| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 26 | 85.2x | 17.8x | Bottom tier | |
Growth | 14 | -14.3% | 7.1% | Bottom tier | |
Quality | 22 | 2.5% | 4.5% | Bottom tier | |
Safety | 72 | 0.7x | 2.6x | Top tier | |
Capital Return | 44 | 1.72% | 2.12% | Around median | |
Momentum | 21 | -17.5% | 2.9% | Bottom tier | |
Sentiment | 53 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Louisiana-Pacific Corporation operates under the LP Building Solutions brand in the manufacture of specialty building products, with its business concentrated in the Siding segment and the oriented strand board OSB segment. The Siding business relies on SmartSide products, including Primed SmartSide and ExpertFinish, and generates growth through market-share gains, price increases, and production-capacity expansion; the OSB segment includes commodity products and Structural Solutions, so its results remain more exposed to fluctuations in market prices and housing demand.
In Q2 fiscal year 2026, revenue was $664 million, down $90 million year over year, and gross profit was $116 million, equivalent to a calculated gross margin of approximately 17.5%. The company recorded net income of $26 million, or $0.38 per share according to EDGAR data, while management reported adjusted earnings of $0.40 per share and EBITDA of $79 million, down $63 million year over year.
The mix of results reflects a clear divergence between the two businesses: Siding sales increased 4%, as a 7% price increase partially offset the impact of an 11% decline in volumes, and the segment achieved an EBITDA margin of 26%. By contrast, most of the decline in revenue and EBITDA came from lower OSB prices and volumes in North America and South America; lower prices and volumes reduced the segment's revenue by $67 million and EBITDA by $46 million year over year.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $95.71, within a range of $90 to $107, with the consensus rated “Buy.” The average is below the 52-week range high of $101.28, while the highest target exceeds that high and the lowest target remains above the range low of $66.12; however, the width of the range reflects the divergence between Siding growth and the expectation of a substantial EBITDA loss in OSB during fiscal year 2026.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
The primary positive driver is Siding, which increased its sales 4% in Q2 fiscal year 2026 and achieved an EBITDA margin of 26% despite an 11% decline in volumes. A 7% increase in prices for Primed SmartSide and ExpertFinish contributed $27 million to revenue and EBITDA. By contrast, OSB remained the negative driver because of weak prices and demand, with negative EBITDA of approximately $120 million expected for the segment in fiscal year 2026.
Management reported on August 5, 2026 that Primed SmartSide inventories had returned to their expected normal levels and that distributor sell-through reached its highest level in six quarters. Order intake also exceeded its levels in four of the previous five quarters, surpassed only by the record Q2 fiscal year 2025. ExpertFinish inventory declined substantially from its Q1 fiscal year 2026 peak, supporting expectations for Siding volumes to return to growth in Q3.
LP expects Siding revenue between $460 million and $470 million in Q3 fiscal year 2026, with the low end equaling the previous revenue record. It expects EBITDA between $110 million and $120 million and a margin of approximately 25%. The expected growth is based primarily on higher prices with a modest increase in volumes, and the guidance does not assume inventory replenishment or improvement in underlying housing markets.
OSB prices reflect weak demand in North America and South America, and prices in Q2 fiscal year 2026 were approximately $15 below the algorithm used in the guidance. Lower prices and volumes together reduced segment revenue by $67 million and EBITDA by $46 million year over year. LP plans to operate its assets in the mid-to-high 70% range of capacity during Q3, with negative EBITDA of approximately $45 million expected for the segment.
LP ended Q2 fiscal year 2026 with $228 million in cash and slightly less than $1 billion in liquidity, including an undrawn $750 million facility. It is targeting capital expenditure of approximately $320 million in fiscal year 2026 after reducing its previous guidance by $70 million, with approximately three-quarters of the spending going to Siding. The projects include ramping production at Green Bay, adding 20 million feet in Bath, and building the North Branch facility for coating ExpertFinish.
LP announced that Alan Haughie will retire as chief financial officer on September 1, 2026 after nearly seven years in the role. Following Haughie's contribution to preparing him for this role. The announcement came at a time when the company was managing a $70 million reduction in its capital expenditure plan while preserving Siding growth investments.
