NASHVILLE, Tenn. (News release) -- Louisiana-Pacific Corporation, a leading manufacturer of high-performance building products, today reported its financial results for the fourth quarter and year ended December 31, 2025.
Key Highlights for the Fourth Quarter of 2025, Compared to the Fourth Quarter of the Prior Year
- Siding net sales increased by $23 million, or 6%, to $384 million
- Oriented Strand Board (OSB) net sales decreased by $132 million to $136 million
- Consolidated net sales decreased by $114 million to $567 million
- Net loss was $(8) million, a decrease of $70 million
- Net loss per diluted share was $(0.11) per share, a decrease of $1.00 per diluted share
- Adjusted EBITDA(1) was $50 million, a decrease of $74 million
- Adjusted Diluted EPS(1) was $0.03 per diluted share, a decrease of $1.00 per diluted share
- Cash provided by operating activities was $67 million, a decrease of $38 million
Key Highlights for the Full Year 2025, Compared to the Prior Year
- Siding net sales increased by $131 million, or 8%, to $1.7 billion
- OSB net sales decreased by $352 million to $832 million
- Consolidated net sales decreased by $233 million to $2.7 billion
- Net income was $146 million, a decrease of $275 million
- Net income per diluted share was $2.08 per share, a decrease of $3.81 per diluted share
- Adjusted EBITDA(1) was $436 million, a decrease of $252 million
- Adjusted Diluted EPS(1) was $2.65 per diluted share, a decrease of $3.23 per diluted share
- Cash provided by operating activities was $382 million, a decrease of $223 million
|
(1) |
This is a non-GAAP financial measure. See "Use of Non-GAAP Information" and "Reconciliation of Net Income to Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income, and Non-GAAP Adjusted Diluted EPS" below for additional information regarding the Non-GAAP financial measures. |
Capital Allocation Update
- Invested $291 million in capital expenditures in 2025
- Paid $61 million to repurchase 0.6 million of LP's common shares during 2025, leaving 70 million common shares outstanding and $177 million remaining repurchase authorization under the existing share repurchase program
- Paid $78 million in cash dividends during the year ended 2025
- Announced a quarterly cash dividend of $0.30 per share for the first quarter of 2026, up 7% from the previous $0.28 per share quarterly dividend
- Total liquidity of approximately $1 billion as of December 31, 2025
First Quarter and Full Year 2026 Outlook
LP is providing financial guidance for the first quarter and full year 2026 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."
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First Quarter 2026 |
Full Year 2026 |
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|
Siding Net Sales Year-Over-Year Growth |
~$350-355M (~12% decline) |
~ $1.7 billion (~2% growth) |
|
|
Siding Adjusted EBITDA(2) |
~$80-85M (~23% margin(2)(3)) |
$450 million (~26% margin(2)(3) |
|
|
OSB Adjusted EBITDA(2)(4) |
$25-30 million loss |
Breakeven |
|
|
Consolidated Adjusted EBITDA(2)(4)(5) |
$50 million |
$430 million |
|
|
Capital Expenditures(6) |
~$400 million |
|
(2) |
This is a non-GAAP financial measure. Reconciliation of Siding Adjusted EBITDA, OSB Adjusted EBITDA, and consolidated Adjusted EBITDA guidance to the closest corresponding GAAP measure on a forward-looking basis is not available without unreasonable efforts. Our inability to reconcile these measures results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliation. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliation, such as loss on impairment, business exit credits and charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, and other non-operating items, that would be required to be included in the comparable forecasted U.S. GAAP measures. LP expects that these adjustments may potentially have a significant impact on future U.S. GAAP financial results. |
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|
(3) |
This is a non-GAAP financial measure and is calculated as Adjusted EBITDA divided by net sales. |
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|
(4) |
The first quarter and full year OSB Adjusted EBITDA are based on the assumption that OSB prices published by Random Lengths remain unchanged from those published on February 13, 2026 (this is an assumption for modeling purposes and not a price forecast). |
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|
(5) |
For purposes of calculating the first quarter and full year 2026 consolidated Adjusted EBITDA, it has been assumed that Other is approximately $(5)M and $(20)M in the first quarter and full year, respectively. | |
|
(6) |
Capital expenditures related to strategic growth and sustaining maintenance projects are expected to be approximately $200 million and $200 million, respectively, for full year 2026. |
Fourth Quarter 2025 Highlights
During Q4 2025, the Company reported net sales of $567 million, representing a decrease of $114 million from last year. Siding revenue rose by $23 million, or 6%, to $384 million, primarily due to an 8% increase in sales prices, which was partially offset by a 2% reduction in sales volumes. OSB net sales decreased by $132 million to $136 million, driven by a decline in prices and sales volumes.
The Company reported a net loss of $8 million ($(0.11) per diluted share) for the quarter, which is $70 million lower than last year. The primary drivers of this decrease were a $74 million reduction in Adjusted EBITDA, and increases of $8 million in impairment charges, $9 million in foreign currency losses, and $5 million in depreciation expenses. These were partially offset by a $27 million reduction in the tax provision. The year-over-year decrease in Adjusted EBITDA was mainly the result of an $84 million impact from declining OSB prices and an $11 million reduction from lower OSB sales volumes, partially offset by a $20 million improvement in Siding sales volumes and improved sales mix.
Full Year 2025 Highlights
In 2025, net sales dropped year over year by $233 million to $2.7 billion. Siding revenue increased by $131 million, or 8%, to $1.7 billion, attributable to 4% higher sales volumes and a 4% increase in prices. OSB revenue fell by $352 million to $832 million, primarily due to lower prices and sales volumes.
Net income declined year over year by $275 million to $146 million ($2.08 per diluted share). The primary drivers behind this decrease were a $252 million reduction in Adjusted EBITDA, and increases of $38 million in impairment charges, $24 million in foreign currency losses, $19 million in depreciation expense, and $10 million in stock-based compensation. Additionally, the absence of $14 million in business exit credits recognized in 2024 and a $7 million decrease in investment income contributed to the overall decline. These impacts were partially offset by a $90 million reduction in the tax provision. The year-over-year decrease in Adjusted EBITDA was driven by several factors, including a $292 million adverse effect from lower OSB prices and reduced sales volumes, partially offset by $91 million from higher Siding sales volumes and improved sales mix. In addition to price and volume impacts, the change in Adjusted EBITDA included increases of $11 million in marketing investments, $9 million in SG&A expenses, $7 million of mill overhead and inventory absorption, and $8 million in tariff costs. The remaining decrease in Adjusted EBITDA relates to a decline of $15 million in Other Adjusted EBITDA, which primarily includes LPSA, corporate, and other minor products and services.
Segment Results
Siding
The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia. Our Siding is offered primed (LP® SmartSide® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions®) and pre-finished (LP® SmartSide® ExpertFinish® Trim & Siding) to meet the needs of builders and installers in new construction and repair and remodeling applications.
Segment net sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
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|
Quarter Ended December 31, |
|
Year Ended December 31, |
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|
|
2025 |
|
|
2024 |
|
% Change |
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|
2025 |
|
|
2024 |
|
% Change |
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|
Net sales |
$ |
384 |
|
$ |
362 |
|
6 |
% |
|
$ |
1,689 |
|
$ |
1,558 |
|
8 |
% |
|
Adjusted EBITDA |
|
97 |
|
|
72 |
|
33 |
% |
|
|
444 |
|
|
390 |
|
14 |
% |
|
Quarter Ended December 31, 2025 |
|
Year Ended December 31, 2025 |
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Average Net |
|
Unit |
|
Average Net |
|
Unit |
||||
|
Siding Solutions |
8 |
% |
|
(2 |
)% |
|
4 |
% |
|
4 |
% |
Siding net sales increased for the three and twelve months ended December 31, 2025 due to higher sales volumes and selling prices. Increases in the average sales price were primarily due to a combination of list price increases and favorable mix. ExpertFinish accounted for 11% and 10% of sales volume and 17% and 16% of net sales in the three and twelve months ended December 31, 2025, respectively, contributing significantly to this favorable mix.
Fourth quarter 2025 Adjusted EBITDA increased year-over-year by $24 million, primarily reflecting the impacts of the net sales increase including favorable mix. For the twelve months ended December 31, 2025, Adjusted EBITDA increased $54 million compared to prior-year. This growth was driven by higher sales volume and higher selling prices of $91 million, partially offset by strategic investments in sales and marketing of $11 million, $9 million of SG&A, $7 million of mill overhead and inventory absorption, and $7 million of tariff expenses.
Oriented Strand Board (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® FlameBlock® Fire-Rated Sheathing, LP WeatherLogic® Air & Water Barrier, LP® TechShield® Radiant Barrier, LP Legacy® Premium Sub-Flooring, and LP® TopNotch® 350 Durable Sub-Flooring).
Segment net sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
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|
Quarter Ended December 31, |
|
Year Ended December 31, |
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|
|
|
2025 |
|
|
|
2024 |
|
% Change |
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|
2025 |
|
|
2024 |
|
% Change |
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|
Net sales |
$ |
136 |
|
|
$ |
267 |
|
(49 |
)% |
|
$ |
832 |
|
$ |
1,184 |
|
(30 |
)% |
|
Adjusted EBITDA |
|
(39 |
) |
|
|
50 |
|
(177 |
)% |
|
|
7 |
|
|
298 |
|
(98 |
)% |
|
Quarter Ended December 31, 2025 |
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Year Ended December 31, 2025 versus 2024 |
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|
Average Net |
Unit |
|
Average Net |
|
Unit |
|||||
|
OSB - Structural Solutions |
(25 |
)% |
(24 |
)% |
|
(19 |
)% |
(10 |
)% |
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|
OSB - Commodity |
(40 |
)% |
(27 |
)% |
|
(26 |
)% |
|
(8 |
)% |
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For the year ended December 31, 2025, net sales decreased by $352 million due to a $260 million decrease in OSB prices and an $84 million decrease in sales volumes.
Adjusted EBITDA for the year ended December 31, 2025 decreased year-over-year by $291 million, due to lower average prices and sales volumes.
Other
LP conducts business through three operating segments: Siding, OSB and LP South America (LPSA). In the fourth quarter of 2025, the Company determined that LPSA did not meet the reportable segment criteria and beginning with the fourth quarter of 2025, the financial information for the LPSA segment is included in Other. These changes had no impact on our consolidated results of operations or financial position. Prior period segment information has been recast to conform to our current presentation. Our other operating segments, Siding and OSB, remain reportable operating segments. Other now comprises our South American operations and other products that are not individually significant.
