Louisiana-Pacific Corp (NYSE:LPX) reported a second-quarter FY23 revenue decline of 4.9% year-on-year to $661 million, missing the consensus of $668.20 million.

The home construction, repair, and remodeling firm registered an adjusted EPS of $0.55, down 86.9% Y/Y, missing the consensus of $0.64.

Siding Solutions net sales decreased by 11% Y/Y to $318 million on lower volumes partially offset by higher prices, and Oriented Strand Board (OSB) net sales decreased by 66% to $229 million, reflecting lower prices.

The gross profit fell 77% Y/Y to $119 million, while the margin decreased by 2,636 bps to 19.5%.

Adjusted EBITDA was $93M (-81.1% Y/Y), and margin fell to 15.2% from 43.5% in 2q22.

The company held $70 million in cash and equivalents as of June 30, 2023.

Cash provided by operating activities was $88 million, compared to $483 million in 2Q22.

3Q23 Outlook: Louisiana-Pacific sees Q3 revenue sequentially higher by at least 50%. Adjusted EBITDA is expected to be in the range of $160 million and $180 million.

FY23 Outlook: Siding Solutions revenue is expected to decrease by ~10% YoY; capital expenditures are expected to be in the range of $290 million to $310 million,

Price Action: LPX shares are trading 12.3% lower at $67.03 at the time of publication on Wednesday.

Now Read: What's Going On With AMD Stock Wednesday?

Photo: Shutterstock