Shares of Louisiana-Pacific Corporation (LPX), a leading manufacturer of building materials, plummeted 6.15% in pre-market trading on Wednesday after the company reported mixed fourth-quarter results and provided a disappointing outlook for 2025.
In its earnings release, LPX reported net income of $63 million or $0.89 per diluted share for the fourth quarter of 2024, beating analysts' estimates. However, the company's revenue of $681 million fell short of expectations, and its guidance for the first quarter and full year 2025 fell below Wall Street projections.
The company's key Siding segment saw a 9% increase in net sales for the quarter, driven by higher prices and volumes. However, the Oriented Strand Board (OSB) segment experienced a 2% decline in net sales due to lower selling prices, offsetting higher volumes. The outlook for OSB remains challenging, with LPX projecting Adjusted EBITDA for the segment in the range of $35 million to $45 million for the first quarter of 2025, significantly lower than the prior-year period.
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