LPX - Earnings call transcript Q3 2024 | Louisiana-Pacific Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Q3 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 first speaker today, Aaron Howald, Vice President, Investor Relations. Please go ahead.

Aaron Howald

good and operator, you, morning, everyone. Thank year. for the third you updated for and joining well us for results outlook full quarter fourth LP's discuss the quarter our to as Thank of as XXXX LP's Hosting the call Financial Officer; me this Chief Alan LP's Chief Brad Haughie, morning and Officer. Executive are with Southern, remarks, we round After take prepared of questions. one will

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

Our are there. X-K filing, also and press materials other earnings release available

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

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

William Southern

for you continue the thank and to Aaron, our all third strategy execute teams Thanks, us in effectively again today. LP's quarter. joining

net XX%, improvements in records margins. As EBITDA, ongoing for by sales new a helped grew sales set the result, well underlying export we Siding by Siding and serve. markets above finished

sequentially OSB price Our safely with a efficiently price environment. to operated make of most and realization the strong business softer

million quarter. $XXX lower commodity LP's OSB shows financial Page the a $XX of impact growth the was X $XXX million record. XX% of presentation almost prices. million sales Siding EBITDA results LP for with high-level net the generated in completely of offsetting Siding's

before in million $XXX balance million $XX future expenditures capital EBITDA sheet. strong into with million expansion and returning dividends repurchases, improvements prefinishing shareholders flow. of efficiency saw cash million facilities. dedicated leaving cash another for volumes translated with higher through invested nearly $XXX growth ExpertFinish driven the at our by and cleanly million quarter operating revenue and liquidity very with share and of this margin record a of $XX LP in We to both our margin $XXX in quarter

approach combined what and in the rates we home recent market is The the new market to briefly of turn construction channel. the year. in rebound and are million about me Let higher average. weather. single-family next effects with which the in current seeing somewhat for mortgage But slowing starts leveled at the have remains is the of also recent consensus than mix X.X colder the months, Housing

In over-indexed single-family the construction new market, LP to is starts.

it single-family starts above X was run census for in So million the to see encouraging rate the report. September back

of Housing lower the and growth has Repair has that points a improved. positive than still the for activity Joint projects Center in XXXX. Harvard remodeling for but indicator return to by outlook few remodeling spend year, and The R&R year-over-year R&R a percentage published leading bottomed spending published last suggest recently Studies

LP siding channel inventories We Given OSB within seasonal goes the that ranges. commodity positive be to about normal SmartSide X/X in applications, for recent contributing a leaner, believe development. strength is is inventory prices. somewhat this of may R&R in are which

Siding and similar inventory in patterns. time year in sales lower absolute normal days of last seasonal at this consistent volume but with is

be will increase we We and year to ourselves factor a in manage to a start position for that announced channel Siding, a price shipments next and year-end strong have XXXX. for as the

beyond. XXXX to a LP aging And macroeconomic and address result, Siding resolved. interest confident housing watch. dominant Solutions and housing as rates are forward, the and uniquely undersupply must continue we will grow is factors well that believe and to remain in that We needs. we But Looking affordability these be Structural the to ultimately stock positioned

in Our strategy will results reinforce is and working Alan demonstrate LP's to a growth, to our confidence invest future which that in moment. speak

accomplishments him, to X highlight over from I'll quarter. additional call the the turn I Before

and team at BuilderSeries published and products product validated throughout SmartSide, ExpertFinish siding environmental trim portfolio. is life store than negative, by confirmed declarations DCPD emitted cycle. SmartSide is carbon entire more their LP product are meaning AS they First, that the carbon for international

our of possible resources thank This forestry our that And support and sustainable well the as use processes. by want renewable LP is this, and as fiber teams I especially to made efficient sustainability operations our manufacturing team. innovative

I importantly, most Award history upon the company -- and for and API this is won time LP's the every LP thank notified designation. in LP mills Wood Last Engineered congratulate we to was XXXX the the team and individual won Five culture. safety recognitions. that the Safest safest XXth recognition high-performance that August challenges program to of award keep has in earned of had LP This our Company building have from want also XX-year safety Association. member to all

Safety is we are of we pleased And rest us all a while core on honor, the our at LP. with laurels. value won't for

that, a call results Alan with of turn over I our guidance And we take round more for will before on to the and detail questions.

Alan J. Haughie

Thanks, Brad.

net usual, spend the for sales and to Siding updated exception fairly Both quarter on EBITDA year-over-year bit year. guidance more but in in Slides businesses. X a OSB and the some As straightforward on our with third the and move I'll X the that I Siding of variances time full for are wrinkles presentation of timing show before

result feet for square XXX Turning This growth second above sales and average other $XX Siding to volume, revenue increased X. list price the higher million year-over-year favorable sequentially annual to X% increases price of volume of Slide mix. year-over-year prices on X% XX% million the growth. Roughly net half the $XXX due of half was with XX% is selling levels. both a result by of quarter or improvement of million

$XX contribution incremental contributing is EBITDA The $XX volume EBITDA in XX%. at revenue on price/mix. by XX% of revenue was significantly margin, of of to volume. we contribution ExpertFinish million to volume incremental million from comprised increased the divided a generated include that volume this positive EBITDA price, quarter, from the X% When

$XX find can and adding the to million of the You numerator by that previous price in denominator calculation. both

LP capacity should and Houlton at the marketing, mostly ExpertFinish the ground we and from recently grow expect exactly business at as what added Sagola, more year. grow to despite continues capacity prior in material is conversion And roughly year. sales Siding and Bath. with healthy million our year-over-year this costs to on helping than the lower repair in it and And sales raw with line And continue totaled last Investments freight boots team, expenditures. prime flat into housing were business remodel and $X

maintenance rebuild from In the the and year's Creek. million smaller $X right, and million Dawson at net far remaining handful $X a mill nonrecurrence at last Coast EBITDA that was fourth benefit our as first for equipment Houlton bear takes, October of project in caused does September puts but impact item other one A the item mentioning of the strike. column pushed of the is by the press planned into East simplest a port it The in of is was benefit the delivery delays will quarter. because

The currently it forward production half of X delay about pushed unchanged, pulled but quarter cost year downtime. total underway, and fourth. in The require impact the into costs the the second third production the weeks and will is project and of the is into

quarter effect the by The bit of delayed costs EBITDA probably million and point a added $X inventory margin. over to extra EBITDA production boosted a and absorption third

equal, the a create moment updated case corresponding else detail to Now one outlook. I might because in I I in a all reduction fourth guidance. this pull is as will this our only EBITDA when Happily, forward assume could not mentioned get that quarter reasonably this

material million. On to and won't is Slide the variances inflation you'll far year-over-year that by were X, from note OSB from all simpler, And all labor EBITDA I by sure Commodity it. volumes, were I'm sales margin be prices immaterial comparison. relieved $XX and so incremental raw high waterfall Solutions, reducing belabor Structural lower,

late But allowed this the the and cost the that small OSB is price in algorithmic in the higher lengths quarter. realization random implied story impacts chart well of by business very to the OEE, strong increase our doesn't tell modestly guidance control combined outperform prices

of similarly receivable, of flow. almost repurchases working a X outstanding $XXX $XX from of cash flow million exactly and accounts shares of Xst This XX the Slide million shows operating million November. of to includes cash as brought million inflows mostly quarter of $XX share capital straightforward

We social this construction in $XX a sustain nonconsolidated cement investment South in to and undersupply venture, the housing support of And shift America. venture and and This million should made modular help the stimulate also from off-site a engineered chronic already seismically in specializes established, locally sustainable address practices LP's of housing. funded ongoing demand joint region and bricks in building more robust products, in for South American well wood.

expansion Ongoing So issue shows in Siding more updated the our Slide to earlier. margin expected are than timing mentioned and I growth offset XX guidance.

billion. $X.XX now XX% growth fourth between about So revenue full would and and bring $XXX X% million. this sales And of for of about growth to XX% to expect revenue Siding about year we sales quarter

the Siding's year between about $XXX in long-term $XX is fourth deliver This XX%, would quarter target. of EBITDA our should million margin $XXX million and $XX range million be full which to million. for a EBITDA

In point X guidance. strength year full allowed each to the other increase margin has about growth file words, the compared Siding quarter's us by year continued to for last order expectations full Siding in and

a in $XX the and volumes. downtime these expect to the we seasonal random million And OSB prices range. OSB, quarter In quarter, impact stay incorporating million OSB, at the typical expect assuming EBITDA bit lengths flat to $XX using have levels, for normal factors fourth in approach in would our climbed current fourth we but the

of guidance to netting America's EBITDA and million and of believe compared Adding unallocated between year this Siding. will of that million as from about $XX of $XXX up, August this million, usual, million costs, be coming with now from South our full we EBITDA XXXX an is all increase but midpoint corporate $XX the LP's $XXX

year confidence in the $XXX capacity. share growth in give And million. gains said, us in invest as for around continued CapEx should Siding Brad to new come

result, XXXX, X the share to expect year's next be project more EBITDA the this we offer as launch specifics yet in higher we quarters. years guidance Siding while expansion a We'll won't CapEx project. for revenue we this coming than next or for meaningfully on As do

say total $XXX that $XXX fourth to the should For million $XXX Siding the next we most land to to CapEx third million, dedicated $XXX be including of mill, investments in expect year quarters. now next though, million I and which between million and can

We and we're well beyond. growth positioned it quarter strong strategy and LP. safely, our XXXX in see for to summary, expansion margin and In executed another continued was

take of a to that, round happy with questions. we'll be And

Operator

[Operator Sachs. the first question comes Goldman from line of Maklari Susan Instructions] Our of

Susan Maklari

you bit starting about wave the perhaps the the in will the in CapEx. the invest about in Alan's come that several of I little additions next And maybe demand Siding? you're thinking how and years a over to seeing comments business decision you're next guess on on through can what talk has driven that capacity

William Southern

Sure.

we as seen that with SmartSide, very forward we're any are we're last next And wave pleased getting rate, obviously, in at growth and to recovery year at need. we, from really a the growth looking So disappointing the capacity are going we of now point we've project reasonable this a to year. that year where

We to stay of do try production. ahead

we in allocation. chances on So capacity a bit order little mind early don't bringing any of to going the of minimize kind on

year, up the in next given -- significant expansion. for is planning us that growth So our the this that's stepping resulted capacity

As in that mentioned at the looking year both year, XXXX call, out in growth. late timing guess plays year investment on either are that us how Alan I and far the running up as as the XXXX or of would and year. Siding or get next beginning investment And I us that next depending next did, we

Susan Maklari

you about just think thinking inventories this mentioned the heading you're you about like-for-like maybe And price from on into putting about little Okay. how XXXX, mix bit that a a range as year, you for versus coming then of managing just that lift saw But you increase? for basis. next can the That's quarter pricing half that's the through expected and talk helpful.

William Southern

Sure.

we back of pre-COVID. the normal that historical increase we're So environment kind price to experiencing were

with currently gross next X next SKU kind mix X% believe a on any is to we'll for That change out we increase And year. net price in to depending a region we're So way year. of excludes around plan of X%. good

so base try go. be pull will distribution limiting to a price to is -- that price in good increase set X. and result of get the QX minimize December our far as effective increase really sales as sales a January we we for up The forward as ourselves don't And in

executing that And current with out plan, and as mentioned, to So we're we I it. are price increase. that's the

in is it market the So now.

Operator

Securities. next Michael comes Our the Truist from of question of line Roxland

Michael Roxland

quarter. strong very a on Congrats

some LP's the retain First seen question back I have is to response been SmartSide final? share. gain trying to Have win been competitive continued from response? has increasing what has pressures? has Are fiber share? And cement or price they you What

William Southern

Well, working XX the the been SmartSide competitive look, environment. we're competing in around a of That's my business. very always years case,

normal. would I competitive so say And situation the is

builders, a we're hold on counterparty with And that's obviously, big deals negotiating the to so when trying there's business.

the from managed kind of customers. so typically most [indiscernible] a And of the rebate back-end that is standpoint, for that through

I more now, it's is the product. to have to winning kind concessions. that secure value the we It But of what primarily normal in market I is proposition order the substrates to would reason right still to as this beginning much and business. is more there. far say the as Because that the you just realized pricing we're do of of as mentioned And is any superior think be in what's

Michael Roxland

Got it.

those to operate on capacity, or guess, expect aim X.X do given year -- add I mills call the would you Okay. you new on And full, currently then what's just of outlook bring are from may capacity, intend you the quickly two, where And do that X that not to them operate? one, years Houlton you running to now? been to your it, next and have warrant -- what's that mills where some on bring Sagola, years,

Aaron Howald

$XXX whack In I'll QX, a our of capacity X.X. million that. on a nameplate volume was take at

utilization in to So out XX% that the range. high annualizes the XXs

with than tend bit QX little will and to a QX Of course, be and heavier QX. seasonality, QX

mentioned gives all forward, the that Sagola Bath well. capacity continues, are very So a But pattern if we'll running within and system. the confidence just in of Houlton that and and you that exist project sort that time Brad need frame that they us earlier.

a demand patterns factors, ramp-up. function other so product their is lots and we're very capacity and of utilization with And mix geographic of but the pleased

Operator

from of line Steuart comes question the Sean Cowen. next TD of Our

Sean Steuart

look some and on your as adding Congrats sites, the to 'XX expansion good existing of you can we start on Wawa, build ahead you're it's what in Siding result. 'XX a of for wondering very terms in as Brad, you context at forecast, if whether option CapEx give thinking expansion in best supply? options

William Southern

question. Great Yes.

the conversion to we just in -- potential idle potential Wawa, the And in future for that OSB the us. option detail. options a X me We Aspen-based Quebec, Siding that mills have add have in We press then options audience do mills, British So remind we Columbia existing facility in studying have do lines. we're Ontario one of let is have. at that remaining one

all, of And will the of this press for setups. large so Those mills one wave feasibility will still Canada. next those are capacity. of Aspen-based table are of What on the the -- of all drive the decision the be, X first either converting in of

And press would far in in biggest either Valley the Peace operation. existing or Milwaukee by be our Siding case,

to there is a -- time. need that so make conversion at that feasible work some things out technical this And we'd to

efficiency like a start-up little decision be intensive. those mill where adding X. capital capital be for it as facility. might And be drive Wawa press at will options. I a then existing of more to Wawa essentially we us have the a -- those -- will adding What line and less a bit press capital there our both line relates

also weighing now into But a that, portfolio our then Siding we as run network.

us where can regionally Houlton, Maine at when so look distribute mill at British in at the our you look capacity versus their Dawson And versus mill a Columbia. that into look way Creek, in Sagola, mill with you swing that, in at mill Michigan, geographically location, customers, a current growing a Ontario you platform, we're in a favoring SKUs we versus across

network is phase some from ordering all that be of our that equipment preliminary or still of Board -- is site-agnostic. order a to we'll from planning of of efficiency. approval getting soon probably in capital kind some optimization, we're doing the What out -- And so the that the

But point, incremental been part And when of decision present then on the the year, options, to -- have we be we when made. commitment net making we that at get need. we'll great middle and where. we'll capacity sharpening But to into that's based the of this of a the a point. decision that's And do the pencils location that has got next on values ton not make we really

Sean Steuart

view My imports, there you detail. internal views proceeds on, have wins if that? blanket one. there I guess, election hypothetical second your any internal Wondering a wondering the views, but great are That's tariff a exposure panel is USMCA if if imports any is Trump U.S.? and that. question, to on the or with internal Brad, into Would panels Canadian question, the of against Canadian Loaded any protect on

William Southern

don't on should China. of one portion across transparent source a -- let significant thing I border, We really I Siding. from we MDI that be think panel the view the have just a in Look, do about. or flow me OSB a impacting get our that

tariff part cost we the working have in Biden office, we took past facing. economics since And risk kept around the that of and and while That's through place. only over the the issues tariffs been as be would the of that -- kind Trump -- well,

There's never the knows. mean, I that tariff that any going been OSB near any I across or don't on anticipate limitations but OSB border. becoming who in on term, the something

would all the sudden there's be of So couldn't Canadian on respond flow mean OSB pricing accordingly. if a But certainly an I we'll -- OSB U.S. there impact into

on imported it would MDI the could for material impactful as relates the raw it China, from and an of And don't would that of offsets of what issue on be. whoever the so planning impact there we're not would being it election. lot be us purchases. I be But a to wins an -- kind true to of keeping industry, But eye impactful understanding that be

Operator

of comes next question Research Steven Group. from of Our the Ramsey Thompson line

Steven Ramsey

that strong being questions couple the attach on BuilderSeries, have rate been a of first year-to-date. product very on one had I

these upside that as attach XXXX? is net you rates could a something these on attach benefit And have just this is stepping back, mix then rates? maybe to look for into BuilderSeries First,

William Southern

all, Well, let into me XXXX, it take yes. first of

continued with are We expecting the success as build with credibility we big builder that base.

ongoing. becoming and to are continue for builders, those choice work talks We on the

talks. We're getting our those share of in wins

I see year. BuilderSeries growth next meaningful And yes, of story a so for part being growth our

And sales trim attach even least on trim I typically does for your through rates. and those higher-margin channel some second is us. items That And question, and of builder the panel distribution. then part and think, into into are the soffit pull at the for

so us, our portfolio, neutral is are kind on say which that pull-through as of the while other with to trim as BuilderSeries is along us. can would of especially lap to be margin BuilderSeries, relates to part sold And margin siding, I the SKUs accretive are it

Steven Ramsey

Okay. and OSB kind year? term? those is commodity the of shapes in then last this dynamic then helpful. QX structural driving quarters, X the That's near thinking heading And up lower shipments, into are for in this how than And on being shipments what that you next

William Southern

Yes. on OSB of builder -- change I business really change mean focused -- for big pulls it quarter-to-quarter Structural that frankly, growing I commodity we're and does Solutions we're our can one our as still as as -- percent portfolio. a mean thing.

But do margins. also, around we that manage

making margin to to could commodity then making Structural back that's situation we selling more sales. sure Solutions we're where accretive is And But us. so a in go when we're now type -- we're that not,

Solutions Structural commodity like in margin greater may builder we But So preference that to what of dynamics and deals of moment. weight continue that OSB the we're -- our price as we of can going and increase. the would see OSB commodity of than is of the -- going these do may variations, quarter-to-quarter, happen and some and our Structural to as part pull to that portfolio big trend Solutions

as be reality, focused And we'll swings there. we're relates want a that. can to grow on our But time. successful I'm in there sure customers But the strategy what it ultimately, to be at

Operator

next from Matthew RBC of McKellar Our question comes Capital Markets.

Matthew McKellar

normal your be historically. Is I that be Siding into recent I seeing XX% QX which sort revenue quarter-over-quarter in seasonality of done suggests should think, pattern sequentially of outperforming reverse? implies down the at poor the order QX you'd like what unusually, you're would revenue guidance something file there think, compared you've to anything midpoint,

Alan J. Haughie

anything over we look and normal sure But not normal. of is, I'm I sure couple that's not I'm think last the No, there's you face. if challenge you unusual what here. back the years, referenced

revenue we generally seasonality speaking, And coming If XXXX, you at the trend. was and in look of were profile as the abnormal. were of that bucking out definitely destocking the -- it

sure normal or in So X what to QX make jump to seeing QX relative and as years of response the pattern we his increase. compared a earlier seasonally is principal effectively are January making guidance to that manage right a as reflected the that QX QX we you're now little well to in return our mentioned a Brad one factors questions X the as X this price demand They starker. if more back look

Matthew McKellar

And one last for me. Okay.

a do I investment you part was to mean attractive volumes around provide for And to you've this a recognizing LP? you pick up expect it's bit housing could smaller of in with business, color noted? investment the an your Just be modular somewhat just material American why more South how the in business

William Southern

the that from X South housing way is that for the scenario joint us all manufacturer the of from is been and construction. really estate the development. strategy major in sale investment partner type this modular and has venture a real through away strategy Well, This kind America conversion of a Yes. a day to of strategic integrated

us. a very it's strategic customer They've been partner. So a for large

incremental So won't volume product a be because supplying we anyway. been volume -- immediately, essentially significant there -- supplying have that

fit. continuing look build we at strategic of where stick the see as America, we homes share that's South the across But to grow

And so is this long-term a play.

But be materially, we're business quarter as a as get further won't year next for time. because, doing speak happy we've We'll secured long it that probably or again, it. this it to had what pretty -- impact quarter-to-quarter we to into

Operator

from of Partners. Seaport question next comes Our Research Mark Weintraub

Mark Weintraub

very good another on Congrats quarter.

Siding projecting on increase So the at in what we possible sense year-over-year, is as give looks like hoping to single-family, I a it is XX% categories, that you're to if was for bit what color to little us that volume sheds? R&R, it a look more get

William Southern

Yes.

of strength just has growth So let construction has driven has essentially the in and new me all okay. this line. trend business been directionally, The retail say above R&R. That been

So has this shed then say year. just been about let's average, flat and

has And so in and certainly new the remodel. strength been construction and repair

-- prime mean, been the have our a BuilderSeries phenomenal. ExpertFinish, upside growth off But significant percents base, I business around to been has year. and a granted been smaller it's And the those

Mark Weintraub

Brad, then, your base? how And a way is that much of -- a distribution can function how is assess much you there versus same-store sales expanding growth

William Southern

Yes.

So let me take that by segment.

new necessarily the the been adds, credibility So with getting around we've yard not X-step having big that where areas look, does geographic lumber of -- bring year get distribution builder these some to in builder. well, with for the it to adds but not does that's come business bring construction, along we're deals new able this

small kind and because -- inventory build And build that then steppers, that sales build -- new usually X inventory and customer so aren't yard but an that of new ink. through means we the to that ancillary then these distribution incremental. lumber inventory pull an then And is

sales the product have before. placement got to and just yard, access didn't you're you've if also getting But that contractors -- didn't other builders lumber you the at to

So year for part that important of story an has been this construction. the new

-- -- then securing repair okay. And remodel, that contractor and

growth our in channel big part a distribution loyalty contractor geographic is and one-step spend. by Securing continued is with also what doing we're sales But these marketing of accompanied incremental exposure. that Sorry.

really something focused that coming on. we've that allocation has been we out of -- so And been

contractors there while builders and -- we go necessary construction, along. and gaining ultimately the of is distribution there So in we're share, as R&R somewhat new benefit with reality added and market adding

Mark Weintraub

next life in of drivers, about cycle almost also we going versus are how single from the maybe about X stores think thinking potentially significantly expanded where you process, should benefit you is as Or And the base? to maybe the that these this? be year

William Southern

Yes.

I part underexposed be continue we add don't of would more next distribution That where the for a R&R, weakness capacity and the still still as have pockets significant enough strong Mark, will ExpertFinish, we our -- geographical becomes the we as growth several -- through expansion. for through share we our of available will to say probably For years we're one-step locations distribution market because it where to have there. grow

new yard to for construction, channel big adds builder or lumber new with for that those localized have support then wins. regional around to wins to the then go traditional be the think and market -- I to that And will necessary the

might they as as for Lennar further to there quite has within this significant opportunities channel landing So be areas. still is not both that, been a the year those but in penetration

Operator

Our Ketan Markets. next from Capital Mamtora of BMO question comes

Ketan Mamtora

size now? becoming in that would a sticking given where see deciding very less the factor, Maybe quarter, about factors Siding a especially the you capacity. that on categories in also Siding. strong be of expand your talked Congrats one where product of past, in growth you've is just Siding Is also still with the one Brad, the expansion. the within of Or you factors?

William Southern

are a no, to of converted, a some point. know, production. factor. Houlton the it's -- mills conduced Ketan, that's And as in have that production, where good have conducive was particular a -- -- and some as No, is you we presses a and That that more panel sorry, Swan mill the Sagola to mill smaller trim large mill soffit I'm lapping Dawson

And of the distribution trim looking SKU and press more be at larger appealing so press the line adding that swing line a an facility. may us, be may press we of existing as opportunities we as at lap at are us around we a the when and the location, profile [indiscernible] to the those The I volume, less a decisions. and press where more the size we speak back specialized to looking need will kind of around make

more is trim we've next in about growth talked us which factor. certainly calls in than as of as and all and would really in So right now, given a is the lap mill particular, this last push so it few the panel the conversion. setup kind And in a call, specialized far just to more

Ketan Mamtora

at better seeing Or either look Siding. And of kind would same one a through there's activity order or very drivers, are right. uncertainty? to starting activity? you more how sort things if seasonality, are helpful. or of and bit move little of just you of That's and on of All you look terms still in as sort you of in as QX Outside the terms October anything then characterize demand factors Brad,

William Southern

would season. -- good to been I late okay the activity this good say in has

the as Of order course, country, steady solid how -- Ketan, year been fall channel, like like feels helped. the has certainly pre-COVID able to far throughout been have we stayed pre-COVID, across mentioned, the warm so how the weather so we've with in as patterns we as like far how file it been been that our inventories. from have visibility a normal -- But, inventories -- and we've

I it's a just I And we season order across that now. that been don't year And of continuing given see, have a mean that the announced we're file. really ton we're board. really really, So solid being -- to the see increase of price don't a the that in, nice given risk

better rest able next to mean get in as next and feel closer to good we -- better feeling And we our what as guidance reflected we'd be the year. of to the we execute year, I we're year. about So we about as

Operator

question Yinger of comes Davidson. from next Our D.A. Kurt

Kurt Yinger

on down play into of does into expanded of How level visibility the within Without and positions you potential next the big as builder a business? or curious stocking of of have outperformance Siding I'm kind you've with XXXX year thoughts BuilderSeries to the your the pin side, that look around market Great. some trying guidance, discussed. goal we on kind you

William Southern

flat. construction for not Well, to planning starts next single-family if new or flat. be outlook look you at the it's year, for We're

momentum the better about next so allocation, think and having this that year. we've the capacity And feeling and year, being we're better generated off I

kind got product I mean for We've but there's proposition I we very mean got all all our potential of political of headwinds, is the mean like we've risk. kind -- strong. there's feel risk. value tariff I

with around exposure As offering field contractors we growing -- well. product get and credibility the is continue beginning to the in as is that builders,

But to of able the would we is I but about pre-COVID headwinds that more something we'll specific like I kind feel solid And get at kind we be have to. see months but growth not made how that be had. enjoy, that to we or execute look next feel call guiding that. we'll XX% pattern a I the that the X X so call, we good next historical year. we we've next the year, to next of it X% And for certainly as mean rates take over should guide good the about for on

Kurt Yinger

mean like affordability own out, dynamic take into haven't And materials curious comment if next prop we've kind in Right, conversion on thoughts and yet. that right. I challenges I No, substrates kind from we appreciate seen that. by that at you and the of with But have cost Just historically? value the backdrop. question. seen clearly, for ties builders it than any premium around of your less does the the change maybe expensive all current my efforts to high-level

William Southern

a our would siding. so little And play. can builders like purely play choose. new the this does vinyl a things Yes. that cost in contractor, that ultimately, Affordability, bit new when home. product a construction, Vinyl is think, siding prefinished a painting affordability help can of have to is -- But now, be eliminate the the a I siding which that strength construction, of going step into you is ExpertFinish you

that is by as and -- labor real. the all savings And from the as other is -- then realized the this And and months we is versus labor XX confident can well, something builders penetration they year. that. past that that SmartSide of spoke product, the enjoying I strengthens next realize off makes that And grow contractors been us we've using be substrates that is proposition experience value that to primarily that savings realized earlier that's can the what

Kurt Yinger

Right.

within That that? terms in. QX impact QX one in to more the project you Okay. just set embedded could of squeeze sense. or Siding kind just maybe makes level maintenance kind of And of on to Alan, EBITDA, onetime

Alan J. Haughie

my it -- reference to of I'll up prepared Yes. I'm put remarks. QX, do with a though. sort going set I to in Yes.

inventory. take do and did that about $X we that intended costs we in there and to QX, onetime in we in QX. If $XXX QX. from million to did in opposite QX, the you intended The was had reduction We million the there

XXX, to shift and to our the million million, and of X from $X sort us midpoint million $X of plus which off would $XX to let's XXX. right? I'm take add X X, So QX those leaves million, $XX get going about on between take knock explain. going So to QX, so I'm that for it $XX range be million

impact to $X is to call from the onetime lower mill the -- QX. QX. it as necessity, as to million balance, maintenance we perform take $XX matter the the think that costs of a the in would And be -- volume to necessary maintenance million -- the we About onetime of QX of have in that of downtime it, $XX million and

the that lower were difference revenue similar the EBITDA this EBITDA, also QX, of but in principal didn't not QX taking QX between ask building the that's downtime that you And inventory. taking because we're inventory. year, necessary And EBITDA that we and levels at QX and and depleting very in downtime

get negative as both you well whammy inventory double downtime. sort that the from necessary on So absorption as of

Operator

I'm further time. showing questions no this at

So back to it I management remarks. turn like closing to would for

Aaron Howald

With no to quarter. questions, look you thank for Everyone, speaking joining much, to further everyone, call again next Operator, bring stay we'll thank very the and forward safe. close. you, And we'll Okay. to a us. you

Operator

conclude Thank conference. you does program. the today's in for participation your This

disconnect. You may now

Louisiana-Pacific (LPX) 5 Nov 242024 Q3 Earnings call transcript