Louisiana-Pacific’s Siding EBITDA Hits $444M; OSB Q1 Loss Projected
LP’s siding business grew 8% in 2025, delivering $444 million of EBITDA at a 26% margin, while OSB generated just $7 million of full-year EBITDA and faces a projected $25–30 million Q1 loss. Management forecasts Q1 siding volumes down 15–20% and 25–26% margins, while OSB prices remain highly sensitive.
1. Strong 2025 Siding Results
Louisiana-Pacific’s siding division delivered $444 million of EBITDA in 2025, up $54 million year-over-year, on 8% revenue growth driven by a 4% rise in net selling prices and volumes. ExpertFinish volumes jumped 18% full-year and 35% in Q4, supporting margin expansion to 26%.
2. OSB Profit Pressure
The oriented strand board segment saw revenue decline by $129 million and a $95 million EBITDA drop in Q4, ending 2025 with just $7 million of full-year EBITDA. Inflation-adjusted OSB prices hit 20-year troughs, and the segment is forecast to lose $25–30 million in Q1 2026 with below-average utilization.
3. Capital Allocation and Liquidity
LP generated $382 million of operating cash flow in 2025 after $291 million of capex, returning $139 million to shareholders via $78 million in dividends and $61 million in buybacks. The company closed the year with over $1 billion of available liquidity, including $292 million of cash and a $750 million revolver.
4. 2026 Outlook
Management expects Q1 siding volumes to decline 15–20% due to channel inventory normalization, with full-year siding volumes down low single digits and margins of 25–26%. OSB remains highly sensitive to commodity pricing, and early-year headwinds are anticipated in both segments.