Louisiana‑Pacific Corporation reported third‑quarter 2025 results that showed a 9% decline in net sales to $663 million, a sharp drop from $722 million in the same period a year earlier. Net income fell to $9 million, or $0.13 per diluted share, reflecting a $71 million year‑over‑year decline in adjusted EBITDA and a $13 million impairment charge. The Siding segment drove a 5% revenue increase to $443 million, while the OSB business saw a $74 million drop in sales to $179 million.
Revenue beat consensus estimates by $2 million, but adjusted earnings per share of $0.36 missed analyst expectations of $0.38–$0.41 by $0.02–$0.05. The revenue upside was largely driven by a 5% rise in Siding sales, which benefited from higher selling prices and modest volume gains. The EPS miss was caused by the combined impact of the OSB decline, a $13 million impairment, and a $71 million drop in adjusted EBITDA, which outweighed the pricing gains in the Siding segment.
The Siding segment’s 5% growth was supported by a 5% increase in selling prices and a modest volume lift, reflecting strong demand for high‑margin siding products. In contrast, the OSB segment suffered a $74 million sales decline, driven by lower prices and reduced volumes amid a broader market downturn in engineered wood products. The OSB weakness contributed to margin compression across the company, pulling the overall adjusted EBITDA margin down to 12% from 15% a year earlier.
Management guided for Q4 2025 Siding net sales of $370 million, a 3% rise, and full‑year 2025 Siding revenue of $1.68 billion, an 8% increase. Consolidated adjusted EBITDA guidance for the year was set at $420 million, while capital expenditures were projected at $315 million. The guidance signals confidence in the Siding business’s trajectory but also highlights the ongoing risk posed by the OSB market, which is expected to remain volatile.
CEO Brad Southern noted that “LP’s Siding segment grew and captured share to set new records for sales volume, sales revenue, and EBITDA in the second quarter. 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.” Market reaction to the results was muted, with analysts focusing on the EPS miss and the divergent performance between Siding and OSB.
The earnings report underscores Louisiana‑Pacific’s strategic pivot toward higher‑margin siding products, which are helping to offset the cyclical weakness in the OSB segment. While the company’s overall earnings declined, the sustained growth in Siding revenue and the modest guidance for the remainder of the year suggest a gradual shift in the business mix. The company’s focus on cost discipline and pricing power in the Siding segment positions it to navigate the near‑term volatility in the OSB market while building a more resilient long‑term earnings profile.
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