Louisiana-Pacific(US:LPX)2026-02-17 11:06Sales Performance - Siding net sales increased by $23 million, or 6%, to $384 million in Q4 2025, while consolidated net sales decreased by $114 million to $567 million [5]. - For the full year 2025, net sales dropped by $233 million to $2.7 billion, with siding revenue increasing by $131 million, or 8%, to $1.7 billion [11]. - OSB net sales decreased by $132 million to $136 million in Q4 2025, driven by lower prices and sales volumes [9]. - Net sales for Q4 2025 were $567 million, down 16.7% from $681 million in Q4 2024 [24]. - Total sales for Q4 2025 were $567 million, down from $681 million in Q4 2024, with Siding sales increasing to $384 million from $362 million [33]. Profitability - The company reported a net loss of $8 million in Q4 2025, a decrease of $70 million year-over-year, with adjusted EBITDA down by $74 million to $50 million [10]. - Full year net income declined by $275 million to $146 million, with adjusted EBITDA decreasing by $252 million to $436 million [12]. - Gross profit for Q4 2025 was $85 million, a decrease of 47.5% compared to $162 million in Q4 2024 [24]. - Net income for the year ended December 31, 2025, was $146 million, down 65.2% from $420 million in 2024 [24]. - Adjusted EBITDA for Q4 2025 was $50 million, significantly lower than $125 million in Q4 2024 [34]. - Adjusted diluted EPS for the year ended December 31, 2025, was $2.65, down from $5.88 in 2024 [34]. Future Projections - The company expects Q1 2026 siding net sales to be approximately $350-355 million, representing a 12% decline year-over-year [6]. - For full year 2026, siding net sales are projected to be around $1.7 billion, indicating a 2% growth [6]. Expenses and Cash Flow - Selling, general, and administrative expenses increased to $79 million in Q4 2025 from $76 million in Q4 2024 [24]. - Cash provided by operating activities for the year ended December 31, 2025, was $382 million, down from $605 million in 2024 [26]. - Cash, cash equivalents, and restricted cash at the end of Q4 2025 were $292 million, a decrease from $340 million at the end of Q4 2024 [26]. - The company incurred $13 million in impairment of goodwill and long-lived assets in Q4 2025, compared to $5 million in Q4 2024 [26]. Capital and Liquidity - Capital expenditures for 2025 were $291 million, with an expected increase to approximately $400 million for 2026 [5][6]. - Total liquidity as of December 31, 2025, was approximately $1 billion [5]. - Long-term debt remained stable at $348 million for both 2025 and 2024 [25]. - Stockholders' equity rose to $1,731 million in 2025, up from $1,671 million in 2024, indicating a growth of 3.6% [25]. - Total assets increased to $2,627 million in 2025 from $2,556 million in 2024, representing a growth of 2.8% [25]. Market Conditions - U.S. housing starts for single-family homes decreased to 221,000 in Q4 2025 from 231,000 in Q4 2024, while multi-family starts increased to 97,000 from 91,000 [29]. - OSB sales volume decreased to 616 MMSF in Q4 2025 from 827 MMSF in Q4 2024, reflecting a decline in both structural and commodity segments [30]. Operational Efficiency - Overall Equipment Effectiveness (OEE) for Siding improved to 78% in Q4 2025 from 75% in Q4 2024, while OSB increased to 80% from 78% [32]. Non-GAAP Measures - The company highlighted the importance of non-GAAP measures like Adjusted Income and Adjusted Diluted EPS for evaluating performance [22]. - Adjusted EBITDA is reported as a key performance measure, reflecting the company's operational performance [22].