Louisiana-Pacific Corporation

Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Louisiana Pacific Corporation second quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I'd now like to turn the call over to Aaron Howald, VP of Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining us to discuss LP's results for the second quarter of 2025 and as well as our updated outlook for the full year. On the call with me this morning are Brad Southern, LP's Chief Executive Officer, and Alan Hockey, LP's Chief Financial Officer. As always, after prepared remarks, we will take a round of questions. During this morning's call, we will refer to a presentation that has been posted to LP's IR webpage, which is investor.lpcorp.com. Our 8-K filing, earnings press release, sustainability report, and other materials are also available there. Finally, I will caution you that today's discussion will contain forward-looking statements and non-GAAP financial metrics, as described on slides two and three of LP's earnings presentation. The appendix of that presentation also contains reconciliations that are further supplemented by this morning's 8-K filing. All of those materials are incorporated herein by reference.

And with that, over to Brad. Thanks, Aaron, and thank you all for joining us today for LP's second quarter earnings call. I will describe some highlights from the quarter before turning the call over to Alan for segment details and our updated outlook for the second half of the year. The sightings segment once again delivered growth in the second quarter despite an increasingly challenging market backdrop. U.S. housing stocks remained below long-term average demand levels, and the single-family mix has softened, which has contributed to steadily falling commodity OSB prices. The general sentiment among repair and remodeling contractors is also more cautious than expected earlier in the year. However, once again, LP's siting segment executed our strategy and achieved a record quarter for volume, revenue, and EBITDA. We did this by delivering value for our customers across new construction, R&R, and all-site construction with durable, beautiful, sustainable, and labor-saving smart site and expert finish trim and siting. Page five of the presentation shows a summary of highlights for the second quarter. Siding revenue grew by 11 percent compared to last year, partially offsetting a negative $102 million impact from lower OSB prices. The result was $755 million in sales, $142 million in EBITDA, and 99 cents of adjusted earnings per share for LP in the quarter. Both segments continue to improve operating efficiency. which we measure as overall equipment effectiveness, or OEE. Siding OEE in the second quarter reached 78 percent, and OSB hit 79 percent. OEE drives value by unlocking incremental capacity in siding and increasing operational flexibility in OSB. I want to thank our operations teams for their dedication to running our mills safely and efficiently, maintaining our assets, and delivering OSB and siding with industry-leading quality. Current market conditions are difficult for our OSB segment, but LP has been here before, and we have demonstrated that our teams can execute our strategy come what may. Siding is obviously not immune to the softening market, but the unique value proposition of SmartSide, the diverse market exposure in home building, R&R, sheds, and manufactured housing, and our ongoing customer-focused new product development leave us confident that we have a long runway of growth ahead of us. I believe that in the long run, in good markets and bad, SmartSide will continue to capture share from other siting substrates and grow above the underlying markets we serve. I believe this because of the culture we have built. So before I turn to Alan, let me close by mentioning some examples of how LP's culture is driving results and being recognized. LP learned in June, which happens to be National Safety Month, We once again were named the safest company in 2024 by APA, the Engineered Wood Association. This is the third year in a row and the 13th time in the award's 17-year history that LP has earned this honor. LP's New Waverly Transportation Team received the Platinum Award for Highway Safety from the Great West Casualty Company. This was New Waverly's fourth consecutive year to win that award. In 2024, our team logged 10 million miles without a single preventable DOT reportable accident. 2024 is also the fourth consecutive year for LP to be named a top workplace in Middle Tennessee by the Tennessean newspaper. All of these facets of our strong culture, as well as other aspects of our sustainable business model, are detailed in LP's 2025 Sustainability Report, which we recently published. And with that, I will ask Alan to share more details on segment results, cash flow, and our updated outlook for the year.