This was a miss against both the market’s near-term bar and LP’s own prior outlook. Adjusted EPS of $0.40 came in below the published consensus of about $0.61, while $664 million of sales trailed the roughly $683 million expected. More importantly, results fell short of the company’s May outlook: Siding EBITDA was $113 million versus $115–120 million guided, OSB EBITDA was a $21 million loss versus a $10 million loss expected, and consolidated adjusted EBITDA was $79 million versus $100–105 million guided. (Adjusted Diluted EPS reconciliation; Segment results; Adjusted EBITDA reconciliation)
| Metric | Q2 2026 actual | Q2 2025 | Standing expectation / prior outlook |
|---|---|---|---|
| Net sales | $664M | $755M | Published consensus: ~$683M (Income Statement) |
| Adjusted diluted EPS | $0.40 | $1.07 | Published consensus: ~$0.61 (Adjusted Diluted EPS reconciliation) |
| Consolidated adjusted EBITDA | $79M | $142M | Prior outlook: $100–105M (Adjusted EBITDA reconciliation) |
| Siding sales | $441M | $460M | Prior outlook: $435–445M (Segment results — Siding) |
| Siding adjusted EBITDA | $113M | $125M | Prior outlook: $115–120M (Segment results — Siding) |
| OSB adjusted EBITDA | $(21)M | $19M | Prior outlook: $(10)M (Adjusted EBITDA reconciliation) |
| Full-year consolidated adjusted EBITDA outlook | $255–270M | — | Previously: $345–360M (Outlook) |
The outlook reset is the larger change in the earnings picture. Full-year consolidated adjusted EBITDA guidance fell by $80–105 million, or roughly 26–29%, from the prior range. LP left its full-year Siding sales outlook at $1.65–1.67 billion and Siding EBITDA outlook at $410–425 million intact, so the reduction is chiefly an OSB and other-operations problem: full-year OSB EBITDA is now expected to be a $120 million loss, versus a $40 million loss previously assumed. (Outlook)
Siding held up on price, not demand—a less reassuring mix than the headline suggests. Quarterly Siding sales landed within the company’s range, but revenue still declined 4% as volume fell 11%; a 7% price/mix benefit only partly offset that decline. Siding EBITDA dropped 9% year over year as higher pricing added $27 million but lower volume and inflationary raw-material, freight, and labor costs took away $34 million combined. That makes the maintained full-year Siding target dependent on the forecast return to volume growth in the third quarter. (Segment results — Siding; Siding discussion)
OSB weakness broadened from pricing into earnings losses. OSB sales fell 27% and swung from $19 million of EBITDA profit a year ago to a $21 million loss. Structural Solutions prices declined 10% and shipments 24%; commodity OSB prices declined 20%. The company’s new full-year assumption for a $120 million OSB loss shows that this was not treated as a one-quarter shortfall. (Segment results — OSB; OSB pricing and shipment table; Outlook)
Cash generation remains positive, but it did not offset the operating setback. Operating cash flow was $140 million in the quarter, versus $162 million a year ago, helped by working-capital movements; cash ended June at $228 million and long-term debt remained $348 million. Capital-expenditure guidance was reduced to about $320 million from about $390 million previously, which preserves cash but also reinforces the lower operating outlook. (Cash Flow statement; Balance Sheet; Outlook)
Read the original 8-K on SEC EDGAR ↗