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NASHVILLE - Louisiana-Pacific Corporation (NYSE:LPX) reported second-quarter earnings that fell short of analyst expectations on Wednesday, despite posting better-than-expected revenue.
Shares of the building products manufacturer declined 2.73% in pre-market trading following the release.
The company reported adjusted earnings of $0.99 per share for the second quarter, missing the analyst consensus of $1.08, while revenue came in at $755 million, surpassing expectations of $739.96 million. Revenue decreased by $60 million or 7.4% compared to the same period last year, though Siding segment sales increased by 11% YoY to $460 million.
The earnings miss came as the company’s OSB (Oriented Strand Board) segment faced significant headwinds, with net sales decreasing by $101 million to $250 million due primarily to lower prices. OSB Adjusted EBITDA plummeted 85% to just $19 million compared to $125 million in the year-ago quarter.
"LP’s Siding segment grew and captured share to set new records for sales volume, sales revenue, and EBITDA in the second quarter," said LP Chairperson and CEO Brad Southern. "While the OSB market is challenging currently, with commodity prices at multi-year lows, LP will continue to execute its OSB segment strategy safely, with efficiency and discipline."
The company reaffirmed its full-year 2025 Siding net sales guidance of approximately $1.7 billion, representing about 9% growth, with Siding Adjusted EBITDA expected to be around $430 million. For the third quarter, LP anticipates Siding net sales of approximately $430 million, reflecting about 3% growth.
However, the company expects its OSB segment to remain under pressure, forecasting an Adjusted EBITDA loss of approximately $45 million for the third quarter and a loss of about $25 million for the full year.
Louisiana-Pacific maintained its quarterly cash dividend of $0.28 per share, payable on August 29 to stockholders of record as of August 15.
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