Louisiana-Pacific Corporation

Second-quarter 2026 net sales were $664 million, down $90 million year over year, and EBITDA was $79 million, down $63 million. Adjusted EPS was $0.40. Siding sales increased 4% year over year as 7% higher prices partially offset 11% lower volumes, and Siding EBITDA margin was 26%. Operating cash flow was $140 million, and the company ended the quarter with just under $1 billion in liquidity, including $228 million of cash on hand and an undrawn $750 million revolver. For Q3, LP expects Siding revenue of $460 million to $470 million and Siding EBITDA of $110 million to $120 million, with margin of about 25%; full-year Siding revenue, EBITDA and margin guidance was affirmed. OSB EBITDA is expected to be approximately negative $45 million in Q3 and negative $120 million for the full year, assuming flat prices at current levels. Full-year CapEx is now expected to be about $320 million, down $70 million from prior guidance.

Jason Ringblom said LP is focused on long-term value creation, safety and efficiency despite a housing market that feels “stuck in neutral.” He emphasized that SmartSide continues to gain share, citing normalized channel inventories, higher sell-through, and a rebound in order intake, and he pointed to a long runway for Siding growth supported by capacity additions in Green Bay, Bath and North Branch. He also stressed that the company’s updated Siding outlook is based on true customer demand rather than restocking.

Alan Haughie said Siding pricing contributed $27 million to revenue and EBITDA, while lower volume reduced revenue by $46 million and EBITDA by $24 million. He highlighted a $14 million EBITDA drag from inflation and other items, including crude-oil-related freight pressure, plus unplanned downtime at Dawson Creek and flooding-related freight disruption in Manitoba; he noted that absent those events, EBITDA would have been at or above the top end of guidance. On cash, he said operating cash flow was $140 million, capex was $59 million in the quarter, shareholders received $21 million, and total liquidity ended at just under $1 billion.

Analysts focused on Siding volume trends by end market, with management saying offsite/shed rebounded sharply from Q1, repair and remodel is expected to be flat to slightly up, and the rest of the market is flat to slightly down. On the Boise Cascade distribution changes, management said LP does not expect a lapse in coverage and is working to have new committed partners in place by October 1 at the latest. Questions on OSB led management to say it is running mills in the mid- to high-70s utilization range and is balancing supply with demand while considering cost and efficiency rather than aggressive downtime decisions.