Louisiana-Pacific Q3 Sales Rise on Record Siding Revenue

Louisiana-Pacific Corporation (LPX) reported record quarterly Siding sales in the third quarter of 2026, helping lift consolidated net sales 4% from a year earlier. However, higher Siding costs and a continued loss in the company’s oriented strand board business kept adjusted EBITDA unchanged at $82 million.

Net sales totaled $691 million for the three months ended September 30, up from $663 million in the prior-year quarter. Net income increased to $23 million, or $0.32 per diluted share, from $9 million, or $0.13 per share. Adjusted income rose to $28 million from $26 million, while adjusted diluted earnings per share increased by $0.02 to $0.39.

Operating cash flow reached $112 million, compared with $89 million a year earlier, supported by a $48 million contribution from working capital. LP spent $56 million on capital projects and returned $21 million to shareholders through cash dividends during the quarter. Cash at September 30 stood at $265 million.

Record Siding sales offset by higher costs

Siding revenue increased 7% to a quarterly record of $473 million from $443 million. Price and volume both contributed to the increase, with overall pricing up 5% and volume up 2%.

Siding adjusted EBITDA rose to $119 million from $117 million, but the segment’s adjusted EBITDA margin narrowed to 25% from 26%. Inflationary costs reduced segment earnings by $19 million, including higher raw-material, freight and labor expenses. Other costs, including maintenance-related spending and inventory items, reduced adjusted EBITDA by another $9 million.

The company also reported that Siding overall equipment effectiveness improved by one percentage point to 83%. LP highlighted enhancements to its distribution network as another operational priority during the period.

OSB remains loss-making

OSB revenue was $180 million, broadly unchanged from $179 million a year earlier. Sales volume increased by 56 million square feet, or 7%, offsetting the effect of lower pricing.

The segment recorded an adjusted EBITDA loss of $24 million, compared with a $27 million loss in the third quarter of 2025. A $17 million benefit from other items, primarily inventory valuation, more than offset weaker pricing and inflationary costs.

For the first nine months of 2026, consolidated sales declined to $1.93 billion from $2.14 billion, while adjusted EBITDA fell to $243 million from $386 million. Nine-month OSB adjusted EBITDA shifted to a $58 million loss from a $46 million profit. Siding adjusted EBITDA was $333 million, down from $348 million, and adjusted EBITDA from other operations was a loss of $31 million compared with a $7 million loss.

2026 outlook

LP expects fourth-quarter Siding revenue of $390 million to $400 million, representing approximately 3% growth, with adjusted EBITDA of $80 million to $90 million and a margin of about 22%. For the full year, the company projects Siding revenue of $1.66 billion to $1.67 billion, approximately 1% below 2025, and adjusted EBITDA of $415 million to $425 million at a margin of roughly 25%.

The company forecasts an OSB adjusted EBITDA loss of $35 million in the fourth quarter and $95 million for the full year. Total LP adjusted EBITDA is expected to be between $30 million and $40 million for the fourth quarter and between $270 million and $280 million for 2026. The consolidated outlook assumes other operations will contribute adjusted EBITDA losses of approximately $15 million in the fourth quarter and $50 million for the year.

LP plans about $300 million of full-year capital expenditures, comprising approximately $140 million for strategic growth and $160 million for sustaining maintenance.

The OSB outlook assumes published Random Lengths prices remain at October 30 levels, an assumption LP described as being for modeling purposes rather than a price forecast. The company estimated that a $10-per-thousand-square-feet change in OSB prices would affect fourth-quarter adjusted EBITDA by about $6 million. Results also remain exposed to housing construction and repair activity, building-product demand and pricing, raw-material and energy costs, trade policy, transportation availability, currency movements and potential manufacturing disruptions.