Louisiana-Pacific (LPX) Q4 2025 earnings summary

Executive summary

• 2025 was challenging for the building sector, with tariffs, policy uncertainty, and weak consumer confidence impacting affordability and housing starts, which declined about 10% in Q3 and likely further in Q4.

• FY 2025 net sales declined 8% year-over-year to $2.7B, with Q4 net sales down 17% to $567M compared to Q4 2024.

• Siding segment showed resilience with 8% sales growth for the year and margin expansion, offsetting declines in OSB.

• OSB business faced multi-year price lows and a 30% revenue decline, but cost management led to positive full-year EBITDA of $7M.

• Leadership transition occurred, with a new CEO emphasizing continuity in strategy and growth focus.

Financial highlights

• Q4 2025 net sales were $567M, Adjusted EBITDA $50M, and Adjusted Diluted EPS $0.03.

• Full-year 2025 net sales reached $2.7B, Adjusted EBITDA $436M (down 37%), and Adjusted EPS $2.65.

• Siding segment delivered $444M in EBITDA, up 14% year-over-year, with a 26% margin.

• OSB segment revenue fell 25%-30% to $832M, with EBITDA down 98% to $7M.

• Operating cash flow for FY 2025 was $382M, and capital expenditures totaled $291M.

Outlook and guidance

• Q1 2026 Siding net sales expected at $350–$355M (~12% decline year-over-year), with Adjusted EBITDA of $80–$85M (~23% margin).

• Q1 2026 OSB Adjusted EBITDA projected at a $25–$30M loss; consolidated Adjusted EBITDA at breakeven.

• Full-year 2026 Siding net sales forecast at ~$1.7B (~2% growth), Adjusted EBITDA at $450M (~26% margin), consolidated Adjusted EBITDA at $430M.

• OSB segment expected to post a $25–$30M loss for FY 2026, with results anticipated similar to 2025.

• Capital expenditures for 2026 expected to total ~$400M, split evenly between maintenance and growth.