Louisiana-Pacific Corp rises amid sector rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 26 2024
0mins
Should l Buy LPX?
Source: SeekingAlpha
Louisiana-Pacific Corp (LPX) saw a price increase of 7.19% as it crossed above its 5-day SMA. This movement occurs in the context of a broader market decline, with the Nasdaq-100 down 0.75% and the S&P 500 down 0.10%.
The stock's rise is attributed to sector rotation, as investors are shifting their focus towards companies in the building materials sector, despite the overall market weakness. This trend indicates a potential shift in investor sentiment, favoring stocks that are perceived to have strong fundamentals in a challenging market environment.
As the market continues to fluctuate, Louisiana-Pacific Corp's performance may reflect broader trends in the construction and building materials industry, suggesting that investors are looking for stability and growth opportunities in this sector.
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Analyst Views on LPX
Wall Street analysts forecast LPX stock price to rise
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 88.860
Low
94.00
Averages
104.69
High
117.00
Current: 88.860
Low
94.00
Averages
104.69
High
117.00
About LPX
Louisiana-Pacific Corporation is a provider of building solutions. The Company manufactures engineered wood products that meet the demands of builders, remodelers and homeowners worldwide. It operates through three segments: Siding, Oriented Strand Board (OSB), and LP South America (LPSA). The Siding segment serves diverse end markets with a product portfolio of engineered wood siding, trim, soffit, and fascia, including LP SmartSide Trim & Siding, LP SmartSide ExpertFinish Trim & Siding, LP BuilderSeries Lap Siding, and LP Outdoor Building Solutions. The OSB segment manufactures and distributes OSB structural panel products, including the value-added OSB product portfolio known as LP Structural Solutions. The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Louisiana-Pacific Corporation Q4 2025 Earnings Call Insights
- Sales Growth Highlight: Louisiana-Pacific Corporation reported net sales of $2.7 billion and EBITDA of $436 million for 2025, with adjusted earnings per share at $2.65, achieving a 6% revenue increase despite challenges in the housing market, indicating stable financial performance amid adversity.
- Innovation-Driven Products: The Siding business saw a 35% increase in ExpertFinish sales, while Primed product volumes fell by 5%, demonstrating the company's success in enhancing market demand and profitability through product innovation and strategic market adjustments.
- Cautious Outlook: Management anticipates a 15% to 20% decline in sales volumes for Q1 2026, primarily due to elevated channel inventories, although average selling prices are expected to rise by 6% to 8%, potentially leading to an 11% to 13% decline in overall net sales, reflecting market demand uncertainties.
- Capital Expenditure Plans: Anticipated capital expenditures for 2026 are around $400 million, aimed at sustaining operations and strategic growth, with 60% of the spending expected in the second half of the year, indicating the company's commitment to long-term investment and growth strategies despite market challenges.
See More
Louisiana-Pacific Corporation Reports 2025 Financial Results
- Sales Performance Fluctuation: In Q4 2025, Louisiana-Pacific Corporation reported total sales of $567 million, a decrease of $114 million year-over-year, primarily due to a $132 million drop in Oriented Strand Board (OSB) sales to $136 million, reflecting weakened market demand and declining prices.
- Net Loss Expansion: The company recorded a net loss of $8 million in Q4 2025, translating to a diluted loss per share of $0.11, which is $70 million lower than last year, primarily driven by a $74 million reduction in Adjusted EBITDA, indicating a significant decline in profitability.
- Capital Expenditure and Buyback: In 2025, the company invested $291 million in capital expenditures and repurchased 600,000 shares for $61 million, demonstrating a proactive capital management strategy despite the overall poor financial performance.
- Cautious Future Outlook: The company anticipates a 12% decline in Q1 2026 sales to approximately $350-355 million, reflecting uncertainties in the market environment, while projecting a 2% growth in annual sales to $1.7 billion, indicating confidence in long-term growth prospects.
See More
Louisiana-Pacific Reports Q4 2025 Earnings Results
- Earnings Beat: Louisiana-Pacific's Q4 Non-GAAP EPS of $0.03 exceeded expectations by $0.05, indicating resilience in profitability despite challenging market conditions.
- Significant Revenue Decline: The company reported Q4 revenue of $567 million, a 16.7% year-over-year decrease, missing expectations by $21.91 million, highlighting ongoing challenges in market demand.
- Mixed Sales Performance: While siding net sales increased by $23 million to $384 million, Oriented Strand Board (OSB) net sales plummeted by $132 million to $136 million, reflecting volatility in the product mix.
- Cautious Future Outlook: The financial guidance for Q1 and full year 2026 indicates a projected 12% decline in siding sales, with consolidated adjusted EBITDA expected at $430 million, underscoring uncertainties and potential risks in the market.
See More
Louisiana-Pacific Increases Quarterly Dividend by 7.1%
- Dividend Increase: Louisiana-Pacific has declared a quarterly dividend of $0.30 per share, marking a 7.1% increase from the previous $0.28, indicating ongoing improvements in cash flow and profitability, which enhances investor confidence.
- Yield Analysis: The forward yield of 1.27% not only provides shareholders with a stable return but may also attract more income-seeking investors, thereby increasing the stock's market appeal.
- Shareholder Assurance: The dividend will be payable on March 13, with a record date of February 27 and an ex-dividend date also on February 27, ensuring shareholders receive their dividends promptly, further solidifying the relationship between the company and its investors.
- Market Rating: Louisiana-Pacific has been rated as Outperform in new coverage by Oppenheimer, indicating a positive outlook on its future performance, which could drive stock price appreciation and bolster investor confidence.
See More
Louisiana-Pacific Set to Announce Q4 Earnings Results
- Earnings Announcement Date: Louisiana-Pacific (LPX) is set to release its Q4 2023 earnings results on February 17 before market open, with a consensus EPS estimate of -$0.02, reflecting a significant year-over-year decline of 101.9%, indicating substantial profitability challenges ahead.
- Revenue Expectations Decline: Analysts forecast revenue of $588.91 million, down 13.5% year-over-year, highlighting the weakening demand in the building materials sector, which could pose risks to the company's financial stability moving forward.
- Historical Performance Review: Over the past two years, LPX has surpassed EPS estimates 75% of the time and revenue estimates 88% of the time; however, recent estimates have seen one upward revision and six downward revisions, suggesting a cautious market outlook on the company's future performance.
- Market Rating Changes: Oppenheimer has initiated coverage on Louisiana-Pacific with an “Outperform” rating, yet Seeking Alpha's Quant Rating raises concerns about the company's attractiveness, reflecting a divergence in market sentiment regarding its growth potential.
See More
LP BUILDING SOLUTIONS RAISES QUARTERLY DIVIDEND TO $0.30 PER SHARE
Quarterly Dividend Increase: L.P. Building Solutions has announced an increase in its quarterly dividend to $0.30 per share.
Financial Performance: The decision to raise the dividend reflects the company's strong financial performance and commitment to returning value to shareholders.
See More
Louisiana-Pacific Corporation Q4 2025 Earnings Call Insights
- Sales Growth Highlight: Louisiana-Pacific Corporation reported net sales of $2.7 billion and EBITDA of $436 million for 2025, with adjusted earnings per share at $2.65, achieving a 6% revenue increase despite challenges in the housing market, indicating stable financial performance amid adversity.
- Innovation-Driven Products: The Siding business saw a 35% increase in ExpertFinish sales, while Primed product volumes fell by 5%, demonstrating the company's success in enhancing market demand and profitability through product innovation and strategic market adjustments.
- Cautious Outlook: Management anticipates a 15% to 20% decline in sales volumes for Q1 2026, primarily due to elevated channel inventories, although average selling prices are expected to rise by 6% to 8%, potentially leading to an 11% to 13% decline in overall net sales, reflecting market demand uncertainties.
- Capital Expenditure Plans: Anticipated capital expenditures for 2026 are around $400 million, aimed at sustaining operations and strategic growth, with 60% of the spending expected in the second half of the year, indicating the company's commitment to long-term investment and growth strategies despite market challenges.
See More
Louisiana-Pacific Corporation Reports 2025 Financial Results
- Sales Performance Fluctuation: In Q4 2025, Louisiana-Pacific Corporation reported total sales of $567 million, a decrease of $114 million year-over-year, primarily due to a $132 million drop in Oriented Strand Board (OSB) sales to $136 million, reflecting weakened market demand and declining prices.
- Net Loss Expansion: The company recorded a net loss of $8 million in Q4 2025, translating to a diluted loss per share of $0.11, which is $70 million lower than last year, primarily driven by a $74 million reduction in Adjusted EBITDA, indicating a significant decline in profitability.
- Capital Expenditure and Buyback: In 2025, the company invested $291 million in capital expenditures and repurchased 600,000 shares for $61 million, demonstrating a proactive capital management strategy despite the overall poor financial performance.
- Cautious Future Outlook: The company anticipates a 12% decline in Q1 2026 sales to approximately $350-355 million, reflecting uncertainties in the market environment, while projecting a 2% growth in annual sales to $1.7 billion, indicating confidence in long-term growth prospects.
See More
Louisiana-Pacific Reports Q4 2025 Earnings Results
- Earnings Beat: Louisiana-Pacific's Q4 Non-GAAP EPS of $0.03 exceeded expectations by $0.05, indicating resilience in profitability despite challenging market conditions.
- Significant Revenue Decline: The company reported Q4 revenue of $567 million, a 16.7% year-over-year decrease, missing expectations by $21.91 million, highlighting ongoing challenges in market demand.
- Mixed Sales Performance: While siding net sales increased by $23 million to $384 million, Oriented Strand Board (OSB) net sales plummeted by $132 million to $136 million, reflecting volatility in the product mix.
- Cautious Future Outlook: The financial guidance for Q1 and full year 2026 indicates a projected 12% decline in siding sales, with consolidated adjusted EBITDA expected at $430 million, underscoring uncertainties and potential risks in the market.
See More
Louisiana-Pacific Increases Quarterly Dividend by 7.1%
- Dividend Increase: Louisiana-Pacific has declared a quarterly dividend of $0.30 per share, marking a 7.1% increase from the previous $0.28, indicating ongoing improvements in cash flow and profitability, which enhances investor confidence.
- Yield Analysis: The forward yield of 1.27% not only provides shareholders with a stable return but may also attract more income-seeking investors, thereby increasing the stock's market appeal.
- Shareholder Assurance: The dividend will be payable on March 13, with a record date of February 27 and an ex-dividend date also on February 27, ensuring shareholders receive their dividends promptly, further solidifying the relationship between the company and its investors.
- Market Rating: Louisiana-Pacific has been rated as Outperform in new coverage by Oppenheimer, indicating a positive outlook on its future performance, which could drive stock price appreciation and bolster investor confidence.
See More
Louisiana-Pacific Set to Announce Q4 Earnings Results
- Earnings Announcement Date: Louisiana-Pacific (LPX) is set to release its Q4 2023 earnings results on February 17 before market open, with a consensus EPS estimate of -$0.02, reflecting a significant year-over-year decline of 101.9%, indicating substantial profitability challenges ahead.
- Revenue Expectations Decline: Analysts forecast revenue of $588.91 million, down 13.5% year-over-year, highlighting the weakening demand in the building materials sector, which could pose risks to the company's financial stability moving forward.
- Historical Performance Review: Over the past two years, LPX has surpassed EPS estimates 75% of the time and revenue estimates 88% of the time; however, recent estimates have seen one upward revision and six downward revisions, suggesting a cautious market outlook on the company's future performance.
- Market Rating Changes: Oppenheimer has initiated coverage on Louisiana-Pacific with an “Outperform” rating, yet Seeking Alpha's Quant Rating raises concerns about the company's attractiveness, reflecting a divergence in market sentiment regarding its growth potential.
See More
LP BUILDING SOLUTIONS RAISES QUARTERLY DIVIDEND TO $0.30 PER SHARE
Quarterly Dividend Increase: L.P. Building Solutions has announced an increase in its quarterly dividend to $0.30 per share.
Financial Performance: The decision to raise the dividend reflects the company's strong financial performance and commitment to returning value to shareholders.
See More
