Louisiana-Pacific Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 5 November 2025: press release. Guidance figures: 3 raised, 3 lowered, 4 new, 1 kept. The quarter’s numbers.

Key takeaways

Sales and earnings fell year on year: Net sales fell $59 million to $663 million. Net income was $9 million, or $0.13 per diluted share, down $82 million. Adjusted EBITDA was $82 million, down $71 million. Source
Operating cash flow dropped: Cash from operations was $89 million versus $184 million a year earlier. Nine-month operating cash flow was $315 million versus $500 million. Source
Siding profit down four percent: Siding Adjusted EBITDA was $117 million versus $123 million. Pricing added $18 million, offset by mill overhead and inventory absorption, sales and marketing, SG&A and tariffs. Source
OSB sales and profit fell sharply: OSB net sales were $179 million, down $74 million or 29%. OSB Adjusted EBITDA was a $27 million loss, against $33 million of profit a year earlier. Source
Gross profit fell on OSB pricing: Gross profit was $129 million versus $193 million. Cost of sales was $534 million versus $530 million while net sales fell. Source
Operating income fell to $18M: Income from operations was $18 million versus $116 million in the quarter, and $218 million versus $455 million over nine months. Source
Single-family starts fell: U.S. single-family starts were 249 thousand versus 260 thousand, while multi-family starts rose to 116 thousand from 93 thousand. September starts were estimated from July and August. Source
No share repurchases in quarter: The company repurchased no stock in the quarter, versus $73 million a year earlier. Nine-month repurchases were $61 million versus $188 million. Source

“Siding revenue increased by $22 million (or 5%), primarily due to 5% higher selling prices.”
Louisiana-Pacific Corp., press release

Guidance

Area	Period	Figure	Against last quarter
Siding net sales Source	fourth quarter 2025	~$370 million (~3% growth)	New
Siding net sales Source	full year 2025	~$1.68 billion (~8% growth)	Lowered from ~$1.7B (~9% growth)
Siding Adjusted EBITDA Source	fourth quarter 2025	~$82 million (~22% margin)	New
Siding Adjusted EBITDA Source	full year 2025	~$430 million (~26% margin)	Kept
OSB Adjusted EBITDA Source	fourth quarter 2025	~$(45) million	New
OSB Adjusted EBITDA Source	full year 2025	~$0 million	Raised from ~$(25) million
Consolidated Adjusted EBITDA Source	fourth quarter 2025	~$32 million	New
Consolidated Adjusted EBITDA Source	full year 2025	~$420 million	Raised from ~$405 million
Capital expenditures Source	full year 2025	~$315 million	Lowered from ~$350 million
Capital expenditures, strategic growth Source	full year 2025	~$125 million	Lowered from ~$180 million
Capital expenditures, sustaining maintenance Source	full year 2025	~$190 million	Raised from ~$170 million

What changed from last quarter

Guidance lowered: Full-year Siding net sales guidance lowered from about $1.7 billion (about 9% growth) to about $1.68 billion (about 8% growth). Source
Guidance raised: Full-year consolidated Adjusted EBITDA guidance raised from about $405 million to about $420 million. Source
Guidance raised: Full-year OSB Adjusted EBITDA guidance moved from about $(25) million to about $0 million. Source
Guidance lowered: Full-year capital expenditures guidance lowered from about $350 million to about $315 million; strategic growth spending lowered from about $180 million to about $125 million, and sustaining spending raised from about $170 million to about $190 million. Source
New guidance: Fourth-quarter 2025 guidance given for Siding net sales, Siding and OSB Adjusted EBITDA, and consolidated Adjusted EBITDA. Source
Guidance kept: Full-year Siding Adjusted EBITDA guidance of about $430 million was reaffirmed, per the release headline. Source
New: Consolidated Adjusted EBITDA guidance now assumes LP South America does not fully offset Other; the prior release assumed it fully offsets Other. Source

Quarter results and earnings

Sales and earnings fell year on year: Net sales fell $59 million to $663 million. Net income was $9 million, or $0.13 per diluted share, down $82 million. Adjusted EBITDA was $82 million, down $71 million. Source
Nine-month sales and profit both lower: Nine-month net sales were $2.1 billion, down $119 million. Net income was $154 million, or $2.20 per diluted share. Adjusted EBITDA was $386 million, down $177 million. Source
Adjusted diluted EPS fell to $0.36: Adjusted diluted EPS was $0.36, against $1.22 a year earlier. Nine-month Adjusted diluted EPS was $2.62, against $4.84. Source
Impairments and stock pay weighed on net income: Quarterly net income fell mainly on lower Adjusted EBITDA, $13 million of asset impairments and $8 million higher stock compensation, partly offset by a $14 million lower tax provision. Source
Operating cash flow dropped: Cash from operations was $89 million versus $184 million a year earlier. Nine-month operating cash flow was $315 million versus $500 million. Source

Siding segment performance

Siding sales rose on pricing: Siding net sales were $443 million, up $22 million or 5%, on 5% higher selling prices. Siding unit shipments were flat in the quarter. Source
Siding profit down four percent: Siding Adjusted EBITDA was $117 million versus $123 million. Pricing added $18 million, offset by mill overhead and inventory absorption, sales and marketing, SG&A and tariffs. Source
Nine-month Siding profit rose: Nine-month Siding net sales rose 9% to $1,305 million. Siding Adjusted EBITDA rose $30 million to $348 million on higher volume and price. Source
Sales and marketing spend weighed: Strategic sales and marketing investments reduced Siding profit by $5 million in the quarter and by $12 million over nine months. Source

“OSB revenue decreased by $74 million, driven by a decline in prices.”
Louisiana-Pacific Corp., press release

OSB and LPSA segments

OSB sales and profit fell sharply: OSB net sales were $179 million, down $74 million or 29%. OSB Adjusted EBITDA was a $27 million loss, against $33 million of profit a year earlier. Source
Lower OSB prices drove the decline: OSB Adjusted EBITDA fell $60 million in the quarter and $203 million over nine months, reflecting lower prices and lower sales volume. Source
LPSA sales and profit lower: LPSA net sales were $39 million, down 17%. Adjusted EBITDA was $5 million versus $9 million, mainly on lower OSB prices. Source
South America wood-frame transition: LPSA sells companion products supporting South America's shift to wood frame construction. It has manufacturing in Chile and Brazil and sales offices in seven countries. Source

Products and product mix

Structural Solutions prices fell less: OSB Structural Solutions prices were down 18% in the quarter and shipments down 6%. Over nine months, prices fell 19% and shipments 5%. Source
Commodity OSB prices fell further: Commodity OSB prices were down 28% in the quarter and shipments down 13%. Over nine months, commodity prices fell 24% and shipments 2%. Source

Costs, margins and pricing

Gross profit fell on OSB pricing: Gross profit was $129 million versus $193 million. Cost of sales was $534 million versus $530 million while net sales fell. Source
SG&A rose on spending and stock pay: SG&A rose to $95 million from $75 million in the quarter, and to $250 million from $215 million over nine months. Stock-based compensation was $12 million versus $4 million. Source
Operating income fell to $18M: Income from operations was $18 million versus $116 million in the quarter, and $218 million versus $455 million over nine months. Source

Demand and plant operations

Single-family starts fell: U.S. single-family starts were 249 thousand versus 260 thousand, while multi-family starts rose to 116 thousand from 93 thousand. September starts were estimated from July and August. Source
Nine-month starts edged higher: Nine-month U.S. housing starts were 1,057 thousand versus 1,045 thousand, with single-family starts down and multi-family starts up. Source
Plant efficiency held near prior levels: Overall equipment effectiveness was 77% for Siding in both periods, 80% for OSB versus 78%, and 72% for LPSA versus 68%. Source

Capital, cash and shareholder returns

Capital spending rose sharply: Capital expenditures were $84 million in the quarter, versus $44 million a year earlier, and $216 million over nine months versus $121 million. Source
No share repurchases in quarter: The company repurchased no stock in the quarter, versus $73 million a year earlier. Nine-month repurchases were $61 million versus $188 million. Source
Dividends paid steadily: Dividends paid were $19 million in the quarter versus $18 million, and $58 million over nine months versus $56 million. Source
Liquidity and cash position: Liquidity was $1.1 billion at September 30, 2025. Cash was $316 million, and long-term debt was unchanged at $348 million from December 31, 2024. Source

Coming up, as management said on 5 November 2025

Future GAAP results may differ: Management expects the reconciling adjustments may have a significant effect on future U.S. GAAP results. Source

Figures management reported

Figure	Reported
Siding Solutions sales volume (MMSF), Q3 2025 Source	496
OSB Structural Solutions sales volume (MMSF), Q3 2025 Source	500
OSB commodity sales volume (MMSF), Q3 2025 Source	376
U.S. housing starts (thousands), Q3 2025 Source	364

Risks management discussed

Regulatory: Tariff expenses, mainly on sales into Canada, reduced profit over the nine months and added $2 million in the quarter. Source
External: Lower commodity OSB prices remained the main cause of the OSB and consolidated profit declines in the quarter. Source
Operational: Siding profit absorbed mill overhead and inventory absorption costs, which offset most of the higher pricing gain in the quarter. Source
Financial: Foreign currency losses rose in the nine months and were cited as a reason net income declined. Source

Earlier plans management reported on

Not stated: Management reaffirmed the full-year Siding Adjusted EBITDA guidance given earlier, without stating a status. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

LP Building Solutions Reports Third Quarter 2025 Results and Reaffirms Siding Full-Year Adjusted EBITDA Guidance

NASHVILLE, Tenn. (November 5, 2025) - Louisiana-Pacific Corporation (LP) (NYSE: LPX), a leading manufacturer of high-performance building products, today reported its financial results for the three and nine months ended September 30, 2025.

Key Highlights for Third Quarter 2025, Compared to Third Quarter 2024

Siding net sales increased by $22 million (5%) to $443 million
Oriented Strand Board (OSB) net sales decreased by $74 million to $179 million
Consolidated net sales decreased by $59 million to $663 million
Net income was $9 million, a decrease of $82 million
Net income per diluted share was $0.13 per diluted share, a decrease of $1.15 per diluted share
Adjusted EBITDA was $82 million, a decrease of $71 million
Adjusted Diluted EPS was $0.36 per diluted share, a decrease of $0.86 per diluted share
Cash provided by operating activities was $89 million

(1) This is a non-GAAP financial measure. See “Use of Non-GAAP Information,” and “Reconciliation of Net Income to Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income, and Non-GAAP Adjusted Diluted EPS" below for additional information regarding non-GAAP measures.

Capital Allocation Update

Invested $84 million in capital expenditures during the third quarter 2025
Paid $19 million in cash dividends during the third quarter 2025
Total liquidity of $1.1 billion as of September 30, 2025

Outlook

LP is providing financial guidance for the fourth quarter of 2025 and full year 2025 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.”

	Fourth Quarter 2025	Full-Year 2025
Siding Net Sales Year-Over-Year Growth	~$370 million (~3% growth)	~$1.68 billion (~8% growth)
Siding Adjusted EBITDA	~$82 million (~22% margin(2)(3))	~$430 million (~26% margin(2)(3))
OSB Adjusted EBITDA(2)(4)	~$(45) million	~$0 million
Consolidated Adjusted EBITDA(2)(4)(5)	~$32 million	~$420 million
Capital Expenditures		~$315 million

(2) This is a non-GAAP financial measure. Reconciliation of Siding Adjusted EBITDA, OSB Adjusted EBITDA, and consolidated Adjusted EBITDA guidance to the closest corresponding GAAP measure on a forward-looking basis is not available without unreasonable efforts. Our inability to reconcile these measures results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliation. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliation, such as loss on impairment attributed to LP, business exit credits and charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, and other non-operating items, that would be required to be included in the comparable forecasted U.S. GAAP measures. LP expects that these adjustments may potentially have a significant impact on future U.S. GAAP financial results.

(3) This is a non-GAAP financial measure and is calculated as Siding Adjusted EBITDA divided by net sales.

(4) The fourth quarter and full year OSB Adjusted EBITDA are based on the assumption that OSB prices published by Random Lengths remain unchanged from those published on October 31, 2025 (this is an assumption for modeling purposes and not a price forecast).

(5) For purposes of projecting consolidated Adjusted EBITDA, it has been assumed that LP South America does not fully offset Other by $(5)M and $(10)M in the fourth quarter and full year, respectively.

(6) Capital expenditures related to strategic growth and sustaining maintenance projects are expected to be approximately $125 million and $190 million, respectively, for full year 2025.

Third Quarter 2025 Highlights

Net sales for the third quarter of 2025 decreased by $59 million to $663 million compared to the prior-year period. Siding revenue increased by $22 million (or 5%), primarily due to 5% higher selling prices. OSB revenue decreased by $74 million, driven by a decline in prices.

Net income for the third quarter of 2025 decreased year over year by $82 million to $9 million ($0.13 per diluted share). The decline primarily reflects a $71 million decrease in Adjusted EBITDA, along with asset impairments of $13 million and an $8 million increase in stock compensation, partially offset by a $14 million reduction in tax provision. The year-over-year decrease in Adjusted EBITDA for the third quarter includes a $55 million impact from lower OSB prices, $5 million effect from lower OSB volumes, $12 million in selling, general and administrative expenses (SG&A), and $2 million in tariff expenses. These decreases were partially offset by an $18 million benefit from higher Siding selling prices.

First Nine Months of 2025 Highlights

Net sales for the first nine months of 2025 decreased year over year by $119 million to $2.1 billion. Siding revenue increased by $108 million (or 9%), due to 6% higher volumes and 3% higher selling prices. OSB revenue decreased by $221 million, driven by lower prices.

Net income for the first nine months of 2025 decreased year over year by $204 million to $154 million ($2.20 per diluted share). The decrease primarily reflects a $177 million decrease in Adjusted EBITDA, accompanied by $31 million of impairment charges, a $9 million increase in stock compensation, a $15 million increase in foreign currency loss, and the absence of $14 million in business exit credits recorded in 2024. These impacts were partially offset by a $62 million decrease in the provision for income taxes. The year-over-year decrease in Adjusted EBITDA includes a $199 million impact from lower OSB prices and volumes, $25 million of SG&A, $12 million of inventory valuation charges, and $7 million in tariff expenses primarily related to sales into Canada. These decreases were partially offset by a $70 million benefit from higher Siding sales volumes and 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, including LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions® (collectively referred to as Siding Solutions).

Segment sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):

	Three Months Ended September 30,			Nine Months Ended September 30,
	2025	2024	% Change	2025	2024	% Change
Net sales	$443	$420	5%	$1,305	$1,196	9%
Adjusted EBITDA	117	123	(4)%	348	318	9%

Three Months Ended September 30, 2025 versus 2024

Nine Months Ended September 30, 2025 versus 2024

Average Net Selling Price

Unit Shipments

Average Net Selling Price

Unit Shipments

Siding Solutions

For the three and nine months ended September 30, 2025, Siding net sales increased year over year by $22 million and $108 million, respectively, reflecting higher selling prices. The nine-month increase also included a benefit from higher sales volume. Within the Siding segment, ExpertFinish® net sales increased by 31% and 24% for the three and nine months ended September 30, 2025, respectively, compared to the prior-year periods.

Adjusted EBITDA for the Siding segment decreased year over year by $6 million for the three months ended September 30, 2025, with improved pricing of $18 million more than offset by $13 million mill overhead and inventory absorption, $5 million of strategic investments in sales and marketing, $3 million of SG&A, and $2 million of tariff expenses. Adjusted EBITDA increased $30 million for the nine months ended September 30, 2025, compared to the prior-year period. This growth was driven by higher sales volume and higher selling prices of $70 million, partially offset by strategic investments in sales and marketing of $12 million, $13 million of mill overhead and inventory absorption, $7 million of tariff expenses, and $5 million of SG&A.

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® TechShield® Radiant Barrier Sheathing, LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, LP® FlameBlock® Fire-Rated Sheathing, and LP® TopNotch® 350 Durable Sub-Flooring) and LP® Oriented Strand Board.

Segment sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):

	Three Months Ended September 30,			Nine Months Ended September 30,
	2025	2024	% Change	2025	2024	% Change
Net sales	$179	$253	(29)%	$696	$917	(24)%
Adjusted EBITDA	(27)	33	(182)%	46	249	(82)%

	Three Months Ended September 30, 2025 versus 2024		Nine Months Ended September 30, 2025 versus 2024
	Average Net Selling Price	Unit Shipments	Average Net Selling Price	Unit Shipments
OSB - Structural Solutions	(18)%	(6)%	(19)%	(5)%
OSB - commodity	(28)%	(13)%	(24)%	(2)%

For the three and nine months ended September 30, 2025, OSB net sales decreased year over year by $74 million and $221 million, respectively. These decreases were primarily driven by lower OSB prices and a decline in sales volume.

Adjusted EBITDA for the OSB segment for the same periods decreased year over year by $60 million and $203 million, respectively, also reflecting the impact of lower OSB prices and a decline in sales volume.

LPSA

The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction. The LPSA segment carries out manufacturing operations in Chile and Brazil and operates sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.

Segment sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):

	Three Months Ended September 30,			Nine Months Ended September 30,
	2025	2024	% Change	2025	2024	% Change
Net sales	$39	$47	(17)%	$134	$140	(4)%
Adjusted EBITDA	5	9	(50)%	25	29	(13)%

For the three and nine months ended September 30, 2025, net sales decreased year over year by $8 million and $6 million, respectively, primarily due to lower OSB prices.

For the three and nine months ended September 30, 2025, Adjusted EBITDA decreased by $5 million and $4 million year over year, respectively, primarily due to lower OSB prices.

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 Solutions (LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions®), LP® Structural Solutions (LP® TechShield® Radiant Barrier Sheathing, LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, LP® FlameBlock® Fire-Rated Sheathing, 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 the U.S., Canada, Chile, and Brazil. For more information, visit LPCorp.com.

Forward-Looking Statements

Forward-looking statements notice

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,” “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 LP’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, new, ongoing, or escalated geopolitical or military conflicts or tensions including the conflict between Russia and Ukraine, the conflicts in the Middle East, tensions between the United States and China, and tensions between China and Taiwan; 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

In evaluating our business, we utilize non-GAAP financial measures that fall within the meaning of SEC Regulation G and Regulation S-K Item 10(e), which we believe provide users of the financial information with additional meaningful comparison to prior reported results. Non-GAAP financial measures do not have standardized definitions and are not defined by U.S. GAAP. In this press release, we disclose net income excluding interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense, loss on impairment attributed to LP, 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 items, income from discontinued operations, net of income taxes, and net income attributed to noncontrolling interest, as Adjusted EBITDA (Adjusted EBITDA), which is a non-GAAP financial measure. 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. We also disclose net income excluding loss on impairment attributed to LP, 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, and net income attributed to noncontrolling interest, and adjusting for a normalized tax rate, as Adjusted Income (Adjusted Income), which is a non-GAAP financial measure. In addition, we disclose Adjusted Diluted EPS, which is calculated as Adjusted Income divided by diluted shares outstanding (Adjusted Diluted EPS). 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. 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.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Net sales	$663	$722	$2,141	$2,261
Cost of sales	(534)	(530)	(1,637)	(1,591)
Gross profit	129	193	504	669
Selling, general, and administrative expenses	(95)	(75)	(250)	(215)
Loss on impairment	(13)	-	(31)	-
Other operating credits and charges, net	(2)	(1)	(6)	2
Income from operations	18	116	218	455
Interest expense	(4)	(4)	(11)	(12)
Investment income	5	6	12	17
Other non-operating income (expense)	(1)	(4)	(13)	2
Income before income taxes	18	113	207	462
Provision for income taxes	(9)	(23)	(54)	(117)
Equity in unconsolidated affiliate	-	-	1	12
Net income	$9	$90	$154	$358
Net income per share of common stock:
Basic	$0.13	$1.28	$2.20	$5.01
Diluted	$0.13	$1.28	$2.20	$5.00
Average shares of common stock used to compute net income per share:
Basic	70	70	70	71
Diluted	70	71	70	72

CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

	September 30, 2025	December 31, 2024
ASSETS
Cash and cash equivalents	$316	$340
Receivables, net	158	131
Inventories	357	357
Prepaid expenses and other current assets	31	27
Total current assets	862	855
Property, plant, and equipment, net	1,669	1,592
Timber and timberlands	25	29
Operating lease assets, net	23	25
Goodwill and other intangible assets	24	26
Investments in and advances to affiliates	17	17
Other assets	23	20
Deferred tax asset	6	4
Total assets	$2,649	$2,569
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities	$280	$287
Income tax payable	14	11
Total current liabilities	294	299
Long-term debt	348	348
Deferred income taxes	166	145
Non-current operating lease liabilities	22	24
Contingency reserves, excluding current portion	26	27
Other long-term liabilities	55	57
Total liabilities	$910	$899
Stockholders’ equity:
Common stock	85	86
Additional paid-in capital	500	478
Retained earnings	1,649	1,615
Treasury stock	(386)	(386)
Accumulated comprehensive loss	(108)	(122)
Total stockholders’ equity	1,739	1,671
Total liabilities and stockholders’ equity	$2,649	$2,569

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$9	$90	$154	$358
Adjustments to net income:
Depreciation and amortization	36	31	106	93
Loss on impairment	13	-	31	-
Stock-based compensation expense	12	4	24	15
Deferred taxes	20	(5)	16	(1)
Foreign currency remeasurement and transaction loss (gain)	-	4	8	(2)
Other adjustments, net	9	-	12	(17)
Changes in assets and liabilities (net of acquisitions and divestitures):
Receivables	10	27	(26)	(6)
Inventories	6	2	(12)	4
Prepaid expenses and other current assets	(9)	-	(3)	(11)
Accounts payable and accrued liabilities	(3)	12	-	28
Income taxes payable, net of receivables	(15)	18	6	39
Net cash provided by operating activities	89	184	315	500
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant, and equipment additions	(84)	(44)	(216)	(121)
Investment in affiliates	-	(17)	-	(17)
Other investing activities, net	-	-	-	16
Net cash used in investing activities	(83)	(61)	(216)	(122)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of cash dividends	(19)	(18)	(58)	(56)
Repurchase of common stock	-	(73)	(61)	(188)
Other financing activities	-	(4)	(5)	(8)
Net cash used in financing activities	(20)	(95)	(124)	(252)
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(2)	1	1	(2)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(16)	29	(23)	124
Cash, cash equivalents, and restricted cash at beginning of period	333	317	340	222
Cash, cash equivalents, and restricted cash at end of period	$316	$346	$316	$346

KEY 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 housing starts for the three and nine months ended September 30, 2025 and 2024 (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025		2024
Housing starts:
Single-Family	249	260		742	782
Multi-Family	116	93		315	263
	364	353	1,057		1,045

Actual U.S. housing starts data, in thousands, reported by the U.S. Census Bureau as published through September 17, 2025. September 2025 housing starts have not yet been published by the U.S. Census Bureau, and therefore, we have calculated September housing starts as the average of July and August 2025 actual housing starts.

We monitor sales volumes for our products in our Siding, OSB, and LPSA 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 nine months ended September 30, 2025 and 2024 (in MMSF):

	Three Months Ended September 30, 2025					Three Months Ended September 30, 2024
Sales Volume	Siding	OSB		LPSA	Total	Siding	OSB	LPSA	Total
Siding Solutions	461	-		35	496	460	-	11	470
OSB - Structural Solutions	-		379	121	500	-	402	130	532
OSB - commodity	-		376	-	376	-	431	-	431
	Nine Months Ended September 30, 2025					Nine Months Ended September 30, 2024
Sales Volume	Siding	OSB		LPSA	Total	Siding	OSB	LPSA	Total
Siding Solutions	1,393	-		53	1,446	1,318	-	29	1,347
OSB - Structural Solutions	-	1,227		400	1,627	-	1,297	397	1,693
OSB - commodity	-	1,232		-	1,232	-	1,261	-	1,261

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 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 nine months ended September 30, 2025 and 2024 for each of our segments is listed below:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Siding	77%	77%	77%	78%
OSB	80%	78%	79%	78%
LPSA	72%	68%	69%	73%

SELECTED SEGMENT INFORMATION

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
NET SALES BY BUSINESS SEGMENT
Siding	$443	$420	$1,305	$1,196
OSB	179	253	696	917
LPSA	39	47	134	140
Other	2	2	6	7
Total Sales	$663	$722	$2,141	$2,261

RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA, NON-GAAP ADJUSTED INCOME, AND NON-GAAP ADJUSTED DILUTED EPS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Net income	$9	$90	$154	$358
Add (deduct):
Provision for income taxes	9	23	54	117
Depreciation and amortization	36	31	106	93
Stock-based compensation expense	12	4	24	15
Loss on impairment	13	-	31	-
Other operating credits and charges, net	1	1	5	2
Business exit credits and charges	1	-	1	(14)
Interest expense	4	4	11	12
Investment income	(5)	(6)	(12)	(17)
Other non-operating items	1	4	13	(2)
Adjusted EBITDA	$82	$153	$386	$564
SEGMENT ADJUSTED EBITDA
Siding	$117	$123	$348	$318
OSB	(27)	33	46	249
LPSA	5	9	25	29
Other	(13)	(12)	(33)	(32)
Total Adjusted EBITDA	$82	$153	$386	$564

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Net income per share of common stock - diluted	$0.13	$1.28	$2.20	$5.00
Net income	$9	$90	$154	$358
Add (deduct):
Loss on impairment	13	-	31	-
Other operating credits and charges, net	1	1	5	2
Business exit credits and charges	1	-	1	(14)
Reported tax provision	9	23	54	117
Adjusted income before tax	34	115	244	463
Normalized tax provision at 25%	(8)	(29)	(61)	(116)
Adjusted Income	$25	$86	$183	$347
Diluted shares outstanding	70	71	70	72
Adjusted Diluted EPS	$0.36	$1.22	$2.62	$4.84