US engineered wood products manufacturer Louisiana-Pacific Corporation saw its siding sales perform better than OSB panels in Q2, the company reported in its latest financial update.
LP says its siding division recorded an 11% growth in siding net sales during Q2 to US$460m due to 9% higher volumes and 2% higher prices. OSB net sales decreased by US$101m to US$250m, driven by lower prices and a slight decline in volumes.
Adjusted EBITDA across the business was US$142m, a decrease of $86m, while consolidated net sales decreased by US$60m to US$755m.
The business invested US$68m in capital expenditure during Q2.
“LP’s Siding segment grew and captured share to set new records for sales volume, sales revenue, and EBITDA in the second quarter,” said LP Chairperson and CEO Brad Southern.
“While the OSB market is challenging currently, with commodity prices at multi-year lows, LP will continue to execute its OSB segment strategy safely, with efficiency and discipline.”
The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP Structural Solutions.
For H1, OSB net sales reduced by 22% or US$147m to US$517m, while adjusted EBITDA for the division over the same period reduced by US$143m to US$73m.
Capital expenditures related to strategic growth and sustaining maintenance projects are expected to be approximately US$180m and US$170m, respectively, for full year 2025.
LP closely watches new home construction figures and said housing starts for the six months ended June 30, 2025, showed single-family housing units were 486,000, while multi-family units were 198,000. This compares to 522,000 and 169,000 respectively for the same period in 2024, making the overall H1 total down 8,000 this year.
