Louisiana-Pacific Corporation (NYSE:LPX) released its second-quarter results on Wednesday, showing earnings below analyst forecasts even though revenue beat estimates. Following the announcement, shares declined 2.73% in pre-market trading.
The company reported adjusted earnings of $0.99 per share, missing the consensus estimate of $1.08. However, revenue reached $755 million, exceeding expectations of $739.96 million. Compared to the same quarter last year, revenue declined by $60 million, or 7.4%, though sales in the Siding segment rose 11% year-over-year to $460 million.
The earnings shortfall was mainly driven by challenges in the OSB (Oriented Strand Board) segment, where net sales fell by $101 million to $250 million, largely due to weaker prices. OSB Adjusted EBITDA plunged 85% to $19 million, down from $125 million in the previous year’s quarter.
“LP’s Siding segment grew and captured share to set new records for sales volume, sales revenue, and EBITDA in the second quarter,” stated LP Chairperson and CEO Brad Southern. “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.”
The company confirmed its full-year 2025 guidance for Siding net sales at about $1.7 billion, representing roughly 9% growth, with Siding Adjusted EBITDA projected near $430 million. For Q3, LP expects Siding net sales of approximately $430 million, indicating around 3% growth.
Conversely, the OSB segment is anticipated to stay under pressure, with an expected Adjusted EBITDA loss of about $45 million in the third quarter and a full-year loss near $25 million.
Louisiana-Pacific also upheld its quarterly cash dividend of $0.28 per share, payable on August 29 to shareholders of record as of August 15.
Louisiana-Pacific Corporation stock price
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