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Louisiana-Pacific Corp. (LPX)
NYSE:LPX
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Louisiana-Pacific
(NYSE:LPX)
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Rating:69Neutral
Price Target:
$104.00
▲(24.72% Upside)
Louisiana-Pacific's strong financial performance and operational improvements in the Siding segment are significant positives. However, the challenges in the OSB market and moderate valuation metrics temper the overall outlook. The technical indicators suggest a neutral trend, contributing to a balanced overall score.
Positive Factors
Siding Segment Growth
The Siding segment's record performance with 11% revenue growth highlights its strong market position and potential for sustained growth, contributing significantly to overall company performance.
Operational Efficiency
Improved operational efficiency in both Siding and OSB segments enhances production capacity and cost management, supporting long-term profitability and competitive advantage.
Strong Cash Flow
Robust cash flow and liquidity position provide financial flexibility for future investments and strategic initiatives, ensuring resilience against market fluctuations.
Negative Factors
OSB Market Challenges
Falling OSB prices and demand pose significant challenges, impacting revenue and profitability in this segment, which could affect overall financial performance.
Negative EBITDA Guidance for OSB
Projected negative EBITDA for the OSB segment indicates financial strain, highlighting the need for strategic adjustments to mitigate long-term impacts on the company's earnings.
Soft Housing Market Impact
A soft housing market with below-average demand levels affects construction activity, reducing demand for LP's products and potentially impacting revenue growth.
Louisiana-Pacific (LPX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.81B
Dividend Yield1.32%
Average Volume (3M)840.80K
Price to Earnings (P/E)19.7
Beta (1Y)1.16
Revenue Growth-1.44%
EPS Growth-31.12%
CountryUS
Employees4,300
SectorIndustrials
Sector Strength72
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.99
Shares Outstanding69,640,960
10 Day Avg. Volume802,309
30 Day Avg. Volume840,804
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)4.40
Price to Sales (P/S)2.50
P/FCF Ratio17.42
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue2.10
Enterprise Value/Gross Profit8.32
Enterprise Value/Ebitda11.34
Forecast
1Y Price Target
$103.00Price Target Upside23.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Louisiana-Pacific Business Overview & Revenue Model
Company DescriptionLouisiana-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 MoneyLouisiana-Pacific generates revenue primarily through the sale of its engineered wood products and building materials. The company's key revenue streams include sales of oriented strand board (OSB), which is widely used in residential and commercial construction for structural applications, as well as its other products such as SmartSide siding, which combines the aesthetics of traditional wood materials with enhanced durability. LPX also benefits from strategic partnerships with major distributors and builders, which help to expand its market reach. Additionally, the company capitalizes on favorable building trends and housing market dynamics, including new home construction and remodeling activities, which drive demand for its products. Economic factors, such as interest rates and housing starts, play a significant role in influencing the company's earnings as well.
Louisiana-Pacific Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The call presented a mixed picture with strong performance in the Siding segment and operational improvements, but significant challenges in the OSB market due to low prices and weak demand. While Siding's growth and operational achievements are notable, the negative outlook for OSB impacts the overall sentiment.Q2-2025 Updates
Positive Updates
Record Quarter for Siding Segment
Siding segment achieved a record quarter for volume, revenue, and EBITDA. Siding revenue grew by 11% compared to last year, resulting in $755 million in sales and $142 million in EBITDA.
Operational Efficiency Improvements
Both Siding and OSB segments improved operating efficiency, with Siding achieving 78% OEE and OSB 79% OEE, contributing to operational flexibility and capacity unlocking.
Safety and Recognition
LP was named the safest company in 2024 by APA, the Engineered Wood Association, for the third consecutive year, and the New Waverly Transportation team received the Platinum Award for Highway Safety.
Strong Cash Flow and Liquidity
Operating cash flow of $162 million despite challenging OSB prices, with $1.1 billion in liquidity including $333 million in cash, positioning LP comfortably for future investments.
Negative Updates
Challenging Market Conditions for OSB
Commodity OSB prices have fallen to multi-year lows, with current demand and pricing unusually difficult, exacerbated by tariff uncertainty and elevated interest rates.
Negative EBITDA Guidance for OSB
If current OSB prices remain, the OSB segment would see negative EBITDA of around $45 million in Q3 and worse in Q4, with a full-year negative EBITDA of $25 million projected.
Soft Housing Market Impact
U.S. housing starts remain below long-term average demand levels, affecting the single-family mix and contributing to falling commodity OSB prices.
Company Guidance
During the Louisiana Pacific Corporation's second-quarter 2025 earnings call, the company provided a detailed update on its financial performance and guidance for the remainder of the year. The Siding segment achieved record results with an 11% revenue growth, contributing to overall sales of $755 million, an EBITDA of $142 million, and adjusted earnings per share of $0.99. The company also reported operating efficiency improvements, with Siding reaching 78% and OSB at 79% in overall equipment effectiveness (OEE). Despite challenging market conditions, including lower OSB prices and cautious sentiment among contractors, LP reaffirmed its full-year Siding revenue guidance of approximately $1.7 billion and $430 million in EBITDA. Capital expenditures were revised to $350 million, down $60 million from prior guidance, mainly due to cost control measures in the OSB segment. The company remains focused on strategic growth through product innovation and market share gains, with expectations of continued demand for its SmartSide and ExpertFinish products.Louisiana-Pacific Financial Statement Overview
Summary
Louisiana-Pacific demonstrates strong financial health with consistent improvements in profitability and efficient cash management. The balance sheet underscores financial stability with low leverage, while cash flow remains robust. However, revenue volatility and potential industry risks warrant attention.Income Statement
Louisiana-Pacific demonstrated strong growth in revenue and profitability over the years. The gross profit margin consistently improved, reaching approximately 28.3% in 2024, indicating effective cost management. Net profit margin also saw substantial improvement, rising to 14.3% in 2024. However, revenue fluctuations, particularly a dip in 2023, highlight volatility in the construction industry.76
Positive
Balance Sheet
The company's balance sheet shows a strong equity position with an improving debt-to-equity ratio, which was 0.22 in 2024. This indicates conservative financial management and reduced leverage risk. The equity ratio increased to 65.1% in 2024, reflecting a stable financial foundation. However, the high reliance on equity could limit leverage opportunities.81
Very Positive
Cash Flow
Cash flow analysis reveals robust operating cash flows, with a significant increase in free cash flow to $422 million in 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio improved to 1.44 in 2024, showcasing efficient cash conversion. However, free cash flow growth rates show volatility, necessitating careful monitoring.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.88B | 2.94B | 2.58B | 3.85B | 4.55B | 2.79B |
| Gross Profit | 729.00M | 831.00M | 593.00M | 1.50B | 2.07B | 868.00M |
| EBITDA | 535.00M | 530.00M | 381.00M | 1.30B | 1.83B | 751.00M |
| Net Income | 298.00M | 420.00M | 178.00M | 1.09B | 1.38B | 499.00M |
Balance Sheet | ||||||
| Total Assets | 2.66B | 2.57B | 2.44B | 2.35B | 2.19B | 2.09B |
| Cash, Cash Equivalents and Short-Term Investments | 333.00M | 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 | 914.00M | 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 | 276.00M | 422.00M | 16.00M | 730.00M | 1.23B | 582.00M |
| Operating Cash Flow | 514.00M | 605.00M | 316.00M | 1.14B | 1.48B | 659.00M |
| Investing Cash Flow | -254.00M | -183.00M | -376.00M | -146.00M | -247.00M | -49.00M |
| Financing Cash Flow | -240.00M | -292.00M | -77.00M | -982.00M | -1.39B | -272.00M |
Louisiana-Pacific Technical Analysis
Negative
83.39
Price Trends
92.88
Negative
91.55
Negative
95.93
Negative
Market Momentum
-2.57
Positive
30.86
Neutral
4.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPX, the sentiment is Negative. The current price of 83.39 is below the 20-day moving average (MA) of 92.76, below the 50-day MA of 92.88, and below the 200-day MA of 95.93, indicating a bearish trend. The MACD of -2.57 indicates Positive momentum. The RSI at 30.86 is Neutral, neither overbought nor oversold. The STOCH value of 4.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LPX.
Louisiana-Pacific Risk Analysis
Louisiana-Pacific disclosed 29 risk factors in its most recent earnings report. Louisiana-Pacific reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Louisiana-Pacific Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | 5.62B | 16.31 | 10.96% | 1.50% | -5.09% | -26.13% | |
69 Neutral | $5.81B | 19.67 | 17.53% | 1.32% | -1.44% | -31.12% | |
65 Neutral | 1.73B | 8.21 | 22.73% | 4.22% | -4.03% | -5.27% | |
60 Neutral | 11.66B | 8.34 | -21.91% | 3.52% | 11.48% | 1773.12% | |
59 Neutral | 338.99M | -3.31 | 24.06% | ― | -26.71% | -329.19% | |
43 Neutral | 188.22M | -1.65 | -24.47% | 10.68% | -2.16% | 44.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
LPX
Louisiana-Pacific
83.39
-22.65
-21.36%
CLW
Clearwater Paper
20.76
-7.76
-27.21%
MERC
Mercer International
2.69
-3.65
-57.57%
UFPI
UFP Industries
91.80
-37.81
-29.17%
SUZ
Suzano Papel e Celulose SA
9.37
-0.39
-4.00%
SLVM
Sylvamo Corp
42.62
-39.80
-48.29%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.