LOUISIANA-PACIFIC CORP (NYSE:LPX) reported its third-quarter 2025 financial results, delivering a performance that fell short of analyst expectations on the top and bottom lines. The building solutions manufacturer navigated a challenging quarter marked by a significant divergence in performance between its high-growth Siding segment and its more cyclical Oriented Strand Board (OSB) business.
Earnings and Revenue Versus Estimates
The company's quarterly results presented a mixed financial picture when measured against Wall Street forecasts. Louisiana-Pacific reported revenue of $663 million for the third quarter, which came in below the analyst consensus estimate of approximately $671.6 million. This represents a year-over-year decrease of $59 million from the $722 million reported in the same quarter last year.
The earnings performance showed a more pronounced miss. The company posted adjusted earnings per share of $0.36, significantly lower than the $0.42 per share that analysts had projected. This compares to an adjusted EPS of $1.22 in the third quarter of 2024, highlighting the substantial earnings compression the company experienced during the period.
Key financial metrics from the quarter include:
- Consolidated net sales: $663 million (down 8% year-over-year)
- Net income: $9 million (down 90% year-over-year)
- Adjusted EBITDA: $82 million (down 46% year-over-year)
- Adjusted diluted EPS: $0.36 (down 70% year-over-year)
Market Reaction and Price Action
The market's response to the earnings release has been notably negative in the lead-up to and following the announcement. The stock has experienced downward pressure across multiple time frames, reflecting investor concerns about the company's performance and outlook.
Recent performance indicators show:
- Last week: -6.6%
- Last two weeks: -7.9%
- Last month: -5.1%
This consistent downward trend suggests that investors were anticipating a challenging quarter and have been adjusting their positions accordingly. The pre-market trading showing no significant movement immediately following the release may indicate that the results were largely in line with already-adjusted expectations.
Segment Performance and Business Highlights
The quarter was characterized by a tale of two businesses within Louisiana-Pacific's operations. The Siding segment continued to demonstrate strong growth and profitability, while the OSB business faced substantial headwinds.
The Siding segment delivered:
- Net sales of $443 million, a 5% increase year-over-year
- Adjusted EBITDA of $117 million
- Growth driven by 5% higher selling prices
- ExpertFinish® net sales growth of 31% for the quarter
In contrast, the OSB segment experienced significant challenges:
- Net sales of $179 million, a 29% decrease year-over-year
- Adjusted EBITDA of $(27) million, down from $33 million in Q3 2024
- Decline driven by lower OSB prices and reduced volumes
Forward Guidance and Analyst Comparisons
Looking ahead, Louisiana-Pacific provided guidance for the fourth quarter and full year 2025. The company's outlook for its Siding business appears robust, with the reaffirmation of full-year Adjusted EBITDA guidance of approximately $430 million, representing a 26% margin.
The company's fourth-quarter revenue guidance suggests Siding net sales of approximately $370 million, which would represent about 3% year-over-year growth. When compared to analyst estimates for fourth-quarter 2025 sales of approximately $643.6 million across all segments, the company's consolidated outlook appears conservative, particularly given the ongoing challenges in the OSB segment.
The OSB segment is projected to generate approximately $(45) million in Adjusted EBITDA for the fourth quarter, based on the assumption that OSB prices remain unchanged from October 31, 2025 levels.
Capital Allocation and Financial Position
Louisiana-Pacific maintained a strong financial position during the quarter, with several key capital allocation highlights:
- Invested $84 million in capital expenditures during Q3
- Paid $19 million in cash dividends
- Maintained total liquidity of $1.1 billion as of September 30, 2025
- Generated $89 million in cash from operating activities
The company's balance sheet remains solid, with $316 million in cash and cash equivalents and total assets of $2.65 billion as of the quarter's end.
For more detailed earnings information and future estimates, visit the LPX earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.
