Louisiana-Pacific Shares Fall After Mixed Q2 Results, Lower OSB Revenue

Louisiana-Pacific Corporation (NYSE:LPX) shares are trading lower on Wednesday after the company reported mixed financial results for the second quarter of 2025.

What To Know: While the Siding segment delivered record sales and profitability, overall earnings were dragged down by significant weakness in the company's Oriented Strand Board (OSB) business.

Net sales for the quarter came in at $755 million, a $60 million decrease compared to the same period last year. The decline was primarily driven by a $101 million drop in OSB sales, which fell 29% due to a steep drop in commodity pricing. In contrast, the Siding segment saw an 11% increase in revenue, rising to $460 million on the back of higher prices and volumes. This segment achieved record sales volume, revenue, and EBITDA, offsetting some of the broader market pressure.

Despite this growth, the company's overall profitability declined. Net income dropped by $106 million year-over-year to $54 million, or 77 cents per diluted share.

Adjusted EBITDA fell by $86 million to $142 million, and adjusted diluted EPS declined to 99 cents from $2.09 in the prior-year quarter.

The sharp drop in OSB selling prices contributed $102 million to the decline in EBITDA, while other headwinds included a $6 million inventory valuation charge and $3 million in tariffs related to Canadian sales.

CEO Brad Southern acknowledged the market pressures, stating, "While the OSB market is challenging currently, with commodity prices at multi-year lows, LP will continue to execute its OSB segment strategy safely, with efficiency and discipline." He also noted the Siding segment's continued momentum, highlighting its performance as a strategic growth driver.

The company reaffirmed its full-year guidance for Siding, projecting around 9% year-over-year growth and $430 million in adjusted EBITDA. However, it expects continued losses in the OSB segment, guiding for a negative $25 million in adjusted EBITDA for the full year.

While Siding continues to outperform expectations, investors appear concerned about the drag from OSB and the overall impact on margins and earnings. The market reaction reflects a broader focus on commodity price sensitivity in LP's portfolio and uncertainty about recovery in the OSB segment through the remainder of the year.

LPX Price Action: Louisiana-Pacific shares were down 1.81% at $93.24 at publication on Wednesday, according to Benzinga Pro.

Read Next:

• Another Fed Official Backs A Rate Cut—Goldman Sees Trouble Ahead If The Fed Waits

Image Via Shutterstock.