Louisiana-Pacific Corp
NYSE:LPX
Louisiana-Pacific Corp
In the bustling world of building products, Louisiana-Pacific Corporation, more commonly known as LP, stands as a prominent figure. Born in the early 1970s, this company initially carved its niche in the forest products industry, cultivating a rich legacy through its deep-rooted expertise in timber and wood products. Today, LP operates with a refined focus, specializing in the manufacturing of engineered wood products. These aren't just ordinary wood planks; they're advanced, engineered solutions like oriented strand board (OSB), siding, and other value-added products that are staple materials in residential and commercial construction. By transforming raw timber into a diversified range of building materials, LP not only sustains its legacy but also addresses the evolving demands of modern construction.
The company's operations blossom across multiple segments: OSB, Siding, and Engineered Wood Products (EWP). The bulk of its revenue streams from the sale of these products, with OSB functioning as its backbone, being widely utilized for walls, roofing, and floor bases in homes across North America. Meanwhile, vinyl siding offers an alternative with aesthetic appeal and durability—a popular choice for homeowners aiming to balance style and resilience. The Engineered Wood Products segment further broadens LP's portfolio, offering solutions like laminated veneer lumber (LVL) which enhances structural integrity in construction. Through strategic investments and innovations, LP continues to leverage its extensive distribution network and operational efficiencies to remain competitive and maintain robust profitability. This blend of traditional roots with innovative practices not only keeps LP relevant in today's market but positions it as a pivotal player in shaping the future of building materials.
In the bustling world of building products, Louisiana-Pacific Corporation, more commonly known as LP, stands as a prominent figure. Born in the early 1970s, this company initially carved its niche in the forest products industry, cultivating a rich legacy through its deep-rooted expertise in timber and wood products. Today, LP operates with a refined focus, specializing in the manufacturing of engineered wood products. These aren't just ordinary wood planks; they're advanced, engineered solutions like oriented strand board (OSB), siding, and other value-added products that are staple materials in residential and commercial construction. By transforming raw timber into a diversified range of building materials, LP not only sustains its legacy but also addresses the evolving demands of modern construction.
The company's operations blossom across multiple segments: OSB, Siding, and Engineered Wood Products (EWP). The bulk of its revenue streams from the sale of these products, with OSB functioning as its backbone, being widely utilized for walls, roofing, and floor bases in homes across North America. Meanwhile, vinyl siding offers an alternative with aesthetic appeal and durability—a popular choice for homeowners aiming to balance style and resilience. The Engineered Wood Products segment further broadens LP's portfolio, offering solutions like laminated veneer lumber (LVL) which enhances structural integrity in construction. Through strategic investments and innovations, LP continues to leverage its extensive distribution network and operational efficiencies to remain competitive and maintain robust profitability. This blend of traditional roots with innovative practices not only keeps LP relevant in today's market but positions it as a pivotal player in shaping the future of building materials.
Siding Growth: Siding revenue grew 8% in 2025, with both price and volume contributing equally; margins also expanded to 26% for the year.
Challenging Market: Housing starts decelerated and single-family starts were down roughly 10% in Q3; management expects further weakness when Q4 data is published.
OSB Weakness: OSB prices hit 20-year inflation-adjusted lows, leading to segment struggles, though the business managed positive EBITDA for the year.
Inventory Overhang: Channel inventories in Siding are elevated due to pull-forward from price increase allocations, leading to weaker Q1 2026 order files.
Q1 Guidance: Siding volumes expected to be down 15–20% in Q1 2026, but prices up 6–8%; EBITDA margin guided to 23–25%.
Capacity Expansion: New 70-million-foot Siding line in Green Bay coming online in early Q2 2026; further capacity projects in engineering phase.
Capital Allocation: $139 million returned to shareholders in 2025; 2026 capital expenditures planned at $400 million, with flexibility based on market conditions.
ExpertFinish Momentum: ExpertFinish Siding grew 18% for the year and 35% in Q4, with notable margin improvement and recent end to capacity allocation.
