Louisiana-Pacific Corporation (NYSE:LPX) reported first-quarter results on Wednesday that topped Wall Street earnings expectations but missed on revenue, while weaker guidance for the coming quarters weighed on investor sentiment.
Shares in the building products company edged 1.1% lower in premarket trading following the release.
The company posted adjusted earnings per share of $0.38, comfortably ahead of analyst forecasts of $0.18.
However, quarterly revenue came in at $574 million, below consensus estimates of $579.44 million and down 21% from $724 million in the same period last year.
Profit declines sharply from prior year
Net income fell to $27 million, or $0.39 per diluted share, compared with $91 million, or $1.30 per diluted share, in the first quarter of 2025.
Weak guidance pressures shares
LP Building Solutions issued second-quarter revenue guidance of $435 million to $445 million.
The midpoint of $440 million was significantly below analyst expectations of $722.6 million.
For full-year 2026, the company forecast revenue between $1.65 billion and $1.67 billion, with the midpoint also trailing Wall Street estimates of $2.65 billion by a wide margin.
“LP’s teams responded to an increasingly volatile macroeconomic backdrop with resilience, operating safely and efficiently to deliver results that met or exceeded our guided ranges,” said Jason Ringblom, chief executive officer of the company.
Siding business remains resilient while OSB weakens sharply
The company’s Siding segment reported net sales of $360 million, down 10% year over year.
The decline was driven by an 18% drop in volumes, partly offset by 9% higher pricing.
Adjusted EBITDA for the Siding division decreased 5% to $101 million.
Meanwhile, the OSB business experienced significantly weaker performance.
Net sales in the segment fell 37% to $168 million as both pricing and shipment volumes declined.
OSB adjusted EBITDA swung to a loss of $12 million, compared with a profit of $54 million in the same period last year.
Company maintains investment plans
For the second quarter, LP Building Solutions expects consolidated adjusted EBITDA between $100 million and $105 million.
The company also projected full-year capital expenditures of approximately $390 million.