NASHVILLE, Tenn. (News release) -- Louisiana-Pacific Corporation (LP) (NYSE: LPX), a leading manufacturer of high-performance building products, reported its financial results for the three and six months ended June 30, 2026.
Second Quarter 2026 Summary, Compared to Second Quarter 2025
- LP reaffirms Siding full-year guidance, anticipates Siding year-over-year growth in the third quarter of 2026
- Siding net sales decreased by $19 million, or 4%, to $441 million
- Oriented Strand Board (OSB) net sales decreased by $68 million to $182 million
- Net income was $26 million, a decrease of $27 million
- Net income per diluted share was $0.38 per diluted share, a decrease of $0.39 per diluted share
- Adjusted EBITDA(1) was $79 million, a decrease of $63 million
- Adjusted Diluted EPS(1) was $0.40 per diluted share, a decrease of $0.67 per diluted share
- Cash provided by operating activities was $140 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 non-GAAP measures. |
Capital Allocation Update
- Invested $59 million in capital expenditures during the second quarter of 2026
- Paid $21 million in cash dividends during the second quarter of 2026
- As previously announced on July 31, 2026, LP's Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on August 28, 2026, to stockholders of record on August 14, 2026.
- Total liquidity of approximately $1 billion as of June 30, 2026
"We executed our strategy, and Siding delivered revenue within our guided range despite margin pressure from raw material inflation," said LP CEO Jason Ringblom. "We anticipate Siding returning to volume and revenue growth in the third quarter."
Outlook
LP is providing financial guidance for the third quarter of 2026 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."
|
Third Quarter 2026 |
Full Year 2026 |
||
|
Siding Net Sales Year-Over-Year Growth |
$460-470 million (~5% growth) |
$1.65-1.67 billion (~1% decline) |
|
|
Siding Adjusted EBITDA(2) |
$110-120 million (~25% margin(2)(3)) |
$410-425 million (25-26% margin(2)(3)) |
|
|
OSB Adjusted EBITDA(2)(4) |
$(45) million |
$(120) million |
|
|
Consolidated Adjusted EBITDA(2)(4)(5) |
$50-60 million |
$255-270 million |
|
|
Capital Expenditures(6) |
~$320 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 attributed to LP, 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. |
| (3) |
This is a non-GAAP financial measure and is calculated as Siding Adjusted EBITDA divided by net sales. |
| (4) |
The third 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 July 31, 2026 (this is an assumption for modeling purposes and not a price forecast). |
| (5) |
For purposes of calculating the third quarter and full year 2026 consolidated Adjusted EBITDA, it has been assumed that other operations will contribute approximately $(15)M and $(35)M in the third quarter and full year, respectively. |
| (6) |
Capital expenditures related to strategic growth and sustaining maintenance projects are expected to be approximately $140 million and $180 million, respectively, for full year 2026. |
Second Quarter 2026 Highlights
Net sales for the second quarter of 2026 fell year over year by $90 million to $664 million. Siding revenue decreased by $19 million, or 4%, due to 11% lower volumes, partially offset by 7% higher prices. OSB revenue decreased by $68 million, driven by a decline in both prices and sales volumes.
Net income for the second quarter of 2026 decreased year over year by $27 million to $26 million ($0.38 per diluted share). The decline primarily reflects a $63 million decrease in Adjusted EBITDA, partially offset by the absence of $17 million of impairment charges incurred in 2025, a benefit of $12 million related to the reduction in tax provision, and a $8 million decrease in foreign currency loss. The year-over-year decrease in Adjusted EBITDA primarily reflects a $35 million impact from lower OSB prices, a $24 million impact from lower Siding volumes, an $11 million impact from lower OSB volumes, a $12 million impact from inflationary costs, and a $5 million impact from lower selling prices in South America. These decreases were partially offset by a $27 million benefit from higher Siding selling prices.
First Six Months of 2026 Highlights
Net sales for the first six months of 2026 decreased year over year by $240 million to $1.2 billion. Siding revenue decreased by $61 million, or 7%, due to 14% lower volumes, partially offset by 8% higher prices. OSB revenue decreased by $167 million, driven by lower prices and sales volumes.
Net income for the first six months of 2026 decreased year over year by $91 million to $53 million ($0.76 per diluted share). The decrease primarily reflects a $143 million decrease in Adjusted EBITDA, which was partially offset by the absence of $17 million of impairment charges incurred in 2025, a benefit of $28 million related to the reduction in tax provision, and an $16 million decrease in foreign currency loss. The year-over-year decline in Adjusted EBITDA was driven by a $101 million impact from lower OSB prices, along with additional headwinds of $59 million from lower Siding volumes, $21 million from lower OSB volumes, and $13 million from lower selling prices in South America. These decreases were partially offset by a $54 million benefit from higher Siding 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. Our Siding is offered primed (LP® SmartSide® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions®) and prefinished (LP® SmartSide® ExpertFinish® Trim & Siding) to meet the needs of builders and installers in new construction and repair and remodeling applications.
Sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||
|
2026 |
2025 |
% Change |
2026 |
2025 |
% Change |
||||||||||||
|
Net sales |
$ |
441 |
$ |
460 |
(4 |
)% |
$ |
801 |
$ |
862 |
(7 |
)% |
|||||
|
Adjusted EBITDA |
113 |
125 |
(9 |
)% |
214 |
230 |
(7 |
)% |
|||||||||
Percent changes in average net sales prices and unit shipments in Siding for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, were as follows:
|
Three Months Ended June 30, 2026 versus 2025 |
Six Months Ended June 30, 2026 versus |
||||||||||
|
Average Net Selling Price |
Unit Shipments |
Average Net Selling Price |
Unit Shipments |
||||||||
|
Siding |
7 |
% |
(11 |
)% |
8 |
% |
(14 |
)% |
|||
Siding net sales decreased for the three and six months ended June 30, 2026 due to lower volumes, partially offset by higher prices. The increase in pricing was attributable to both the annual price increase and favorable mix.
Adjusted EBITDA declined by $12 million in the quarter and $16 million year to date compared with the same periods in 2025. Net price increases contributed $27 million in the quarter and $54 million year to date, while lower volumes reduced results by $24 million and $59 million, respectively. Raw material, freight, and labor costs also increased by $10 million in the quarter and $15 million year to date, including a $4 million impact from higher crude oil costs in the second quarter.
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 BurnGuard® FRT OSB, LP WeatherLogic® Air & Water Barrier, LP® TechShield® Radiant Barrier Sheathing, LP Legacy® Premium Sub-Flooring, and LP® TopNotch® 350 Durable Sub-Flooring).
Sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||
|
2026 |
2025 |
% Change |
2026 |
2025 |
% Change |
||||||||||||||
|
Net sales |
$ |
182 |
$ |
250 |
(27 |
)% |
$ |
350 |
$ |
517 |
(32 |
)% |
|||||||
|
Adjusted EBITDA |
(21 |
) |
19 |
(213 |
)% |
(33 |
) |
73 |
(146 |
)% |
|||||||||
Percent changes in average net sales prices and unit shipments in OSB for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, were as follows:
|
Three Months Ended June 30, 2026 versus 2025 |
Six Months Ended June 30, 2026 versus |
||||||||||
|
Average Net Selling Price |
Unit Shipments |
Average Net Selling Price |
Unit Shipments |
||||||||
|
OSB - Structural Solutions |
(10 |
)% |
(24 |
)% |
(16 |
)% |
(21 |
)% |
|||
|
OSB - Commodity |
(20 |
)% |
(1 |
)% |
(26 |
)% |
(7 |
)% |
|||
For the three and six months ended June 30, 2026, OSB net sales decreased year over year by $68 million and $167 million, respectively, primarily driven by lower OSB prices and a decline in sales volumes.
Adjusted EBITDA for the same periods decreased year over year by $40 million and $106 million, respectively, reflecting the impact of lower OSB prices and a decline in sales volumes.
Other
Other operations include LP's South American business that manufactures and distributes OSB structural panels and siding products in South America and certain export markets. Other operations also include timber and timberlands as well as other products, services, and closed operations, which do not qualify as discontinued operations. Additionally, Other includes unallocated corporate expenses.
Other net sales decreased by $3 million and $12 million, for the three and six months ended June 30, 2026, respectively, primarily due to a decline in OSB selling prices in South America. Adjusted EBITDA for the same periods decreased year over year by $12 million and $20 million, respectively, driven by a decline in South America net sales along with higher costs incurred in that market.