Louisiana-Pacific Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. Guidance figures: 6 lowered, 5 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales fell $90 million: Net sales were $664 million against $755 million a year earlier. Siding net sales fell 4% and OSB net sales fell $68 million, while Other net sales were $41 million against $45 million. Source
• Net income and diluted EPS declined: Net income was $26 million, or $0.38 per diluted share. Management cited the Adjusted EBITDA decline, partly offset by the absence of $17 million of 2025 impairment, a $12 million lower tax provision and an $8 million smaller foreign currency loss. Source
• Adjusted EBITDA down $63 million: Adjusted EBITDA was $79 million against $142 million, and Adjusted diluted EPS was $0.40 against $1.07. Cash provided by operating activities was $140 million. Source
• Lower OSB prices were the largest drag: Management attributed $35 million of the Adjusted EBITDA decline to lower OSB prices, $24 million to lower Siding volumes, $11 million to lower OSB volumes and $12 million to inflationary costs. Siding price increases added $27 million. Source
• Siding sales down 4% on volume: Siding net sales were $441 million against $460 million. Unit shipments fell 11% and average net selling price rose 7%, which management attributed to the annual price increase and favorable mix. Source
• OSB Adjusted EBITDA fell below zero: OSB Adjusted EBITDA was $(21) million against $19 million a year earlier. Management attributed the decline of $40 million in the quarter and $106 million in the first half to lower prices and lower sales volumes. Source
• Siding margin pressure from raw materials: Management described Siding revenue as within the guided range, with margin pressure from raw material inflation. Source
• Full-year OSB and consolidated guidance cut: Full-year OSB Adjusted EBITDA guidance moved to $(120) million from $(40) million, and consolidated Adjusted EBITDA guidance to $255-270 million from $345-360 million. Siding full-year ranges were kept. Source

“We executed our strategy, and Siding delivered revenue within our guided range despite margin pressure from raw material inflation,”

LP CEO Jason Ringblom

Guidance

What changed from last quarter

• Guidance lowered: Full-year OSB Adjusted EBITDA guidance moved to $(120) million from $(40) million. Source
• Guidance lowered: Full-year consolidated Adjusted EBITDA guidance moved to $255-270 million from $345-360 million. Source
• Guidance lowered: Full-year capital expenditure guidance moved to about $320 million from about $390 million. Source
• Guidance lowered: Full-year other operations contribution assumption moved to $(35) million from $(25) million. Source
• Guidance kept: Full-year Siding net sales and Siding Adjusted EBITDA guidance were reaffirmed at $1.65-1.67 billion and $410-425 million. Source
• New guidance: Third-quarter 2026 guidance was provided for Siding, OSB, consolidated Adjusted EBITDA and other operations. Source
• New: The company anticipates Siding year-over-year growth in the third quarter of 2026, after year-over-year declines in the first and second quarters. Source

Second quarter results and drivers

• Net sales fell $90 million: Net sales were $664 million against $755 million a year earlier. Siding net sales fell 4% and OSB net sales fell $68 million, while Other net sales were $41 million against $45 million. Source
• Net income and diluted EPS declined: Net income was $26 million, or $0.38 per diluted share. Management cited the Adjusted EBITDA decline, partly offset by the absence of $17 million of 2025 impairment, a $12 million lower tax provision and an $8 million smaller foreign currency loss. Source
• Adjusted EBITDA down $63 million: Adjusted EBITDA was $79 million against $142 million, and Adjusted diluted EPS was $0.40 against $1.07. Cash provided by operating activities was $140 million. Source
• Lower OSB prices were the largest drag: Management attributed $35 million of the Adjusted EBITDA decline to lower OSB prices, $24 million to lower Siding volumes, $11 million to lower OSB volumes and $12 million to inflationary costs. Siding price increases added $27 million. Source
• First-half sales and earnings fell: First-half net sales were $1.2 billion. First-half net income was $53 million, or $0.76 per diluted share, and Adjusted EBITDA was $161 million against $304 million. Source

Siding segment performance

• Siding sales down 4% on volume: Siding net sales were $441 million against $460 million. Unit shipments fell 11% and average net selling price rose 7%, which management attributed to the annual price increase and favorable mix. Source
• Siding Adjusted EBITDA down 9%: Siding Adjusted EBITDA was $113 million against $125 million. Net price increases contributed $27 million, while lower volumes reduced results by $24 million. Source
• First-half Siding volume down 14%: Six-month Siding net sales were $801 million, down 7%. Volumes fell 14% and average net selling price rose 8%. Six-month Siding Adjusted EBITDA was $214 million against $230 million. Source
• Siding OEE improved: Siding OEE was 85% in the second quarter against 83% a year earlier, and 84% for the first half against 81%. OEE measures asset uptime, production rates and finished product quality. Source

“We anticipate Siding returning to volume and revenue growth in the third quarter.”

LP CEO Jason Ringblom

OSB segment performance

• OSB net sales down 27%: OSB net sales were $182 million against $250 million. Commodity average prices fell 20% and Structural Solutions prices fell 10%. Structural Solutions volume fell 24% and commodity volume fell 1%. Source
• OSB Adjusted EBITDA fell below zero: OSB Adjusted EBITDA was $(21) million against $19 million a year earlier. Management attributed the decline of $40 million in the quarter and $106 million in the first half to lower prices and lower sales volumes. Source
• Structural Solutions volume down most: Structural Solutions sales volume was 342 million square feet against 450 million, and commodity volume was 425 million against 430 million. Total OSB volume was 768 million against 880 million. Source

Other operations and South America

• Other net sales decreased: Other net sales were $41 million against $45 million. The text attributes the decline mainly to lower OSB selling prices in South America and cites a $3 million decrease for the quarter. Source
• Other Adjusted EBITDA fell to $(13) million: Other Adjusted EBITDA was $(13) million against $(1) million. Management attributed the decrease to lower South America net sales and higher costs in that market. Source
• Other includes timber and corporate costs: Other includes timber and timberlands, closed operations and unallocated corporate expenses. First-half Other Adjusted EBITDA was $(19) million against $1 million. Source

Costs, pricing and margins

• Raw material and crude costs rose: Raw material, freight and labor costs rose $10 million in the quarter and $15 million year to date. The quarter included a $4 million impact from higher crude oil costs. Source
• Gross profit fell to $116 million: Gross profit was $116 million against $178 million. Cost of sales was $549 million against $577 million, and selling, general and administrative expenses were $80 million against $79 million. Source
• Siding margin pressure from raw materials: Management described Siding revenue as within the guided range, with margin pressure from raw material inflation. Source

Demand, starts and volumes

• US housing starts roughly flat: Second-quarter US housing starts were 372 thousand against 375 thousand. Single-family starts were 253 thousand against 264 thousand, and multi-family starts were 119 thousand against 111 thousand. Source
• Siding volume down 11%: Siding sales volume was 446 million square feet against 500 million a year earlier, measured on a standard 3/8-inch thickness basis. First-half Siding volume was 804 million against 935 million. Source
• OSB volume down 13% in quarter: Total OSB sales volume was 768 million square feet against 880 million. First-half OSB volume was 1,468 million against 1,704 million. Source

Guidance changes and assumptions

• Full-year OSB and consolidated guidance cut: Full-year OSB Adjusted EBITDA guidance moved to $(120) million from $(40) million, and consolidated Adjusted EBITDA guidance to $255-270 million from $345-360 million. Siding full-year ranges were kept. Source
• OSB guidance assumes flat prices: OSB guidance assumes Random Lengths prices stay at the levels published on July 31, 2026. Management states this is a modeling assumption and not a price forecast. Source
• Capital spending guidance reduced: Full-year capital expenditure guidance is about $320 million, with strategic growth about $140 million and sustaining maintenance about $180 million. Source

Capital, cash and shareholder returns

• Dividends paid in second quarter: The company paid $21 million in cash dividends in the second quarter, against $19 million a year earlier. Six-month dividends paid were $42 million. Source
• Capital expenditures lower in quarter: The company invested $59 million in capital expenditures in the second quarter, against $68 million a year earlier. First-half capital expenditures were $120 million against $132 million. Source
• Operating cash flow fell in first half: First-half cash provided by operations was $102 million against $226 million a year earlier. Second-quarter cash provided by operations was $140 million against $162 million. Source
• Liquidity about $1 billion at June 30: Cash and cash equivalents were $228 million at June 30, 2026, against $292 million at December 31, 2025. Total liquidity was about $1 billion, against about $900 million at March 31, 2026. Source
• No share repurchases in first half: No stock was repurchased in the first half of 2026. The first half of 2025 included $61 million of stock purchases. Source

Coming up, as management said on 5 August 2026

• Dividend payable August 28: The $0.30 per share quarterly dividend is payable on August 28, 2026, to holders of record on August 14, 2026. Source
• Siding growth expected in third quarter: Management anticipates Siding year-over-year growth in the third quarter of 2026, with full-year Siding guidance reaffirmed. Source

Figures management reported

Risks management discussed

• External: Higher crude oil costs added $4 million to costs in the second quarter, within raw material, freight and labor cost increases. Source
• Financial: Raw material inflation put pressure on Siding margins, while Siding revenue stayed within the guided range. Source
• External: OSB net sales declined mainly on lower OSB prices and lower sales volumes. Source
• Operational: Other operations in South America saw lower net sales and higher costs in that market. Source

Earlier plans management reported on

• Met: Management stated Siding revenue was within its guided range for the second quarter. Source
• Met: The first-quarter release stated results met or exceeded the guided ranges.
• Not stated: Management reaffirmed the full-year Siding guidance and anticipates growth in the third quarter. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

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.