Remove stucco, beginning with any areas that are chipped or cracked, by hammering gently with a metal hammer. Use repeated soft blows to loosen the stucco without further damaging the wood behind it.
Cut away metal mesh as you remove the stucco that covers it by cutting it with metal snips. Peel away the metal mesh once it begins to come loose.
Continue removing stucco with a hammer and metal mesh with metal snips until you reveal all four sides of the damaged wood sheet behind the stucco surface. Peel away building paper or insulating sheets if they are attached to the surface of the wood.
Remove the damaged wood by unscrewing the screws that hold it place or prying out the nails with a claw tooth hammer.
Measure the opening left by the piece of plywood you removed using a tape measure. Take measurements at several points in case the opening is irregularly shaped from warping or the building settling.
Lay out a piece of new plywood across two sawhorses and diagram the size you need to fill the opening using a tape measure, straight edge and pencil. Check to ensure that your measurements match those of the wall.
Cut the plywood to size with a circular saw by making slow, clean cuts along your pencil lines.
Place the new piece of plywood in position and attach it with screws that are similar to those you removed. Don't screw directly into the existing holes on studs for added strength.