performance OEE compared points business' This the by in operating year.

] published July. [ XXXX LP report in our sustainability Finally,

most and significantly impressive story is SmartSide Siding the to to technologies are carbon into LP's thank report of everyone it As detailed report, contributed LP I the the at in sustainable who products tells. more want negative. competing than

our of side to chart housing for Siding based the increased data On and of growth updated left guidance Siding backset, which reflects is for revenue volume for the starts will while on at in Page the data XXXX siding $X.X U.S. in X million. see starts. XXXX, the midpoint housing The of growth presentation, consensus compared currently normalized housing is showing you an

market share can Siding residential exceed growth construction. in the as see, you housing to gained As of that continues underlying LP

Repair compared but is digits down more and general overall last that Remodeling spending to difficult track, is R&R year. to market mid-single by the consensus is

market, to for segment. design share R&R In close prefinished quarter record seems XXXX, be also roughly quarter. business achieve the the in to given volume, ExpertFinish, higher price a margin of LP siding to XX% our volume, ExpertFinish for EBITDA of XX% XX% expect in improved and Siding of revenue. helping we in Siding XX% would well, the its R&R For Siding point gaining Siding at the for total ExpertFinish the quarter as margins account to be ExpertFinish

growth performance for segments markets And to business LP's turn more have gains both Prime with our and new addressable growth. the that, runway Alan strategies construction, drive the on in pre-pinning and before of questions. new developing products, expanding the call and will and intend with we over And continue to R&R the future Siding for believe sales detail long We to SmartSide. a taking share in we and your financial off-site executing quarter our I operation and

Alan J. Haughie

Brad. Thanks,

projects us, of a and second price With also X shows show, of it of last quarter, strong it the Brad quarter on year-over-year X the performance growth, of destocking now addition comparisons. tells was As channel was volume said, to some in Siding capacity year's XXXX. anticipated as the charts of straightforward story and Page terms compared increases operating waterfall the waterfall much a behind and inventory X the both a refreshingly leverage. presentation next pages the

by ExpertFinish, of all a boosted almost in revenue quarter $XX on a new riding this incremental and higher at soft construction Remodel. XX% EBITDA of before But an generated $XX the EBITDA comparable. impact grew additional million admittedly by volume in residential in million increases. And gains of price Repair relatively share margin record volumes considering sales and XX%, Sales and

Speaking roughly in mix equally and towards of favorable $XX which, price prices combined X% list worth higher increases million.

supplied Increases lower and million in while of funded million in useful selling marketing tailwind. and of conversions almost net mill investment resin were by nonrecurrence resulting the $X $X fully investments year's costs, last prices a logs a

been, a a ExpertFinish significant similarly our there in margins last advanced ramping year. Finally, Brad improvement automated investments prefinishing of in York, the Green as more over and said, as in in equipment pre-finishing facility, result has New up Bath, facility Bay

improvement equivalent shows year ExpertFinish the on but Now in margins closer Incidentally, the they're because average, volume are to waterfall not at the our closer. costs in is prior other and up business to margin. methodology changes yet getting value this

this result revenue, million. net EBITDA up pushed XX%. is margin near up by EBITDA a Siding's million to to with million points naturally, of X $XXX $XXX all $XX The And this in doubling of

delivered however, volume, Prices Siding, fronts. team what volume $XX volume Sales efficiency. of higher square in quarter year, can feet are an Brad and XX% The a point generated ended did X the waterfall like and tells impressive EBITDA. safely. quarter last OSB million in OSB structural both in mentioned control, on team. sales were last $XX $XX OSB XX% earlier, the operating operating largely of they of mix execution incremental Page these million part sales our EBITDA. XXX all the outside story X higher million the so with exceptional increase simple than consistent made Unlike is in additional volumes effective control net an OSB as and was million and possible And value-added also by EBITDA. quarter in Siding, $XXX in efficiency. year, were prices sales adding quarter in And percentage or on than million million team in the higher an $XXX This by solutions. OSB the and

flow make in and that After $XX million Slide quarters with the similarly saw and in Siding in reduction in million. as a Clean seasonally sales working $XX a million shows. OSB XX EBITDA, excellence brought growth in $XXX and normal further a $XXX starting on LP of straightforward paid capital operational for cash, taxes cash in both million quarter

strategy resulting $XXX the With we have in to we allocation shareholders. done, executed as in consistently CapEx investing million $XX million capital our operating $XXX cash flow, million returning and

million over $XX reconciliation the During was the a mostly the with of at see XX% of financing The the EBITDA, quarter, average $XX other in of investing remnant a LP doubt, in per we Entekra. And of as to you appendix. excluded $XXX million little and an a our joint investment gain avoidance share. of ownership second million repurchase million price And cash. in is adjusted in LP's paid can X.X sale venture, for this the quarter $XXX ended from in shares

guidance of remaining At file we remind a we insufficient to of me second offer million. full As that XX. when quarter $XXX the on had first can order repurchases, further first board Siding call, as time, quarter August, days, Xth robust, the Which second for that to shares a for and be through increased our on now to guidance the paid the share adjust year-end. the a beat authorization LP like visibility yesterday $XX in guidance sum and the our continues by million our bringing Siding yesterday, million updated about the of has half. hence, we you increase to of I'd briefly $XX.X for of Slide XX outstanding outlook. outlook But brings updated guidance earnings to year the quarter we that with

margin of third Repair and and we Brad in revenue $XXX expect growth XX% outperform moderately million, new the both the Siding between and But $XXX EBITDA second prefinished volume said EBITDA SmartSide now between continues year-over-year million. market. the revenue and of million XX% $XXX about a Demand quarter, records Remodel million $XX quarter of for in to prime for weak and the in on an XX% yield quarter for based smart earlier, between would third As side

growth full see about continue third quarter above the [indiscernible] building EBITDA resulting seasonal down. revenue between in million. quarter full up guidance XXXX year to patterns means would bit emerge, winds in also We that If to turns $XXX should boost demand between be the sales as fourth usually $X.X XX% which typical and to for expect season million prior patterns year we from XX% weaker seasonal Siding out volume billion. as yielding and the typical our volumes demand, and for $XXX Increased XX%, the Siding margin the a delivers EBITDA

different a assuming beaten third for is in with earn $XX the the at third a very EBITDA looks like lag quarter quarter, order of story. million raise OSB And at far fell published is due levels this significantly Siding Prices felt LP's bulk business second. end so our summary, the Friday's quarter. be time will second to in prices of last a flat remain by In the million in that quarter the would much random OSB the $XX length, the in third between somewhere and that file.

to As attempt useful an always, this is not a modeling. price just prediction, offer

we fourth from below quarter For holding of OSB fourth through the in would at outlook flat full seasonally flat to Therefore, volumes of current that about lower quarter, levels imply reflect fourth OSB prior quarter quarter. million OSB Friday approach and prices the assuming will really for the EBITDA and increased the third demand $XX year-end. and the that and meaningfully reality year the extend prices

million total million. earnings the So range full for in million corporate the third LPSA year we'll treating as assuming that, EBITDA out, to your with just as million the $XXX and be $XXX and quarter between LP would $XXX And be to I've would offsetting, in year and mutually happy expenses questions. as take EBITDA be described, usual, plays $XXX and

Operator

will be Our [Operator Thompson Steven from Instructions] coming Research first question Ramsey Group. of

Steven Ramsey

sure I'm is QX first drag margin growth, much which quarter the the just margin? that the higher of and is Siding the sales. volume growing to Maybe EBITDA is despite Maybe EBITDA the Siding overall, to an slightly the I and incremental just above some SmartSide with to product. takes puts puts than talk ExpertFinish core QX on know But better that takes, the start

William Southern

a Sure. add. deal great There's not to

is You [indiscernible] captured margin average. ExpertFinish significantly The one improving, the of but factors.

as you labor in really nothing little -- health great and line the other in And to have, pricing significance there's terms mix. obviously added that, some growing lead make keep ExpertFinish terms of We slightly changes shifts bit. other at of said, affects top than help margin addition instances, of a in the we line the healthy. top But times in and changes sure than, mix any that of slightly

Steven Ramsey

helpful. That's then Okay. rollout. And the Siding on thinking also BuilderSeries

how the with and that about could large you're going out play half Just [ curious how year? on that on second and with with is ] general updates over other current potential Lamar builders, thinking partnership partnerships next into how the

William Southern

Very pleased certain and [indiscernible] the [indiscernible] additional we growth incremental with a with competitive builder. national [indiscernible], particularly [indiscernible] but secure with coming line, initiatives there large volume have from in to product do regional big

secure We those us a regions little lab builders. a really of in as product to well are position -- SKUs allowing BuilderSeries result seeing good [indiscernible] along [indiscernible] being the the as with a

to have. the the of that builder we're lot on can seeing that directly be initiative Siding currently growth a we attributed big -- growth the So

part there next question, second through this rest year move year. your the we the and of continued -- expect as expect we into success we of And

Operator

question D.A. our coming from of Davidson. Yinger be next Kurt will And

Kurt Yinger

think as I prime opposed as around seeing and stage, big of builder a of business follow collection last strengthen -- that just should we you be product? at builder product are just of those up sort dynamic kind it well wanted as on Or a BuilderSeries? to the to about this solid BuilderSeries that takeaway products on just comment primarily the to big is

William Southern

successful soft help BuilderSeries, from standpoint. Kurt. builders offering -- from lap any and have we The has generally The trimmed. on, competitive we house LAP ours, also makes panel Dead make -- BuilderSeries our we're with is LAP us us the We've as the where an -- so are got certainly go is as that we've competitive shake are or regions But a SKUs into product BuilderSeries. seeing this speaking, to growth all regions year. good we we [indiscernible] seeing success or on growth LP directly And geographic product. good [indiscernible] in that on in -- are yes, single-family measurable the got prime -- converting

Kurt Yinger

to Okay. margin Makes performance you're does you themselves mean, others there, around what a the Is I I'll the average it be? should kind in your how I sense. seeing selling to point, front, terms from volume where given the any stage? head's we ExpertFinish And different have seems ask the offset higher long-term think answer given at the the name. operations been operations sort fence this who just then that is meeting products of front, anyways. on could seeing that And and kind but mean of of obvious, be price vision on . to the over just them pre-finishing strength ring lower company than under might it brand are and the of ExpertFinish and prefinishing the the it then reasonable infrastructure company time? Or average

William Southern

Yes.

this prime you're were product is our and product think, significant other So partners around certainly, that our initiative, as cannibalizing Kurt, have conversion. siding of a still the lab amount prefinishers I has I are into of first part that but mean, a we've question we historical it. historical going we that good prefinishing -- gone asking for ExpertFinish happened into And X of some selling

positive. been the I a but certainly certainly, whole addition has say, lab that ExpertFinish impact overall to would sales. cannibalization there has So our as been But of on there, certainly, some or additive portfolio

-- more have I side, in margin the a the portfolio. Eastern recall, LP the margin if used On to product or be be achievement delay at those of our will things, end quality that's believe -- ramp the expectation -- given reported, [indiscernible] be will look, associated be should for time, as that margin an those at it for us. entire a be there growth be [indiscernible] to that of X products the the into of times, but drag -- the we Canada certainly it's may product from line be a our be of as should It amounts is, for above the one will result incremental continued ultimate paint getting any is margin ultimately, longer. getting margin Alan than getting you in we ExpertFinish, though, inefficiencies finishing. -- our and we're -- can we as It And we're [indiscernible] quite highest higher-than-average product to there, product with should above of that ExpertFinish volume normal an paid

Operator

And our next Research from question Partners. Seaport coming will Mark Weintraub of be

Mark Weintraub

big very inventories What think had some outlook. normal levels? would of Siding potentially year. restock strength good continued quarter, Or strong we last more very hold how or this you to that? obviously, in -- about Do does have have the low represent think congrats, First, is say, some you customers -- destock just to, question us

William Southern

inventory in service distributor inventories But products market situations there as Siding. think conditions that we being far when I say to we would levels -- right at year nor we that given in has feel year it being now are this that. of I inventory for do inventory prior I normal, this are kind we to a were and feel it's season, days back normal last where I just a things long ago the time as and have so in been and our building good necessarily were all about lot. which needs maintained. like build we moving the We believe, of discussed current material [indiscernible] no the in internally But was allocation is be time normal still on are partners. mean, light. and we to COVID

Mark Weintraub

initiative? SmartSide Smooth good Okay. Any on great BuilderSeries. on then on . ExpertFinish, the update And the

William Southern

of availability And have program there but say some to the It's part I was prefinish NAR I ExpertFinish was significant our is smooth. a significant, a then of component East -- mean won't -- Yes. is launched. key a those that a meaningful -- our strategy. Coast been products

continue with product pleased that so And others this innovate SKU that so with the We'll selection especially with for year. around product. and in sales well, that and the needed it's far product pleased our are we're we're but going homeowner, Repair the and of to . new that Remodel --

Mark Weintraub

together. of goes full if is you at drop -- the seasonally $XX it steep then for XQ I pretty think $XXX midpoint guide EBITDA just like Siding, know like pretty the million I I year kind One, said to it's a of but X And million for tie the look seems weaker, from last Super. math -- so at off.

So Siding second else I the in more there's -- OSB of whether was bit I'm being guessing produced some first you're bit a operations maybe I OSB embedded the maybe in now in color and/or curious there, weaker, anything did just what quarter just made is conservatism? know if And on you whether Siding then the you happened . there a in second the that of there's assuming quarter. too, in OSB the year? half still also

Alan J. Haughie

part up ties ramping The like the is asked manufacturing it Thanks, of production the currently Smooth. it's actual process, success. We're inefficient Mark. about was an And the that rather Yes. again, you to given of given fourth quarter question answer infancy. Smooth in its ExpertFinish,

to nonmaterial capital So more automate plan there next us some efficiently. help process is investment that year

So of the drag is part that.

QX we're answer we of QX XXXX, was therefore, phrase, chatting in network lighter now. this that's an with which at in if to some be diverted replace I about we and labor said, to did they don't. wish do the QX was a as -- perfect a this that But most have maintained a to of our furnace. to essential don't to one we quarter down do we'll through he a what said to the month as Another I lighter X to the that's is mills being in revenue slightly what we the going engineers question, And doing. including maintenance, likely be QX, aspect earlier Siding did, through that will

that maintenance in OSB -- so, some was means QX, QX. in a production Siding of been there course, that's in or we conservatism in gave less in you $X yes, bit and take less be not can change always. [indiscernible] million we're roughly QX share at But where level our EBITDA. but And of it, give as of yes, and is the QX, has know we try costs. that's sort It's it the there lot, a the I I'll in in the out, to and of target Thirdly, confident mostly as lion me and

Operator

question will coming Mike Our Roxland Truist next of from Securities. be

Michael Roxland

the Congrats on backdrop. a quarter good despite

marketing in I headcount, had that left and of you in year? you the just much marketing in -- just wondering quarter mentioned of I'm adding how additional and increasing question expenses, the adding incurred selling terms was selling the and what's to First balance expenses. the spend where

Alan J. Haughie

spend? well, rates. How million [indiscernible], on like the in added costs investing relatively us is marketing and see to $X about depends heavy year-over-year continue much selling of QX. It would to we left I opportunities,

the So for . remainder year, into baked fundamentally focus. the I type of think that year-over-year the expect similar you and should see to variances

Michael Roxland

And think continue correlate that as and something that's innovation, Or out, do Siding point to meet to at like? staffed you grow pipeline that's out your the to to particularly going this be fully your you is the ongoing, demand you're there? that

William Southern

absolute contractor conversions, have market which requires strategy share should you human to requires number the No, grow. expect Yes. that continue This interaction. to builder we

a straight initiative, provides so going share to segment that a becomes on would a marketing. in the and appropriately, higher And team also market -- and on mean requires support with and sales technical to -- in as our and R&R even for are so an Remodel, and Those support. as structure in-home bigger bigger part we grow both that of we're Repair aspirations that's our continue investment share does consumer, then installation. interaction group higher of the require that sales high the higher market And front ExpertFinish sale marketing mix,

I hopefully in find good expense, there sales ratio in against when a if obviously, but revenue. And leverage We're that leverage you our bit in so mean investing should expect be so should growth hand. not -- things go a sales -- not hand . but and marketing. in we're X of those there, marketing there done absolute we and

Michael Roxland

one stands is one Could then be it where -- Got XQ, do to where where really, just And prices think and under in share could currently, OSB. the forthcoming it. any on industry -- the be OSB rate here? quick pressure your where that operating you you sense curtailments continue as stood stands

Alan J. Haughie

QX this be The year believe. We're . operating rate to in of was around about forecasting in XX%, lower QX. I slightly

William Southern

And run everything match now. our right I would will business for customers' actually within inventories and call OSB to our we look, it in demand our slightly OSB, lean do to power stay

will And going the so customer beyond QX to and we our into capacity demand. match

Operator

from be TD question Sean our Steuart will And of next Cowen. coming

Sean Steuart

questions. of respect of a segment? order given terms to give what positive Brad, margins business, on in need next sense revision segment, us pull revision you couple A you the expansion the positive that rather to to to momentum or either Siding the guidance that With decision with the and for respect see at can guidance would for file of segment the capacity make or

William Southern

more Sean, to talk months X beginning were about are we robustly than -- Yes, ago. we that we're

expect year continue to that ahead to demand. year build -- good of on be we year. to certainly, reporting in This want so really And situation our stay and a has we been the as next a far as as growth, to

as the to an that planning learn next get the are press configuration around the some be capacity the into actively play conforms into the incremental next but puts we existing scenario our way about are which may And only capacity. the best growing, incremental next of line of additional where So facilities that expansion. we back not SKUs Wawa,

planning guidance we we [indiscernible] meaningful actively that. as yet year, us. see expansion us giving could And haven't at for on this the to we're which year's do the any CapEx next significant the not spending So put the certainly part for in we're look next stage growth back not not horizon planning into sometime beginning all as but of engineering there, been obviously that has year. to, next we're But or

Sean Steuart

current able implied with you you of expect sense a [ guidance. incremental with the Appreciating you to be in footprint beyond much Siding But XXXX don't can how footprint, XXXX current produce volume the guidance? in what's give and give ship to ] us

William Southern

fully pullback I are the because at year. last of shipped the facilities would say not all because we

could are I today say to XXX where would So XXX would fleet additions we million of capacity give another we around [ from ship -- at ] us capacity. that million

So we've the and Houlton being as a converted bit we room big that of just fact head Sagola a given got good facility Sagola, well.

not So ago. X not managed stay it's to back to to ahead like but were know, want go situation years we Sean, all you do into in we're try edge, on it, at of file as a we order like

Operator

McKellar of question from RBC be will Capital coming Markets. Matthew next our And

Matthew McKellar

if view addition. before previously XX%. how high go about margins And to I think I'd can like have the talked ask updated Siding capacity you on -- First, an you next

a for couple there been You've of quarters.

range. same be improving You're guiding seem the ExpertFinish to pretty rapidly. to margins

would updates So helpful? on be front just any that

Alan J. Haughie

all question, I'm a answer. reluctant it's that to great Yes,

at enough point rising this operate smooth, you I sign as to And is ourselves great given to but it's describe making wave. going give as this room in of well, ExpertFinish. than we we try the know, brushed relatively gains We're more introduction very which So point, time, in inefficient. at said, what this particularly

we're mark think this excess we -- of that XX% carrying. capable with capacity certainty with this increasing are in it I

not on upwards, but is upside trend is. to I'm the where yes, commit So that Matt, going

of and I think that we need to see how the those. the next play out timing few capacity additions

that. any on say more So . [indiscernible]

Matthew McKellar

wondering color if expected the the me. development Okay. of in plant a was for last of margins then Valley, and Fair result Manitoba forestry area? enough. production I you levels And impact have around exciting under could new just cleanup X as give any Swan you

William Southern

of question. [indiscernible] a Good on something to or normal working actively Siding management plans, with material really [indiscernible] associated we the this from talked That's a we not it's [indiscernible] about Yes. or [indiscernible]. are call impact that but margin of those the costs matter

Operator

be Capital. next Jeff question will Our from of Loop Stevenson coming

Jeffrey Stevenson

demand the wondering partnership trends I overall was Siding regarding in forward? then on there could think Depot Trim talk how nice impact on your you we about demand also And with center should was as Congrats your channel with the variance far Siding your home if an compared as in about channel Home whether product quarter. expanded any results. moving

William Southern

Yes.

we see growth growth So in QX. that -- to and our expect meaningful retail momentum in continue did year-over-year business

has mentioned, placement you trim that to of that us. part that strengthened has the volume we QX of particularly in QX. has growth a all in has saw been the in see Some as that been expect SKU the -- and Home in have panel meaningful been incremental the for historic Depot and And been there. But

continuing play the a that home traditional we're Home centers, as being the some just grow the been good with And where that far by Depot has particularly us the to beyond as land certain position historic Depot panel trends, So relationship. places. partner particularly SKUs basis a Home to have with grow of the in has gotten there, around ability we

so the the significant as loss small across you that small any seeing we're trim And scale. a in don't counter a I I base ultra were think guess right the there, so strong there [indiscernible] -- strong and still customer been order or bit has of board is that DIY DIY, strong, cannibalization asking now of is not result file any answer [indiscernible] a of little

product product given we to have a ability us a base, didn't customer probably have it's [indiscernible]. access presented if the the to So to

Jeffrey Stevenson

quarter. growth be Right. price And the move you as would the the other? similar mentioned equal roughly back then a the an contributor X% we mix from price one mix second of more in expect through to and than half contribution was you Would the year that

Alan J. Haughie

to We the kind mix of mix aspect, -- safe. on list Yes, it's from hard that's X% little of the more predict net increases. mix products. is relatively depending a The variable the price

be it's X will it is any positive. will as it so think demand with our whether I great be much become friend, So They'll that precision. to hard points as specific it's predict

Operator

Staphos America be Our question of line the of Bank next George will from coming Securities. of

George Staphos

already color seeing you're you [indiscernible] give that expert progress I us it. additional and -- and -- possible would some BuilderSeries, an You perhaps the to but it and be for with mentioned did, the missed you

within the Is -- and you progress was there there a progress distribution the sounds seeing also that way dimension. the to well that single-family then guidance builder give of how of and and us It that model. and terms Remodel versus Repair much about much you're raise, your some of again expert. with is single-family from order talked share How from gains. from that channel? Similarly, coming doing like in In you're Repair very

And then to your an from share we've it's possible relative think open all it coming market? about fiber investors. in today coming that that anything Is are at Is mic that? that you have you're getting products questions more received away recognizing the -- where it talk conference cement, from Is you other would to from call take more from it vinyl? us

William Southern

Okay.

at would the half question would when say So I let's in you mean, [indiscernible]. speak coming we I And look the in got, growth to about George, growth long growth -- where general that the of terms, about put I first. from

George Staphos

out our your is cutting side. on I don't you... Brad, know phone if

William Southern

[indiscernible] and that if see helps.

if know it me Let does.

Repair So up. but there okay? and about about shed growth of that -- if half the reported, let single-family in at the the just That's the would contractors a would a construction, So just there. homes. and half around is attribute half initiatives initiative [indiscernible] you -- we about have. by and that's the construction retail, Siding installed take to and getting [indiscernible] builder of new driven focus -- And growth [indiscernible] single-family I new growth me -- between we half big then be just and that is which converting -- There's on say the meaningful that would Remodel, I is so little back that that

The and compete not in shed is retail ]. particularly competition. but certainly, QX I Where would good Repair it would in -- as we in [indiscernible] it's I or from? Repair wasn't the had well good most the [ bump So seeing quarter casting is has construction if been and year-over-year. have we nice just before it a across to against get for think new you as side, we're in and is coming as Remodel. a construction success hard into of but from Siding in And little competitive as Remodel vinyl then coming [indiscernible] the say have would Repair Remodel, certainly success construction some single-family new the new against board. the There as opportunities still also as probably on as single-family

with line from competitive as customer. be an we be replacing what big so coming either size. from builder our would existing coming But would growth some And or it's part if gained vinyl share obviously, not we there,

of an perceived not lot grade perceived, a against head-to-head with the certainly being to go product upgrade vinyl actually upgrade or our to still being vinyl. vinyl There's opportunity up --

there we share where because competitive the market that's have big And is. to so be

So other us vinyl, there's the sure hard Sidings. making focus also explain good in proposition and can against a value of have on way but lot against a we

George Staphos

year getting . if as left if what's opportunity half life. no Just Siding. margin trends for you closing attack the separate of the I in think over equivalent OEE half basically I'll remind know I an loop, you also Repair to What the businesses, guarantees over. are the there from of across and that years? that the single-family the would and expect of turn terms X And driver year. within then the And in raise Alan, model, dollars, next but you're profit could are progress Can and or mean from over your next recognize guidance be it answer, the us

William Southern

on and I'll the articulate upside strength there seeing and [indiscernible] Remodel we're answer yes, on is construction and the the in order predicated is filed revised that. Repair and I'll to Alan OEE, challenge . the still single-family QX on --

Alan J. Haughie

increases numbers to think we've in OEE in of it relate way is looking what about that today. Since do EBITDA so fundamentally terms percentage to to point allow is can thresholds quoted that OEE ships. us and meet to do we're The

be managing leverage. we're that when obviously all, more And to down to and capacity out or us output a more efficient our lowering it's we're up so adding And up to take generate whole a be able gives shift shift. without to able

demand try more you it's with of the flexibility, opportunities it to with don't the business in discussed consistent, there of percentage Siding capacity out sort use But of can the leverage a brave course, not growing to going gives to terms guess, EBITDA have earlier make itself to to grow Siding operate [indiscernible] reintroducing we we before, I'm because And pure my as that's the taking the manifested we terms of field it increased and the it's a as as operating stable when decisions workforce imagine, from . maintain dollar, be sort And -- mind, of a and little performance. us is benefit refrain in real this idea this in that of that the I is increased system to OEE. But volumes. of

William Southern

X me I'll opportunity we to OEE we that, what's see our of -- George, years add would been ago, about remarkable is be but way where ahead for as. thought just we journey improvement to still we're as we

kind product of increase and finding will there's product to never-ending baseline. CapEx could the more efficiently. efficient because helps make more And opportunity it's new probably ways when and OEE Brush It launch would a of a productive. to more there kind course, be And of And then so Smooth Siding, that. we actually learn the of all journey like be we

on XX facilities. opportunity. at we're a be industry That's work we'll And machines the talking plenty feel of and still the beauty of years on see I kind now OEE. -- of that like So our from continuous and never-ending about journey that the way the

George Staphos

degree, guys [indiscernible]. some growth. beauty over of it's turn But the To you it anyway, will

Operator

of Susan of be Sachs. coming will question next our And Goldman from the Maklari line

Susan Maklari

things. little around more positioned give the and to into a do wanted of perspective digging trends some sellout sellout side in is carrying? the you of the just And the level the given what channel half Can the R&R you're they're on consumer with that ground? for start think you inventories on I hearing bit what back

William Southern

demand is I Repair stocked channel think half for the on the any for Remodel. our expectation reasonable second adequately and

any concerns kind no concerns have I in serve, are being overstocking don't that I and Remodel. step distributors ability there about managing X to experts of Repair have So and inventory channel. and about I mean

spend demand the Look, [indiscernible] do is I uncertainty think interest for Remodel I expense, a so that's where big believe constrained. ticket they R&R has economic for there with -- financed and times Siding rates with many out Siding. dampened is I there, is, are, think

true if are the with we rate the potential quasi get demand really market the that pent-up landing now interest that or a growth But could I'm morning So around soft of we're that share Siding seeing proud because mean has that that seeing soft happens, [indiscernible] reductions, we projects is to that's hypothesis if -- that fact landing, pretty be through reside significant. as gain.

So back homeowner so building position the that to for and spend do Siding, afford to that's over be distribution picking And really through the some we're and I commercialized, a next really offering, Repair just business gain credibility stronger, in up our and we're up good to we're access a our share we're can years. Siding geographically, share, market Remodel while some to bit around growth and a continue expanding the so good going little Repair really think product if encouraged good market a several to that see underpenetrated market for why standpoint financing a remodel come market future us we when from also so to position. up on really big-ticket Remodel, high-quality be in we the is about sets have a our able gets loosened

Susan Maklari

through next this the couple of a about And then bit see perspective? tailwind And Can helpful. flowing how a from Okay. did the outlook that should you that raw That's quarters? about quarter. over very you talk think of material we

Alan J. Haughie

[indiscernible]. it quite little be a QX remainder the as been year, material It as expect a may but -- positive for raw in may not be has the still we of Yes. tailwind it

So we're optimistic.

Operator

Please Thank you. to today's does to back would conclude for session. That the Aaron ahead. turn like go Q&A over closing I call remarks.

Aaron Howald

to very forward we back [indiscernible]. everybody look and [indiscernible] today. Thank operator. couple minutes Stay in you, of and connecting much. Thank safe, Okay. a give you

Operator

for call. conference you, Thank joining everyone, today's

disconnect. may You

Louisiana-Pacific (LPX) 7 Aug 242024 Q2 Earnings call transcript