Louisiana-Pacific Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated net sales were $691 million for the three months ended September 30, 2026, an increase from $663 million in the prior-year period; for the nine months ended September 30, 2026, sales were $1,929 million, a decrease from $2,141 million.
• Net income was $23 million for the quarter, an increase of $14 million from $9 million in the prior-year quarter; for the nine months, net income was $76 million, down from $154 million.
• Net income per diluted share was $0.32 for the quarter, up $0.20 from $0.12 in the prior year; for the nine months, it was $1.09, down from $2.20.
• Adjusted EBITDA was $82 million for the quarter, flat year-over-year; for the nine months, it was $243 million, down from $386 million.
• Adjusted Diluted EPS was $0.39 for the quarter, an increase of $0.02 from $0.37 in the prior year; for the nine months, it was $1.17, down from $2.76.
• Cash provided by operating activities was $112 million for the quarter, compared to $89 million in the prior year; for the nine months, it was $214 million, down from $315 million.
• Total assets were $2,646 million as of September 30, 2026, compared to $2,627 million as of December 31, 2025.
• Long-term debt was $349 million as of September 30, 2026, compared to $348 million at the end of 2025.
• Cash and cash equivalents were $265 million as of September 30, 2026, down from $292 million at the end of 2025.

Guidance and Future Outlook:

• Fourth Quarter 2026 Siding net sales are guided to be $390–400 million, representing approximately 3% year-over-year growth.
• Full Year 2026 Siding net sales are guided to be $1.66–1.67 billion, representing approximately 1% year-over-year decline.
• Fourth Quarter 2026 Siding Adjusted EBITDA is guided to be $80–90 million, implying a margin of approximately 22%.
• Full Year 2026 Siding Adjusted EBITDA is guided to be $415–425 million, implying a margin of approximately 25%.
• Fourth Quarter 2026 OSB Adjusted EBITDA is guided to be $(35) million.
• Full Year 2026 OSB Adjusted EBITDA is guided to be $(95) million.
• Fourth Quarter 2026 Consolidated Adjusted EBITDA is guided to be $30–40 million.
• Full Year 2026 Consolidated Adjusted EBITDA is guided to be $270–280 million.
• Full Year 2026 Capital Expenditures are expected to be approximately $300 million, comprising $140 million for strategic growth projects and $160 million for sustaining maintenance projects.
• OSB Adjusted EBITDA guidance assumes Random Lengths published OSB prices remain unchanged from October 30, 2026.
• Other operations are expected to contribute approximately $(15) million in the fourth quarter and $(50) million for the full year 2026.

Business Segments and Product Lines:

• Siding net sales were $473 million for the quarter, up 7% year-over-year, driven by a 5% increase in average net selling prices and a 2% increase in unit shipments; year-to-date sales were $1,274 million, down 2% due to a 7% price increase offset by a 9% volume decline.
• Siding Adjusted EBITDA was $119 million for the quarter, up 1% year-over-year, driven by $23 million in net price gains and $4 million from volume, partially offset by $19 million in higher raw material, freight, and labor costs.
• Siding Adjusted EBITDA for the nine months was $333 million, down 4% year-over-year, as $77 million in price increases were offset by $55 million from lower volumes and $35 million in higher costs.
• OSB net sales were $180 million for the quarter, up 1% year-over-year, driven by higher volumes in commodity OSB (25% increase) offset by lower prices (-6%) and volume declines in Structural Solutions (-10%); year-to-date sales were $530 million, down 24% due to price and volume declines.
• OSB Adjusted EBITDA was $(24) million for the quarter, an improvement of $3 million year-over-year, driven by a $14 million lower inventory reserve and $1 million in SG&A savings, offset by $7 million from lower prices and $7 million from inflationary costs.
• OSB Adjusted EBITDA for the nine months was $(58) million, a decline of $104 million year-over-year, reflecting lower selling prices and sales volumes.
• Other operations net sales were $38 million for the quarter, down $3 million year-over-year, and $125 million for the nine months, down $15 million, primarily due to declines in South America.
• Other operations Adjusted EBITDA was $(12) million for the quarter, down $4 million year-over-year, and $(31) million for the nine months, down $24 million.
• Siding Overall Equipment Effectiveness (OEE) was 83% for the quarter (up from 82%) and 84% for the nine months (up from 81%).
• OSB OEE was 78% for the quarter (down from 81%) and 79% for the nine months (flat with 79%).

Market and Competitive Landscape:

• U.S. Single-Family housing starts were 232,000 for the quarter (down from 235,000) and 699,000 for the nine months (down from 728,000).
• U.S. Multi-Family housing starts were 109,000 for the quarter (down from 120,000) and 338,000 for the nine months (up from 320,000).
• LP's expanded distribution network is positioned to support continued growth and share gains in SmartSide Trim & Siding.
• The company notes that OSB prices are determined by external factors including total industry capacity and wider industry cycles affecting supply and demand trends.

Risks and Challenges:

• Risks include changes in governmental fiscal, trade, and monetary policies, including tariffs and trade barriers.
• Exposure to rising inflation, supply chain disruptions, and geopolitical or military conflicts.
• Commodity nature of products and price volatility driven by external supply and demand factors.
• Fluctuations in the cost and availability of raw materials (wood fiber, resins), energy (natural gas, electricity, diesel), and transportation.
• Dependence on third-party vendors and suppliers for critical goods and services.
• Potential impacts from labor shortages, manufacturing interruptions (explosions, fires, weather), and public health issues.
• Risks related to currency exchange rates, particularly the Canadian dollar, Chilean peso, Brazilian real, and Argentine peso.
• Potential for warranty costs exceeding reserves and challenges to intellectual property.
• Cybersecurity events affecting IT systems or third-party providers.

Management Commentary and Tone:

• CEO Jason Ringblom stated, "Siding returned to volume growth in the third quarter and set a new record for net sales."
• Management highlighted that LP's expanded distribution network positions SmartSide Trim & Siding for continued growth and share gains.
• The tone regarding the Siding segment was positive regarding volume recovery and record sales, while acknowledging cost headwinds from raw materials and freight.
• Management noted that OSB results were negatively impacted by lower selling prices and declining sales volumes.

Other Key Points:

• Capital expenditures for the quarter were $56 million.
• Cash dividends paid were $21 million during the third quarter.
• Total liquidity was maintained at approximately $1 billion as of September 30, 2026.
• The company operates over 20 manufacturing facilities across North and South America.
• Adjusted Income and Adjusted Diluted EPS definitions were updated in Q1 2026 to exclude foreign currency gains and losses; prior periods were recast for comparability.
• No stock repurchases occurred in the third quarter of 2026.