Brad Southern, CEO & Chair, LP Building Solutions
In an interview with Invest:, Brad Southern, CEO and chair of LP Building Solutions, said that affordability, sustainability, and product innovation are central to the company’s strategy for long-term growth. “While we can’t solve every resilience issue on our own, we work closely with our builder partners to be part of a holistic solution that balances durability, safety, and affordability,” he said.
What have been some of the key milestones and highlights in the past year?
First, I should clarify that while our corporate headquarters are located here in Nashville, we don’t actually manufacture or directly sell from this office. So Nashville itself isn’t one of our core markets in terms of operations — it’s more of an administrative hub for us. That said, we’ve maintained steady employment at our international headquarters here, and we’ve seen modest growth in our workforce as the company continues to expand, although nothing dramatic. Over the past year, we’ve also been recognized as a great place to work in Tennessee, which we’re proud of. But compared to other organizations more deeply integrated into the Nashville economy, our involvement is relatively limited, aside from simply being based here.
What are your immediate priorities for LP Building Solutions?
From what I understand, that award is voted on by our stock coverage and sell-side analysts. I think it reflected the outstanding year we had as a company — strong revenue growth, improved EBITDA margins, and significant gains in our share price. All those factors came together, and while I was the one recognized, it really represents the success of the entire organization. Looking ahead, our focus remains on continued growth. We’ve long been a growth-oriented company, and a key driver has been our SmartSide siding product line, which continues to outperform market rates. That’s been a big contributor to our financial performance. In addition to that, our structural sheathing segment, which is more of a commodity product, is also important. We’re currently the second-largest producer globally and are focused on world-class operational efficiency and balancing supply with market demand. We also have a smaller but growing business in South America, headquartered in Santiago, Chile, which is another platform we’re emphasizing for revenue and EBITDA growth, similar to our siding business.
What products or structural solutions are driving growth, demand, and profitability for LP Building Solutions?
Our siding business, specifically under the SmartSide brand, is unquestionably our growth engine. It’s the premier product in our portfolio in terms of both quality and market performance. On the structural solutions side, we’re getting a bit more technical, but we’ve been focusing heavily on our premium flooring line, as well as our WeatherLogic sheathing — a weather barrier product that’s shown strong growth. Additionally, we have niche products like FlameBlock and Evercore, which offer fire resistance, soundproofing, or insulation. Another important product is TechShield, our radiant barrier, which has been a consistent performer. So, while we have a range of products contributing to growth, SmartSide remains the top priority.
Where do you see growth opportunities for LP Building Solutions in the construction and building industry?
Over the last few years, especially post-COVID, we’ve shifted focus to new areas. One major move has been into the repair and remodel (R&R) market. Until four or five years ago, we were primarily focused on new construction. But we introduced ExpertFinish, a prefinished version of our siding product, designed for homeowners looking to reside in their homes. That product has helped us grow from a minimal share in R&R to a meaningful presence. We also launched the Builder Series — a cost-effective, high-performance siding line engineered specifically for large-scale national builders. It’s been very well received. Additionally, we offer a panel product widely used in shed construction, where we hold a strong market position. So, in terms of new opportunities, R&R and siding products for large builders are two key areas in which we’ve been expanding.
From a more global perspective, how would you describe the state of the building solutions industry?
In the United States, which is our primary market, COVID-19 initially created very strong housing demand. People were home more, which drove a lot of renovation and remodeling activity. The new housing market also rebounded from historically low levels. Since then, however, growth has slowed. It’s been a decent market, but not great. Higher interest rates have led to elevated mortgage rates, and many homeowners who bought or refinanced at low rates are now hesitant to sell and take on a higher-rate mortgage. That’s led to reduced resale activity and a stronger emphasis on new home construction. We’ve adjusted accordingly, focusing more on serving new home builders. But overall, affordability remains a major issue. For the industry to fully recover, we’ll need to see mortgage rates drop significantly and inflation ease. Until then, affordability constraints will continue to challenge the housing market.
Have you noticed any shifts in demand toward specific housing types, such as multifamily units, outdoor living spaces, or sheds?
Outdoor living boomed during COVID-19 and remained strong for a while. In new construction, we’ve seen a bit of a split: higher-end luxury homes have held up relatively well because those buyers are less impacted by interest rates. However, the bigger focus across the industry has been on starter homes for younger buyers, especially those who experienced COVID in apartments and now want more space. National builders are targeting that demographic, which has fueled demand for affordable, quality homes. That can mean smaller houses, smaller lots, and cost-effective building components. Our products help here by reducing labor time or enabling faster construction, which supports affordability. Affordability is really the dominant theme in housing right now, and Nashville is a prime example of that. The cost of living, particularly in Davidson County, is high. Nashville’s emphasis on entertainment and tourism has created a service-driven economy, but the workers behind those industries often can’t afford to live near their jobs. That’s pushing them farther out and creating transportation challenges. For the city to sustain growth, it needs to address affordable housing and infrastructure.
How important is it to provide high-performance building products that ensure safer and more resilient homes?
It’s absolutely important. But resilience can’t come from one-off product fixes alone. It requires a systematic, community-wide approach. A single home built with fire-resistant materials won’t be enough if neighboring structures aren’t up to the same standard. So overall planning, including home layout and surrounding features, plays a big role. At LP, our focus is on durability and long-term lifecycle performance. Many of our siding products are independently certified as carbon-negative, and we’re proud of the sustainability story we can tell. While we can’t solve every resilience issue on our own, we work closely with our builder partners to be part of a holistic solution that balances durability, safety, and affordability. If we can combine our technology with broader engineering systems that improve fire and wind resistance, that’s a win for everyone.
To what extent is LP Building Solutions committed to environmental sustainability?
We’re fully committed, and always have been. Our manufacturing processes have been certified for sustainability for decades, dating back to at least the early 2000s. Recently, we’ve achieved independent certification of nearly our entire product portfolio as carbon-negative. That means more carbon is stored in the product than is emitted during its production. Our process uses nearly 100% of the raw logs, either incorporated into the final product or burned as biofuel to create the thermal energy needed for manufacturing. This commitment to sustainability has been the core of LP for our entire 50-year history, but in the last 25 years, especially, we’ve formalized and communicated our approach more effectively. We believe our portfolio is uniquely positioned to meet sustainability challenges compared to alternative substrates in the market. Beyond our products, we also ensure that our operations in local communities follow sustainable practices. It’s something we’re proud of, and our sustainability report really outlines the full scope of our initiatives. While the approach hasn’t changed drastically, we’ve learned to better articulate our impact and enhance it at the margins.
