Louisiana-Pacific Corporation (NYSE: LPX) reported a net loss for the fourth quarter ended December 31, 2025, as price and volume contractions in its Oriented Strand Board (OSB) segment offset gains in its siding business.
Latest Quarterly Results
Consolidated net sales for the fourth quarter were $567 million, a decrease of 16.7% from $681 million in the same period the previous year. The company reported a net loss of $8 million, or $(0.11) per diluted share, representing a 112.7% decrease from the $63 million net income reported in the fourth quarter of 2024.
Segment results for the quarter are as follows:
Siding: Net sales increased 6% to $384 million. This growth was attributed to an 8% increase in average net selling prices, which was partially offset by a 2% decline in unit shipments.
Oriented Strand Board (OSB): Net sales decreased 49% to $136 million. The segment recorded an Adjusted EBITDA loss of $39 million, compared to a $50 million profit in the prior-year period.
Other: Net sales for this segment, which now includes South American operations (LPSA), were $47 million, down from $52 million.
Full-Year Results Context
For the full year 2025, consolidated net sales were $2.7 billion, a decrease of 8% from $2.94 billion in the prior year. Net income declined to $146 million, compared to $420 million in 2024, representing a 65% year-over-year decrease.
Annual Siding net sales increased 8% to $1.7 billion, driven by higher volumes and pricing. In contrast, OSB net sales decreased to $832 million, reflecting lower pricing and reduced sales volumes.
Business & Operations Update
During 2025, the company invested 61 million, leaving $177 million in remaining authorization.
Operational restructuring occurred in the fourth quarter as LP South America (LPSA) was moved into the “Other” segment after failing to meet reportable segment criteria. The company also announced a quarterly dividend of $0.30 per share for the first quarter of 2026, a 7% increase from the previous $0.28 dividend.
Guidance & Outlook
For the first quarter of 2026, the company issued guidance for siding net sales between $350 million and $355 million, representing an estimated 12% year-over-year decline. Management expects an OSB Adjusted EBITDA loss of $25 million to $30 million for the first quarter.
Items to watch for the full year 2026 include:
Total capital expenditures projected at approximately $400 million.
Targeted siding net sales of approximately $1.7 billion.
Expected breakeven OSB Adjusted EBITDA for the full year.
Performance Summary
Consolidated revenue decreased 16.7% in the fourth quarter. LP reported a quarterly net loss of $8 million. Siding sales increased 6% while OSB sales decreased 49%. The company increased its quarterly dividend to $0.30. Full-year 2025 net income was $146 million.
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