12 unchanged sentences
Demand for our products correlates positively with new home construction and repair and remodeling activity in North America, which historically has been characterized by significant cyclicality.
−Removed: Census Bureau reported on October 18, 2024 that actual single-family housing starts were flat for the three months ended September 30, 2024 and 10% higher for the nine months ended September 30, 2024, as compared to the same periods in 2023.
−Removed: Actual multi-family housing starts for the three and nine months ended September 30, 2024 were 10% and 29% lower, respectively, as compared to the same periods in 2023.
−Removed: Repair and remodeling activity is difficult to reasonably measure, but many indicators suggest that it has declined modestly year-over-year.
−Removed: Future economic conditions in the United States and the demand for homes are uncertain due to inflationary impacts on the economy, including interest rates, employment levels, consumer confidence, and financial markets, among other things.
−Removed: The potential effect of these factors on our future operational and financial performance is uncertain.
+Added: Census Bureau reported on April 17, 2025, that actual single-family housing starts were 6% lower for the three months ended March 31, 2025, as compared to the same period in 2024.
+Added: Actual multi-family housing starts for the three months ended March 31, 2025, were 11% higher, as compared to the same period in 2024.
+Added: Repair and remodeling activity is difficult to reasonably measure, but many indicators suggest that it has increased slightly year-over-year.
+Added: Future economic conditions in the United States and the demand for homes are uncertain due to various macroeconomic factors, including interest rates, employment levels, changing trade policy in various jurisdictions (including the imposition of new tariffs and the modification of existing tariffs), consumer confidence, and financial markets, among other things.
+Added: Additionally, we have experienced increases in material prices, supply disruptions, and labor challenges, which we continue to address as we work to meet the demands of builders, remodelers, and homeowners worldwide.
+Added: The international trade landscape currently is extremely volatile.
+Added: The United States government has recently announced significant changes to U.S.
+Added: trade policy, including the implementation or planned implementation of new or increased tariffs on a broad range of goods imported from international markets, including Canada and China, as well as the potential modification or termination of existing trade agreements between the United States and certain other countries.
+Added: These actions, and potential retaliatory tariffs imposed by other countries on U.S.
+Added: export products, could negatively affect our sales and our competitive position in markets outside the United States.
+Added: Further, changing trade policy in the United States and other countries, particularly Canada and China, could increase the cost of certain raw materials or components that are critical to our manufacturing process, which could have a material negative impact on our manufacturing costs and our overall financial performance.
+Added: While we are actively exploring opportunities to mitigate these increased costs, there can be no guarantee that we will be able to achieve successful mitigation strategies or meaningfully offset the financial impact of new or increased tariffs, or other adverse changes to trade policy, in the United States or other countries.
+Added: In the three months ended March 31, 2025, our cost of sales in the Siding segment was impacted by $2 million related to new or increased tariffs.
+Added: Based on a preliminary analysis of the potential effects of the tariffs that are currently in force, in the U.S.
+Added: as well as in other markets in which we operate, we estimate incremental costs of approximately $12 million in 2025, most of which will be incurred by the Siding segment.
+Added: The potential impact of these factors on our future operational and financial performance is uncertain.
As a result, our past performance may not be indicative of future results.
1 unchanged sentence
Our Siding Solutions products are specialty building materials and are subject to competition from various siding technologies, including vinyl, stucco, wood, fiber cement, brick, and others.
−Removed: We believe we are the largest manufacturer in the engineered wood siding market in North America and South America.
+Added: We believe we are the largest manufacturer of engineered wood siding in North America and South America.
We have consistently grown our Siding segment above the underlying market growth rates.
14 unchanged sentences
Non-GAAP financial measures do not have standardized definitions and are not defined by U.S.
−Removed: In this quarterly report on Form 10-Q, we disclose income attributed to LP before interest expense, provision for income taxes, depreciation and amortization, and excluding stock-based compensation expense, loss on impairment attributed to LP, business exit credits and charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items, as Adjusted EBITDA (Adjusted EBITDA), which is a non-GAAP financial measure.
+Added: In this quarterly report on Form 10-Q, we disclose net income excluding interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense, loss on impairment attributed to LP, business exit credits and charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, other non-operating items, income from discontinued operations, net of income taxes, and net income attributed to noncontrolling interest, as Adjusted EBITDA (Adjusted EBITDA), which is a non-GAAP financial measure.
We have included Adjusted EBITDA in this report because we view it as an important supplemental measure of our performance and believe that it is frequently used by interested persons in the evaluation of companies that have different financing and capital structures and/or tax rates.
−Removed: We also disclose income attributed to LP, excluding loss on impairment attributed to LP, business exit credits and charges, product-line discontinuance charges, interest expense outside of normal operations, other operating credits and charges, net, loss on early debt extinguishment, gain (loss) on acquisition, and pension settlement charges, and adjusting for a normalized tax rate, as Adjusted Income (Adjusted Income).
−Removed: We also disclose Adjusted Diluted EPS, which is calculated as Adjusted Income divided by diluted shares outstanding.
+Added: We also disclose net income excluding loss on impairment attributed to LP, business exit credits and charges, product-line discontinuance charges, interest expense outside of normal operations, other operating credits and charges, net, loss on early debt extinguishment, gain (loss) on acquisition, pension settlement charges, income from discontinued operations, net of income taxes, and net income attributed to noncontrolling interest, and adjusting for a normalized tax rate, as Adjusted Income (Adjusted Income), which is a non-GAAP financial measure.
+Added: We also disclose Adjusted Diluted EPS, which is calculated as Adjusted Income divided by diluted shares outstanding (Adjusted Diluted EPS).
We believe that Adjusted Diluted EPS and Adjusted Income are useful measures for evaluating our ability to generate earnings and that providing these measures should allow interested persons to more readily compare the earnings for past and future periods.
Reconciliations of Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS to their most directly comparable U.S.
−Removed: GAAP financial measures, net income, income attributed to LP and income attributed to LP per diluted share, respectively, are presented below.
+Added: GAAP financial measures, net income and net income per share of common stock - diluted, respectively, are presented below.
Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are not substitutes for the U.S.
−Removed: GAAP measures of net income, income attributed to LP, and income attributed to LP per diluted share or for any other U.S.
+Added: GAAP measures of net income, and net income per share of common stock - diluted or for any other U.S.
GAAP measures of operating performance.
2 unchanged sentences
The following table reconciles net income to Adjusted EBITDA (dollar amounts in millions):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
+Added: Three Months Ended March 31,
Net income $ 91 $ 108
−Removed: Add (deduct):
−Removed: Net income attributed to non-controlling interest — — — —
−Removed: Income attributed to LP 90 118 358 119
Provision for income taxes 26 41
1 unchanged sentence
Stock-based compensation expense 5 6
−Removed: Loss on impairment attributed to LP — 1 — 1
Other operating credits and charges, net 2 —
−Removed: Business exit credits and charges — 1 (14) 35
+Added: Business exit credits — (1)
Interest expense 3 4
Investment income (4) (6)
−Removed: Pension settlement charges — — — 6
Other non-operating items 5 (1)
Adjusted EBITDA $ 162 $ 182
−Removed: SEGMENT ADJUSTED EBITDA
+Added: ADJUSTED EBITDA BY SEGMENT
Siding $ 106 $ 90
−Removed: OSB 33 120 249 161
−Removed: LPSA 9 6 29 31
Other (10) (8)
−Removed: Corporate (9) (7) (26) (26)
Adjusted EBITDA $ 162 $ 182
The following table provides the reconciliation of net income to Adjusted Income (dollar amounts in millions, except per share amounts):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
−Removed: Net income per share - diluted $ 1.28 $ 1.63 $ 5.00 $ 1.65
+Added: Three Months Ended March 31,
+Added: Net income per share of common stock - diluted $ 1.30 $ 1.48
Net income $ 91 $ 108
−Removed: Add (deduct):
−Removed: Net income attributed to non-controlling interest — — — —
−Removed: Income attributed to LP 90 118 358 119
−Removed: Loss on impairment attributed to LP — 1 — 1
Other operating credits and charges, net 2 —
−Removed: Business exit credits and charges — 1 (14) 35
−Removed: Pension settlement charges — — — 6
+Added: Business exit credits — (1)
Reported tax provision 26 41
14 unchanged sentences
We monitor housing starts, which is a leading external indicator of residential construction in the United States that correlates with the demand for many of our products.
−Removed: We believe that housing starts is a useful measure for evaluating our results and that providing this measure should allow interested persons to more readily compare our sales volume for past and future periods to an external indicator of product demand.
+Added: We believe that this is a useful measure for evaluating our results and that providing this measure should allow interested persons to more readily compare our sales volume for past and future periods to an external indicator of product demand.
Other companies may present housing start data differently, and therefore, as presented by us, our housing start data may not be comparable to similarly titled performance indicators reported by other companies.
−Removed: The following table sets forth housing starts for the three and nine months ended September 30, 2024 and 2023 (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
+Added: The following table sets forth housing starts for the three months ended March 31, 2025 and 2024 (in thousands):
+Added: Three Months Ended March 31,
Housing starts 1 :
1 unchanged sentence
Multi-Family 89 80
−Removed: 352 364 1,043 1,079
1 Actual U.S.
housing starts data, in thousands, reported by the U.S.
−Removed: Census Bureau as published through October 18, 2024.
−Removed: We monitor sales volumes for our products in our Siding, OSB, and LPSA segments, which we define as the number of units of our products sold within the applicable period.
+Added: Census Bureau as published through April 17, 2025.
+Added: We monitor sales volumes for our products in our Siding, OSB, and LPSA segments, which we define as the amount of our products sold within the applicable period measured in million square feet (MMSF) on a standard 3/8" thickness basis.
Evaluating sales volume by product type helps us identify and address changes in product demand, broad market factors that may affect our performance, and opportunities for future growth.
1 unchanged sentence
We believe that sales volumes can be a useful measure for evaluating and understanding our business.
−Removed: The following table sets forth sales volumes for the three and nine months ended September 30, 2024 and 2023:
−Removed: Three Months Ended September 30, 2024 Three Months Ended September 30, 2023
−Removed: Sales Volume Siding OSB LPSA Total Siding OSB LPSA Total
−Removed: Siding Solutions (MMSF) 460 — 11 470 398 — 6 405
−Removed: OSB - Structural Solutions (MMSF) — 402 130 532 — 412 115 528
−Removed: OSB - commodity (MMSF) — 431 — 431 — 401 — 401
−Removed: Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023
+Added: The following table sets forth sales volumes for the three months ended March 31, 2025 and 2024:
+Added: Three Months Ended March 31, 2025 Three Months Ended March 31, 2024
Sales Volume Siding OSB LPSA Total Siding OSB LPSA Total
2 unchanged sentences
OSB - commodity (MMSF) — 426 — 426 — 415 — 415
−Removed: We measure OEE at each of our mills to track improvements in the utilization and productivity of our manufacturing assets.
+Added: We measure OEE of each of our mills to track improvements in the utilization and productivity of our manufacturing assets.
OEE is a composite metric that considers asset uptime (adjusted for capital project downtime and similar events), production rates, and finished product quality.
−Removed: We believe that OEE, when used in conjunction with other metrics, can be a useful measure for evaluating our ability to generate profits, and that providing this measure should allow interested persons to monitor operational improvements.
−Removed: We believe that we use a best-in-class target across all LP manufacturing sites that allows us to optimize capital investments, focus maintenance and reliability improvements, and improve overall equipment efficiency.
+Added: We believe that when used in conjunction with other metrics, OEE can be a useful measure for evaluating our ability to generate profits, and that providing this measure should allow interested persons to monitor operational improvements.
+Added: We use a best-in-class target across all LP sites that allows us to optimize capital investments, focus maintenance and reliability improvements, and improve overall equipment efficiency.
It should be noted that other companies may present OEE data differently, and therefore, as presented by us, OEE data may not be comparable to similarly titled measures reported by other companies.
−Removed: OEE for the three and nine months ended September 30, 2024 and 2023 for each of our segments is listed below:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
+Added: OEE for the three months ended March 31, 2025, and 2024, for each of our segments is listed below:
+Added: Three Months Ended March 31,
Siding 76 % 78 %
3 unchanged sentences
Our results of operations for each of our segments are discussed below, as are the results of operations for the “Other” category, which comprises other products that are not individually significant.
−Removed: See "Note 15 - Selected Segment Data" of the Notes to the Condensed Consolidated Financial Statements included in "Item 1 - Financial Statements" of this quarterly report on Form 10-Q for further information regarding our segments.
−Removed: The Siding segment serves diverse end markets with a broad product offering, including LP SmartSide Trim & Siding, LP SmartSide ExpertFinish Trim & Siding, LP BuilderSeries Lap Siding, and LP Outdoor Building Solutions (collectively referred to as Siding Solutions).
−Removed: Our Siding Solutions products consist of a full line of engineered wood siding, trim, soffit, and fascia.
+Added: See "Note 15.
+Added: Selected Segment Data" of the Notes to the Condensed Consolidated Financial Statements included in "Item 1.
+Added: Financial Statements" of this quarterly report on Form 10-Q for further information regarding our segments.
+Added: The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia, including LP ® SmartSide ® Trim & Siding, LP ® SmartSide ® ExpertFinish ® Trim & Siding, LP BuilderSeries ® Lap Siding, and LP ® Outdoor Building Solutions ® (collectively referred to as Siding Solutions).
Segment net sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 % Change
Net sales $ 402 $ 361 11 %
1 unchanged sentence
Net sales in this segment by product line were as follows (dollar amounts in millions):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 % Change
Siding Solutions $ 400 $ 359 11 %
1 unchanged sentence
Total $ 402 $ 361 11 %
−Removed: Percent changes in average net sales prices and unit shipments for the three and nine months ended September 30, 2024, compared to the corresponding periods in 2023, were as follows:
+Added: Percent changes in average net sales prices and unit shipments for the three months ended March 31, 2025, compared to the corresponding period in 2024, were as follows:
Three Months Ended
−Removed: September 30, 2024 versus 2023 Nine Months Ended
−Removed: September 30, 2024 versus 2023
−Removed: Selling Price Unit
−Removed: Shipments Average Net
+Added: March 31, 2025 versus 2024
Selling Price Unit
Siding Solutions 2 % 9 %
−Removed: The year-over-year net sales increase for the Siding segment for the three and nine months ended September 30, 2024 reflects increased sales volumes and list price increases.
−Removed: Third quarter 2024 Adjusted EBITDA increased year-over-year by $51 million, primarily reflecting the impacts of the net sales increase and a $5 million increase due to the non-recurrence of a manufacturing press rebuild in 2023.
−Removed: For the nine months ended September 30, 2024, the year-over-year increase in Adjusted EBITDA of $120 million primarily reflects the impact of the net sales increase.
+Added: Strong order files and price realization resulted in higher net sales versus prior year.
+Added: ExpertFinish products accounted for 10% of volume and 15% of net sales in the three months ended March 31, 2025, contributing to this favorable mix.
+Added: The increase in Adjusted EBITDA of $16 million reflects the impacts of the net sales increase offset by investments in sales and marketing and $2 million of tariff impact.
The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP ® Structural Solutions (which includes LP ® TechShield ® Radiant Barrier, LP WeatherLogic ® Air & Water Barrier, LP Legacy ® Premium Sub-Flooring, LP NovaCore ® Thermal Insulated Sheathing, LP ® FlameBlock ® Fire-Rated Sheathing, and LP ® TopNotch ® 350 Durable Sub-Flooring).
−Removed: OSB products are manufactured using wood strands arranged in layers and bonded with resins.
Segment net sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 % Change
Net sales $ 267 $ 313 (15) %
1 unchanged sentence
Net sales in this segment by product line were as follows (dollar amounts in millions):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 % Change
OSB - Structural Solutions $ 143 $ 174 (18) %
2 unchanged sentences
Total $ 267 $ 313 (15) %
−Removed: Percent changes in average net sales prices and unit shipments for the three and nine months ended September 30, 2024, compared to the corresponding periods in 2023, were as follows:
+Added: Percent changes in average net sales prices and unit shipments for the three months ended March 31, 2025, compared to the corresponding period in 2024, were as follows:
Three Months Ended
−Removed: September 30, 2024 versus 2023
−Removed: Nine Months Ended
−Removed: September 30, 2024 versus 2023
−Removed: Selling Price Unit
−Removed: Shipments Average Net
+Added: March 31, 2025 versus 2024
Selling Price Unit
1 unchanged sentence
OSB - commodity (13) % 3 %
−Removed: Third quarter 2024 net sales for the OSB segment decreased year-over-year by $82 million (or 24%), reflecting an $88 million decrease from lower OSB selling prices, partially offset by a $4 million increase in sales volumes.
−Removed: For the nine months ended September 30, 2024, the year-over-year increase in net sales of $164 million (or 22%) reflects a $47 million increase in revenue due to higher OSB selling prices and a $100 million increase in sales volumes.
−Removed: Adjusted EBITDA for the three months ended September 30, 2024 decreased year-over-year by $87 million, primarily reflecting the impact of lower OSB prices.
−Removed: Adjusted EBITDA for the nine months ended September 30, 2024 increased year-over-year by $87 million, reflecting the impact of higher OSB prices and sales volumes, partially offset by higher mill-related costs.
−Removed: Our LPSA segment manufactures and distributes LP OSB structural panel and Siding Solutions products in South America and certain export markets.
+Added: First quarter 2025 net sales for the OSB segment decreased year-over-year by $46 million (or 15%), reflecting a $32 million decrease from lower OSB selling prices and a $13 million decrease in sales volumes.
+Added: Adjusted EBITDA for the three months ended March 31, 2025 decreased year-over-year by $36 million, primarily reflecting the impact of lower OSB prices and volumes.
+Added: The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets.
This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction.
1 unchanged sentence
Segment net sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 % Change
Net sales $ 52 $ 47 11 %
1 unchanged sentence
Net sales in this segment by product were as follows (dollar amounts in millions):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 % Change
OSB - Structural Solutions $ 44 $ 38 16 %
2 unchanged sentences
Total $ 52 $ 47 11 %
−Removed: Percent changes in average net sales price and unit shipments for the three and nine months ended September 30, 2024, compared to the corresponding periods in 2023, were as follows:
+Added: Percent changes in average net sales price and unit shipments for the three months ended March 31, 2025, compared to the corresponding period in 2024, were as follows:
Three Months Ended
−Removed: September 30, 2024 versus 2023 Nine Months Ended
−Removed: September 30, 2024 versus 2023
−Removed: Selling Price Unit
−Removed: Shipments Average Net
+Added: March 31, 2025 versus 2024
Selling Price Unit
1 unchanged sentence
Siding 6 % (2) %
−Removed: The year-over-year net sales and Adjusted EBITDA increases for the three months ended September 30, 2024 reflect higher sales volumes offset by unfavorable currency fluctuations.
−Removed: The year-over-year net sales and Adjusted EBITDA decreases for the nine months ended September 30, 2024 reflect lower constant currency selling prices and unfavorable currency fluctuations, partially offset by higher sales volumes.
+Added: The year-over-year net sales and Adjusted EBITDA increases for the three months ended March 31, 2025 reflect higher sales volumes offset by unfavorable currency fluctuations.
Our other products segment includes other minor products, services, and closed operations, which do not qualify as discontinued operations.
−Removed: During the second quarter of 2023, we announced the shutdown of our off-site framing operation Entekra Holdings LLC (Entekra).
−Removed: Other net sales were $2 million and $7 million for the three and nine months ended September 30, 2024, respectively, as compared to $4 million and $21 million for the corresponding periods in 2023, respectively.
−Removed: The year-over-year decrease in other net sales for the three and nine months ended September 30, 2024 was primarily due to lower Entekra sales volumes as a result of the aforementioned shutdown.
−Removed: Adjusted EBITDA was $(3) million and $(6) million for the three and nine months ended September 30, 2024, respectively, as compared to $0 million and $(15) million for the corresponding periods in 2023, respectively.
+Added: Additionally, this segment includes corporate expenses that are not allocated, such as general administrative costs and stock-based compensation.
+Added: During 2024, the equity method investment held by Entekra Holdings LLC, our off-site framing operation, sold substantially all of its net assets.
+Added: Other net sales were $2 million for the three months ended March 31, 2025, as compared to $3 million for the corresponding period in 2024.
+Added: Adjusted EBITDA was $(10) million for the three months ended March 31, 2025, as compared to $(8) million for the corresponding period in 2024.
Selling, General, and Administrative Expenses
−Removed: Selling, general, and administrative expenses were $75 million and $215 million for the three and nine months ended September 30, 2024, respectively, compared to $58 million and $191 million for the corresponding periods in 2023, respectively.
+Added: Selling, general, and administrative expenses were $75 million for the three months ended March 31, 2025, compared to $69 million for the corresponding period in 2024.
The year-over-year increase in selling, general, and administrative expenses was driven by higher employee compensation and marketing expenses.
−Removed: We recognized an estimated tax provision of $23 million and $117 million in the three and nine months ended September 30, 2024, respectively, as compared to $44 million and $66 million for the corresponding periods in 2023, respectively.
+Added: We recognized an estimated tax provision of $26 million in the three months ended March 31, 2025, as compared to $41 million for the corresponding period in 2024.
Each quarter the income tax accrual is adjusted to the latest estimate and the difference from the previously accrued year-to-date balance is recorded in the current quarter.
−Removed: For 2024, the primary differences between the U.S.
−Removed: statutory rate of 21% and the effective rate relates to state income tax.
−Removed: For 2023, the primary difference between the U.S.
−Removed: statutory rate of 21% and the effective rate relates to the $22 million tax expense impact from a change in indefinite reinvestment assertion on Chile and Brazil earnings, which is discussed immediately below.
−Removed: In the second quarter of 2023, management changed its intent to no longer assert indefinite reinvestment related to undistributed earnings in Chile and Brazil.
−Removed: As a result, we established a net $22 million deferred tax liability for the expected tax consequences of repatriating all beginning of year cumulative Chile and Brazil earnings, which was recorded as an expense in the second quarter of 2023.
+Added: For the three months ended March 31, 2025, and 2024, the primary differences between the U.S.
+Added: statutory rate of 21% and the total effective tax rates of 22% and 28%, respectively, relate to state income tax and inflationary and foreign currency exchange adjustments.
Legal and Environmental Matters
−Removed: For a discussion of legal and environmental matters involving us and the potential impact thereof on our financial position, results of operations, and cash flows, see Items 3, 7, and 8 in our 2023 Annual Report on Form 10-K and "Note 10 - Commitments and Contingencies" of the Notes to the Condensed Consolidated Financial Statements included in "Item 1 - Financial Statements" of this quarterly report on Form 10-Q.
+Added: For a discussion of legal and environmental matters involving us and the potential impact thereof on our financial position, results of operations, and cash flows, see Items 3, 7, and 8 in our 2024 Annual Report on Form 10-K and "Note 12.
+Added: Commitments and Contingencies" of the Notes to the Condensed Consolidated Financial Statements included in "Item 1.
+Added: Financial Statements" of this quarterly report on Form 10-Q.
Liquidity and Capital Resources
3 unchanged sentences
We anticipate long-term cash uses may also include strategic acquisitions.
−Removed: On a long-term basis, we expect to rely on our credit facility for any long-term funding not provided by operating cash flows.
+Added: On a long-term basis, we expect to rely on our credit facilities in effect from time to time for any long-term funding not provided by operating cash flows.
We may also, from time to time, issue and sell equity, debt, or hybrid securities or engage in other capital market transactions.
4 unchanged sentences
Operating Activities
−Removed: During the nine months ended September 30, 2024 and 2023, cash provided by operations was $500 million and $157 million, respectively.
−Removed: The increase in cash provided by operations was primarily related to higher net income and changes in working capital, partially offset by $31 million of higher income taxes paid.
+Added: During the three months ended March 31, 2025 and 2024, cash provided by operations was $64 million and $105 million, respectively.
+Added: The decrease in cash provided by operations was primarily related to lower net income and changes in working capital.
Investing Activities
−Removed: During the nine months ended September 30, 2024 and 2023, cash used in investing activities was $122 million and $312 million, respectively.
−Removed: During the nine months ended September 30, 2024, we received $16 million in proceeds from our share of the sale of certain assets from an equity method investment.
−Removed: We also paid $17 million for an equity investment in South America.
−Removed: During the nine months ended September 30, 2023, we paid $80 million to acquire the assets owned by Wawa OSB, Inc.
−Removed: Capital expenditures for the nine months ended September 30, 2024 and 2023, were $121 million and $236 million, respectively.
−Removed: The year-over-year decrease was primarily related to siding conversion expenditures in the prior year.
−Removed: Capital expenditures for the nine months ended September 30, 2024 were primarily related to growth and sustaining maintenance projects.
+Added: During the three months ended March 31, 2025 and 2024, cash used in investing activities was $64 million and $41 million, respectively, relating to capital expenditures.
+Added: The year-over-year increase in capital expenditures was primarily related to higher spend on growth and sustaining maintenance projects in the current year.
+Added: Capital expenditures in 2025 are expected to be approximately $410 million.
+Added: We expect to fund our short-term and long-term capital expenditures in 2025 through cash on hand, cash generated from operations, and available borrowing under our Amended Credit Facility, as necessary.
Financing Activities
−Removed: During the nine months ended September 30, 2024, cash used in financing activities was $252 million, which includes $188 million to repurchase shares of LP common stock under the 2022 Share Repurchase Program (defined below).
+Added: During the three months ended March 31, 2025, cash used in financing activities was $87 million, which includes $61 million to repurchase shares of LP common stock under the 2024 Share Repurchase Program (defined below).
Additionally, we paid cash dividends of $20 million and used $5 million to repurchase stock from employees in connection with income tax withholding requirements associated with our employee stock-based compensation plans.
−Removed: During the nine months ended September 30, 2023, cash used in financing activities was $61 million, which includes $52 million of dividend payments and $10 million of stock repurchases from employees in connection with
−Removed: income tax withholding requirements associated with our employee stock-based compensation plans.
−Removed: We borrowed and subsequently repaid $80 million from our Amended Credit Facility.
+Added: In connection with other financing activities, we paid $2 million of debt issuance costs related to the amendment of our credit facility.
+Added: During the three months ended March 31, 2024, cash used in financing activities was $39 million, which includes $19 million of dividend payments and $6 million of stock repurchases from employees in connection with income tax withholding requirements associated with our employee stock-based compensation plans.
+Added: Additionally, during this period we used $13 million to repurchase shares of LP common stock under the share repurchase program authorized by LP's Board of Directors in May 2022.
Credit Facility and Letter of Credit Facility
−Removed: In November 2022, LP entered into the Credit Agreement with American AgCredit, PCA, as administrative agent and sole lead arranger, and CoBank, ACB, as letter of credit issuer, relating to the Amended Credit Facility.
−Removed: The Credit Agreement provides for the Amended Credit Facility in the principal amount of up to $550 million, with a $60 million sub-limit for letters of credit.
−Removed: All loans under the Credit Agreement become due on November 29, 2028.
−Removed: As of September 30, 2024, we had no outstanding borrowings under our Amended Credit Facility.
−Removed: The Credit Agreement contains various restrictive covenants and customary events of default.
−Removed: The breach of restrictive covenants or the occurrence of any other event of default under the Credit Agreement could result in the acceleration of our obligation to repay the indebtedness outstanding thereunder.
−Removed: The Credit Agreement also contains financial covenants that require us and our consolidated subsidiaries to have, as of the end of each quarter, a capitalization ratio ( i.e.
+Added: In November 2022, LP entered into the Credit Agreement with American AgCredit, PCA, as administrative agent, CoBank, ACB, as letter of credit issuer, and the lenders and the guarantors from time to time party thereto relating to its revolving credit facility.
+Added: On March 26, 2025, LP entered into the First Amendment with American AgCredit, PCA, as administrative agent, CoBank, ACB, as letter of credit issuer, and the lenders and voting participants party thereto, which amends the Credit Agreement.
+Added: The First Amendment amended the Credit Agreement (the Amended Credit Agreement) to (1) increase the aggregate principal amount for the credit facility from $550 million to $750 million, (2) increase the sub-limit for letters of credit from $60 million to $75 million, (3) change the interest rate for revolving borrowing, (4) change the capitalization ratio limit, and (5) extend the maturity date to March 26, 2032.
+Added: As of March 31, 2025, there were no outstanding borrowings pursuant to the Amended Credit Facility.
+Added: The Amended Credit Agreement contains various restrictive covenants and customary events of default.
+Added: The breach of restrictive covenants or the occurrence of any other event of default under the Amended Credit Agreement could result in the acceleration of our obligation to repay the indebtedness outstanding thereunder.
+Added: The Amended Credit Agreement also contains financial covenants that require us and our consolidated subsidiaries to have, as of the end of each quarter, a capitalization ratio ( i.e.
, funded debt less unrestricted cash to total capitalization) of no more than 65%.
−Removed: As of September 30, 2024, we were in compliance with all financial covenants under the Credit Agreement.
+Added: As of March 31, 2025, we were in compliance with all financial covenants under the Amended Credit Agreement.
In May 2024, LP entered into a new letter of credit facility agreement, replacing the letter of credit facility agreement dated May 2020.
1 unchanged sentence
The Letter of Credit Facility provides for a letter of credit fee, due quarterly, ranging from 1.000% to 1.875% of the daily available amount to be drawn on each letter of credit issued under the Letter of Credit Facility.
−Removed: The Letter of Credit Facility is subject to similar affirmative, negative, and financial covenants as those set forth in the Credit Agreement, including the capitalization ratio covenant.
+Added: The Letter of Credit Facility is subject to similar affirmative, negative, and financial covenants as those set forth in the Amended Credit Agreement, including the capitalization ratio covenant.
All amounts outstanding under the Letter of Credit Facility become due on April 15, 2029.
−Removed: As of September 30, 2024, we were in compliance with all covenants under the Letter of Credit Facility.
+Added: As of March 31, 2025, we were in compliance with all covenants under the Letter of Credit Facility.
Other Liquidity Matters
Off-Balance Sheet Arrangements
−Removed: As of September 30, 2024, we had standby letters of credit of $14 million outstanding related to collateral for environmental impact on owned properties, a deposit for a forestry license, and insurance collateral, including workers' compensation.
+Added: As of March 31, 2025, we had standby letters of credit of $14 million outstanding related to collateral for environmental impact on owned properties, a deposit for a forestry license, and insurance collateral, including workers' compensation.
Potential Impairments
−Removed: We review the carrying values of our long-lived assets for potential impairments and believe we have adequate support for such carrying values as of September 30, 2024.
−Removed: If demand and pricing for our products fall to levels significantly below cycle average demand and pricing, should we decide to invest capital in alternative projects, or should changes occur related to our wood supply for our mills, it is possible that future impairment charges will be required.
−Removed: As of September 30, 2024, there were no indicators of impairment.
+Added: We review the carrying values of our long-lived assets for potential impairments and believe we have adequate support for the carrying value of each of these assets based upon the anticipated cash flows that result from our estimates of future demand, pricing, and production costs, assuming certain levels of planned capital expenditures.
+Added: However, if demand and pricing for our products fall to levels significantly below cycle average demand and pricing, should we decide to invest capital in alternative projects, or should changes occur related to our wood supply for our mills, it is possible that future impairment charges will be required.
+Added: No impairment was recognized during the three-months ended March 31, 2025.
We also review from time to time potential dispositions of various assets, considering current and anticipated economic and industry conditions, our strategic plan, and other relevant factors.
−Removed: Because a determination to dispose of particular assets can require management to make assumptions regarding the transaction structure of the disposition and to estimate the net sales proceeds, which may be less than previous estimates of undiscounted future net cash flows, we may be required to record impairment charges in connection with decisions to dispose of assets.
+Added: Because a determination to dispose of particular assets can require management to make assumptions regarding the transaction structure of the disposition and to estimate the net sales proceeds, which may be less than previous estimates of undiscounted future net cash flows, we may be required to record impairment charges in connection with decisions to dispose of such assets.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.