Louisiana-Pacific (LPX) AI Stock Analysis

• Market Cap: $6.56B
• Dividend Yield: 1.37%
• Average Volume (3M): 843.32K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.08
• Revenue Growth: -3.26%
• EPS Growth: -46.80%
• Country: US
• Employees: 4,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.36
• Shares Outstanding: 69,643,460
• 10 Day Avg. Volume: 675,628
• 30 Day Avg. Volume: 843,316
• PEG Ratio: 0.13
• Price to Book (P/B): 4.40
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 17.42
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 9.94
• Enterprise Value/Ebitda: 15.02
• 1Y Price Target: $105.80
• Price Target Upside: 18.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $88.00 ▼(-1.31% Downside)

LPX scores mid-range primarily due to resilient but downcycle-pressured fundamentals (margin and free-cash-flow compression offset by a strong, low-leverage balance sheet). Technicals are neutral-to-soft with the stock still below longer-term moving averages, and valuation is a headwind given the high P/E and modest yield. Earnings-call guidance improved and Siding strength helps, but ongoing OSB weakness meaningfully limits the overall score.

Positive Factors

Siding Segment Growth

The growth in the Siding segment, particularly with the ExpertFinish product, indicates strong market demand and effective pricing strategies, which can sustain long-term revenue growth.

Strong Cash Flow Management

Efficient cash flow management and strong cash generation capabilities provide financial flexibility and support for strategic investments and shareholder returns.

Leadership Transition

The planned leadership transition ensures continuity and may bring fresh perspectives, potentially driving strategic growth and operational improvements.

Negative Factors

OSB Market Challenges

Persistent low OSB prices due to weak demand can strain profitability in this segment, impacting overall financial performance if conditions do not improve.

Revenue Volatility

Fluctuations in revenue, particularly declines, highlight potential instability in market demand, posing risks to predictable financial performance.

South American Business Struggles

Challenges in the South American market may hinder international growth and profitability, affecting the company's ability to offset corporate overhead costs.

Louisiana-Pacific Business Overview & Revenue Model

Company Description

Louisiana-Pacific Corporation, together with its subsidiaries, manufactures and markets building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through four segments: Siding; Oriented Strand Board (OSB); Engineered Wood Products (EWP); and South America. The Siding segment offers LP SmartSide trim and siding products, LP SmartSide ExpertFinish trim and siding products, LP BuilderSeries lap siding products, and LP Outdoor Building Solutions; and engineered wood siding, trim, soffit, and fascia products. The OSB segment manufactures and distributes OSB structural panel products comprising LP TechShield radiant barriers, LP WeatherLogic air and water barriers, LP Legacy premium sub-flooring products, LP FlameBlock fire-rated sheathing products, and LP TopNotch sub-flooring products. The EWP segment provides laminated veneer lumber and other related products; and LP SolidStart I-joists, which are primarily used in residential and commercial floorings, roofing systems, and other structural applications. The South America segment manufactures and distributes OSB structural panel and siding products. This segment also distributes and sells related products for the region's transition to wood frame construction. It also offers timber and timberlands and other products and services. The company sells its products primarily to retailers, wholesalers, and homebuilding and industrial businesses in North America and South America, Asia, Australia, and Europe. Louisiana-Pacific Corporation was incorporated in 1972 and is headquartered in Nashville, Tennessee.

How the Company Makes Money

Louisiana-Pacific generates revenue primarily through the sale of its engineered wood products and building materials. The company operates on a business-to-business model, supplying products to distributors, retailers, and construction companies. Key revenue streams include sales from oriented strand board (OSB), siding products like LP SmartSide, and other engineered wood solutions. Additionally, LPX benefits from strategic partnerships with retailers and builders, enhancing its market reach. Factors contributing to its earnings include demand fluctuations in the housing market, pricing strategies, and operational efficiencies achieved through advances in manufacturing technologies.

Louisiana-Pacific Financial Statement Overview

Summary

Financials are solid but clearly in a downcycle: TTM revenue is slightly down (~2%) and net margin has compressed to ~8.3% from prior peaks. Offsetting this, leverage is low (debt-to-equity ~0.21) and operating cash flow remains positive ($421M), though free cash flow has weakened meaningfully ($143M, ~34% of net income).

Income Statement

LPX shows solid profitability but clear cyclical compression recently. Revenue is down about 2.0% in TTM (Trailing-Twelve-Months) versus prior year, and profitability has stepped down meaningfully from the 2021–2022 peak: net margin is ~8.3% in TTM versus ~14.3% in 2024 and ~28–30% in 2021–2022. That said, current gross (~23.6%) and operating profitability (~10.0% operating margin) remain positive and resilient relative to the 2023 trough, suggesting the company is still earning through the downcycle, albeit at reduced levels.

Balance Sheet

The balance sheet looks conservative with low leverage and improving capital base. Total debt is roughly flat around $0.38B while equity has grown to ~$1.74B in TTM (Trailing-Twelve-Months), keeping debt-to-equity low (~0.21). Returns on equity remain healthy in TTM (~13.7%), though well below the exceptionally strong 2021–2022 period, indicating normalized earnings power. Overall, LPX appears well-positioned to withstand industry volatility given modest leverage and a sizable equity cushion.

Cash Flow

Cash generation is positive but has weakened materially. Operating cash flow in TTM (Trailing-Twelve-Months) is $421M and covers operating profit (~1.43x), which is supportive. However, free cash flow fell sharply to $143M (down ~48% versus 2024), and free cash flow is a low share of net income (~34%) in TTM, pointing to heavier reinvestment and/or working-capital drag compared with 2024. This keeps liquidity and shareholder-return capacity more constrained than in the stronger prior year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.82B	2.94B	2.58B	3.85B	3.92B	2.40B
Gross Profit	666.00M	831.00M	593.00M	1.50B	1.96B	833.00M
EBITDA	441.00M	659.00M	381.00M	1.36B	1.86B	753.00M
Net Income	216.00M	420.00M	178.00M	1.09B	1.38B	499.00M
Balance Sheet
Total Assets	2.65B	2.57B	2.44B	2.35B	2.19B	2.09B
Cash, Cash Equivalents and Short-Term Investments	316.00M	340.00M	222.00M	369.00M	358.00M	535.00M
Total Debt	378.00M	380.00M	378.00M	395.00M	397.00M	389.00M
Total Liabilities	910.00M	898.00M	880.00M	916.00M	955.00M	842.00M
Stockholders Equity	1.74B	1.67B	1.56B	1.43B	1.24B	1.23B
Cash Flow
Free Cash Flow	143.00M	422.00M	16.00M	730.00M	1.23B	582.00M
Operating Cash Flow	421.00M	605.00M	316.00M	1.14B	1.48B	659.00M
Investing Cash Flow	-276.00M	-183.00M	-376.00M	-146.00M	-247.00M	-49.00M
Financing Cash Flow	-165.00M	-292.00M	-77.00M	-982.00M	-1.39B	-272.00M

Louisiana-Pacific Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPX, the sentiment is Positive. The current price of 89.17 is below the 20-day moving average (MA) of 89.53, above the 50-day MA of 85.60, and above the 200-day MA of 88.34, indicating a bullish trend. The MACD of 0.96 indicates Positive momentum. The RSI at 62.09 is Neutral, neither overbought nor oversold. The STOCH value of 52.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LPX.

Louisiana-Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLVM	69 Neutral	$2.00B	10.98	18.81%	3.51%	-8.92%	-32.30%
UFPI	68 Neutral	$6.60B	20.14	9.78%	1.53%	-3.90%	-25.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SUZ	62 Neutral	$11.85B	9.93	14.56%	1.96%	6.65%	47.88%
LPX	59 Neutral	$6.56B	28.76	12.75%	1.37%	-3.26%	-46.80%
CLW	47 Neutral	$284.84M	-1.78	-10.47%	―	-21.76%	-1214.73%
MERC	44 Neutral	$125.93M	-0.73	-39.37%	10.77%	-5.85%	9.13%

Louisiana-Pacific Corporate Events

Louisiana-Pacific announces leadership succession and board changes

On January 23, 2026, Louisiana-Pacific CEO and Board Chair W. Bradley Southern notified the Board of his decision to retire from the Board and his role as chair effective February 19, 2026, as part of the company’s leadership succession planning. In connection with this transition, the Board elected long-serving director F. Nicholas Grasberger III as independent Chairperson, effective February 19, 2026, and appointed President and CEO‑elect Jason P. Ringblom to the Board as a Class III director on the same date, with Ringblom also set to succeed Southern as CEO. Additionally, directors Dustan E. McCoy and Ozey K. Horton Jr. will retire from the Board effective May 1, 2026, after long tenures, leaving LP with an eight‑member Board comprising Ringblom and seven independent directors, a reshaped governance structure that underscores the company’s planned CEO transition and reinforces independent oversight at the board level.

The most recent analyst rating on (LPX) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Louisiana-Pacific stock, see the LPX Stock Forecast page.

Louisiana-Pacific CEO Announces Retirement, Successor Named

On October 30, 2025, W. Bradley Southern, the CEO of Louisiana-Pacific Corporation, announced his retirement effective February 19, 2026. The Board has appointed Jason Ringblom, the current President, to succeed him as CEO on the same date. This transition will also see the elimination of the President’s office, and no compensation details for Mr. Ringblom’s new role have been determined yet.

The most recent analyst rating on (LPX) stock is a Hold with a $98.00 price target. To see the full list of analyst forecasts on Louisiana-Pacific stock, see the LPX Stock Forecast page.