Louisiana-Pacific (NYSE:LPX) Announces Earnings Results

Louisiana-Pacific (NYSE:LPX) released its quarterly earnings results on Tuesday. The building manufacturing company reported $0.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.18, Zacks reports. The company had revenue of $690.00 million during the quarter, compared to analysts’ expectations of $671.27 million. Louisiana-Pacific had a net margin of 2.19% and a return on equity of 4.67%. The business’s quarterly revenue was up 4.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.36 earnings per share.

Here are the key takeaways from Louisiana-Pacific’s conference call:

• Siding returned to growth in Q3, with volumes up 2% and net sales up 7% to a record $473 million despite a 2% decline in single-family housing starts. LP expects roughly 3% siding growth in Q4 and raised the lower end of its full-year revenue and EBITDA outlook.
• LP’s expanded siding distribution network is intended to improve geographic coverage, partner exclusivity, and sales execution. Management said Q3 sell-through was robust, with ExpertFinish sell-through up 8% year over year and 13% sequentially, while new builder relationships—including Taylor Morrison—could support future share gains.
• OSB remained challenged, posting a $24 million EBITDA loss as average prices were slightly below last year and raw-material and labor inflation persisted. LP indefinitely curtailed its Jasper, Texas, mill and temporarily idled its Maniwaki, Quebec, mill in response to weak demand, with Q4 OSB EBITDA expected to be approximately negative $35 million.
• Inflation continues to pressure profitability, particularly through MDI resin, paper overlay, diesel, and freight costs. Siding absorbed $12 million of raw-material pressure and $6 million of freight pressure in Q3, and management expects Q4 price-cost performance to be more challenging before planned price increases are realized in January 2027.
• LP generated $112 million of operating cash flow in Q3, ended the period with $265 million in cash and more than $1 billion of total liquidity, and maintained investment in SmartSide and ExpertFinish capacity. Full-year company EBITDA guidance was improved to $270 million-$280 million.

Louisiana-Pacific Stock Performance

LPX opened at $73.81 on Wednesday. The stock has a market cap of $5.16 billion, a PE ratio of 64.60, a P/E/G ratio of 5.88 and a beta of 1.67. The company has a current ratio of 3.22, a quick ratio of 1.67 and a debt-to-equity ratio of 0.20. Louisiana-Pacific has a 1 year low of $62.18 and a 1 year high of $100.34. The stock’s 50 day simple moving average is $68.54 and its 200-day simple moving average is $75.25.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on LPX shares. TD increased their target price on Louisiana-Pacific from $86.00 to $90.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Zacks Research raised Louisiana-Pacific from a “strong sell” rating to a “hold” rating in a research report on Monday, October 5th. Weiss Ratings upgraded Louisiana-Pacific from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, September 2nd. Bank of America reduced their price objective on Louisiana-Pacific from $100.00 to $85.00 and set a “buy” rating for the company in a research report on Wednesday, October 14th. Finally, Oppenheimer reduced their price objective on Louisiana-Pacific from $107.00 to $104.00 and set an “outperform” rating for the company in a research report on Monday, October 26th. Eleven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $89.25.

Key Stories Impacting Louisiana-Pacific

Here are the key news stories impacting Louisiana-Pacific this week:

• Positive Sentiment: LPX earned $0.39 per share, topping the $0.21 consensus estimate and last year’s $0.36. Revenue of $690 million also exceeded expectations of $671.27 million and grew 4.2% year over year. Louisiana-Pacific beats Q3 earnings and revenue estimates
• Positive Sentiment: Siding sales reached a record $473 million, another potential support for sentiment alongside the earnings and revenue beats. Louisiana-Pacific shares rise as earnings beat and siding sales reach a record

About Louisiana-Pacific

Louisiana-Pacific Corporation (NYSE: LPX) is a manufacturer of building products used in residential, repair and remodeling, and outdoor construction. The company produces engineered wood products designed for use in structural framing, exterior siding, trim, and other building applications.

Its product portfolio includes LP SmartSide siding and trim, oriented strand board and other structural panel products, and solutions for outdoor buildings and construction projects. Louisiana-Pacific markets its products through building-material distributors, retailers, and specialty dealers.

Founded in 1972, Louisiana-Pacific is headquartered in Nashville, Tennessee.