For outdoors we will use expanded PVC (Sintra, etc), 3/8" thick and up, as long as no dimension exceeds 18". That's where expansion and contraction will cause a letter to fail.
For larger elements we use Intecel PW, which is expanded PVC with hardwood powder in it that reduces the co-efficient of expansion. Cuts like Sintra, easy to paint (no multiple coats of primer and sanding required), never rots and way cheaper (and tougher) than HDU. Comes as thick as 1-1/4".
We never use HDU or MDO for
signs or letters anymore.