LP Building Solutions Roars Ahead in Q3 2026: Siding Business Booms Amidst Industry Headwinds
Despite a challenging backdrop of inflationary pressures, Louisiana-Pacific Corporation's LP Building Solutions business has managed to roar ahead in the third quarter of 2026. The company's siding business returned to year-over-year growth, with volumes increasing by 2% and net sales growing by 7%, setting a new record for siding net sales and exceeding the high end of their guided range.
LP Building Solutions' CEO Jason Ringblom attributed this success to the company's ability to gain share in the markets they serve, even as single-family housing starts declined by 2%. The company's focus on operational discipline and strategic capacity management was also highlighted, with an OSB utilization rate of 81% in the quarter.
The company reported net sales of $691 million for the quarter, a $28 million increase compared to the third quarter of last year, driven by siding growth. Total EBITDA was flat with the prior year at $82 million, despite significant inflationary headwinds.
LP Building Solutions also continued its commitment to safety, earning the Engineered Wood Association's Safest Company Award for the fourth consecutive year and achieving a total incident rate (TIR) of just 0.4 in the third quarter. The company's ExpertFinish facility in Roaring River, North Carolina, achieved the impressive milestone of 1 million work hours without a recordable incident.
The company also received recognition from Newsweek as one of America's Greatest Companies, highlighting its commitment to innovation, workplace culture, and environmental sustainability. LP Building Solutions' people were identified as a key strength, with a focus on attracting and retaining exceptional talent and creating a positive work environment.
A significant transformation of LP Building Solutions' siding distribution network was also highlighted, expanding their market presence, product support, and geographic reach through Specialty Building Products. This new model provides expanded nationwide coverage for SmartSide and ExpertFinish, complemented by distribution partners in designated regional markets.
LP Building Solutions reported operating cash flow of $112 million in the quarter, with CapEx investments totaling $56 million to maintain their assets and support growing demand for SmartSide and ExpertFinish. The company returned $21 million to shareholders through dividends, demonstrating its commitment to shareholder value.
