Capital expenditures totaled $68 million in the quarter, with $19 million returned to shareholders via dividends.
LPX reported Q2 2025 sales of $755 million and EBITDA of $142 million, with adjusted EPS of $0.99.
Operating cash flow was $162 million, supported by $142 million EBITDA and seasonal working capital reductions.
Operating efficiencies improved with Siding OEE at 78% and OSB OEE at 79%.
OSB segment faced multi-year low commodity prices, resulting in $19 million EBITDA, outperforming algorithmic guidance due to cost control and price realization lag.
Siding segment revenue grew 11% year-over-year, driven by 2% price and 8% volume increases, achieving record volume, revenue, and EBITDA.
Progress and Strategic Significance of Aluminum Flat-Roll Launch
First commercial shipment of aluminum flat-rolled coils on June 16, 2025, marking a major milestone.
Expectations to reach EBITDA breakeven before the end of 2025, with ramp-up to full capacity in 2026.
Market environment has become more favorable due to a domestic supply deficit of over 1.4 million tonnes, with tariffs making imports more expensive.
Customer interest is high, with robust engagement from automotive and beverage can sectors.
The project leverages SDI's construction expertise, with a focus on low-cost, high-efficiency operations, and aims to capture market share in a significant domestic deficit.
The company anticipates exiting 2025 at 40-50% utilization, reaching 75% in 2026, with a focus on product certification and ramp-up.
Adjusted EBITDA was $68 million, down $6 million year-over-year, impacted by higher operating costs including start-up expenses and maintenance timing.
Aerospace and high-strength conversion revenue declined 5% due to a 4% shipment decrease amid commercial aircraft supply chain destocking.
Automotive conversion revenue declined 4% on a 15% shipment decrease due to tariff-related uncertainties, partially offset by better pricing and mix.
Cash flow from operations was $16 million with capital expenditures of $44 million; free cash flow guidance revised down to $50 million to $70 million due to working capital impacts from metal pricing and tariffs.
General engineering conversion revenue rose 3% with a 5% shipment increase driven by reshoring and strong pricing.
Kaiser Aluminum delivered second quarter results exceeding expectations, with conversion revenue of $374 million, up 1% year-over-year.
Liquidity remains strong with $13 million cash and $525 million borrowing availability; net debt leverage ratio increased to 4.2x from 3.9x.
Net income was $23 million or $1.41 per diluted share; adjusted net income was $20 million or $1.21 per diluted share, down from prior year adjusted net income of $27 million.
Packaging conversion revenue increased 9% year-over-year on improved product mix despite a 3% shipment decline due to ramp-up of new roll coat line.
Reported operating income was $38 million, up $2 million from prior year, but adjusted operating income was down $7 million after excluding prior year non-run rate charges.
Dafinchi