LPX

In the past quarter, Louisiana-Pacific Corporation reported second-quarter 2026 sales of US$664 million and net income of US$26 million, both lower than a year earlier, while also cutting capital expenditure guidance and announcing a CFO transition effective September 1. Despite weaker OSB results, management reaffirmed full-year 2026 Siding net sales guidance for roughly a 1% decline and highlighted expectations for about 5% year-over-year Siding growth in the third quarter, underscoring the segment’s role as the primary earnings engine. Next, we’ll examine how the weaker quarter, reduced capex, and Siding-focused outlook reshape Louisiana-Pacific’s existing investment narrative. This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. To own Louisiana-Pacific today, you have to believe that Siding can offset cyclically weak OSB and that product innovation in engineered wood keeps winning share in new construction and repair/remodel. This quarter’s softer earnings and lower capex do not appear to change the near term Siding story, but they do keep OSB pricing and housing demand front and center as the key swing factor and the biggest risk. Among the recent announcements, the reaffirmed 2026 Siding revenue guidance, alongside expectations for about 5% year over year Siding growth in the third quarter, is most relevant. It reinforces the idea that Siding remains the main operational catalyst, even as the company trims overall capital spending and manages through a tougher OSB backdrop and upcoming CFO transition. Yet beneath the Siding resilience, investors should be aware that prolonged pressure on OSB prices could still... Read the full narrative on Louisiana-Pacific (it's free!) Louisiana-Pacific's narrative projects $3.1 billion revenue and $462.5 million earnings by 2029. Uncover how Louisiana-Pacific's forecasts yield a $91.50 fair value, a 17% upside to its current price. Before this weak quarter, the most optimistic analysts were assuming LPX could lift revenue toward about US$3.0 billion and earnings to roughly US$424 million, which is far more upbeat about Siding led growth than the baseline view and could be tested if recent OSB and housing headwinds persist. Explore 2 other fair value estimates on Louisiana-Pacific - why the stock might be worth as much as 17% more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Louisiana-Pacific research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision. Our free Louisiana-Pacific research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Louisiana-Pacific's overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. AI is about to change healthcare. These 43 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LPX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Louisiana-Pacific Corporation? Here are five stocks we like better. Second-quarter results weakened: Sales fell $90 million year over year to $664 million and EBITDA dropped $63 million to $79 million, primarily because of lower OSB prices and volumes. LP expects OSB EBITDA of approximately negative $45 million in Q3 and negative $120 million for 2026 if prices remain flat. Siding showed resilience and is expected to rebound: Despite a 4% sales decline and weather, freight and inflation disruptions, the segment maintained a 26% EBITDA margin. LP forecasts Q3 Siding revenue of $460 million–$470 million and EBITDA of $110 million–$120 million, with modest volume growth anticipated. LP is prioritizing Siding investment while reducing spending elsewhere: The company cut its 2026 capital-expenditure outlook by $70 million to about $320 million, largely by delaying OSB maintenance projects, while directing roughly three-quarters of spending toward Siding capacity expansions. These 3 Rising Dividend Plays Come Cheap Louisiana-Pacific (NYSE:LPX) reported lower second-quarter sales and EBITDA as weak oriented strand board, or OSB, pricing weighed on results, while its Siding segment remained profitable and the company said it expects that business to return to year-over-year growth in the third quarter. Net sales for the second quarter were $664 million, down $90 million from the prior-year period, while EBITDA declined $63 million to $79 million. Adjusted earnings per share were $0.40. The company generated $140 million in operating cash flow, returned $21 million to shareholders through dividends, and ended the quarter with $228 million in cash and nearly $1 billion of total liquidity, including an undrawn $750 million revolver. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chief Executive Officer Jason Ringblom said LP continued to focus on safety and operational efficiency amid a housing market that “feels like it’s stuck in neutral.” He said lower OSB prices, reflecting soft demand in North and South America, accounted for most of the company’s overall revenue and EBITDA decline. LP’s Siding sales declined 4% year over year in the second quarter. A 7% increase in prices partly offset an 11% decrease in volumes, compared with what the company described as its all-time record quarterly volume performance a year earlier. The segment produced a 26% EBITDA margin, in line with company guidance. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Within the segment, primed Siding volume fell 12%, while ExpertFinish volume rose 1%. Chief Financial Officer Alan Haughie said higher prices contributed $27 million to Siding revenue and EBITDA, while lower volumes reduced revenue by $46 million and EBITDA by $24 million. LP said its Prime SmartSide channel inventories have normalized after an unintended pull-forward of sales, particularly in the shed sector, during the fourth quarter of 2025. Ringblom said distributor sell-through for Prime SmartSide in the second quarter was higher than in any of the prior five quarters, while order intake exceeded four of the previous five quarters. → No Hangover: Revisiting Microsoft One Week After Earnings The company expects Siding revenue of $460 million to $470 million in the third quarter, a range whose low end would equal the prior revenue record. LP expects third-quarter Siding EBITDA of $110 million to $120 million, representing an EBITDA margin of about 25%, and reaffirmed its prior full-year guidance for Siding revenue, EBITDA and margin. “Higher selling prices are projected to contribute the majority of this growth,” said Aaron Howald, LP’s vice president of investor relations, financial planning and analysis, and business development. “But based on the momentum of our order file as well as our demand outlook, we also expect modest volume increases.” During the question-and-answer session, Ringblom said shed-sector volume increased more than 30% sequentially from the first to the second quarter, though LP still expects the segment to be down 10% to 15% for the full year. The company expects repair-and-remodeling demand to be flat to slightly higher, while other markets are expected to be flat to slightly down in line with underlying housing conditions. LP said Siding margins faced unexpected late-quarter disruptions, including equipment failures at its Dawson Creek, British Columbia, mill and severe flooding in western Manitoba that affected employees at its Swan Valley operation and transportation infrastructure. Haughie said the events caused lost production, higher freight costs and unplanned inventory movements. Flood damage required the company to shift some shipments from rail to truck and use longer routes to market. Constrained freight capacity added to transportation cost pressure beyond the effect of higher crude oil prices. The company also cited $14 million of inflationary costs and other items in Siding, with more than half attributable to higher crude oil prices flowing through its raw-material supply chain. Haughie said the disruptions pulled forward some inventory-related effects that had been expected in the third quarter, and that, absent those events, Siding EBITDA would have been at or above the top end of guidance. Howald said LP does not intend to pursue a midyear Siding price increase, instead indicating that any raw-material cost offset would likely be incorporated into its full-year price action for 2027. He said the company believes stable pricing may be supporting volume performance, although LP cannot precisely quantify the effect. OSB results declined as pricing and volumes both weakened. Haughie said OSB prices ended the quarter approximately $15 below the company’s guidance algorithm. Lower prices and volumes reduced OSB revenue by $67 million and EBITDA by $46 million from the prior-year quarter. LP expects OSB EBITDA of approximately negative $45 million in the third quarter and negative $120 million for the full year, assuming prices remain flat at current levels through year-end. Howald said OSB prices had fallen about $12, or 6%, since LP’s May earnings call despite higher raw-material costs. Ringblom said LP operated its OSB network at a utilization rate in the mid-to-high 70% range during the second quarter and plans to maintain that range in the third quarter to balance supply with customer demand. The company is pursuing cost and efficiency improvements while seeking to protect its assets and maintain safety standards. LP also said Structural Solutions volumes have been pressured by cost-conscious builders trading down to lower-value products and by building-code changes affecting its radiant barrier products. However, management said it has manufacturing redundancy across its network and does not expect potential production adjustments to materially impair Structural Solutions supply. LP lowered its 2026 capital-expenditure outlook by $70 million to approximately $320 million. Howald said the reduction primarily reflects delayed lower-risk maintenance and sustaining projects, predominantly within OSB, rather than a retreat from growth investments. About three-quarters of planned capital spending is expected to go to Siding, including essentially all growth capital. LP is ramping a new ExpertFinish line in Green Bay, plans to add 20 million feet of capacity at its Bath, New York, facility later this year, and broke ground in June on an ExpertFinish painting facility in North Branch, Minnesota. Management said the North Branch project will be LP’s largest and most efficient ExpertFinish painting facility. The company said it has 400 million to 500 million feet of headroom in primed Siding capacity, with additional ExpertFinish capacity coming from its expansion projects. LP continues to assess future Siding capacity options, with its Maniwaki facility identified as the leading candidate for a potential next project. Howald said a new project could take roughly two and a half years from an investment decision to the production of its first board, depending on the location and project scope. The company also announced that Haughie will retire as CFO on Sept. 1 after nearly seven years in the role. Howald is set to succeed him. Louisiana-Pacific Corporation (NYSE: LPX) is a leading manufacturer of building materials and engineered wood products for residential, industrial and light commercial construction. The company produces a diverse portfolio of products, including oriented strand board (OSB), engineered wood siding, trim, molding, sheathing panels and subflooring. Its flagship product lines, such as LP® SmartSide® trim and siding, are designed to offer enhanced durability, moisture resistance and ease of installation, helping builders and homeowners achieve long-lasting performance in a variety of climates. Founded in 1973 as a spin-off from Georgia-Pacific, Louisiana-Pacific established its reputation by pioneering innovative manufacturing techniques for OSB, becoming one of the first companies to bring the product to market in the 1980s. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Louisiana-Pacific Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Weyerhaeuser Company WY is showing signs of an earnings recovery, but the stock does not offer an easy buy case. Second-quarter results beat expectations and Wood Products improved sharply, while Climate Solutions and engineered wood investments add longer-term growth avenues.The counterweight is valuation. WY trades well above its sub-industry, sector and the S&P 500 on forward earnings, while housing demand and commodity pricing remain uncertain. Second-quarter adjusted earnings of 13 cents per share topped the Zacks Consensus Estimate of six cents by 116.7%. Net sales of $1.87 billion exceeded the $1.80 billion consensus mark by 4%, while Wood Products adjusted EBITDA rose to $129 million from $71 million sequentially.Management expects higher lumber production and sales volumes in the third quarter and slightly lower unit manufacturing costs. Engineered wood products also improved in the second quarter, with adjusted EBITDA rising to $54 million from $39 million. Climate Solutions generated $126 million of sales in the first half of 2026, including a $94 million conservation easement completed in the first quarter. Weyerhaeuser's second solar site began operating in the second quarter, with three additional solar developments under construction.The company also received permits for its first biocarbon facility near its McComb, MS, lumber mill. Weyerhaeuser raised full-year 2026 Strategic Land Solutions adjusted EBITDA guidance by $25 million to approximately $450 million, broadening its earnings sources beyond timber and wood products. WY's forward 12-month price-to-earnings ratio stands at 49.94, compared with 27.18 for its Zacks sub-industry, 20.3 for the Zacks Construction sector and 20.71 for the S&P 500. The stock's five-year median is 30.18.That spread makes execution more important. Investors need stronger earnings improvement to justify a multiple already above relevant benchmarks, leaving less room for operating setbacks or a slower recovery. Weyerhaeuser Company price-consensus-chart | Weyerhaeuser Company Quote Demand remains exposed to housing affordability, mortgage rates in the mid-6% range and weak consumer confidence. Repair-and-remodel activity was steady but muted in the first half, while OSB adjusted EBITDA posted a $6 million loss in the second quarter as supply exceeded demand and costs remained elevated.Commodity sensitivity compounds the risk. Management estimates that a $10 change in lumber prices changes annual EBITDA by roughly $50 million. Louisiana-Pacific Corporation LPX, another housing-linked wood-products producer, reported second-quarter OSB sales down $68 million year over year as prices and volumes declined. Rayonier Inc. RYN, which now combines timberlands and wood products following its January merger with PotlatchDeltic, offers a related reference point for the same timber-and-lumber cycle. Bottom line, WY's investment case remains balanced rather than decisive. Earnings recovery, Wood Products improvement and land-based growth opportunities support the outlook, but a premium valuation and housing-linked volatility keep the risk-reward from looking straightforward.The stock currently carries a Zacks Rank #3 (Hold), pointing to a balanced short-term stance rather than a clear Buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Its Value Score of D, Growth Score of F, Momentum Score of D and VGM Score of F are less favorable readings within the Style Score framework, which is designed to complement the Zacks Rank. The score mix indicates that value, growth and momentum characteristics are not currently among the stronger Style Score profiles, leaving the fundamental recovery as the key area to watch. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weyerhaeuser Company (WY) : Free Stock Analysis Report Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report Rayonier Inc. (RYN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 11:00 a.m. ET Chief Executive Officer - Jason Ringblom Chief Financial Officer - Alan Haughie Operator: Good day, and thank you for standing by. Welcome to the Second Quarter 2026 Louisiana-Pacific Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is recorded. I would now like to hand the conference over to your first speaker today, Aaron Howald. Please go ahead. Aaron Howald: Thank you, operator. Good morning, everyone. Thank you for joining LP Building Solutions to discuss our results for the second quarter of 2026, and our updated outlook for the remainder of the year. Hosting the call with me this morning are Jason Ringblom and Alan Haughie, who are LP's Chief Executive Officer and Chief Financial Officer, respectively. After prepared remarks, we will take a round of questions. As always, during today's call, we will be referencing a presentation that has been posted online at investor.lpcorp.com. Our 8-K filing, earnings press release and other materials are also available there. Finally, today's discussion will contain forward-looking statements and non-GAAP financial metrics as described on Slides 2 and 3 of the earnings presentation. The appendix of that presentation also contains reconciliations that are further supplemented by this morning's 8-K filings. I will incorporate those materials by reference rather than reading them. And with that, I will turn the call over to Jason. Jason Ringblom: Thanks, Aaron. Good morning, everyone, and welcome to LP's Second Quarter Earnings Call. We appreciate you joining us. I'm proud to say that in the second quarter, our team at LP maintained their focus on safety and efficiency as we executed our strategy focused on long-term value creation. Despite a housing market that feels like it's stuck in neutral, our Siding business delivered revenue above the midpoint of our guided range and achieved year-over-year volume growth in ExpertFinish. The inflationary impacts we absorbed in the second quarter were more or less consistent with the sensitivities previously outlined. However, as Alan will detail, Siding margins faced a couple of unexpected headwinds during the quarter, including weather-related disruptions and constrained freight capacity. We expect to recover some of this impact later in the year, which we will discuss in our updated guidance. Slide 5 of the presentation summarizes our financial and operational highlights for the quarter. Net sales of $664 million were down $90 million from prior year and EBITDA of $79 million was down $63 million. While Siding was comping against last year's all-time record quarter, most of the decline in revenue and EBITDA was driven by lower OSB prices due to soft demand in North and South America. Siding sales were up 4% compared to prior year as 7% higher prices partially offset 11% lower volumes. Even so, Siding delivered a 26% EBITDA margin, which was also in line with our guidance. In terms of cash and capital allocation, operating cash flow of $140 million benefited from the typical seasonal working capital cycle associated with log inventories. LP earned $0.40 of adjusted earnings per share, returned $21 million to shareholders, and ended the quarter with just under $1 billion in liquidity. On the last call, we described how the unintentional pull forward of Siding sales volume in the fourth quarter of 2025, particularly in the Shed sector affected first half Siding volumes and channel inventories. I'm pleased to report that Primed SmartSide channel inventories have normalized as expected. The abnormally large sequential increase in volume from the first to the second quarter led by improvements in all market segments is further evidence that this is behind us. Additionally, distributor sell-through rates for Primed SmartSide were higher in the second quarter than any of the previous 5 quarters. Order intake also exceeded levels seen in 4 of the previous 5 quarters surpassed only by the record second quarter of last year. ExpertFinish inventories in the distribution channel have also come down substantially from their first quarter peak and similar to Primed SmartSide order intake continues to rebound following the end of our managed order file earlier in the year. Two more highlights from the quarter make me particularly proud of our team at LP. First, despite the challenges ranging from a choppy housing market to record flooding that impacted our team in Manitoba, we maintained our focus on operating safely and efficiently. Our Siding and OSB mills delivered meaningful improvements in operational efficiency as measured by OEE in the quarter. And second, LP continues to receive external recognition for both product innovation and as a top employer in our communities. Engaged team members strengthen our culture, which is key to driving consistent execution of our strategy over the long haul. Slide 6 of the presentation updates a chart that we have shared at previous investor days. It helps us look beyond the near-term churn of inventory fluctuations, managed order files and market volatility to see the longer-term trajectory of our share gains more clearly. The chart shows 15 years of normalized SmartSide volume and revenue growth compared to single-family housing starts on a 12-month basis ending with our Q3 guidance. Comparing 2025 to 2011 on a full year basis, single-family starts have been volatile, of course, and have been down in recent years, but have averaged a compound annual growth rate of almost 6%. In contrast, SmartSide volume has grown at a compound annual rate of almost 10% per year and SmartSide revenue has grown at 14%. Comparing the second quarter of this year to the mid COVID housing peak in the second quarter of 2021, single-family starts are down 18%. By contrast, SmartSide volume is up 10% and SmartSide revenue is up a hair over 50%. Any way you look at it, SmartSide is gaining share and we remain confident that we have a long runway for continued growth ahead of us. Not to steal Aaron's thunder, but as he will lay out in our updated guidance, we expect LP Siding business to return to year-over-year volume and revenue growth in the third quarter. To supply growing demand, we are investing in ExpertFinish capacity. So let me update you on our progress. First, the new line at our Green Bay facility is continuing to ramp up following the typical start-up process. We also plan to add another 20 million feet of capacity at our Bath, New York, facility later this year. And finally, at the end of June, we broke ground in North Branch, Minnesota, on what will be our largest and most efficient ExpertFinish painting facility. I want to thank everyone at LP who has contributed to the safe and efficient execution of these expansion projects. With inventories now within normal seasonal ranges, and given the strength in our order files, we expect to return to Siding volume growth in the third quarter. Our outlook reflects true customer demand and is not predicated on restocking or other inventory fluctuations, nor does it assume any improvement in the underlying markets we serve. When those markets do improve, as they inevitably will, our capacity footprint, coupled with our system-wide operational efficiency improvement, positions us well to further accelerate growth, share gains and margin expansion. Finally, as you all know, LP announced in June that Alan will retire as CFO on September 1 after nearly 7 years in the role. Before I turn the call over to him, I want to express my thanks personally and on behalf of LP's team members and shareholders for his many contribution to LP. Alan is the architect of LP's disciplined capital allocation strategy, and he has been an invaluable partner to me, to Brad before me and to our executive team and Board as we designed and executed LP's transformation from a commodity forest products company to a specialty building products company. Just as importantly, Alan built an outstanding finance organization and developed a talented team that is well positioned for the future, including helping prepare Aaron as his successor. Many of you know Aaron Well, and I have tremendous confidence in him and the finance team he will lead. Alan, I'm incredibly grateful for your leadership, your partnership and everything you've done for LP, our shareholders and our people. Thank you, and feel free to take it from here. Alan J. Haughie: Well, thank you, Jason. I must add that without a doubt, working at LP has been the professional high point of my career, even more so because I'm leaving the company and the finance function in excellent hands. But enough of this. On Slide 8, you'll see the second quarter year-over-year revenue and EBITDA waterfall for Siding, which largely played out as we expected, but for a couple of unexpected wrinkles, I'll get to in a moment. Prices were 7 points higher than last year for both Primed and ExpertFinish, contributing $27 million to revenue and EBITDA, with some modest benefits from mix and lower rebates. As expected, this year-over-year price performance stepped down a bit from the first quarter in which we recognized final adjustments for lower 2025 rebates. Now average selling prices for Siding do move around a bit quarter-to-quarter due to mix and other factors, but the longer-term chart that Jason just discussed, reinforces that SmartSide premium positioning and ongoing product innovation drive long-term pricing uplift, which more than offset inflationary cost increases. Sales volumes declined by 11% from a comp that I should remind you was our all-time volume record. Within this, Primed volumes were down 12%, while ExpertFinish volumes grew by 1%. The resulting hit to revenue was $46 million, which lowered EBITDA by $24 million. This brings me to the $14 million EBITDA drag from inflationary costs and other items, a little over half of which is from crude oil price increases flowing through our raw material supply chain, broadly in line with the sensitivities we discussed on the prior quarter's call. And finally, EBITDA was negatively impacted by two separate and unanticipated events very late in the quarter. First, we experienced unplanned downtime at our mill in Dawson Creek, British Columbia, where equipment failures cost us a few days of production, and more significantly from a people and production standpoint, unusually severe flooding investor in Manitoba impacted our team at Swan Valley. These events resulted in higher freight costs and unplanned inventory movements. For freight, we anticipated higher crude oil prices would lead to increased freight expenses because of the Iran conflict. However, constrained freight capacity has led to additional freight rate pressure. And damage to transportation infrastructure caused by the floods in Manitoba necessitated both switching shipments from rail to truck and taking longer routes to market, thereby exacerbating the freight impacts. The result was higher freight costs explained by crude oil cost increases alone. As for inventory, you may recall from the previous quarter's call that we built finished goods inventory in the first quarter in order to minimize service disruptions during a planned outage for a press rebuild at Sagola scheduled for the third quarter. We pointed out at that time that the high EBITDA margin in the first quarter was partly the result of the absorption benefits of this inventory build, which we anticipated would reverse in the third quarter during the press rebuild. However, the lost production associated with these events in Dawson and Swan led to inventory reductions in the waning days of the quarter as opposed to the modest inventory build we had planned. So while the magnitude of all this inventory build and consumption is unchanged, as are its absorption impacts, these unexpected outages pull forward the timing. This explains the bulk of the $4 million in inventory and other on the waterfall. I wouldn't normally comment on a guidance miss. But absent these events, we would have been at or above the top end of our guided EBITDA range. The silver lining is that the third quarter inventory drawdown and associated absorption impacts should be smaller than previously anticipated. In other words, this was a rather laborious way of saying that this is largely timing. Switching to OSB on Slide 9. The story is simpler, but with prices ending the quarter about $15 lower than our guidance algorithm, OSB results were proportionately lower as well. Commodity prices fell further than those of Structural Solutions, but the Structural Solutions mix also fell. Of course, lower prices reflect soft demand, so it's not surprising that volumes also fell as LP sought to balance supply with demand. Lower prices and volumes combined for $67 million lower revenue and $46 million lower EBITDA. Unlike Siding, freight is a pass-through for OSB and the comparatively lower raw material demands compared to Siding led to smaller inflationary impacts. Finally, the $9 million year-over-year benefit from inventory and other is mostly the nonrecurrence of the lower of cost or market correction of the nearly $100 price drop that occurred during the second quarter of last year. Operating cash flow in the quarter of $140 million, as shown on Slide 10, was boosted by the usual seasonal reduction in log inventory at our Northern Siding and OSB mills as well as the unplanned inventory reduction in Siding. We invested $59 million in capital projects and returned $21 million to shareholders via dividends to end the quarter with $228 million of cash on hand. this left our total liquidity at just under $1 billion, including the undrawn $750 million revolver. So now it only seems right that I should hand the guidance discussion over to the man who I am delighted to say will be succeeding me as CFO a few weeks from today. So over to you, Aaron. Aaron Howald: Thank you, Alan. And let me first echo Jason's thanks for everything you've done for LP. I am incredibly honored to have the opportunity to succeed you. As Jason said earlier, we are expecting LP Siding business to return to year-over-year growth in the third quarter. Higher selling prices are projected to contribute the majority of this growth. But based on the momentum of our order file as well as our demand outlook, we also expect modest volume increases. The low end of our Q3 Siding revenue guidance of between $460 million and $470 million would tie the previous revenue record. Given the single-family starts are down about 7% on a trailing 12-month basis in Q2, this continues the longer-term trend of citing growth and share gains that Jason discussed earlier. Despite ongoing headwinds from raw material inflation, we anticipate citing EBITDA in the third quarter of between $110 million and $120 million, for an EBITDA margin of about 25%. And we affirm our prior full year guidance for Siding revenue, EBITDA and margin. Unfortunately, the outlook for OSB is moving the opposite direction. The OSB demand environment remains very challenging. Even with a small uptick Friday, OSB prices have fallen by about $12 or 6% since our May call, even as raw material costs have increased. As a result, EBITDA for OSB would fall to approximately negative $45 million in the third quarter and to negative $120 million for the full year, assuming, as we always do, that prices remain flat at their current levels through year-end. LP has no control over OSB prices, obviously, but we are aggressively pursuing opportunities to improve cost and efficiency while protecting our assets and most importantly, keeping our team members safe. As for CapEx, LP's investment plan for the year is back-end loaded. As is frequently the case, this timing allows some flexibility to scale back or postpone nonessential projects as needed, particularly in OSB. As a result, we now expect to invest about $320 million in CapEx. To give you the math, that is a $70 million reduction from our prior guidance for full year capital. At that level, Siding would account for roughly 3/4 of the total CapEx and essentially all of the growth CapEx. And as we have said, nearly $1 billion in liquidity significantly enhances the flexibility with which we can invest in Siding growth, irrespective of OSB volatility. And with that, we will be happy to take a round of questions. Operator: [Operator Instructions] Our first question comes from Ketan Mamtora at BMO Capital Markets. Ketan Mamtora: First off, Alan, congratulations. This indeed is a very different company from when you took over as CFO. And Aaron, I look forward to continuing to work with you and congratulations. Maybe just to start with, can you give us a little bit of a breakdown for Q2 Siding volumes in terms of just end markets? How did sheds to kind of new construction and return remodeling and sort of what is embedded for Q3 by way of Siding volumes end markets? Jason Ringblom: Thanks, Ketan. I appreciate the question. Yes, I'll touch on that. So as you guys recall, Q1, we were working through a pretty significant destock across all market segments, but the major one was the offsite segment or what we call shed. Fortunately, we saw that particular market segment rebound very nicely. I think we were up over 30% from Q1 to Q2. So very good progress there in offsite. That being said, for the year, we're anticipating that segment being down anywhere from 10% to 15% in volume. Looking at repair and remodel, we're projecting that segment to be flat to slightly up a bit. We use our ExpertFinish product category as kind of a proxy to look at how that particular market segment is performing and are pleased with the progress we're making there. And then everything else, I would say flat to slightly down in alignment with underlying market conditions and starts that Aaron mentioned earlier. Ketan Mamtora: Understood. That's helpful. And then just one more from my side. In terms of just your distribution partnerships, obviously, there has been news here. recently. I'm curious kind of what are the implications for LP, both for SmartSide and OSB, if you can you just give us just rough order of magnitude, your exposure to Boise Cascade on SmartSide Siding. Jason Ringblom: Yes, Ketan, what I'd say is those changes didn't necessarily come as a surprise to us. In fact, we thought it would happen or materialize a little bit sooner. For LP, we don't anticipate any lapse in coverage. We've talked about this before on calls. From a 2-step distribution standpoint, we have 2 or more distributors that service all of our markets. And we're in the midst of working through transition plans to ensure that our channel customers and all of our end users feel no disruption as a result of these changes. As you can imagine, this news hit the wire late last week, early this week. And we've been fielding inbound calls, pretty much nonstop from distributors eager to promote SmartSide. So we're in the process of going through a pretty robust evaluation process with the goal of having new committed LP Siding partners in place ASAP. And when I say that, as soon as possible by October 1 of this year at the latest. The other thing I would mention, Ketan, is we've been through similar transitions, but even at a much larger scale. You may remember the transition we went through in 2017, that represented almost double the scale of this one. And our goal is to really replicate exactly what transpired there from an outcome standpoint. Operator: Our next question comes from Phil Ng at Jefferies. Phillip Ng: Congratulations, Alan, Aaron. Aaron, looking forward to working more with you going forward. I guess from a high level, you guys manage price cost quite well in the first half, but any more color what you're seeing on the inflation part as we kind of look back half 2027, a few of your competitors on the vinyl side have announced second round of price increases. Just big picture, how should we think about your approach and philosophy on pricing especially as we look out to 2027 with raws and how your adjacent competitive products are pricing? Aaron Howald: Yes. Thanks, Phil. I would say that our strategy is essentially the same as it has been so far year-to-date, and that is the raw material inflation has been volatile, but we're looking at it more as a potential opportunity to volume for gains. The later we get into the year, the less sense it makes to have a midyear price increase given that we're close to the time when we would be announcing next year's price increase as well. In terms of where those raw material inputs are, of course, they've been highly volatile. Almost need a time stamp to the minute on an answer for what crude prices are relative to the last time we gave the guide. But we're seeing maybe slightly more raw material cost headwinds in the back half of the year due to some factors that are probably more complicated than we need to dive into here, but some of the raw material feedstocks that move in ways differently from crude have worked against us a little bit. So short version, not much strategy change. We're seeing some potential signs that our stance on price has helped with our volume in the back half and we'll probably roll any raw material cost offset into our full year price increase for next year. Phillip Ng: A question for Jason. Certainly, the first half, very noisy with the channel destocking. Just any color in terms of how order patterns and sell out by the different end markets of progress. Has that kind of stabilized? We're in a better spot. And then the back half, certainly, you're expecting volumes to rebound there. Is part of that just some of the wins that you've had, particularly in the homebuilder side or any of the bundling that you've kind of talked about? Jason Ringblom: Yes. What I'd say, you're right. First half was pretty noisy. That being said, our goal is really to keep all of our sales and marketing resources in the field focused on what they can control, and that's creating demand downstream. Fortunately, over the course of the last 30 to 45 days, we've seen a really nice incremental improvement in week-over-week order intake, and that's continued into Q3 and really informed our guidance. So seeing good progress there. I'm pleased with it, quite frankly. A quarter ago, it was probably hard to see this type of improvement, but I think it's a credit to our team and the way they're executing against our market segment strategies locally in all markets. Operator: Our next question comes from Mike Roxland at Truist Securities. Michael Roxland: [indiscernible] Alan, congrats on your retirement and Aaron look forward to working with you more closely. First question I have, just in terms of Manitoba, the flooding, the unexpected downtime at Dawson Creek, are those mills now fully up and running? Aaron Howald: Yes. We're happy to say that the damage to the infrastructure and there was not much impact directly to the mill in Swan Valley related to the flooding. It was more our people who were impacted in transportation infrastructure that made it difficult to get to and from. So we're back at a steady state now. Michael Roxland: Got it. Perfect. And then just what was your operating rate in OSB in 2Q. Where do you plan to run in 3Q? And at this juncture, what are you evaluating to make a determination as to whether you should continue running our assets as is or maybe whether you should consider taking downtime given the deteriorating supply/demand and pricing backdrop? Jason Ringblom: Yes. I'll touch on kind of OSB a little bit more holistically. Certainly, unusual times for OSB, adjusted for inflation. Prices have been bumping up against historical lows. Aaron mentioned it earlier, we remain focused on opportunities to reduce cost and increase efficiency. That's our focus while we kind of optimize our network around a utilization rate, call it in the mid- to high 70s. That's what we operated at in Q2. That's our plan for Q3. We think that is the right level to balance supply with our customer demand. What I would say in addition to that is OSB is cyclical, and we've been through this before. really what's different now at LP is prior cycles. We didn't have the scale and cash generation potential of our Siding business. So we're trying to manage the OSB side of the business wisely matching capacity to demand pulling back on CapEx little bit where it makes sense, and we're not compromising safety in any way, shape or form. But this market will come back to us, and we're committed to operating within that range I just mentioned. Operator: Our next question comes from Susan Maklari at Goldman Sachs. Susan Maklari: And Alan, let me add my congratulations. We'll miss hearing you on the call. And Aaron, look forward to working with you more in your new role. My first question is just getting some more information on the share gains that you're seeing in Siding. Can you give us some more color on what's coming through across the various channels relative to retail, R&R and the builders? And then how do you think about the sustainability of the recent gains that you've realized? Jason Ringblom: Thanks, Susan. Yes, I'll touch on that. I think as we mentioned on prior calls, the majority of our share gains kind of broadly speaking, are coming from vinyl from traditional wood and maybe to a lesser extent, but it's still important to mention from brick and stucco, as builders look to cut costs and address some of the affordability challenges that the industry faces. In terms of the stickiness of the share gains, I would say -- I would point to our innovation strategy. Over the course of the last 10 years, we've brought a lot of new products to market. We've completed our portfolio -- we've led in some areas in relation to like our ExpertFinish naturals line. And all of that is just playing into a very robust offering that addresses the broad needs of our different end-use segments. So we feel that they're very sticky and that there's a number of product categories that we're just on the cusp of scaling in a more significant way. Susan Maklari: Okay. That's helpful. And then turning to OSB, as you do think about the capacity there and the underlying supply-demand dynamics in that business. Can you talk about the ability to support Structural Solutions within any changes that you do make on that side of the business and where that can get to over time as you perhaps do take some initiatives there. Jason Ringblom: Yes, Susan. So in regards to Structural Solutions, we have quite a bit of redundancy built into our manufacturing network. So as we flex our mills. Certainly, that is something we take into consideration. But there's plenty of headroom there to where we're not sacrificing Structural Solutions supply as we make those decisions. That being said, kind of more broadly speaking, when you compare the margins of commodity to structural solutions, they're not materially different. So although it's important to supply that demand we're creating in the marketplace, if we were to sacrifice some of that, it wouldn't necessarily show up again, materially in the financials. Aaron Howald: Yes. Just a little color on that. The incremental margin difference between them has compressed a little bit since the Structural Solutions products tend to be more raw material intensive. And so when we see inflation in those inputs, that compresses that a bit. But Jason is absolutely right. There are very few Structural Solutions products that we only manufacture at one mill. So we've got plenty of redundancy and flexibility in there. And our strategy with those products is the same with all the others. We'll respond to customer demand and supply the market with the products that they need. Operator: Our next question comes from George Staphos at Bank of America Securities. Aaron Howald: George, if you're speaking, we can't hear you. Operator, maybe we go to the next one and give George a chance to circle back in. Operator: Our next question comes from Matthew Bouley at Barclays. Matthew Bouley: My congratulations as well to Alan and to Aaron. Best of luck to you both. So just the CapEx guide reduced by $70 million. You mentioned you've got flexibility to scale back or postpone. Basically, just if you could unpack that a little bit, what would you be pulling back on? And is there sort of any changes to your medium-term market views that would be influencing your CapEx outlook? Aaron Howald: Mostly, what we would be pulling back on would be the maintenance projects that are lower risk, both from a -- obviously, most importantly, from a safety standpoint, but also from compliance with regard to environmental emissions, things like that. When those projects are delayed, they are only delayed, they can't be eliminated. So eventually, we're going to have to do that work. So we do that sort of risk balancing relative to what customer demand looks like to know where we have mills and where we have projects that can be delayed a bit. In terms of investing in growth, we didn't slow that down much at all. I mean we broke ground on the North Branch facility. That will be our largest and most efficient ExpertFinish facility earlier this summer. In fact, Jason operated the backhoe and so the postponement is on the more longer-term sustaining maintenance type projects and obviously, predominantly in OSB, where we push those costs. Matthew Bouley: Okay. Got it. Got it. Second one, the -- just back on the OSB Structural Solutions, the volume pressure there this quarter and last quarter. Is there a theme there where, I don't know, if it's homebuilders, let's say, decontenting or shifting towards other lower-value commodity product, et cetera? Or just anything else going on there that you kind of unpack some of the pressure going on there? Jason Ringblom: Yes, I think you're spot on. There's cost pressure that's playing into it. For example, builder might trade down from one flooring option to another. But there is a broader code evolution that's taking place that is impacting our radiant barrier, which is the largest portion of that volume. So between those 2 factors, that's what's driving the reduction in volume. Operator: Our next question comes from Steven Ramsey at Thompson Research Group. Steven Ramsey: Like others said, congratulations to all of you there. connecting the dots here a little bit, you maintained the full year Siding guide yet the order patterns have been very strong. You noted Q2 and into Q3. Is there some conservatism built in here? Or is this catch-up from Q2? Aaron Howald: There's a bit of conservatism built in, yes. We don't want to extrapolate forward just a couple of weeks of pretty robust order files, but that's -- but yes, there is perhaps a bit of conservatism in that. Steven Ramsey: Okay. That's helpful. And then sticking to Siding growth, there's the long-term opportunity in manufactured housing. Can you talk about the progress on that in 2026 and manufactured housing outlook within the guide? Aaron Howald: Sure. Unknown Executive: Do you want to take that? Aaron Howald: I'll talk about the progress in a couple of ways. One, we are really encouraged by the traction we've seen for taking the same sort of enterprise approach to bundling Siding and OSB with the homebuilders. We're encouraged that, that is attractive to manufactured housing people as well. So there's an opportunity for growth there. In terms of the market itself, with the passage of the Housing Act recently, that should, all else equal, help manufactured housing be part of the affordability solution and compete against the lowest price point stick-built homes where LP would struggle to get traction just from an overall cost standpoint. So we think that the market has some potential to improve. And within that, we're encouraged by the progress that we've made. Jason Ringblom: Yes. The only thing I would add there is, over the course of the last 2 to 3 years, we've allocated more resources to that segment than maybe in prior years because we saw that as an opportunity for us to really gain more traction. And I'm pleased to see that even in a soft market, we've seen year-over-year growth. And as Aaron mentioned, the enterprise bundling approach seems to have some stickiness in that segment. We're looking forward to future updates there. Operator: Our next question comes from Sean Steuart at TD Cowen. Sean Steuart: Congrats to both Alan and Aaron. A couple of questions. Wondering, given the ongoing positive trajectory you're seeing for Siding order files, how you're thinking about the next capacity expansion option timing and how that might inform your CapEx plans into 2027? Jason Ringblom: Yes. What I'd say right now is no specific updates relative to what we've shared on prior calls. We're confident that we have plenty of capacity available right now. I think I mentioned on the prior call, 400 million to 500 million feet of headroom in prime and plenty more coming and ExpertFinish with Green Bay, Bath and North Branch expansions. What I would say is it's -- we're continuing to assess demand projections our Maniwaki facility is more than likely the lead dog in the hunt, but we're fortunate to have other options available to us. So I would say it's in flux right now, but we're keeping a close eye on it. Sean Steuart: Okay. The second question is on cost. Appreciate resin is probably the most volatile piece of it right now. We've heard from one of your peers that they've seen relief for log costs in North America given less competition for pulp logs. Have you guys seen any of that in your mix, both OSB and Siding in recent weeks or months? Jason Ringblom: We saw some of that to begin the year. But with oil prices moving so dramatically the other direction that has trended in the opposite direction. So that isn't going to carry through for us the back half of the year. Aaron Howald: Those dynamics are very local, as you know. So it's not necessarily the case that those same dynamics impact all the consumers of those pulp logs. Operator: Our next question comes from Kurt Yinger at D.A. Davidson. Kurt Yinger: Congrats Alan and Aaron. Just wanted to follow up on the question around capacity expansion. I mean recognizing that it doesn't sound like Maniwaki is necessarily the 100% next project. I guess, is there any consideration being given at this time to maybe pulling a project like that forward, just given what we're seeing in OSB? And maybe more broadly, what are kind of the puts and takes around that, recognizing you don't necessarily need upsiding capacity, but it might help on kind of the OSB side given where we're at right now? Jason Ringblom: Yes. Good question, Kurt. What I would say is we're not going to make long-term Siding capacity decisions based on kind of what we're dealing with in the short term for OSB. We're going to broadly assess all the options available to us and look at what's the best return to LP and the Siding business as well. So can understand where you're coming from, but that's not the primary filter we're putting these options through. Aaron Howald: Yes, even if we did that, the cost of that magnitude of expenditure for a Siding mill, a couple or 3 years earlier than we needed it would more than offset the likely benefit that it could potentially create to price from a supply-demand pressure standpoint in OSB. So that's -- even if we were tempted to do that, it probably wouldn't be as effective as one might hope. Kurt Yinger: Okay. Okay. Fair enough. And then there's been some noise around building codes kind of locally and wildfire prone areas and things like that. I'm just curious, big picture what you're hearing or seeing across certain parts of the country, how you're positioning engineered wood as a siding material given some of those conversations. Would love to hear any color on that. Jason Ringblom: Yes, I'll touch on that. So I think you're referring to WUI codes. And I've mentioned on prior calls that this dynamic is nothing new. It's something we've dealt with for again, as long as I've been with LP. There have been some changes in one state in particular, and a couple of local markets. And specifically, I guess, where code requires an ignition resistant or noncombustible cladding and does not allow for a wall assembly, including SmartSide to meet code. That is where we are challenged to meet the requirement. Fortunately, this is a small portion of the addressable market. One area in particular is Colorado. This is -- there's been some changes there. But fortunately, for us, our volume is down there, but it's not down more than necessarily housing starts in general. So we're monitoring that closely and have a number of different new product development initiatives in place, coupled with a heavy push on educating local authorities on the value prop of SmartSide in relation to some of the code changes they're debating just to make sure we're positioned well for the future. Operator: Our next question comes from Mark Weintraub at Seaport Research Partners. Mark Weintraub: First, Alan, congratulations, while Brad and Jason were busy transforming LP from OSB to Siding, you certainly did your thing with the balance sheet with all that share repurchase. And congrats again and Aaron, of course, congrats to you. I wanted to just focus a little bit more on some of the questions on like when you do build the next Siding facility. It's gotten a lot more expensive in a number of industries to build. And we know what it used to cost you to build a new Siding facility. I know it could vary depending on what you do. But is there any kind of color you can share with us to help us understand potential magnitude of project when you do decide to press the button to move forward. Aaron Howald: Yes, I'll take that, Mark. It is far too premature to share specifics on that cost, but rough order of magnitude, what I would say is that, yes, inflation is a factor. Steel is more expensive, labor is more expensive that project will be more expensive than the previous conversions at Sagola and Houlton for a couple of reasons. One, because it's bigger. So it -- assuming Maniwaki is where we build, it would be a larger project that would produce more Siding. That alone would increase the cost. But inflation is another factor. Fortunately, the other thing that continues to increase is siding volume and siding price. So if you do the internal rate of return calculations the inputs are bigger, the outputs are bigger. The return in percentage terms is pretty similar. But when we have more detail about first, where the next mill will be and then as a function of that, what the project looks like, we'll be able to share those. It's just a little bit early for that now. But we're confident that it will be an excellent investment in ongoing Siding growth. Mark Weintraub: Super makes sense. And just since Maniwaki, I think was characterized as lead dog by Jason, is it fair to conclude that like these new Canadian tariffs that were announced, they don't have any impact on Siding? Aaron Howald: That is correct. Just like we wouldn't make a long-term Siding decision based on short-term OSB volatility, we would be reluctant to make a long-term Siding investment based on tweet about tariff policy. Mark Weintraub: Understood. And then also just to -- and how long is it from the time that you would decide -- decision to move forward and have a facility up and running, recognizing again, it could differ depending on what you're doing there? Aaron Howald: A lot of moving pieces in that as a function of where the location would be and what the project would look like and to a lesser extent what specific mix of Siding products we would plan to make there. But if you think on the order of 2.5 years from decision to first board, that's probably in the right ballpark. Given the capacity that we have in our existing footprint, we've got a fair amount of flexibility about making sure that we can time that so that we don't have too much excess capacity for too long before we're ready to bring that next mill up to speed. Operator: Our last question comes from Adam Baumgarten of Vertical Research Partners. Adam Baumgarten: Last quarter, you talked about ExpertFinish volumes growing mid-single digits in '26. Is that still your assumption for the year? Aaron Howald: Yes. That's more or less what we expect. And ExpertFinish has been the best-performing category of our Siding business year-to-date. We saw volume growth in the second quarter and that makes us even more confident in the capacity that we're adding to supply that future demand. Adam Baumgarten: Okay. Great. And then -- just a comment you made earlier on kind of your lack of incremental price actions in '26, maybe [indiscernible] some share gains. Is that a broad-based comment? Is it maybe more specific to homebuilder channel or R&R or is it both? Just curious if you can give some more color there, kind of where you're seeing that progress. Aaron Howald: I don't think that's knowable really. I suspect that to the extent that we are getting volume from it, it would be relative to the -- if our lack of price action is driving volume, it's easy to assume that it's a relative to the products that are taking price action, but we can't know exactly why we're gaining a particular amount of additional share in a particular market. But we know that we are incrementally more competitive when we're stable and dependable in terms of pricing. And we think that it is contributing to our performance in the back half positively. Can't be measured, but can't be hurting. Operator: This concludes the question-and-answer session. I would now like to turn it back to Aaron for closing remarks. Aaron Howald: Okay. I guess, George wasn't able to dive back in, so we'll connect with you later. Thanks for everybody for joining us. With no more questions, we'll end the call there. I hope everyone is safe, and we look forward to connecting later on during the day and during the week. Thanks very much. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in Louisiana-Pacific, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Louisiana-Pacific wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $396,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,300,820!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 5, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Louisiana-Pacific (LPX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Siding business delivered revenue above the midpoint of guidance with a 26% EBITDA margin, despite a challenging housing market. Prime SmartSide channel inventories normalized as expected, with distributor sell-through rates hitting a five-quarter high. Order intake for siding exceeded levels seen in four of the previous five quarters, signaling strong demand recovery. Expert Finish volumes grew 1% year-over-year, and the company is investing in capacity expansions (Green Bay, Bath, North Branch) to meet future demand. Long-term share gains remain robust: SmartSide volume has grown at a 10% CAGR and revenue at 14% CAGR over 15 years, outpacing single-family starts. Company maintains strong liquidity of nearly $1 billion, providing flexibility to invest in growth despite OSB volatility. Operational efficiency improved across siding and OSB mills, as measured by OEE, despite weather and equipment disruptions. Management reduced full-year CapEx guidance by $70 million to $320 million, focusing on high-return projects and preserving cash. Siding pricing power remains strong, with 7% higher prices year-over-year, offsetting inflationary pressures. The company expects siding to return to year-over-year volume and revenue growth in Q3, with a positive order file momentum. Net sales fell $90 million year-over-year to $664 million, and EBITDA dropped $63 million to $79 million, driven by lower OSB prices. OSB prices fell about $15 below guidance, leading to a $46 million EBITDA decline, with demand remaining soft in North and South America. Siding volumes declined 11% year-over-year, comping against an all-time record quarter, with prime volumes down 12%. Unexpected weather-related disruptions (flooding in Manitoba) and equipment failures at Dawson Creek caused unplanned downtime and higher freight costs. Constrained freight capacity and higher crude oil prices led to additional freight rate pressure, exacerbating cost headwinds. Raw material inflation, particularly from crude oil, created a $14 million EBITDA drag in the siding segment. OSB EBITDA is projected to be negative $45 million in Q3 and negative $120 million for the full year, assuming flat prices. The company reduced CapEx guidance by $70 million, indicating a pullback in maintenance projects, which could impact long-term efficiency. Structural Solutions volumes are under pressure due to cost-driven trade-downs and code changes affecting radiant barrier demand. The housing market remains 'stuck in neutral,' with no assumed improvement in underlying markets for the rest of the year. Warning! GuruFocus has detected 6 Warning Signs with LPX. Is LPX fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide a breakdown of Q2 siding volumes by end market (sheds, new construction, repair and remodeling) and what is embedded in Q3 guidance? A: (Jason Ringblom, CEO) The shed segment rebounded nicely, up over 30% from Q1 to Q2, though we still anticipate that segment being down 10-15% in volume for the full year. Repair and remodel is projected to be flat to slightly up, with ExpertFinish serving as a proxy for that segment's performance. Other segments are expected to be flat to slightly down, in alignment with underlying market conditions and housing starts. Q: What are the implications of recent distribution partnership changes (Boise Cascade) for LP, and what is your exposure? A: (Jason Ringblom, CEO) These changes did not come as a surprise; we anticipated them. We do not anticipate any lapse in coverage. We have 22 or more distributors servicing our markets and are working through transition plans to ensure no disruption. We are fielding inbound calls from distributors eager to promote SmartSide and aim to have new committed partners in place by October 1st of this year. We successfully navigated a similar, larger transition in 2017. Q: How should we think about your pricing philosophy given raw material inflation and competitors taking price increases, especially looking toward 2027? A: (Alan Haughie, CFO) Our strategy remains consistent: we view raw material inflation as a potential opportunity for volume gains. It makes less sense to implement a mid-year price increase when we are close to announcing next year's increases. We are seeing slightly more raw material cost headwinds in the back half, but we are seeing signs that our stable pricing stance is helping with volume. We will likely roll any raw material cost offsets into our full-year price increase for next year. Q: Are the mills impacted by the Manitoba flooding and Dawson Creek downtime fully operational now? A: (Jason Ringblom, CEO) Yes, we are back at a steady state. The flooding in Swan Valley primarily impacted our people and transportation infrastructure rather than the mill itself. The equipment failures at Dawson Creek cost us a few days of production, but both facilities are now fully up and running. Q: What was your OSB operating rate in Q2, and what are your plans for Q3 given the deteriorating pricing backdrop? A: (Jason Ringblom, CEO) We operated at a utilization rate in the mid-to-high 70s in Q2 and plan to do the same in Q3. We believe this is the right level to balance supply with customer demand. OSB is cyclical, and we've been through this before. What's different now is the scale and cash generation potential of our siding business, which allows us to manage the OSB side wisely by matching capacity to demand and pulling back on CapEx where it makes sense without compromising safety. Q: Can you provide more color on the share gains in siding across channels and the sustainability of those gains? A: (Jason Ringblom, CEO) The majority of our share gains are coming from vinyl, traditional wood, and to a lesser extent, brick and stucco, as builders look to cut costs and address affordability. The gains are sticky due to our innovation strategy over the last 10 years, which has brought new products to market and completed our portfolio. We have several product categories on the cusp of scaling more significantly. Q: Can you unpack the $70 million reduction in CapEx guidance? What are you pulling back on? A: (Alan Haughie, CFO) The reduction is primarily in maintenance projects that are lower risk from safety and environmental compliance standpoints. These projects are delayed, not eliminated, and will eventually need to be done. We did not slow down growth investments, as evidenced by breaking ground on the North Branch facility. The postponements are predominantly in OSB sustaining maintenance projects. Q: You maintained the full-year siding guide despite strong order patterns. Is there conservatism built in, or is this just catch-up from Q2? A: (Alan Haughie, CFO) There is a bit of conservatism built in. We don't want to extrapolate forward just a couple of weeks of robust order files, but yes, there is perhaps a bit of conservatism in that guidance. Q: Given the ongoing positive trajectory in siding order files, how are you thinking about the timing of the next capacity expansion and its impact on 2027 CapEx? A: (Jason Ringblom, CEO) We have no specific updates relative to prior calls. We have plenty of capacity headroom (400-500 million sq ft in Prime) and more coming in ExpertFinish with Green Bay, Bath, and North Branch expansions. The Manawaukee facility is the lead candidate, but we have other options. We are keeping a close eye on demand projections, but it's in flux right now. Q: Have you seen relief in log costs given less competition for pulp logs, and how is that impacting your mix? A: (Alan Haughie, CFO) We saw some relief at the beginning of the year, but with oil prices trending in the opposite direction, that benefit won't carry through the back half of the year. These dynamics are very local, so it's not necessarily the case that the same dynamics impact all consumers of pulp logs. Q: Is there consideration being given to pulling forward a siding capacity project like Manawaukee to help with OSB supply-demand dynamics? A: (Jason Ringblom, CEO) We won't make long-term siding capacity decisions based on short-term OSB volatility. We will assess all options for the best return to LP. (Alan Haughie, CFO) Even if we did, the cost of building a siding mill 2-3 years earlier than needed would more than offset any potential benefit from OSB supply-demand pressure. Q: Can you provide color on the potential magnitude of cost for the next new siding facility? A: (Alan Haughie, CFO) It's too premature to share specifics, but inflation is a factor. Steel and labor are more expensive. Assuming Manawaukee, it would be a larger project producing more siding, which increases cost. However, siding volume and price continue to increase, so the internal rate of return For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NASHVILLE, Tenn., August 05, 2026--(BUSINESS WIRE)--Louisiana-Pacific Corporation (LP) (NYSE: LPX), a leading manufacturer of high-performance building products, today reported its financial results for the three and six months ended June 30, 2026. Second Quarter 2026 Summary, Compared to Second Quarter 2025 LP reaffirms Siding full-year guidance, anticipates Siding year-over-year growth in the third quarter of 2026 Siding net sales decreased by $19 million, or 4%, to $441 million Oriented Strand Board (OSB) net sales decreased by $68 million to $182 million Net income was $26 million, a decrease of $27 million Net income per diluted share was $0.38 per diluted share, a decrease of $0.39 per diluted share Adjusted EBITDA(1) was $79 million, a decrease of $63 million Adjusted Diluted EPS(1) was $0.40 per diluted share, a decrease of $0.67 per diluted share Cash provided by operating activities was $140 million Capital Allocation Update Invested $59 million in capital expenditures during the second quarter of 2026 Paid $21 million in cash dividends during the second quarter of 2026 As previously announced on July 31, 2026, LP's Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on August 28, 2026, to stockholders of record on August 14, 2026. Total liquidity of approximately $1 billion as of June 30, 2026 "We executed our strategy, and Siding delivered revenue within our guided range despite margin pressure from raw material inflation," said LP CEO Jason Ringblom. "We anticipate Siding returning to volume and revenue growth in the third quarter." Outlook LP is providing financial guidance for the third quarter of 2026 and full year 2026 as set forth in the table below. Guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under "Forward-Looking Statements." Second Quarter 2026 Highlights Net sales for the second quarter of 2026 fell year over year by $90 million to $664 million. Siding revenue decreased by $19 million, or 4%, due to 11% lower volumes, partially offset by 7% higher prices. OSB revenue decreased by $68 million, driven by a decline in both prices and sales volumes. Net income for the second quarter of 2026 decreased year over year by $27 million to $26 million ($0.38 per diluted share). The decline primarily reflects a $63 million decrease in Adjusted EBITDA, partially offset by the absence of $17 million of impairment charges incurred in 2025, a benefit of $12 million related to the reduction in tax provision, and a $8 million decrease in foreign currency loss. The year-over-year decrease in Adjusted EBITDA primarily reflects a $35 million impact from lower OSB prices, a $24 million impact from lower Siding volumes, an $11 million impact from lower OSB volumes, a $12 million impact from inflationary costs, and a $5 million impact from lower selling prices in South America. These decreases were partially offset by a $27 million benefit from higher Siding selling prices. First Six Months of 2026 Highlights Net sales for the first six months of 2026 decreased year over year by $240 million to $1.2 billion. Siding revenue decreased by $61 million, or 7%, due to 14% lower volumes, partially offset by 8% higher prices. OSB revenue decreased by $167 million, driven by lower prices and sales volumes. Net income for the first six months of 2026 decreased year over year by $91 million to $53 million ($0.76 per diluted share). The decrease primarily reflects a $143 million decrease in Adjusted EBITDA, which was partially offset by the absence of $17 million of impairment charges incurred in 2025, a benefit of $28 million related to the reduction in tax provision, and an $16 million decrease in foreign currency loss. The year-over-year decline in Adjusted EBITDA was driven by a $101 million impact from lower OSB prices, along with additional headwinds of $59 million from lower Siding volumes, $21 million from lower OSB volumes, and $13 million from lower selling prices in South America. These decreases were partially offset by a $54 million benefit from higher Siding selling prices. Segment Results Siding The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia. Our Siding is offered primed (LP® SmartSide® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions®) and prefinished (LP® SmartSide® ExpertFinish® Trim & Siding) to meet the needs of builders and installers in new construction and repair and remodeling applications. Sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions): Percent changes in average net sales prices and unit shipments in Siding for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, were as follows: Siding net sales decreased for the three and six months ended June 30, 2026 due to lower volumes, partially offset by higher prices. The increase in pricing was attributable to both the annual price increase and favorable mix. Adjusted EBITDA declined by $12 million in the quarter and $16 million year to date compared with the same periods in 2025. Net price increases contributed $27 million in the quarter and $54 million year to date, while lower volumes reduced results by $24 million and $59 million, respectively. Raw material, freight, and labor costs also increased by $10 million in the quarter and $15 million year to date, including a $4 million impact from higher crude oil costs in the second quarter. Oriented Strand Board (OSB) The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP® Structural Solutions (which includes LP® FlameBlock® Fire-Rated Sheathing, LP BurnGuard® FRT OSB, LP WeatherLogic® Air & Water Barrier, LP® TechShield® Radiant Barrier Sheathing, LP Legacy® Premium Sub-Flooring, and LP® TopNotch® 350 Durable Sub-Flooring). Sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions): Percent changes in average net sales prices and unit shipments in OSB for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, were as follows: For the three and six months ended June 30, 2026, OSB net sales decreased year over year by $68 million and $167 million, respectively, primarily driven by lower OSB prices and a decline in sales volumes. Adjusted EBITDA for the same periods decreased year over year by $40 million and $106 million, respectively, reflecting the impact of lower OSB prices and a decline in sales volumes. Other Other operations include LP's South American business that manufactures and distributes OSB structural panels and siding products in South America and certain export markets. Other operations also include timber and timberlands as well as other products, services, and closed operations, which do not qualify as discontinued operations. Additionally, Other includes unallocated corporate expenses. Other net sales decreased by $3 million and $12 million, for the three and six months ended June 30, 2026, respectively, primarily due to a decline in OSB selling prices in South America. Adjusted EBITDA for the same periods decreased year over year by $12 million and $20 million, respectively, driven by a decline in South America net sales along with higher costs incurred in that market. Conference Call LP will hold a conference call to discuss this release today at 11 a.m. Eastern Time (8 a.m. Pacific Time). Investors will have the opportunity to listen to the conference call live by going to investor.lpcorp.com. For those who cannot listen to the live broadcast, the recorded webcast and accompanying presentation will be available to the public by going to investor.lpcorp.com and clicking "Events" under the "News & Events" header. About LP Building Solutions As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX) manufactures engineered wood products that meet the demands of builders, remodelers and homeowners worldwide. LP’s extensive portfolio of innovative and dependable products includes Siding (LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions®), LP® Structural Solutions (LP® FlameBlock® Fire-Rated Sheathing, LP BurnGuard® FRT OSB, LP WeatherLogic® Air & Water Barrier, LP® TechShield® Radiant Barrier Sheathing, LP Legacy® Premium Sub-Flooring, and LP® TopNotch® 350 Durable Sub-Flooring), and LP® Oriented Strand Board. In addition to product solutions, LP provides industry-leading customer service and warranties. Since its founding in 1972, LP has been Building a Better World™ by helping customers construct beautiful, durable homes while shareholders build lasting value. Headquartered in Nashville, Tennessee, LP operates over 20 manufacturing facilities across North and South America. For more information, visit LPCorp.com. Forward-Looking Statements This news release contains statements concerning Louisiana-Pacific Corporation’s (LP) future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon the beliefs and assumptions of, and on information currently available to, our management; assumptions upon which such forward-looking statements are based are also forward-looking statements. Forward-looking statements can be identified by words such as "may," "will," "could," "should," "believe," "expect," "anticipate," "assume," "intend," "plan," "seek," "estimate," "project," "target," "potential," "continue," "likely," or "future," as well as similar expressions, or the negative or other variations thereof. Forward-looking statements include other statements regarding matters that are not historical facts, including without limitation, plans for product development, forecasts of future costs and expenditures, possible outcomes of legal proceedings, capacity expansion and other growth initiatives, the adequacy of reserves for loss contingencies, and any statements regarding the Company’s financial outlook. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: changes in governmental fiscal, trade, and monetary policies, including the imposition of higher or new tariffs, trade barriers, and levels of employment; changes in general and global economic conditions, including impacts from rising inflation, supply chain disruptions, or new, ongoing, or escalated geopolitical or military conflicts or tensions; the commodity nature of a segment of our products and the prices for those products, which are determined in significant part by external factors such as total industry capacity and wider industry cycles affecting supply and demand trends; changes in the cost and availability of capital; changes in the cost and availability of financing for home mortgages; changes in the level of home construction and repair and remodel activity, including as a result of labor shortages; changes in competitive conditions and prices for our products; changes in the relationship between supply of and demand for building products; changes in the financial or business conditions of third-party wholesale distributors and dealers of building products; changes in prices and the relationship between the supply of and demand for raw materials, including wood fiber and resins, used in manufacturing our products; changes in the cost and availability of energy, primarily natural gas, electricity, and diesel fuel; changes in the cost and availability of transportation, including transportation services provided by third parties; our dependence on third-party vendors and suppliers for certain goods and services critical to our business; operational and financial impacts from manufacturing our products internationally; difficulties in the development, launch or production ramp-up of new products; our ability to attract and retain qualified executives, management and other key employees; the need to formulate and implement effective succession plans from time to time for key members of our management team; impacts from public health issues (including global pandemics) on the economy, demand for our products or our operations, including the actions and recommendations of governmental authorities to contain such public health issues; our ability to identify and successfully complete and integrate acquisitions, divestitures, joint ventures, capital investments and other corporate strategic transactions; unplanned interruptions to our manufacturing operations, such as explosions, fires, inclement weather, natural disasters, accidents, equipment failures, labor shortages or disruptions, transportation interruptions, supply interruptions, public health issues (including pandemics and quarantines), riots, civil insurrection or social unrest, looting, protests, strikes, and street demonstrations; changes in global or regional climate conditions, the impacts of climate change, and potential government policies adopted in response to such conditions; changes in other significant operating expenses; changes in currency values and exchange rates between the U.S. dollar and other currencies, particularly the Canadian dollar, Brazilian real, Chilean peso, and Argentine peso; changes in, and compliance with, general and industry-specific laws and regulations, including environmental and health and safety laws and regulations, the U.S. Foreign Corrupt Practices Act and anti-bribery laws, laws related to our international business operations, and changes in building codes and standards; changes in tax laws and interpretations thereof; changes in circumstances giving rise to environmental liabilities or expenditures; warranty costs exceeding our warranty reserves; challenges to or exploitation of our intellectual property or other proprietary information by our competitors or other third parties; the resolution of existing and future product-related litigation, environmental proceedings and remediation efforts, and other legal or environmental proceedings or matters; the effect of covenants and events of default contained in our debt instruments; the amount and timing of any repurchases of our common stock and the payment of dividends on our common stock, which will depend on market and business conditions and other considerations; cybersecurity events affecting our information technology systems or those of our third-party providers and the related costs and impact of any disruption on our business; and acts of public authorities, war, political or civil unrest, natural disasters, fire, floods, earthquakes, inclement weather, and other matters beyond our control. For additional information about factors that could cause actual results, events, and circumstances to differ materially from those described in the forward-looking statements, please refer to LP’s filings with the Securities and Exchange Commission (SEC). We urge you to consider all of the risks, uncertainties, and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this news release. We cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made today are as of the date of this news release. Except as required by law, LP undertakes no obligation to update any such forward-looking statements to reflect new information, subsequent events, or circumstances. Use of Non-GAAP Information When evaluating the Company's performance on a U.S. GAAP basis, management utilizes certain non-GAAP financial measures as defined by SEC Regulation G and Regulation S-K Item 10(e). These measures exclude the impact of specific costs, expenses, gains, and losses to evaluate our overall operating performance. Management believes these non-GAAP measures provide users of the financial information with additional meaningful comparison to prior periods, as they generally exclude items that are outside of the normal course of our business or beyond management's control. It is important to note that non-GAAP financial measures do not have standardized definitions and are not defined by U.S. GAAP. In this press release, Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS (as each defined below) are non-GAAP measures that are used by management and external users of our condensed consolidated financial statements such as investors, industry analysts, and lenders. Adjusted EBITDA is defined as net income excluding interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense, loss on impairment, business exit credits and charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, other non-operating income (expense), income from discontinued operations, net of income taxes, and net income attributed to noncontrolling interest. We have included Adjusted EBITDA in this report because we view it as an important supplemental measure of our performance and believe that it is frequently used by interested persons in the evaluation of companies that have different financing and capital structures and/or tax rates. Adjusted Income is defined as net income, excluding loss on impairment, business exit credits and charges, product-line discontinuance charges, interest expense outside of normal operations, other operating credits and charges, net, loss on early debt extinguishment, gain (loss) on acquisition, pension settlement charges, income from discontinued operations, net of income taxes, net income attributed to noncontrolling interest, foreign currency gains and losses, and adjusting for a normalized tax rate. Adjusted Diluted EPS is calculated as Adjusted Income divided by diluted shares outstanding, which is a non-GAAP financial measure. We believe that Adjusted Diluted EPS and Adjusted Income are useful measures for evaluating our ability to generate earnings and that providing these measures should allow interested persons to more readily compare the earnings for past and future periods. During the first quarter of 2026, the Company updated the definition of Adjusted Income to exclude foreign currency gains and losses. These gains and losses primarily arise from the remeasurement of all monetary assets and liabilities including intercompany notes that are denominated in a different currency than the entity's functional currency. The exclusion of these items helps management compare changes in operating results between periods that might otherwise be obscured due to currency fluctuations. The Company believes this exclusion provides investors with a clearer view of underlying operating performance by removing the effects of currency fluctuations that are largely outside of the Company's control and do not reflect its core business activities. For comparability and consistency, all prior period Adjusted Income and Adjusted Diluted EPS measures have been recast to conform to the current presentation. The impact of this update for the three and six months ended June 30, 2025, was an increase to Adjusted Income of $6 million and $9 million, respectively, and an increase to Adjusted Diluted EPS of $0.08 per share and $0.14 per share, respectively. Reconciliations of Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS to their most directly comparable U.S. GAAP financial measures, net income and net income per share of common stock - diluted, respectively, are presented below. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are not substitutes for the U.S. GAAP measures of net income and net income per share of common stock - diluted or for any other U.S. GAAP measures of operating performance. It should be noted that other companies may present similarly titled measures differently, and therefore, as presented by us, these measures may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS have material limitations as performance measures because they exclude items that are actually incurred or experienced in connection with the operation of our business. LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIESKEY PERFORMANCE INDICATORS The following tables present summary data relating to: (i) housing starts within the United States, (ii) our sales volumes, and (iii) our Overall Equipment Effectiveness (OEE) performance. We consider the following items to be key performance indicators for our business because LP’s management uses these metrics to evaluate our business and trends in our industry, measure our performance, and make strategic decisions. We believe that the key performance indicators presented may provide additional perspective and insights when analyzing our core operating performance. These key performance indicators should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the financial measures that were prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). These measures may not be comparable to similarly titled performance indicators used by other companies. We monitor housing starts, which is a leading external indicator of residential construction in the United States that correlates with the demand for many of our products. We believe that this is a useful measure for evaluating our results and that providing this measure should allow interested persons to more readily compare our sales volume for past and future periods to an external indicator of product demand. Other companies may present housing start data differently, and therefore, as presented by us, our housing start data may not be comparable to similarly titled performance indicators reported by other companies. The following table sets forth actual housing starts data reported by the U.S. Census Bureau, as published through July 17, 2026, for the three and six months ended June 30, 2026 and 2025 (in thousands): We monitor sales volumes for our products in our Siding and OSB segments, which we define as the amount of our products sold within the applicable period measured in million square feet (MMSF) on a standard 3/8" thickness basis. Evaluating sales volume by product type helps us identify and address changes in product demand, broad market factors that may affect our performance, and opportunities for future growth. It should be noted that other companies may present sales volume data differently, and therefore, as presented by us, sales volume data may not be comparable to similarly titled measures reported by other companies. We believe that sales volumes can be a useful measure for evaluating and understanding our business. The following table sets forth sales volumes for the three and six months ended June 30, 2026 and 2025 (in MMSF): We measure OEE of each of our mills to track improvements in the utilization and productivity of our manufacturing assets. OEE is a composite metric that considers asset uptime (adjusted for capital project downtime and similar events), production rates, and finished product quality. We believe that when used in conjunction with other metrics, OEE can be a useful measure for evaluating our ability to generate profits, and that providing this measure should allow interested persons to monitor operational improvements. We use a best-in-class target across all LP sites that allows us to optimize capital investments, focus on maintenance and reliability improvements, and improve overall equipment efficiency. It should be noted that other companies may present OEE data differently, and therefore, as presented by us, OEE data may not be comparable to similarly titled measures reported by other companies. OEE for the three and six months ended June 30, 2026 and 2025 for each of our reportable segments is listed below: View source version on businesswire.com: https://www.businesswire.com/news/home/20260805307044/en/ Contacts Investor ContactAaron [email protected] Media ContactBreeanna Beckham615.986.5886 [email protected]

Louisiana-Pacific (LPX) came out with quarterly earnings of $0.4 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -31.03%. A quarter ago, it was expected that this home construction supplier would post earnings of $0.09 per share when it actually produced earnings of $0.38, delivering a surprise of +322.22%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Louisiana-Pacific, which belongs to the Zacks Building Products - Wood industry, posted revenues of $664 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.48%. This compares to year-ago revenues of $755 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Louisiana-Pacific shares have lost about 4.9% since the beginning of the year versus the S&P 500's gain of 13%. While Louisiana-Pacific has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Louisiana-Pacific was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $676.65 million in revenues for the coming quarter and $1.86 on $2.55 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Wood is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Construction sector, Argan (AGX), is yet to report results for the quarter ended July 2026. This builder of energy plants is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of +7.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Argan's revenues are expected to be $297.78 million, up 25.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report Argan, Inc. (AGX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Siding revenue grew 4% year-over-year despite a record prior-year comparison, driven by a 7% price increase that offset an 11% volume decline. Management attributes the volume decline primarily to the normalization of channel inventories following an unintentional pull-forward of sales in late 2025, particularly in the Shed sector. Market share gains are evidenced by SmartSide's 10% volume growth since 2021, significantly outperforming the 18% decline in single-family housing starts over the same period. Operational efficiency improvements (OEE) were achieved across Siding and OSB mills despite severe flooding in Manitoba and equipment failures in British Columbia. The OSB segment faced significant headwinds from soft demand in North and South America, leading to lower prices and a strategic decision to balance supply with demand. Management emphasized a shift from a commodity forest products company to a specialty building products company, with Siding now providing a stable cash-generative foundation. Third quarter guidance anticipates a return to year-over-year Siding volume and revenue growth, supported by normalized inventory levels and robust order intake. The company is aggressively expanding ExpertFinish capacity with a new line in Green Bay, an upcoming 20 million feet addition in Bath, and a new facility in North Branch. Capital expenditure guidance was reduced by $70 million to $320 million by postponing non-essential maintenance projects, primarily in the OSB segment. OSB EBITDA is projected to remain negative through year-end, assuming prices stay flat at current levels, with mills operating at mid-to-high 70% utilization. Strategic growth in the manufactured housing segment is expected to benefit from new federal housing legislation and an enterprise bundling approach for Siding and OSB. Unplanned downtime at Dawson Creek and flooding at Swan Valley late in Q2 caused higher freight costs and shifted inventory absorption benefits into future periods. Raw material inflation, particularly from crude oil price increases, created a $14 million EBITDA drag in the Siding segment during the second quarter. Constrained freight capacity and damaged transportation infrastructure in Manitoba necessitated more expensive truck shipments over rail. Building code changes in wildfire-prone areas like Colorado present localized challenges for engineered wood, though management views this as a small portion of the addressable market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management does not anticipate any lapse in market coverage following recent distribution shifts, noting they have multiple partners in all markets. The company is evaluating new partners with the goal of having committed Siding distributors in place by October 1, 2026. LP is unlikely to implement a mid-year price increase, choosing instead to use stable pricing as a tool to capture additional market volume. Any necessary offsets for raw material inflation will likely be incorporated into the annual price increase for the following year. While the Maniwaki facility is the leading candidate for the next conversion, a final decision will be based on long-term Siding demand rather than short-term OSB volatility. Management estimates a 2.5-year lead time from a final investment decision to the first production of board at a new facility.