LPX Q2 Earnings Miss, Siding Guidance Affirmed, OSB Losses Deepen
LPX is trading near its 52-week low of $66.12 (14% above the low).
Summary
LPX missed Q2 earnings with net income down 51% YoY. Siding guidance was affirmed, but OSB losses are deepening, with full-year OSB Adjusted EBITDA guided to $(120)M.
Key Events · Earnings and Guidance · LPX
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Q2 Earnings Miss
Net income of $26M ($0.38/share) fell 51% YoY, missing expectations. Revenue declined 12% to $664M.
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Siding Guidance Affirmed
Full-year Siding net sales guidance of $1.65-1.67B (~1% decline) and Adjusted EBITDA margin of 25-26% reaffirmed. Q3 Siding revenue expected at $460-470M (~5% growth).
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OSB Losses Deepen
OSB Adjusted EBITDA swung to a $21M loss in Q2. Full-year OSB Adjusted EBITDA guided to $(120)M, with Q3 at $(45)M, assuming flat OSB prices.
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Consolidated Profitability Pressure
Full-year consolidated Adjusted EBITDA guided to $255-270M, down from $304M in the first half of 2025. Q3 expected at $50-60M.
Analysis · LPX · Manufacturing
Louisiana-Pacific's second-quarter net income fell 51% year-over-year to $26 million, missing expectations. While Siding revenue slipped 4% on an 11% volume decline, pricing improved 7%. The OSB segment swung to an Adjusted EBITDA loss of $21 million as both prices and volumes dropped sharply. Management affirmed full-year Siding guidance and expects a return to growth in Q3, but the OSB outlook implies continued losses. The earnings miss and weak OSB forecast are likely to pressure the stock, though the Siding business remains profitable and the company has ample liquidity.
At the time of this filing, LPX was trading at $75.56 on NYSE in the Manufacturing sector, with a market capitalization of approximately $5.4B. The 52-week trading range was $66.12 to $102.86. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.