LP Building Solutions Reports Second Quarter 2025 Results and Reaffirms Full Year Siding Guidance

Louisiana-Pacific Corporation (LP), a leading manufacturer of high-performance building products, reported its financial results for the three and six months ended June 30, 2025.

Key Highlights for Second Quarter 2025, Compared to Second Quarter 2024

• Siding net sales increased by $45 million (11%) to $460 million
• Oriented Strand Board (OSB) net sales decreased by $101 million to $250 million
• Consolidated net sales decreased by $60 million to $755 million
• Net income was $54 million, a decrease of $106 million
• Net income per diluted share was $0.77 per diluted share, a decrease of $1.46 per diluted share
• Adjusted EBITDA⁽¹⁾ was $142 million, a decrease of $86 million
• Adjusted Diluted EPS⁽¹⁾ was $0.99 per diluted share, a decrease of $1.10 per diluted share
• Cash provided by operating activities was $162 million

(1)

This is a non-GAAP financial measure. See “Use of Non-GAAP Information,” “Reconciliation of Net Income to Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income, and Non-GAAP Adjusted Diluted EPS” below for additional information regarding non-GAAP measures.

Capital Allocation Update

• Invested $68 million in capital expenditures during the second quarter 2025
• Paid $19 million in cash dividends during the second quarter 2025
• Announced a quarterly cash dividend of $0.28 per share payable on August 29, 2025, to stockholders of record as of August 15, 2025
• Total liquidity of $1.1 billion as of June 30, 2025

“LP’s Siding segment grew and captured share to set new records for sales volume, sales revenue, and EBITDA in the second quarter,” said LP Chairperson and CEO Brad Southern. “While the OSB market is challenging currently, with commodity prices at multi-year lows, LP will continue to execute its OSB segment strategy safely, with efficiency and discipline.”

Outlook

LP is providing financial guidance for the third quarter of 2025 and full year 2025 as set forth in the table below. Guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under “Forward-Looking Statements.”

Second Quarter 2025 Highlights

Net sales for the second quarter of 2025 decreased by $60 million to $755 million compared to the prior-year period. Siding revenue increased by $45 million (or 11%), due to 8% higher volumes and 2% higher prices. OSB revenue decreased by $101 million, driven by a decline in prices.

Net income for the second quarter of 2025 decreased year-over-year by $106 million to $54 million ($0.77 per diluted share). The decline primarily reflects an $86 million decrease in Adjusted EBITDA, along with asset impairments of $17 million and reorganization costs of $3 million. The year-over-year decrease in Adjusted EBITDA for the second quarter includes a $102 million impact from lower OSB selling prices, a $6 million inventory valuation charge, and $3 million in tariff expenses related to sales into Canada. These were partially offset by a $28 million benefit from higher Siding selling prices and volumes.

First Six Months of 2025 Highlights

Net sales for the first six months of 2025 decreased year-over-year by $60 million to $1.5 billion. Siding revenue increased by $86 million (or 11%), due to 9% higher volumes and 2% higher prices. OSB revenue decreased by $147 million, driven by lower prices and a slight decline in volumes.

Net income for the first six months of 2025 decreased year-over-year by $123 million to $145 million ($2.07 per diluted share). The decrease primarily reflects a $106 million decrease in Adjusted EBITDA, $17 million of impairment charges, reorganization costs of $5 million, and the removal of $15 million in business exit credits, partially offset by a $49 million decrease in the provision for income taxes. The year-over-year decrease in Adjusted EBITDA includes a $139 million impact from lower OSB selling prices and volumes, a $5 million inventory valuation charge, $7 million of strategic investments in sales and marketing, and $5 million in tariff expenses primarily related to sales into Canada. These were partially offset by a $51 million benefit from higher Siding sales volumes and selling prices.

Segment Results

Siding

The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia, including LP^® SmartSide^® Trim & Siding, LP^® SmartSide^® ExpertFinish^® Trim & Siding, LP BuilderSeries^® Lap Siding, and LP^® Outdoor Building Solutions^® (collectively referred to as Siding Solutions).

For the three and six months ended June 30, 2025, Siding net sales increased year-over-year by $45 million and $86 million, respectively, reflecting higher sales volumes and higher selling prices. ExpertFinish net sales increased by 17% and 20% for the three and six months ended June 30, 2025, respectively, compared to the prior-year periods.

Adjusted EBITDA for the Siding segment increased by $20 million and $36 million for the three and six months ended June 30, 2025, respectively, compared to the prior-year periods. This growth was driven by higher sales volume and strong pricing, partially offset by strategic investments in sales and marketing—$2 million in the quarter and $7 million year to date—as well as tariff expenses of $3 million for the quarter and $5 million year to date.

OSB

The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP^® Structural Solutions (which includes LP^® TechShield^® Radiant Barrier, LP WeatherLogic^® Air & Water Barrier, LP Legacy^® Premium Sub-Flooring, LP NovaCore^® Thermal Insulated Sheathing, LP^® FlameBlock^® Fire-Rated Sheathing, LP^® TopNotch^® 350 Durable Sub-Flooring) and LP^® Oriented Strand Board.

For the three and six months ended June 30, 2025, OSB net sales decreased by $101 million and $147 million, respectively, compared to the same prior-year periods. These decreases were primarily driven by lower OSB prices.

Adjusted EBITDA for the OSB segment for the same periods decreased year-over-year by $106 million and $143 million, respectively, also reflecting the impact of lower OSB prices.

LPSA

The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction. The LPSA segment carries out manufacturing operations in Chile and Brazil and operates sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.

For the three months ended June 30, 2025, net sales and Adjusted EBITDA declined year-over-year by $3 million and $1 million, respectively, primarily due to lower OSB prices.

For the six months ended June 30, 2025, net sales and Adjusted EBITDA for the LPSA segment increased by $2 million and $1 million year-over-year, respectively, driven by higher Siding volume and prices, partially offset by lower OSB prices.

About LP Building Solutions

As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX) manufactures engineered wood products that meet the demands of builders, remodelers and homeowners worldwide. LP’s extensive portfolio of innovative and dependable products includes Siding Solutions (LP^® SmartSide^® Trim & Siding, LP^® SmartSide^® ExpertFinish^® Trim & Siding, LP BuilderSeries^® Lap Siding and LP^® Outdoor Building Solutions^®), LP^® Structural Solutions (LP^® TechShield^® Radiant Barrier, LP WeatherLogic^® Air & Water Barrier, LP Legacy^® Premium Sub-Flooring, LP^® FlameBlock^® Fire-Rated Sheathing, LP NovaCore^® Thermal Insulated Sheathing and LP^® TopNotch^® 350 Durable Sub-Flooring) and LP^® Oriented Strand Board (OSB). In addition to product solutions, LP provides industry-leading customer service and warranties. Since its founding in 1972, LP has been Building a Better World™ by helping customers construct beautiful, durable homes while shareholders build lasting value. Headquartered in Nashville, Tennessee, LP operates 21 plants across the U.S., Canada, Chile and Brazil. For more information, visit LPCorp.com.

Source: Louisiana-Pacific Corporation