Louisiana Pac — Financial Results
OSB Prices Collapsed, Dragging Overall Profits Down Sharply
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| OSB Net Sales | $832M | $1,184M | -30% |
| OSB Adjusted EBITDA | $7M | $298M | -98% |
| OSB Commodity Price | — | — | -26% |
| OSB Structural Solutions Price | — | — | -19% |
OSB (oriented strand board), the commodity structural panel product, had a brutal year. Prices fell 19–26% depending on the product type, and volumes dropped around 8–10%, leaving the OSB segment nearly breakeven on an Adjusted EBITDA basis. Because OSB is a commodity, the company has little control over pricing — it moves with industry supply and demand.
Siding Continues to Grow and Is Becoming the Business's Backbone
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Siding Net Sales | $1,689M | $1,558M | +8% |
| Siding Adjusted EBITDA | $444M | $390M | +14% |
The Siding segment grew volumes 4% and prices 4%, with the premium ExpertFinish pre-finished product line accounting for 16% of net sales despite being only 10% of volume — a sign of favorable product mix. Siding now generates essentially all of the company's profitability, which matters because it is less tied to volatile commodity cycles than OSB.
Net Income Fell by Nearly Two-Thirds
| Metric | 2025 | 2024 |
|---|---|---|
| Net Income | $146M | $420M |
| Diluted EPS | $2.08 | $5.89 |
| Adjusted EBITDA | $436M | $688M |
The company earned $146 million in 2025, down $275 million from 2024. The OSB price and volume decline alone subtracted $292 million from Adjusted EBITDA (a measure of operating profitability before interest, taxes, and non-cash items). A lower tax bill ($50M vs. $140M) softened the blow somewhat.
Capital Spending Is Ramping Up Significantly for Siding Expansion
| Year | Capital Expenditures |
|---|---|
| 2024 | $183M |
| 2025 | $291M |
| 2026 (expected) | ~$400M |
The company is aggressively investing, primarily in converting manufacturing capacity to siding production. Spending is set to jump another 37% in 2026 to roughly $400 million. This suggests management is betting on continued Siding growth, though it also means cash generation will be directed toward investment rather than returned to shareholders in the near term.
Impairment Charges Rose Sharply, Signaling Asset Write-Downs
The company recorded $44 million in impairment charges (non-cash write-downs of assets whose value has declined) in 2025, up from $5 million in 2024. The largest items were $24 million for equipment taken out of service and $13 million related to expired timber licenses. These charges do not affect cash flow but do reduce reported earnings and may reflect ongoing restructuring of the asset base toward siding.
Credit Facility Expanded, Balance Sheet Remains Clean
The company expanded its revolving credit facility from $550 million to $750 million in March 2025 and extended its maturity to 2032. As of year-end, it had zero drawn on this facility. With $382 million in operating cash flow generated during 2025 (down from $605 million in 2024), the company appears to have adequate liquidity to fund its large 2026 capital program without taking on significant debt.