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Why Is Louisiana-Pacific (LPX) Down 10.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Louisiana-Pacific (LPX - Free Report) . Shares have lost about 10.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Louisiana-Pacific due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
LPX Q2 Earnings & Sales Miss on Lower OSB Prices and Volumes
Louisiana-Pacific, or LP, reported weaker-than-expected second-quarter 2026 results. Adjusted earnings of 40 cents per share missed the Zacks Consensus Estimate of 58 cents by 31% and declined 62.6% year over year. Net sales of $664 million missed the consensus mark of $674 million by 1.5% and fell 12.1% from the prior-year quarter.
Lower OSB prices and volumes, softer Siding volumes and inflationary costs hurt the quarter, partly offset by higher Siding pricing. Siding overall equipment effectiveness improved to 85% from 83% a year ago.
Segmental Analysis of Louisiana-Pacific's Q2 Release
Siding: Segment sales of $441 million decreased 4% year over year, as unit shipments fell 11%, partially offset by a 7% increase in average net selling prices. Adjusted EBITDA declined 9% to $113 million. Higher net pricing contributed $27 million, while lower volumes reduced results by $24 million. Raw material, freight and labor costs increased by $10 million.
OSB: Sales decreased 27% year over year to $182 million, due to lower prices and sales volumes. Adjusted EBITDA swung to a loss of $21 million from a profit of $19 million. Structural Solutions sales fell to $97 million from $143 million, while Commodity sales declined to $82 million from $104 million.
Other: Operations generated net sales of $41 million, down from $45 million a year ago. Adjusted EBITDA was a loss of $13 million compared with a $1 million loss in the prior-year quarter, reflecting lower South America net sales and higher costs in that market.
LPX’s Q2 Profitability Highlights
Adjusted EBITDA of $79 million declined 44.4% from $142 million in the prior-year quarter. The downturn reflected a $35 million impact from lower OSB prices, a $24 million impact from lower Siding volumes, an $11 million impact from lower OSB volumes and a $12 million impact from inflationary costs.
Gross profit declined to $116 million from $178 million, and income from operations dropped to $31 million from $80 million. The absence of a $17 million impairment charge recorded a year ago and a lower tax provision partly cushioned the decline.
Louisiana-Pacific's Balance Sheet & Cash Flow
As of June 30, 2026, Louisiana-Pacific had total liquidity of approximately $1 billion. Cash and cash equivalents were $228 million, down from $292 million at year-end 2025. Long-term debt remained unchanged at $348 million.
Net cash provided by operating activities was $140 million in the second quarter compared with $162 million a year ago. LP invested $59 million in capital expenditures and paid $21 million in cash dividends. No common shares were repurchased during the quarter, leaving $177 million under the existing share repurchase authorization.
LPX Unveils Q3 Outlook
LPX expects third-quarter Siding net sales of $460-$470 million, implying about 5% year-over-year growth. Siding’s adjusted EBITDA is projected to be between $110 million and $120 million, with an adjusted EBITDA margin of about 25%. Management anticipates Siding returning to year-over-year volume and revenue growth in the quarter. OSB adjusted EBITDA is expected to be a loss of $45 million. Consolidated adjusted EBITDA is projected between $50 million and $60 million. The OSB outlook assumes that prices published by Random Lengths remain unchanged from those published on July 31, 2026.
Louisiana-Pacific Affirms 2026 Siding View
For 2026, Louisiana-Pacific expects Siding net sales of $1.65-$1.67 billion, representing an approximately 1% year-over-year decline. Siding’s adjusted EBITDA is anticipated between $410 million and $425 million, with an adjusted EBITDA margin of 25-26%. For the OSB segment, adjusted EBITDA is expected to be a loss of $120 million. Consolidated adjusted EBITDA is forecast between $255 million and $270 million. LP expects full-year capital expenditures of approximately $320 million, including about $140 million for strategic growth projects and $180 million for sustaining maintenance.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -40.5% due to these changes.
VGM Scores
At this time, Louisiana-Pacific has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Louisiana-Pacific has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is Louisiana-Pacific (LPX) Down 10.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Louisiana-Pacific (LPX - Free Report) . Shares have lost about 10.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Louisiana-Pacific due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
LPX Q2 Earnings & Sales Miss on Lower OSB Prices and Volumes
Louisiana-Pacific, or LP, reported weaker-than-expected second-quarter 2026 results. Adjusted earnings of 40 cents per share missed the Zacks Consensus Estimate of 58 cents by 31% and declined 62.6% year over year. Net sales of $664 million missed the consensus mark of $674 million by 1.5% and fell 12.1% from the prior-year quarter.
Lower OSB prices and volumes, softer Siding volumes and inflationary costs hurt the quarter, partly offset by higher Siding pricing. Siding overall equipment effectiveness improved to 85% from 83% a year ago.
Segmental Analysis of Louisiana-Pacific's Q2 Release
Siding: Segment sales of $441 million decreased 4% year over year, as unit shipments fell 11%, partially offset by a 7% increase in average net selling prices. Adjusted EBITDA declined 9% to $113 million. Higher net pricing contributed $27 million, while lower volumes reduced results by $24 million. Raw material, freight and labor costs increased by $10 million.
OSB: Sales decreased 27% year over year to $182 million, due to lower prices and sales volumes. Adjusted EBITDA swung to a loss of $21 million from a profit of $19 million. Structural Solutions sales fell to $97 million from $143 million, while Commodity sales declined to $82 million from $104 million.
Other: Operations generated net sales of $41 million, down from $45 million a year ago. Adjusted EBITDA was a loss of $13 million compared with a $1 million loss in the prior-year quarter, reflecting lower South America net sales and higher costs in that market.
LPX’s Q2 Profitability Highlights
Adjusted EBITDA of $79 million declined 44.4% from $142 million in the prior-year quarter. The downturn reflected a $35 million impact from lower OSB prices, a $24 million impact from lower Siding volumes, an $11 million impact from lower OSB volumes and a $12 million impact from inflationary costs.
Gross profit declined to $116 million from $178 million, and income from operations dropped to $31 million from $80 million. The absence of a $17 million impairment charge recorded a year ago and a lower tax provision partly cushioned the decline.
Louisiana-Pacific's Balance Sheet & Cash Flow
As of June 30, 2026, Louisiana-Pacific had total liquidity of approximately $1 billion. Cash and cash equivalents were $228 million, down from $292 million at year-end 2025. Long-term debt remained unchanged at $348 million.
Net cash provided by operating activities was $140 million in the second quarter compared with $162 million a year ago. LP invested $59 million in capital expenditures and paid $21 million in cash dividends. No common shares were repurchased during the quarter, leaving $177 million under the existing share repurchase authorization.
LPX Unveils Q3 Outlook
LPX expects third-quarter Siding net sales of $460-$470 million, implying about 5% year-over-year growth. Siding’s adjusted EBITDA is projected to be between $110 million and $120 million, with an adjusted EBITDA margin of about 25%. Management anticipates Siding returning to year-over-year volume and revenue growth in the quarter. OSB adjusted EBITDA is expected to be a loss of $45 million. Consolidated adjusted EBITDA is projected between $50 million and $60 million. The OSB outlook assumes that prices published by Random Lengths remain unchanged from those published on July 31, 2026.
Louisiana-Pacific Affirms 2026 Siding View
For 2026, Louisiana-Pacific expects Siding net sales of $1.65-$1.67 billion, representing an approximately 1% year-over-year decline. Siding’s adjusted EBITDA is anticipated between $410 million and $425 million, with an adjusted EBITDA margin of 25-26%. For the OSB segment, adjusted EBITDA is expected to be a loss of $120 million. Consolidated adjusted EBITDA is forecast between $255 million and $270 million. LP expects full-year capital expenditures of approximately $320 million, including about $140 million for strategic growth projects and $180 million for sustaining maintenance.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -40.5% due to these changes.
VGM Scores
At this time, Louisiana-Pacific has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Louisiana-Pacific has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.