Louisiana-Pacific Corp (NYSE:LPX) Reports Q3 2025 Earnings Miss, Driven by OSB Segment Weakness

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.