What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-17 compared with 2025-02-19 · 324 added, 409 removed, 723 unchanged (50% of the section changed)

39 unchanged sentences

Consolidated Statements of Income

Dollar amounts in millions, except per share

Amounts in millions, except per share

Year Ended December 31,

8 unchanged sentences

Investment income 16 22 18

Other non-operating items (expense)

Other non-operating (expense) income

( 15 ) 9 ( 43 )

1 unchanged sentence

Provision for income taxes ( 50 ) ( 140 ) ( 74 )

Equity in unconsolidated affiliate 13 3 4

Income from continuing operations 420 178 885

Income from discontinued operations, net of income taxes — — 198

Equity in unconsolidated affiliates

Net income $ 146 $ 420 $ 178

Net loss attributed to noncontrolling interest — — 3

Net income attributed to LP $ 420 $ 178 $ 1,086

Net income attributed to LP per share of common stock:

Income per share continuing operations - basic $ 5.91 $ 2.47 $ 11.40

Income per share discontinued operations - basic — — 2.54

Net income per share - basic $ 5.91 $ 2.47 $ 13.94

Income per share continuing operations - diluted $ 5.89 $ 2.46 $ 11.34

Income per share discontinued operations - diluted — — 2.52

Net income per share - diluted $ 5.89 $ 2.46 $ 13.87

Net income per share of common stock:

Basic $ 2.09 $ 5.91 $ 2.47

Diluted $ 2.08 $ 5.89 $ 2.46

Average shares of common stock used to compute net income per share:

6 unchanged sentences

Net income $ 146 $ 420 $ 178

Other comprehensive income, net of tax

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments 24 ( 33 ) 6

2 unchanged sentences

Comprehensive income $ 170 $ 388 $ 187

Comprehensive loss associated with noncontrolling interest — — 3

Comprehensive income attributed to LP $ 388 $ 187 $ 1,161

See Notes to the Consolidated Financial Statements.

2 unchanged sentences

Cash and cash equivalents $ 292 $ 340

Receivables, net of allowance for doubtful accounts of $ 1 at December 31, 2024, and $ 2 at December 31, 2023, respectively

Receivables, net of allowance for doubtful accounts of $ 1 at December 31, 2025 and 2024

Inventories 363 357

1 unchanged sentence

Total current assets 809 855

Timber and timberlands 29 32

Property, plant, and equipment, net 1,709 1,579

Timber and timberlands 13 29

Operating lease assets, net 23 25

Goodwill and other intangible assets 26 27

Goodwill and intangible assets 22 26

Investments in and advances to affiliates 17 17

22 unchanged sentences

Retained earnings 1,621 1,615

Treasury stock, 16 shares at cost as of December 31, 2024 and 2023

Treasury stock, 15 shares and 16 shares at cost as of December 31, 2025 and 2024, respectively

( 385 ) ( 386 )

11 unchanged sentences

Impairment of goodwill and long-lived assets 44 5 30

Loss (gain) on sale of assets, net 2 ( 7 ) ( 157 )

Stock-based compensation expense 30 20 13

Pension loss due to settlement — — 4

Deferred taxes 24 ( 4 ) 44

Foreign currency remeasurement and transaction (gains) losses — 50 ( 2 )

Foreign currency remeasurement and transaction losses 11 — 50

Other adjustments, net 12 ( 12 ) 6

9 unchanged sentences

Acquisition of facility assets — — ( 80 )

Proceeds from business divestiture — — 268

Proceeds from sale of assets — 1 9

24 unchanged sentences

Comprehensive

Loss (Income)

Income (Loss)

Stockholders’

2 unchanged sentences

88 $ 88 16 $ ( 388 ) $ 462 $ 1,371 $ ( 99 ) $ 1,433

Net income attributed to LP — — — — — 1,086 — 1,086

Net income — — — — — 178 — 178

Cash dividends on common stock paid ($ 0.24 per share quarterly)

4 unchanged sentences

Compensation expense associated with stock-based compensation — — — — 13 — — 13

Other comprehensive loss (income)

— — — — — — 75 75

Other comprehensive income — — — — — — 10 10

Balance as of December 31, 2023

88 88 16 ( 386 ) 465 1,479 ( 89 ) 1,557

Net income attributed to LP — — — — — 178 — 178

Net income — — — — — 420 — 420

Cash dividends on common stock paid ($ 0.26 per share quarterly)

4 unchanged sentences

Compensation expense associated with stock-based compensation — — — — 20 — — 20

Other comprehensive loss (income)

— — — — — — 10 10

Other comprehensive loss — — — — — — ( 33 ) ( 33 )

Balance as of December 31, 2024

86 86 16 ( 386 ) 478 1,615 ( 122 ) 1,671

Net income attributed to LP — — — — — 420 — 420

Net income — — — — — 146 — 146

Cash dividends on common stock paid ($ 0.28 per share quarterly)

4 unchanged sentences

Compensation expense associated with stock-based compensation — — — — 30 — — 30

Other comprehensive loss (income)

— — — — — — ( 33 ) ( 33 )

Other comprehensive income — — — — — — 24 24

Balance as of December 31, 2025

6 unchanged sentences

Earnings Per Share

Goodwill and Other Intangible Assets

Discontinued Operations

Business Exit Credits and Charges

6 unchanged sentences

Retirement Plans and Post-Retirement Benefits

Accumulated Comprehensive Loss

Segment Information

4 unchanged sentences

Serving the new home construction, repair and remodeling, and outdoor structures markets, we have leveraged our expertise to become an industry leader known for innovation, quality, reliability, and sustainability.

The principal customers for our building solutions are retailers, wholesalers, and home building and industrial businesses in North America and South America, and we make limited sales to customers in Asia, Australia, and Europe.

The Company operates 22 plants across the U.S., Canada, Chile, and Brazil, in certain cases, through foreign subsidiaries, and operates additional facilities through a joint venture.

The principal customers for our building solutions are retailers, wholesalers, and home building and industrial businesses in North America and South America.

The Company operates more than 20 manufacturing facilities across North and South America, and operates an additional facility through a joint venture.

References to “LP,” the “Company,” “we,” “our,” and “us” refer to Louisiana-Pacific Corporation and its consolidated subsidiaries as a whole.

We routinely evaluate project schedules and market demand to determine when to begin related construction work on Siding Solutions capacity expansion projects.

See "Note 18 - Segment Information" below for further information regarding our products and segments.

See “Note 15 - Segment Information” below for information regarding our products and segments.

Basis of Presentation

5 unchanged sentences

All intercompany transactions, profits, and balances have been eliminated.

All dollar amounts are in millions except per share.

All dollar amounts are in millions except per share amounts.

Certain reclassifications have been made to prior years to conform to the current year presentation.

Cash and Cash Equivalents

1 unchanged sentence

These investments are stated at cost, which approximates market value.

Receivables consisted of the following (dollars in millions):

Receivables consisted of the following (dollar amounts in millions):

Trade receivables $ 95 $ 100

4 unchanged sentences

Trade receivables are primarily generated by sales of our products to our wholesale and retail customers.

Other receivables at December 31, 2024 and 2023 primarily consisted of sales tax receivables, vendor rebates, and other miscellaneous receivables.

Other receivables at December 31, 2025 and 2024 primarily consisted of sales tax receivables and other miscellaneous receivables.

Fair Value Measurements

20 unchanged sentences

Inventories include a lower of cost or market adjustment of $ 23 million and $ 9 million as of December 31, 2025, and 2024, respectively.

Inventory consisted of the following (dollars in millions):

Inventory consisted of the following (dollar amounts in millions):

Logs $ 62 $ 64

3 unchanged sentences

Total Inventories $ 363 $ 357

Timber and Timberlands

Timber and timberlands are comprised of timber deeds and allocations of the purchase price to Canadian timber harvesting licenses.

Timber deeds are transactions in which we purchase timber but not the underlying land.

The cost of timber deeds is capitalized in timber and timberlands and charged to the cost of timber harvested as the volume is removed.

Timber that has been severed but has not yet been delivered to a facility is included in timber and timberlands.

As of December 31, 2024, and 2023, we had timber and timberlands of $ 6 million and $ 7 million, respectively.

Timber licenses have a life of 20 to 25 years.

These licenses are amortized on a straight-line basis over the life of the facilities.

As of December 31, 2024 and 2023, we had timber licenses of $ 23 million and $ 25 million, respectively.

Certain Canadian timber harvesting licenses also include future requirements for reforestation.

The fair value of the future estimated reforestation obligation is accrued and recognized in Cost of sales based on the volume of timber harvested;

fair value is determined by discounting the estimated future cash flows using a credit adjusted risk-free rate.

Subsequent changes to the fair value resulting from the passage of time and revisions to fair value calculations are recognized in earnings as they occur.

Property, Plant, and Equipment

Property, plant, and equipment, including capitalized interest, are recorded at cost and consisted of the following (dollars in millions):

Property, plant, and equipment, including capitalized interest, are recorded at cost and consisted of the following (dollar amounts in millions):

Land, land improvements, and logging roads, net of road amortization $ 225 $ 215

2 unchanged sentences

Construction in progress 298 248

Property, plant, and equipment 3,650 3,419

Accumulated depreciation ( 1,941 ) ( 1,840 )

Property, plant, and equipment, net $ 1,709 $ 1,579

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, which typically range from 5 to 20 years for buildings and land improvements, 3 to 15 years for equipment, and the shorter of the lease term or estimated useful lives for leasehold improvements.

Depreciation and amortization expense on property, plant, and equipment was included in our Consolidated Statements of Income as noted below (dollars in millions):

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, which typically range from 5 to 20 years for buildings and land improvements, 3 to 15 years for machinery and equipment, and the shorter of the lease terms or estimated useful lives for leasehold improvements.

Depreciation and amortization expense on property, plant, and equipment was included in our Consolidated Statements of Income as noted below (dollar amounts in millions):

Year Ended December 31,

15 unchanged sentences

Impairment is evaluated by applying a fair value-based test.

Impairment losses would be recognized when the implied fair value of goodwill is less than its carrying value.

In 2023, we announced the shutdown of our off-site framing operation Entekra Holdings LLC (Entekra), resulting in impairment charges of $ 9 million related to definite-lived intangible assets.

See "Note 5 - Goodwill and Other Intangible Assets" below for further discussion.

Impairment losses would be recognized when the quantitative assessment concludes that the carrying amount exceeds the fair value of the reporting unit, limited to the carrying amount of goodwill.

No impairment charges were recognized for the year ended December 31, 2025, 2024, and 2023.

Changes in goodwill and intangible assets for the years ended December 31, 2025 and 2024, are provided in the following table (dollar amounts in millions):

Developed Technology Total Goodwill and Intangibles

Balance at December 31, 2023

$ 19 $ 7 $ 27

Additions — — —

Impairment — — —

Amortization — (1) (1)

Balance at December 31, 2024

Additions — — —

Impairment — — —

Amortization — (4) (4)

Balance at December 31, 2025

$ 19 $ 3 $ 22

1 Timber licenses are included in timber and timberlands on the Consolidated Balance Sheets.

Due to a facility closure in the second quarter of 2025, the Company revised its estimate of the useful lives of its developed technology to better reflect the period over which the asset is expected to be utilized.

The developed technology previously had a remaining useful life of ten years and is now being amortized over a revised useful life of one year.

This revision in estimate resulted in a quarterly increase of $2 million in amortization expense beginning in the second quarter of 2025.

Amortization of the developed technology is expected to be fully recognized in 2026, resulting in $3 million of amortization expense.

Timber and Timberlands

Timber and timberlands are comprised of timber deeds and allocations of the purchase price to Canadian timber harvesting licenses.

Timber deeds are transactions in which we purchase timber but not the underlying land.

The cost of timber deeds is capitalized in timber and timberlands and charged to the cost of timber harvested as the volume is removed.

Timber that has been severed but has not yet been delivered to a facility is included in timber and timberlands.

We had timber and timberlands of $ 5 million and $ 6 million as of December 31, 2025, and 2024, respectively.

Timber licenses have a life of 20 to 25 years and are amortized on a straight-line basis over the life of the agreement.

As of December 31, 2025 and 2024, we had timber licenses of $ 8 million and $ 23 million, respectively.

Certain Canadian timber harvesting licenses also include future requirements for reforestation.

The future estimated reforestation obligation is accrued and recognized in cost of sales based on the volume of timber harvested.

The obligation is determined by estimating future costs based on various assumptions and judgments, the specific nature of which varies considering the particular facts and circumstances surrounding each reforestation obligation.

Subsequent changes to estimates resulting from the passage of time and revisions to calculations are recognized in earnings as they occur.

Amortization of timber licenses is expected to be $1 million in 2026 and in each of the subsequent four years.

Changes in timber licenses for the years ended December 31, 2025 and 2024, are provided in the following table (dollar amounts in millions):

Year Ended December 31,

Beginning Balance

Additions — 1

Impairment (13) —

Amortization (2) (3)

Ending Balance

Included in the balance of timber licenses are values allocated to Canadian forest licenses whose initial value of $ 35 million is amortized over the estimated useful life of 20 to 25 years.

For the year ended December 31, 2025, we recognized $ 13 million of non-cash, pre-tax impairment charges related to the expiration and non-renewal of certain timber licenses.

Investments in Affiliates

2 unchanged sentences

Our restricted cash accounts generally secure outstanding letters of credit.

There were no restricted cash balances as of December 31, 2024 and 2023, respectively.

There were no restricted cash balances as of December 31, 2025 and 2024.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities were as follows (dollars in millions):

Accounts payable and accrued liabilities were as follows (dollar amounts in millions):

Trade accounts payable $ 129 $ 139

5 unchanged sentences

Total Accounts payable and accrued liabilities $ 285 $ 287

Other accrued liabilities at December 31, 2024 and 2023, primarily consisted of accrued interest, worker compensation liabilities, warranty reserves, and other items.

Other accrued liabilities at December 31, 2025 and 2024, primarily consisted of accrued interest, the short-term portion of warranty reserves, the short-term portion of workers’ compensation liabilities, and other items.

Additionally, trade accounts payable included $ 33 million and $ 32 million related to capital expenditures that had not yet been paid as of December 31, 2025 and 2024, respectively.

Other Long-Term Liabilities

Other long-term liabilities were as follows (dollars in millions):

Other long-term liabilities were as follows (dollar amounts in millions):

Post-retirement obligations $ 6 $ 7

4 unchanged sentences

Total Other long-term liabilities $ 33 $ 43

Other long-term liabilities at December 31, 2024 and 2023, consisted primarily of workers' compensation liabilities and investment tax incentives associated with property, plant, and equipment.

Other long-term liabilities at December 31, 2025 and 2024, consisted primarily of the long-term portion of workers’ compensation liabilities.

Other long-term liabilities at December 31, 2024 previously included $14 million of investment tax incentives associated with property, plant, and equipment that was reclassified from other long-term liabilities to property, plant, and equipment in 2025.

Asset Retirement Obligations

4 unchanged sentences

Upon settlement of the liability, we recognize a gain or loss for any difference between the settlement amount and the liability recorded.

The activity in our asset retirement obligation liability for 2024 and 2023 is summarized in the following table (dollars in millions).

The activity in our asset retirement obligation liability for 2025 and 2024 is summarized in the following table (dollar amounts in millions):

Year Ended December 31,

15 unchanged sentences

We have stock award plans covering certain key employees and directors, which provide for awards of restricted stock units, performance stock units, stock-settled stock appreciation rights (SSARS), and stock options.

In addition, we offer an Employee Stock Purchase Plan (ESPP) to employees.

In addition, we offer an employee stock purchase plan to employees.

The fair value of our restricted stock and restricted stock units is the closing stock price of LP’s common stock the day preceding the grant date.

12 unchanged sentences

A weighted average exchange rate is used for each period for revenues and expenses.

These transaction gains or losses are recorded in Other non-operating items on the Consolidated Statements of Income.

These transaction gains or losses are recorded in other non-operating income (expense) on the Consolidated Statements of Income.

The functional currencies of our Chilean, Brazilian, Colombian, Peruvian, Paraguayan, and Mexican subsidiaries are their respective local currencies.

Our Argentine subsidiary operates under a highly inflationary economy and uses the Chilean Peso as the functional currency.

Assets and liabilities are translated into U.S.

1 unchanged sentence

Translation adjustments, which are based upon the exchange rate at the balance sheet date for assets and liabilities and the weighted average rate for the income statement, are recorded in accumulated comprehensive loss in stockholders’ equity on the Consolidated Balance Sheets.

Our Argentine subsidiary operates under a highly inflationary economy and uses the Chilean Peso as the functional currency.

Transaction gains and losses are recorded in other non-operating items on the Consolidated Statements of Income.

11 unchanged sentences

Comprehensive Income

Comprehensive income consists of Net income and other gains and losses affecting stockholders’ equity that are excluded from Net income, including foreign currency translation adjustments, costs associated with pension or other post-retirement benefits that have not been recognized as components of net periodic benefit costs, and net unrealized gains or losses on securities and is presented in the accompanying Consolidated Statements of Comprehensive Income.

Comprehensive income consists of net income and other gains and losses affecting stockholders’ equity that are excluded from net income, including foreign currency translation adjustments and costs associated with pension or other post-retirement benefits that have not been recognized as components of net periodic benefit costs and is presented in the accompanying Consolidated Statements of Comprehensive Income.

PRESENT AND PROSPECTIVE ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Pronouncements

Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures

In November 2023, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

This ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, and an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets.

This pronouncement is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

We adopted this ASU for the fiscal year ended December 31, 2024, and the enhanced disclosures are reflected in the segment reporting information in "Note 18 - Segment Information" below.

The adoption did not have a material impact on our consolidated financial statements and disclosures.

Recent Pronouncements Not Yet Adopted

Income Taxes (Topic 740):

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, which focuses on the rate reconciliation and income taxes paid.

2023-09 requires a public business entity (PBE) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold.

ASU 2023-09 requires a public business entity (PBE) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold.

In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received.

This pronouncement is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company does not expect the adoption of this new guidance to have a material impact on the consolidated financial statements.

We have adopted ASU 2023-09 for the year ended December 31, 2025, on a prospective basis.

See “Note 6 - Income Taxes” of the Notes to the Consolidated Financial Statements included in Item 8 of this annual report on Form 10-K.

Recent Pronouncements Not Yet Adopted

Income Statement (Subtopic 220-40):

1 unchanged sentence

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires entities to provide more detailed disaggregation of expenses in the income statement, focusing on the nature of the expenses rather than their function.

The new disclosures will require entities to separately present expenses for significant line items, including but not limited to, depreciation, amortization, and employee compensation.

ASU 2024-03 will require entities to separately present expenses for significant line items, including but not limited to, depreciation, amortization, and employee compensation.

Entities will also be required to provide a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, disclose the total amount of selling expenses and, in annual reporting periods, provide a definition of what constitutes selling expenses.

This pronouncement is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted.

We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures.

We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures.

Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the accounting for costs related to internal-use software by removing all references to project stages and clarifying the threshold entities apply to begin capitalizing costs.

The guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, and may be applied using a prospective, retrospective or modified transition approach.

Early adoption is permitted as of the beginning of an annual reporting period.

We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures.

We disaggregate revenue from contracts with customers into major product lines.

We have determined that disaggregating revenue into these categories depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

As noted in the segment reporting information in "Note 18 - Segment Information" below, our reportable segments are:

The Company conducts business through three operating segments:

Siding, OSB and LPSA.

The following table presents our reportable segment revenues, disaggregated by revenue source (dollars in millions):

Year Ended December 31, 2024

By Product type and family:

Siding OSB LPSA Other Inter-segment Total

Siding Solutions $ 1,549 $ — $ 21 $ — — $ 1,570

OSB - Structural Solutions — 650 163 — — 813

1,549 650 184 — — 2,383

OSB - Commodity — 514 — — — 514

Other products 9 20 6 9 — 44

$ 1,558 $ 1,184 $ 190 $ 9 $ — $ 2,941

In the fourth quarter of 2025, the Company determined that LPSA did not meet the reportable segment criteria and beginning with the fourth quarter of 2025, the financial information for the LPSA operating segment is included in Other.

These changes had no impact on our consolidated results of operations or financial position.

Prior period segment information has been recast to conform to our current presentation.

Our other operating segments, Siding and OSB remain reportable operating segments.

Other now comprises our South American operations and other products that are not individually significant.

See “Note 15 - Segment Information” of the Notes to the Consolidated Financial Statements included in Item 8 of this annual report on Form 10-K for further information regarding our reportable segments.

The following table presents revenues disaggregated by revenue source (dollar amounts in millions):

Year Ended December 31,

By Product type and family:

Siding OSB LPSA Other Inter-segment Total

Siding Solutions $ 1,319 $ — $ 24 $ — $ — $ 1,343

OSB - Structural Solutions — 565 177 — — 742

2025 2024 2023

OSB - Commodity — 446 — — — 446

Other products 9 15 4 22 — 49

$ 1,328 $ 1,026 $ 205 $ 22 $ — $ 2,581

Year Ended December 31, 2022

By Product type and family:

Siding OSB LPSA Other Inter-segment Total

Siding Solutions $ 1,463 $ — $ 23 $ — $ — $ 1,486

Siding $ 1,679 $ 1,549 $ 1,319

Net sales attributable to Siding 1,689 1,558 1,328

OSB - Structural Solutions 472 650 565

1,463 1,110 238 — ( 2 ) 2,809

OSB - Commodity 347 514 446

Other products 6 14 3 84 — 107

$ 1,469 $ 2,062 $ 241 $ 84 $ ( 2 ) $ 3,854

Other 13 20 15

Net sales attributable to OSB 832 1,184 1,026

Other 187 199 227

Total Sales $ 2,708 $ 2,941 $ 2,581

Revenue is recognized when obligations under the terms of a contract ( e.g.

24 unchanged sentences

This method requires that the effect of potentially dilutive common stock equivalents (stock options, SSARs, restricted stock or units, and performance stock units) be excluded from the calculation of diluted earnings per share for the periods in which losses from continuing operations are reported because the effect is anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share (dollars and shares in millions):

The following table sets forth the computation of basic and diluted earnings per share (dollar and share amounts in millions):

Year Ended December 31,

Income from continuing operations $ 420 $ 178 $ 885

Net loss attributed to non-controlling interest — — 3

Income attributed to LP from continuing operations 420 178 888

Income from discontinued operations, net of income taxes — — 198

Net income attributed to LP $ 420 $ 178 $ 1,086

Net income $ 146 $ 420 $ 178

Weighted average common shares outstanding - basic 70 71 72

1 unchanged sentence

Shares used for diluted earnings per share 70 71 72

Net income attributed to LP per share - basic:

Continuing operations $ 5.91 $ 2.47 $ 11.40

Discontinued operations — — 2.54

Net income attributed to LP per share - basic $ 5.91 $ 2.47 $ 13.94

Net income attributed to LP per share – diluted:

Continuing operations $ 5.89 $ 2.46 $ 11.34

Discontinued operations — — 2.52

Net income attributed to LP per share - diluted $ 5.89 $ 2.46 $ 13.87

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in goodwill by segment for the years ended December 31, 2024 and 2023, are provided in the following table (dollars in millions):

Siding OSB Total

Balance at December 31, 2022

$ 4 $ 16 $ 19

Impairment charges — — —

Balance at December 31, 2023

Impairment charges — — —

Balance at December 31, 2024

$ 4 $ 16 $ 19

Changes in other intangible assets for the years ended December 31, 2024 and 2023, are provided in the following table (dollars in millions):

Timber Licenses 1

Developed Technology Trademarks

Total Other Intangibles

Balance at December 31, 2022

Net income per share of common stock:

$ 2.09 $ 5.91 $ 2.47

Impairment — ( 7 ) ( 2 ) ( 9 )

Amortization ( 3 ) ( 1 ) — ( 4 )

Balance at December 31, 2023

Additions 1 — — 1

Amortization ( 3 ) ( 1 ) — ( 3 )

Balance at December 31, 2024

$ 2.08 $ 5.89 $ 2.46

1 Timber licenses are included in timber and timberlands on the Consolidated Balance Sheets.

The Company’s goodwill and other intangible assets are evaluated for impairment annually during the fourth quarter or more frequently if events indicate the carrying value of a reporting unit may not be recoverable.

For the year ended December 31, 2024, we did not recognize impairment for goodwill or other intangible assets.

During the year ended December 31, 2023, we recorded impairment charges of $ 9 million related to developed technology and trademarks related to Entekra, which is discussed further in “Note 7 - Business Exit Credits and Charges.”

Included in the balance of timber licenses are values allocated to Canadian forest licenses whose initial value of $ 69 million is amortized over the estimated useful life of 20 to 25 years.

Amortization expense related to definite-lived intangible assets was $ 3 million for the year ended December 31, 2024 and $ 4 million and $ 5 million for the years ended December 31, 2023 and 2022, respectively.

Amortization of the above-described intangible assets will be $ 3 million per year over the next five years.

DISCONTINUED OPERATIONS

Engineered Wood Products (EWP)

In March 2022, the Company sold its 50 % equity interest in two joint ventures that produce I-joists to Resolute Forest Products Inc.

for $ 59 million.

The total net carrying value of our equity method investment at the date of sale was $ 19 million, and the Company recognized a gain associated with the sale of $ 39 million within Income from discontinued operations, net of income taxes in the Consolidated Statements of Income.

On August 1, 2022, the Company completed the sale of the assets related to the EWP segment.

As a result of the sale, the Company received $ 217 million in gross cash proceeds after taking into account working capital adjustments.

The Company paid $ 12 million in direct transaction costs, resulting in net proceeds of $ 205 million.

The net carrying value of the EWP assets at the time of sale was $ 87 million, which resulted in a pre-tax gain of approximately $ 118 million within Income from discontinued operations, net of income taxes in the Consolidated Statements of Income.

Upon closing, the Company entered into a transition services agreement, pursuant to which the Company agreed to support the various activities of the EWP segment, which concluded during the year ended December 31, 2023.

The Company has classified the results of its EWP segment as discontinued operations in its Consolidated Statements of Income for the prior periods presented.

The following table presents the financial results of the EWP segment (dollars in millions):

December 31, 2022 1

Net sales $ 455

Cost of sales ( 355 )

Gross profit 101

Selling, general, and administrative expenses ( 10 )

Other operating credits and charges, net —

Income from operations of discontinued operations 91

Other non-operating items —

Gain on disposal before income taxes 158

Income from discontinued operations before income taxes 249

Provision for income taxes ( 51 )

Income from discontinued operations, net of income taxes $ 198

1 Reflects operating results through August 1, 2022, when the assets related to the EWP segment were sold.

The following summarizes the total cash provided by operations and total cash used for investing activities related to the EWP segment and included in the Consolidated Statements of Cash Flows (dollars in millions):

Net cash provided by discontinued operating activities $ 16

Net cash provided by (used in) discontinued investing activities $ 261

Net cash provided by discontinued investing activities for the year ended December 31, 2022, included $ 59 million of proceeds from the sale of our 50 % equity interest in two joint ventures that produced I-joists and $ 205 million of net proceeds from the sale of the EWP segment assets.

Capital expenditures for discontinued operations totaled $ 3 million for the year ended December 31, 2022.

Included in net cash provided by discontinued operating activities is depreciation and amortization of $ 3 million for the year ended December 31, 2022.

BUSINESS EXIT CREDITS AND CHARGES

During the second quarter of 2023, we ceased the manufacturing operations of Entekra, an off-site framing operation previously reported within our “Other” category, which comprises other products that are not individually significant.

During the second quarter of 2023, we ceased the manufacturing operations of Entekra, an off-site framing operation previously reported within Other, which comprises other products that are not individually significant.

During 2024, the equity method investment held by Entekra sold substantially all of its net assets resulting in a $ 16 million distribution to LP and a gain of $ 11 million, which was recorded within equity in unconsolidated affiliate on the Consolidated Statements of Income.

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Year Ended December 31,

2025 2024 2023

Impairment of property, plant and equipment, operating lease assets, and other intangible assets 1

$ — $ — $ ( 24 )

Gain on sale of assets from an equity method investment 2

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Inventory write-down 3

Other expenses including personnel-related costs such as severance 4

Other operating credits and charges including personnel-related costs such as severance 4

Total business exit credits and charges

1 Included within impairment of long-lived assets on the Consolidated Statements of Income.

2 Included within equity in unconsolidated affiliate on the Consolidated Statements of Income.

$ — $ 14 $ ( 32 )

1 Included within loss on impairments on the Consolidated Statements of Income.

2 Included within equity in unconsolidated affiliates on the Consolidated Statements of Income.

3 Included within cost of sales on the Consolidated Statements of Income.

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Income Tax Provision

The components of income from continuing operations before income taxes, including equity in unconsolidated affiliates, were (dollars in millions):

Years Ended December 31,

The components of income from continuing operations before income taxes, including equity in unconsolidated affiliates, were (dollar amounts in millions):

Year Ended December 31,

Domestic $ 163 $ 469 $ 207

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Total $ 196 $ 560 $ 252

The components of our income tax provision (benefit) from continuing operations were (dollars in millions):

Years Ended December 31,

The components of our income tax provision (benefit) from continuing operations were (dollar amounts in millions):

Year Ended December 31,

Current tax provision (benefit):

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Total income tax provision $ 50 $ 140 $ 74

We paid income taxes, net of refunds, of $ 124 million, $ 65 million, and $ 320 million during 2024, 2023, and 2022, respectively.

Included in our Consolidated Balance Sheet at December 31, 2024 is a net income tax receivable of $ 1 million, compared to a net income tax receivable of $ 22 million at December 31, 2023.

Deferred Taxes

The tax effects of significant temporary differences creating deferred tax assets and liabilities were (dollars in millions):

The tax effects of significant temporary differences creating deferred tax assets and liabilities were (dollar amounts in millions):

Deferred tax assets:

Accrued liabilities $ 21 $ 22

Research expenditures 26 19

Inventories 11 14

Benefit relating to capital loss, operating loss, and credit carryforwards 21 9

Inventories 15 11

Operating lease liabilities 7 7

Stock-based compensation 6 2

Currency remeasurement loss 4 2

Deferred revenue — 3

Research expenditures — 26

Other deferred tax assets 8 9

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Valuation allowance ( 14 ) ( 10 )

Total deferred tax asset after valuation allowance 81 82

Total deferred tax asset net of valuation allowance $ 68 $ 81

Deferred tax liabilities:

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Operating lease assets ( 7 ) ( 7 )

Investment in Entekra — ( 7 )

Other deferred tax liabilities ( 4 ) ( 4 )

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Net deferred tax liabilities $ ( 169 ) $ ( 141 )

The benefit relating to capital loss, operating loss, and credit carryforwards included in the above table at December 31, 2024, consisted of (dollars in millions):

The benefit relating to capital loss, operating loss, and credit carryforwards included in the above table at December 31, 2025, consisted of (dollar amounts in millions):

Operating Loss Benefit Amount Valuation Allowance Expiration Beginning in

Canadian capital loss carryforwards — 4 ( 4 ) No expiration

Mexico operating loss carryforwards 2 1 ( 1 ) 2033

Federal credit carryforwards $ — $ 6 $ — No expiration

State credit carryforwards — 5 ( 3 ) 2034

Canadian capital loss carryforwards — 4 ( 4 ) No expiration

Chile foreign tax credit carryforwards — 4 — No expiration

Foreign operating loss carryforwards 7 2 ( 1 ) 2030

Total $ 7 $ 21 $ ( 8 )

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In 2023 we made the determination that a substantial portion of unremitted foreign earnings was no longer indefinitely reinvested and as of December 31, 2023, we recorded a deferred tax liability of $ 21 million related to the taxes expected to be imposed upon the repatriation of such foreign earnings to the United States.

As of December 31, 2024, the deferred tax liability related to unremitted foreign earnings was $ 19 million.

Over the last several years, the Organization for Economic Cooperation and Development (OECD) has developed an Inclusive Framework on Base Erosion and Profit Shifting including Pillar Two model rules applicable to large multinational corporations which would establish a global per-country minimum tax of 15%.

While the United States has not enacted legislation to adopt Pillar Two and it is uncertain if it will do so in the future, certain countries in which we operate have enacted such legislation.

Specifically, the Canadian government enacted legislation in 2024 implementing aspects of the OECD’s minimum tax rules effective in the 2024 fiscal year and released draft legislation proposed to implement further aspects effective for the 2025 fiscal year.

In addition, in 2024, the Brazilian National Congress approved legislation implementing a tax measure to take effect in the 2025 fiscal year that is largely aligned with certain aspects of the OECD’s minimum tax rules under the Pillar Two framework.

No other jurisdictions in which LP operates have enacted Pillar Two legislation at this time.

At this time, we do not expect Pillar Two legislation to have a material impact on our effective tax rate or our consolidated results of operations, financial position or cash flows.

The Company will continue to monitor future developments to determine any potential impact in the countries in which we operate.

As of December 31, 2025, and 2024, the deferred tax liability related to unremitted foreign earnings was $ 25 million and $ 19 million, respectively.

In 2021, the Organization for Economic Cooperation and Development (OECD) announced an Inclusive Framework on Base Erosion and Profit Shifting, including the Pillar Two Model Rules (Pillar Two), applicable to large multinational corporations.

These rules establish a global per-country minimum tax of 15%.

Although, the United States has not enacted legislation to adopt the Pillar Two framework, and future adoption remains uncertain, certain countries where our operations are conducted have enacted such legislation.

Specifically, the Canadian and Brazilian governments enacted legislation in 2024 implementing certain aspects of the OECD’s minimum tax rules under the Pillar Two Framework.

To date, no other jurisdictions in which LP operates have enacted Pillar Two legislation.

At this time, Pillar Two legislation is not expected to have a material impact on the Company’s effective tax rate, consolidated results of operations, financial position, or cash flows.

The Company will continue to monitor future developments related to Pillar Two legislation to assess any potential impact in the relevant jurisdictions.

On July 4, 2025, H.R.

1, a bill to provide for reconciliation pursuant to title II of H.

14, informally known as the One Big Beautiful Bill Act (“The Tax Act”), was enacted in the U.S., introducing a series of corporate tax changes in the U.S., including significant provisions such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented thereafter through 2027.

The provisions of The Tax Act effective in 2025 include 100% bonus depreciation on qualified property and full expensing for research and experimental expenditures.

The impacts of The Tax Act are reflected in our results for the year ended December 31, 2025, and have no material impact on our income tax expense or effective tax rate.

Certain provisions of The Tax Act decreased cash taxes paid during the year and may change the timing of cash tax payments in future periods.

Reconciliation of the U.S.

Federal Statutory Rate to the Effective Rate

Reconciliation of the U.S.

federal statutory tax rate to the total effective tax rates from continuing operations (dollars in millions):

Years Ended December 31,

Amount ($) Percent (%) Amount ($) Percent (%) Amount ($) Percent (%)

As further described in “Note 2 - Present and Prospective Accounting Pronouncements, ” the Company has elected to prospectively adopt the guidance in ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Taxes Disclosures.

The following table is a reconciliation of the U.S.

federal statutory tax rate to the total effective tax rates from continuing operations for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09 (dollar amounts in millions):

Year Ended December 31,

Amount ($) Percent (%)

federal statutory tax rate $ 41 21 %

State and local income taxes 1

Foreign tax effects

Unremitted foreign earnings 4 2

Inflationary adjustments ( 3 ) ( 1 )

Other ( 1 ) —

Changes in valuation allowances 3 1

Other ( 2 ) ( 1 )

Other foreign jurisdictions 1 —

Research and development tax credits

Nontaxable or nondeductible items

Nondeductible compensation

Changes in unrecognized tax benefits

Other adjustments

Provision for income taxes $ 50 26 %

1 State taxes in Arizona, California, Georgia, Indiana, Maine, Minnesota, North Carolina, and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category.

The following table is a reconciliation of the U.S.

federal statutory tax rate to the total effective tax rates from continuing operations for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09 (dollar amounts in millions):

Year Ended December 31,

Amount ($) Percent (%) Amount ($) Percent (%)

Federal tax rate $ 118 21 % $ 53 21 %

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Our tax returns are currently under examination by tax authorities in the U.S.

for years 2018, 2019, and 2020, and in Chile for years 2016 and 2020.

for years 2022 and 2023, Canada for year 2022, and in Chile for years 2016 and 2020.

Income Tax Payments

The following table is a summary of income taxes paid (net of refunds) by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 (dollar amounts in millions):

Income Tax Payments

We paid income taxes, net of refunds, of $ 42 million, $ 124 million, and $ 65 million during 2025, 2024, and 2023, respectively.

Included in our Consolidated Balance Sheet at December 31, 2025 is a net income tax receivable of $ 11 million, compared to $ 1 million at December 31, 2024.

Uncertain Tax Positions

Tabular reconciliation of the total amount of unrecognized tax benefits at the beginning and end of the years (dollars in millions):

The following is a tabular reconciliation of the total amount of unrecognized tax benefits at the beginning and end of the years (dollar amounts in millions):

Year Ended December 31,

Beginning balance $ 11 $ 13 $ 6

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Included within other long-term liabilities on our Consolidated Balance Sheets at December 31, 2025, are $ 4 million of tax benefits that, if recognized, would affect our effective tax rate.

We accrued and paid no interest during 2024.

We accrued interest of $ 2 million and paid no interest during 2023.

We accrued and paid no interest during 2025 or 2024.

Our lease portfolio consists primarily of real estate, mobile equipment at our manufacturing facilities, rail cars to transport our products, and a fleet of vehicles.

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The lease term for all our leases includes the non-cancellable period of the lease plus any additional periods covered by either an option to extend (or not to terminate) the lease that we are reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor.

As of December 31, 2024 , our weighted average discount rate was 3 % , and our weighted average remaining lease term was five years for operating leas es.

Our operating leases are included in our Consolidated Balance Sheets and Consolidated Statements of Income as follows (dollars in millions):

Classification December 31,

Consolidated Balance Sheet 2024

For each of the years ended December 31, 2025 and 2024 , our weighted average discount rate was 4 %, and our weighted average remaining lease term was five years for operating leases.

Our operating leases are included in our Consolidated Balance Sheets and Consolidated Statements of Income as follows (dollar amounts in millions):

Balance Sheet Classification

Operating lease assets Operating lease assets, net $ 23 $ 25

Total lease assets $ 23 $ 25

Operating Accounts payable and accrued liabilities $ 8 $ 6

Operating Non-current operating lease liabilities 24 25

Current operating lease liability

Accounts payable and accrued liabilities $ 9 $ 8

Non-current operating lease liability

Non-current operating lease liabilities 22 24

Total lease liabilities $ 30 $ 32

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We made cash payments of $ 9 million and $ 7 million during the years ended December 31, 2025 and 2024, respectively, related to our operating leases.

We further incurred operating lease expense of $ 5 million and $ 4 million related to short-term rent expense for the years ended December 31, 2024 and 2023, respectively.

We obtained right of use (ROU) assets in exchange for new operating lease liabilities of $ 7 million and $ 4 million for the years ended December 31, 2024 and 2023, respectively .

We further incurred operating lease expense of $ 2 million and $ 5 million related to short-term rent expense for the years ended December 31, 2025 and 2024, resp ectively.

We obtained right of use (ROU) assets in exchange for new operating lease liabilitie s of $ 5 million an d $ 7 million for the years ended December 31, 2025 and 2024, r espectively.

We did not enter into any financing leases during 2025 or 2024.

In connection with the Entekra shutdown described in "Note 7 - Business Exit Credits and Charges ,” we terminated the related lease arrangements and derecognized the associated operating lease assets and liabilities, resulting in a non-cash pre-tax impairment charge of $ 3 million for the year ended December 31, 2023.

The following table sets forth the minimum lease payments that are expected to be made in each of the years indicated (dollars in millions):

Operating Leases

The following table sets forth the minimum operating lease payments that are expected to be made in each of the years indicated (dollar amounts in millions):

2031 and thereafter

Total lease payments 35

Total operating lease payments

Interest ( 2 )

Present value of lease liabilities $ 32

Present value of operating lease liabilities

LONG-TERM DEBT

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December 31, 2024

(Dollars in millions) Interest Rate Principal Unamortized Debt Costs Total Principal Unamortized Debt Costs Total

(Dollar amounts in millions)

Interest Rate Principal Unamortized Debt Costs Total Principal Unamortized Debt Costs Total

Senior unsecured notes, maturing 2029, interest rates fixed 3.625 % $ 350 $ ( 2 ) $ 348 $ 350 $ ( 2 ) $ 348

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Long-term portion $ 350 $ ( 2 ) $ 348 $ 350 $ ( 2 ) $ 348

In March 2021, we issued $ 350 million of 3.625 % Senior Notes due in 2029 (2029 Senior Notes).

We may redeem the 2029 Senior Notes, in whole or in part, prior to March 15, 2024, at a redemption price equal to 100 % of the principal amount thereof plus a “make-whole” premium set forth in the indenture governing our 2029 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption.

In March 2021, we issued $ 350 million of 3.625 % Senior Notes due in 2029 (the 2029 Senior Notes).

Since March 15, 2024, we have had the option, on one or more occasions, to redeem all or any portion of these notes at the redemption prices set forth in the indenture governing the 2029 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption.

The indenture governing the 2029 Senior Notes contains certain covenants that, among other things, limit our ability to grant liens to secure indebtedness, engage in sale and leaseback transactions, merge or consolidate or sell all or substantially all of our assets.

If we are subject to a "change of control," as defined in the indenture governing our 2029 Senior Notes, we are required to offer to repurchase the 2029 Senior Notes at a purchase price equal to 101 % of the principal amount thereof plus accrued and unpaid interest, if any, thereon to, but not including, the date of purchase.

The indenture governing the 2029 Senior Notes contains customary events of default, including failure to make required payments on the 2029 Senior Notes, failure to comply with certain agreements or covenants contained in the indenture governing our 2029 Senior Notes, failure to pay or acceleration of certain other indebtedness and certain events of bankruptcy and insolvency.

If we are subject to a “ change of control, ” as defined in the indenture governing the 2029 Senior Notes, we are required to offer to repurchase the 2029 Senior Notes at a purchase price equal to 101 % of the principal amount thereof plus accrued and unpaid interest, if any, thereon up to, but not including, the date of purchase.

The indenture governing the 2029 Senior Notes contains customary events of default, including failure to make required payments on the 2029 Senior Notes, failure to comply with certain agreements or covenants contained in the indenture governing the 2029 Senior Notes, failure to pay or acceleration of certain other indebtedness and certain events of bankruptcy and insolvency.

An event of default in the indenture allows either the indenture trustee or the holders of at least 25 % in aggregate principal amount of the then-outstanding 2029 Senior Notes to accelerate, or in certain cases, automatically causes the acceleration of, the amounts due under the 2029 Senior Notes.

Deferred debt costs are amortized over the life of the related debt using a straight-line basis which approximates the effective interest method.

If the debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired to other non-operating items.

If the debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired to other non-operating income (expense).

Credit Facilities

In November 2022, LP entered into a Second Amended and Restated Credit Agreement with American AgCredit, PCA, as administrative agent and sole lead arranger, CoBank, ACB, as letter of credit issuer, and certain other lender parties (the Credit Agreement), relating to its revolving credit facility (as amended, the Amended Credit Facility).

The Credit Agreement provides for a revolving credit facility in the principal amount of up to $ 550 million, with a $ 60 million sub-limit for letters of credit.

The Credit Agreement amended and restated the Amended and Restated Credit Agreement entered into by the Company and certain other parties dated as of June 27, 2019, as amended prior to the effectiveness of the Credit Agreement (as defined above), in its entirety to, among other things, (i) reflect the release of the collateral that secures the indebtedness evidenced by the Credit Agreement as a result of the Company’s obtaining an Investment Grade rating in November 2022 (which collateral may be reinstated from time to time in accordance with the terms of the Credit Agreement), (ii) extend the maturity date to November 29, 2028, (iii) make certain changes to effect a transition from the LIBOR interest rate benchmark to Term SOFR Rate (as defined in the Credit Agreement) and (iv) provide for certain other modifications (including modifications to certain basket and threshold levels in the negative covenants) as set forth in the Credit Agreement.

There were no outstanding amounts borrowed under the Amended Credit Facility as of December 31, 2024.

On March 26, 2025, LP entered into the First Amendment to Second Amended and Restated Credit Agreement (the First Amendment) with American AgCredit, PCA, as administrative agent, CoBank, ACB, as letter of credit issuer, and the lenders and voting participants party thereto, which amended the Credit Agreement (the Amended Credit Agreement) to (1) increase the aggregate principal amount for the credit facility (the Amended Credit Facility) from $550 million to $750 million, (2) increase the sub-limit for letters of credit from $60 million to $75 million, (3) change the interest rate for revolving borrowing, (4) change the capitalization ratio limit, and (5) extend the maturity date to March 26, 2032.

There were no outstanding borrowings pursuant to the Amended Credit Facility as of December 31, 2025.

Revolving borrowings under the Amended Credit Facility accrue interest, at our option, at either (a) a “base rate” plus a margin of 0.500 % to 1.500 % or (b) Adjusted Term SOFR ( i.e.

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prime rate, and (iii) one-month Adjusted Term SOFR plus 1.0 %.

The Credit Agreement contains various restrictive covenants and customary events of default, the occurrence of which could result in the acceleration of our obligation to repay the indebtedness outstanding thereunder.

The Credit Agreement also contains financial covenants that, among other things, require us and our consolidated subsidiaries to have, as of the end of each fiscal quarter, a capitalization ratio ( i.e.

The Amended Credit Agreement contains various restrictive covenants and customary events of default, the occurrence of which could result in the acceleration of our obligation to repay the indebtedness outstanding thereunder.

The Amended Credit Agreement also contains financial covenants that, among other things, require us and our consolidated subsidiaries to have, as of the end of each fiscal quarter, a capitalization ratio ( i.e.

, funded debt less unrestricted cash to total capitalization) of no more than 65 %.

In May 2024, LP entered into a new letter of credit facility agreement, replacing the letter of credit facility agreement dated May 2020.

This agreement provides for the funding of letters of credit up to an aggregate outstanding amount of $ 20 million, which may be secured by certain cash collateral of LP (the Letter of Credit Facility).

The Letter of Credit Facility provides for a letter of credit fee, due quarterly, ranging from 1.000 % to 1.875 % of the daily available amount to be drawn on each letter of credit issued under the Letter of Credit Facility.

The Letter of Credit Facility is subject to similar affirmative, negative, and financial covenants as those set forth in the Credit Agreement, including the capitalization ratio covenant.

In May 2024, LP entered into a new letter of credit facility agreement (the LOC Facility Agreement), replacing the letter of credit facility agreement dated May 2020.

The LOC Facility Agreement provides for the funding of letters of credit up to an aggregate outstanding amount of $ 20 million, which may be secured by certain cash collateral of LP (the Letter of Credit Facility).

The LOC Facility Agreement provides for a letter of credit fee, due quarterly, ranging from 1.000 % to 1.875 % of the daily available amount to be drawn on each letter of credit issued under the Letter of Credit Facility.

The LOC Facility Agreement contains similar affirmative, negative, and financial covenants as those set forth in the Amended Credit Agreement, including the capitalization ratio covenant.

All amounts outstanding under the Letter of Credit Facility become due on April 15, 2029.

As of December 31, 2024, we were in compliance with all financial covenants under the 2029 Senior Notes, the Credit Agreement and the Letter of Credit Facility.

As of December 31, 2025, we were in compliance with all financial covenants under the 2029 Senior Notes, the Amended Credit Agreement and the LOC Facility Agreement.

Deferred debt costs are amortized over the life of the related debt using a straight-line basis, which approximates the effective interest method.

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We amortized deferred debt costs of $ 1 million for each of the years ended December 31, 2025, 2024, and 2023.

The weighted average interest rate for all long-term debt at both December 31, 2024 and 2023 was approximately 3.6 %.

Required repayment of principal for long-term debt is as follows (dollars in millions):

The weighted average interest rate for all long-term debt at December 31, 2025 and 2024 was approximately 3.6 %.

Required repayment of principal for long-term debt is as follows (dollar amounts in millions):

Years ending December 31,

2031 and thereafter

We estimated the 2029 Senior Notes to have a fair value of $ 341 million and $ 323 million at December 31, 2025 and 2024, respectively, based upon market quotations.

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Year Ended December 31,

(Dollars in millions) 2024

(Dollar amounts in millions) 2025

Total stock-based compensation expense (cost of sales and selling, general and administrative) $ 30 $ 20 $ 13

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Prior to January 1, 2018, we granted SSARs to key employees under the Company’s then-current stock award plan.

On exercise, we generally issue these shares from treasury.

Upon exercise of the SSARs, we generally issue the underlying shares from treasury.

The SSARs were granted at market price at the date of grant.

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Restricted Stock Units and Performance Stock Units

We grant time-vested restricted stock units (RSUs) and performance stock units (PSUs) to certain key employees and time-vested restricted stock units to non-employee directors under our stock award plan.

We grant time-vested restricted stock units (RSUs) and performance stock units (PSUs) to certain key employees and time-vested RSUs to non-employee directors under our stock award plan.

RSUs generally vest (i) ratably over a three-year vesting period for employees and (ii) in full on the first anniversary of the grant date for non-employee directors.

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Exercised ( 3,000 ) 15.74 ( 158,320 ) 71.85

Vested — — — —

Forfeited/cancelled — — ( 174,499 ) 79.96

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Vested and expected to vest at December 31, 2025 1

3,150 $ 15.90

Exercisable at December 31, 2025

3,150 $ 15.90

Unrecognized compensation costs (in millions) $ — $ 21

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1 Expected to vest based upon historical forfeiture rate.

In July 2025, LP modified the performance vesting criteria of approximately 101,000 outstanding PSU awards that were granted in 2023.

The modification relating to the 2023 PSU awards was considered a Type III modification under Accounting for Share-Based Payments (FASB ASC Topic 718) because it changed the expectation from improbable to probable that the awards would ultimately vest, in which the original awards were cancelled, and the modified awards were considered granted on the modification date.

Stock-based compensation expense related to these modified awards will be recognized over the remaining vesting period based on the expected number of awards to vest using fair values per share of $ 92.30 .

Stock-based compensation expense related to the 2023 PSU modification was $ 7 million for the year ended December 31, 2025.

The aggregate intrinsic value of the stock options and SSARs is the total pre-tax intrinsic value (the difference between our closing stock price on the last trading day of a fiscal year and the exercise price, multiplied by the number of in-the-money options and SSARs) that would have been received by the holders had all holders exercised their awards on the last day of such fiscal year.

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Share Repurchases

On May 3, 2022, our Board of Directors authorized a share repurchase program (2022 Share Repurchase Program) under which we may repurchase shares of our common stock totaling up to $ 600 million.

On May 7, 2024, LP’s Board of Directors authorized the 2024 Share Repurchase Program under which we may repurchase shares of its common stock totaling up to $ 250 million.

On May 7, 2024, LP’s Board of Directors authorized the 2024 Share Repurchase Program under which we may repurchase shares of LP common stock totaling up to $ 250 million.

During 2025, we paid $ 61 million to repurchase approximately 1 million shares of our common stock through market purchases at an average price of $ 108.55 per share.

No purchases were made under the 2022 Share Repurchase Program during 2023.

During 2024, we paid $ 212 million to repurchase approximately 2 million shares of our common stock through market purchases at an average price of $ 87.98 per share.

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Our employee stock purchase plan (ESPP) provides our participating employees an opportunity to obtain shares of our common stock at a discount (through payroll deductions over six-month periods).

At December 31, 2024, 2 million shares of common stock were reserved for issuance under the ESPP.

At December 31, 2025, approximately 1 million shares of common stock were reserved for issuance under the ESPP.

OTHER OPERATING AND NON-OPERATING INCOME (EXPENSE)

Other operating credits and charges, net

The major components of Other operating credits and charges, net in the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022 are reflected in the table below and described in the paragraphs following the table (dollars in millions):

The major components of other operating credits and charges, net in the Consolidated Statements of Income for the years ended December 31, 2025, 2024, and 2023 are reflected in the table below and described in the paragraphs following the table (dollar amounts in millions):

Year Ended December 31,

Insurance recoveries $ — $ — $ 15

Legal settlement — 3 ( 16 )

Reorganization charges ( 6 ) ( 2 ) ( 8 )

Product liability settlement — — 8

Product-line discontinuance charges ( 2 ) — —

Gain (loss) on asset sales — ( 2 ) 6

Other 1 ( 3 ) ( 1 )

Other operating credits and charges, net

$ ( 7 ) $ ( 4 ) $ ( 19 )

During 2024, we received $ 3 million related to legal settlements, incurred severance and other charges of $ 2 million related to certain reorganizations, and recognized a $ 2 million loss on the sale of assets.

During 2025, we paid $ 6 million related to certain reorganizations, including severances, and recognized $ 2 million of product-line discontinuance charges related to inventory we are no longer planning to sell.

During 2023, we agreed to pay $ 16 million to resolve certain patent-related claims and to obtain certain patent rights.

We incurred severance and other charges of $ 8 million related to certain reorganizations and recognized a $ 6 million gain on the sale of assets.

During 2022, we received $ 15 million in insurance recoveries related to business interruption claims for weather-related downtime sustained in the prior year.

We incurred severance and other charges of $ 7 million related to certain reorganizations and we recognized a charge of $ 2 million related to additional estimated environmental costs associated with a non-operating site.

Non-operating income (expense)

Non-operating income (expense) is comprised of the following components (dollars in millions):

Non-operating income (expense) is comprised of the following components (dollar amounts in millions):

Year Ended December 31,

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Investment income $ 16 $ 22 $ 18

Net periodic pension cost, excluding service cost $ — $ — $ ( 6 )

Foreign currency gain (loss), net $ ( 15 ) $ 9 $ ( 40 )

Pension settlement charges — — ( 4 )

Other non-operating items $ 9 $ ( 43 ) $ ( 97 )

Other non-operating (expense) income

$ ( 15 ) $ 9 $ ( 43 )

During 2025, we recognized $ 15 million of foreign currency losses primarily driven by $ 2 million and $ 13 million of transactional gains on Canadian and South American exchange rates, respectively.

During 2024, we recognized $ 9 million of foreign currency gains primarily driven by $ 4 million and $ 5 million of transactional gains on Canadian and South American exchange rates, respectively.

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Additionally, we recognized $ 40 million of foreign currency losses primarily driven by $ 32 million of transactional losses on the Argentine peso.

During 2022, we recognized $ 82 million of pension settlement expense related to a portion of the unrecognized actuarial loss that was included in accumulated comprehensive loss.

IMPAIRMENT OF LONG-LIVED ASSETS

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Because a determination to dispose of particular assets can require management to make assumptions regarding the transaction structure of the disposition and to estimate the net sales proceeds, which may be less than previous estimates of undiscounted future net cash flows, we may be required to record impairment charges in connection with decisions to dispose of assets.

During 2024, we recorded $ 5 million of pre-tax impairment charges, related to property, plant, and equipment at our Wawa facility.

The impairment charge recognized during the period pertains to equipment acquired that will not be utilized in future operations.

During 2023, we recorded $ 30 million of non-cash, pre-tax impairment charges, $ 24 million of which was related to the shutdown of Entekra, including $ 13 million of property, plant, and equipment, $ 9 million of intangible assets, and $ 3 million related to operating lease assets.

See further discussion in “Note 7 - Business Exit Credit and Charges”.

Further, $ 6 million of non-cash, pre-tax impairment charges were recognized related to the Granite City, Illinois facility which subsequently closed in 2024, including $ 4 million of property, plant, and equipment and $ 2 million related to operating lease assets.

During 2022, we recognized $ 1 million of pre-tax impairment charges.

These assets were written down to fair value based on Level 2 inputs under ASC 820, Fair Value Measurement, using quoted market prices.

During 2025, we recorded $ 44 million of non-cash, pre-tax impairment charges.

These charges included $ 24 million related to equipment that will not be utilized in future operations, $ 13 million related to the expiration and non-renewal of certain timber licenses, $ 4 million related to property, plant, and equipment associated with a facility closure, and $ 2 million primarily related to an operating lease asset associated with a previously closed facility.

During 2024, we recorded $ 5 million of non-cash, pre-tax impairment charges related to property, plant, and equipment that will not be utilized in future operations.

COMMITMENTS AND CONTINGENCIES

We maintain reserves for various contingent liabilities as follows (dollars in millions):

We maintain reserves for various contingent liabilities as follows (dollar amounts in millions):

Environmental reserves $ 27 $ 28

3 unchanged sentences

Long-term portion $ 26 $ 27

1 The current portion of the contingency reserve is included in accounts payable and accrued liabilities on our Consolidated Balance Sheets.

1 Included within accounts payable and accrued liabilities on the Consolidated Balance Sheets.

Estimates of our loss contingencies are based on various assumptions and judgments.

10 unchanged sentences

We regularly monitor our estimated exposure to environmental loss contingencies and, as additional information becomes known, may change our estimates significantly.

The activity in our reserve for estimated environmental loss contingency reserves is summarized in the following table (dollars in millions):

The activity in our reserve for estimated environmental loss contingency reserves is summarized in the following table (dollar amounts in millions):

Year Ended December 31,

Beginning balance $ 28 $ 26

Adjustments to expense during the year (other operating credits charges, net and cost of sales) 2 —

Adjustments to expense (other operating credits and charges, net and cost of sales) — 2

Payments made ( 1 ) ( 1 )

Ending balance $ 27 $ 28

During 2024 and 2023, we adjusted our reserves at several sites to reflect current estimates of remediation costs and environmental settlements.

During 2024, we adjusted our reserves at several sites to reflect current estimates of remediation costs and environmental settlements.

Other Proceedings

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Such accruals are based upon historical experience and management’s estimate of the level of future claims.

The activity in warranty reserves is summarized in the following table (dollars in millions):

The activity in warranty reserves is summarized in the following table (dollar amounts in millions):

Year Ended December 31,

5 unchanged sentences

Long-term portion of warranty reserves 2

The current portion of the warranty reserve is included in accounts payable and accrued liabilities, and the long-term portion is included in other long-term liabilities on our Consolidated Balance Sheets.

1 Included within accounts payable and accrued liabilities on the Consolidated Balance Sheets.

2 Included within other long-term liabilities on the Consolidated Balance Sheets.

We believe that the warranty reserve balances at December 31, 2025 are adequate to cover future warranty payments.

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The defined benefit pension plans were limited to active and retired employees that were eligible prior to the plans being frozen.

The defined benefit pension plans were substantially settled through lump sum distributions and purchase of third-party annuity contracts in 2022.

Defined Benefit Pension Plans

During the year ended December 31, 2022, the Company initiated the termination of our frozen U.S.

and Canadian defined benefit pension plans (collectively, the Plan).

Plan participants were provided the opportunity to receive their full accrued benefits from Plan assets by either electing immediate lump sum distributions or annuity contracts with a qualifying third-party annuity provider.

During the year ended December 31, 2022, we contributed $ 5 million to fund the liquidation of the Plan.

Plan assets of $ 247 million were liquidated to fund lump sum distributions to participants and purchase annuity contracts.

As a result, a substantial portion of the Plan was settled during the year ended December 31, 2022, resulting in recognition of non-cash, pre-tax charges of $ 82 million from Accumulated comprehensive loss to Other non-operating items in our Consolidated Statements of Income.

Upon final termination of the Plan in 2023, we recognized $ 6 million of non-cash, pre-tax charges from Accumulated comprehensive loss and realized pre-tax gains of $ 2 million related to refunds from the annuity provider to the Plan associated with the final reconciliation of participant data.

The remaining Plan asset balance of $ 2 million was refunded in 2023.

We incurred actuarial gains of $ 47 million in 2022 primarily related to a change in interest rates from prior year-end to those effective for settling the benefit plan obligations and actual return on Plan assets of $ 33 million primarily related to market returns realized prior to the pension settlement dates.

The changes recognized in other comprehensive loss were as follows (dollars in millions):

Year Ended December 31,

Pension settlements, net of tax $ — $ 4 $ 62

Net actuarial gain (loss) and prior service (cost) arising during the period, net of tax — — 5

Amortization of actuarial loss, prior service cost, net of tax — — 4

Total amounts recognized in other comprehensive income $ — $ 4 $ 71

The following table sets forth the net periodic pension cost for our defined benefit pension plans.

The components of our net periodic pension costs consisted of the following (dollars in millions):

Year Ended December 31,

Service cost $ — $ 1 $ 3

Other components of net periodic pension cost:

Interest cost — — 7

Expected return on plan assets — — ( 7 )

Amortization of prior service cost and net transition asset — — 1

Amortization of net actuarial loss — — 5

Net periodic pension cost before loss due to settlement — 1 8

Loss due to pension settlement — 4 82

Total net periodic pension cost $ — $ 4 $ 91

Net periodic pension cost included in cost of sales $ — $ — $ —

Net periodic pension cost included in selling, general, and administrative expenses — 1 3

Net periodic pension cost included in other non-operating items — 4 88

The weighted average assumptions used to calculate our net periodic pension costs for the year ended December 31, 2022, included a discount rate of 2.6 % for both Canada and the U.S.

Additionally, the expected return on plan assets was 3.0 % for the U.S.

and 2.0 % for Canada.

The expected long-term rate of return on plan assets reflects the weighted average expected long-term rates of return for the broad categories of investments currently held in the plans (adjusted for expected changes), based on historical rates of return for each broad category, as well as factors that may constrain or enhance returns in the broad categories in the future.

The expected long-term rate of return on plan assets is adjusted when there are fundamental changes in expected returns in one or more broad asset categories and when the weighted average mix of assets in the plans changes significantly.

Defined Contribution Plans

We also sponsor defined contribution plans in the U.S.

We sponsor defined contribution plans in the U.S.

In the U.S., these plans are primarily 401(k) plans for hourly and salaried employees that allow for pre-tax employee deferrals and a Company match of up to 5 % of an employee’s eligible wages (subject to certain limits).

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The liability under the Deferred Compensation Plan amounted to $ 3 million as of December 31, 2025, and 2024, and is included in other long-term liabilities on our Consolidated Balance Sheets.

ACCUMULATED COMPREHENSIVE LOSS

Accumulated comprehensive loss includes cumulative translation adjustments, unrealized gains (losses) on certain financial instruments, and pension and post-retirement adjustments.

Other comprehensive income activity, net of tax, is provided in the following table (dollars in millions):

Pension Translation Adjustments Other Total

Balance at December 31, 2021 $ ( 76 ) $ ( 96 ) $ ( 1 ) $ ( 174 )

Reclassified to income statement, net of taxes 1

Pension settlement loss, net of taxes 71 — — 71

Translation adjustments — 2 — 2

Balance at December 31, 2022 ( 5 ) ( 94 ) — ( 99 )

Reclassified to income statement, net of taxes 1

Pension settlement loss, net of taxes 4 — — 4

Translation adjustments — 6 — 6

Balance at December 31, 2023 — ( 89 ) — ( 89 )

Reclassified to income statement, net of taxes 1

Pension settlement loss, net of taxes — — — —

Translation adjustments — ( 33 ) — ( 33 )

Balance at December 31, 2024 $ — $ ( 122 ) $ — $ ( 122 )

1 Amounts of actuarial loss and prior service cost are components of net periodic benefit cost.

See "Note 16 - Retirement Plans and Post-Retirement Benefits" above for additional details.

Foreign translation adjustments exclude income tax expense (benefit) given that there are no deferred tax assets or liabilities recorded on outside basis differences on the foreign subsidiaries to which the currency translation losses relates and consequently the translation adjustments will not trigger an incremental U.S.

The pension amounts reclassified from Accumulated comprehensive loss included an income tax provision of $ 1 million, and $ 23 million in 2023, and 2022, respectively.

There was no impact to the income tax provision in 2024.

SEGMENT INFORMATION

We operate in three segments:

Siding, OSB, and LPSA.

Our business units have been aggregated into these three segments based upon the similarity of economic characteristics, customers, and distribution methods.

Our results of operations are summarized below for each of these segments separately as well as for the “Other” category, which comprises other products that are not individually significant.

• The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia, including LP ® SmartSide ® Trim & Siding, LP ® SmartSide ® ExpertFinish ® Trim & Siding, LP BuilderSeries ® Lap Siding, and LP ® Outdoor Building Solutions ® (collectively referred to as Siding Solutions).

• The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP ® Structural Solutions (which includes LP ® TechShield ® Radiant Barrier, LP WeatherLogic ® Air & Water Barrier, LP Legacy ® Premium Sub-Flooring, LP NovaCore ® Thermal Insulated Sheathing, LP ® FlameBlock ® Fire-Rated Sheathing, and LP ® TopNotch ® 350 Durable Sub-Flooring).

• The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets.

This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction.

The LPSA segment carries out manufacturing operations in Chile and Brazil and operates sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.

The Company defines its operating segments as those operations that engage in business activities from which revenues are earned and expenses incurred, for which discrete financial information is available, and that are regularly reviewed to analyze performance and allocate resources by the chief operating decision maker (“CODM”), the Company’s Chief Executive Officer.

Change in Reportable Segments

The Company conducts business through three operating segments:

Siding, OSB and LP South America (LPSA).

These changes had no impact on our consolidated results of operations or financial position.

Prior period segment information has been recast to conform to our current presentation.

Our other operating segments, Siding and OSB remain reportable operating segments.

Other now comprises our South American operations and other products that are not individually significant.

• The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia.

Our Siding is offered primed (LP ® SmartSide ® Trim & Siding, LP BuilderSeries ® Lap Siding, and LP ® Outdoor Building Solutions ® ) and pre-finished (LP ® SmartSide ® ExpertFinish ® Trim & Siding) to meet the needs of builders and installers in new construction and repair and remodeling applications.

• The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP ® Structural Solutions (which includes LP ® FlameBlock ® Fire-Rated Sheathing, LP WeatherLogic ® Air & Water Barrier, LP ® TechShield ® Radiant Barrier, LP Legacy ® Premium Sub-Flooring, and LP ® TopNotch ® 350 Durable Sub-Flooring).

The accounting policies of the segments are the same as those described in the Company’s summary of significant accounting policies.

We evaluate the performance of our business segments based on net sales and segment Adjusted EBITDA.

Accordingly, our chief operating decision maker, the chief executive officer, evaluates performance and allocates resources based primarily on net sales and segment Adjusted EBITDA for our business segments.

Segment Adjusted EBITDA is defined as income attributed to LP before interest expense, provision for income taxes, depreciation and amortization, and excludes stock-based compensation expense, loss on impairment attributed to LP, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items.

The chief operating decision maker uses both net sales and segment Adjusted EBITDA for each segment predominantly in the annual budget and forecasting process.

The chief operating decision maker considers budget-to-actual variances on a quarterly basis for both measures when making decisions about the allocation of operating and capital resources to each segment.

The chief operating decision maker also uses segment Adjusted EBITDA to assess the relative performance of each segment and to determine the compensation of certain employees.

Information about our product segments is as follows (dollars in millions):

We evaluate the performance of our operating segments based on segment Adjusted EBITDA, which the CODM uses to evaluate performance and allocate resources.

Segment Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation and amortization, and excludes stock-based compensation expense, loss on impairment, business exit credit and charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating income (expense).

The CODM uses segment Adjusted EBITDA predominantly in the annual budget and forecasting process.

The CODM considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment.

The CODM also uses segment Adjusted EBITDA to assess the relative performance of each segment and to determine the compensation of certain employees.

Information about our segments is as follows (dollar amounts in millions):

Year Ended December 31, 2025

Siding OSB LPSA Segment Total Other Consolidated

Net sales $ 1,558 $ 1,184 $ 190 $ 2,932 $ 9 $ 2,941

Siding OSB Total

Revenues from external customers $ 1,689 $ 832 $ 2,521

Reconciliation of revenue

Other revenues 1

Total consolidated revenues $ 2,708

Cost of sales ( 1,157 ) ( 815 )

Selling, general, and administrative expenses ( 176 ) ( 68 )

Adjustments to Adjusted EBITDA:

Depreciation and amortization 81 54

Other charges 1

Other segment items 2

Reportable segment Adjusted EBITDA

$ 444 $ 7 $ 452

Adjusted EBITDA $ 390 $ 298 $ 42 $ 730 $ ( 42 ) $ 688

1 Other charges includes stock compensation, income (loss) non-controlling interest and income from equity in unconsolidated affiliates.

Year Ended December 31, 2024

Siding OSB LPSA Segment Total Other Consolidated

Net sales $ 1,328 $ 1,026 $ 205 $ 2,559 $ 22 $ 2,581

Siding OSB Total

Revenues from external customers $ 1,558 $ 1,184 $ 2,742

Reconciliation of revenue

Other revenues 1

Total consolidated revenues $ 2,941

Cost of sales ( 1,092 ) ( 872 )

Selling, general, and administrative expenses ( 155 ) ( 62 )

Adjustments to Adjusted EBITDA:

Depreciation and amortization 74 45

Other charges 1

Other segment items 2

Reportable segment Adjusted EBITDA

$ 390 $ 298 $ 688

Adjusted EBITDA $ 269 $ 220 $ 42 $ 531 $ ( 53 ) $ 478

1 Other charges includes stock compensation, income (loss) non-controlling interest and income from equity in unconsolidated affiliates.

Year Ended December 31, 2023

Siding OSB LPSA Segment Total Other Consolidated

Net sales $ 1,469 $ 2,062 $ 241 $ 3,772 $ 81 $ 3,854

Siding OSB Total

Revenues from external customers $ 1,328 $ 1,026 $ 2,354

Reconciliation of revenue

Other revenues 1

Total consolidated revenues $ 2,581

Cost of sales ( 1,005 ) ( 789 )

Selling, general, and administrative expenses ( 125 ) ( 61 )

Adjustments to Adjusted EBITDA:

Depreciation and amortization 67 43

Other charges 1

Other segment items 2

Reportable segment Adjusted EBITDA

$ 269 $ 220 $ 490

Adjusted EBITDA $ 339 $ 1,034 $ 77 $ 1,450 $ ( 61 ) $ 1,389

1 Other charges includes stock compensation, income (loss) non-controlling interest and income from equity in unconsolidated affiliates.

1 Other revenues include sales from LPSA and other minor products, services, and closed operations that do not meet the criteria for discontinued operations.

2 Other segment items include stock compensation expense.

Year Ended December 31,

NET INCOME TO ADJUSTED EBITDA RECONCILIATION

Net income $ 420 $ 178 $ 1,083

Reconciliation of profit (loss)

Reportable Segment adjusted EBITDA

$ 452 $ 688 $ 490

Add (deduct):

Net loss attributed to non-controlling interest — — 3

Income from discontinued operations, net of income taxes — — ( 198 )

Income attributed to LP from continuing operations 420 178 888

Provision for income taxes 140 74 274

Other Adjusted EBITDA 1

( 15 ) — ( 11 )

Equity in unconsolidated affiliate ( 1 ) ( 13 ) ( 3 )

Depreciation and amortization ( 145 ) ( 126 ) ( 119 )

Stock-based compensation expense ( 30 ) ( 20 ) ( 13 )

Loss on impairment attributed to LP 5 6 1

Loss on impairment 1

( 44 ) ( 5 ) ( 6 )

Other operating credits and charges, net 2,3

( 6 ) ( 8 ) ( 18 )

Product-line discontinuance charges 3

Business exit credits and charges 2

Pension settlement charges — 4 82

Interest expense ( 15 ) ( 14 ) ( 14 )

Investment income 16 22 18

Other non-operating items ( 9 ) 39 15

Adjusted EBITDA $ 688 $ 478 $ 1,389

Other non-operating (expense) income

( 15 ) 9 ( 43 )

Income before income taxes $ 195 $ 547 $ 248

1 Other Adjusted EBITDA includes LPSA, corporate, and other minor products, services, and closed operations that do not meet the criteria for discontinued operations.

2 See further discussion in “Note 5 - Business Exit Credits and Charges” of the Notes to the Consolidated Financial Statements.

3 See further discussion in “Note 10 - Other Operating and Non-Operating Income (Expense)” of the Notes to the Consolidated Financial Statements.

Year Ended December 31,

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Total capital expenditures $ 291 $ 183 $ 300

Information concerning identifiable assets by segment is as follows (dollars in millions):

Identifiable Assets

2 unchanged sentences

Total assets $ 2,627 $ 2,556

Other segment related assets include cash and cash equivalents, short-term and long-term investments, corporate assets, and other items.

Information concerning our geographic segments is as follows (dollars in millions):

Other identifiable assets include cash and cash equivalents, short-term and long-term investments, corporate assets, and other items.

Changes in goodwill by segment for the years ended December 31, 2025 and 2024, are provided in the following table (dollar amounts in millions):

Siding OSB Total

Balance at December 31, 2023

$ 4 $ 16 $ 19

Impairment charges — — —

Balance at December 31, 2024

Impairment charges — — —

Balance at December 31, 2025

$ 4 $ 16 $ 19

Information concerning our geographic areas is as follows (dollar amounts in millions):

Year Ended December 31,

GEOGRAPHIC LOCATIONS

Total sales - Point of origin

1 unchanged sentence

Canada 669 675 610

LPSA 214 241 273

Inter-segment sales ( 559 ) ( 535 ) ( 575 )

Total Sales $ 2,941 $ 2,581 $ 3,854

Operating profit (loss)

South America 202 214 241

Inter-geographic sales

( 593 ) ( 559 ) ( 535 )

Canada 48 40 129

LPSA 36 35 70

Other operating credits and charges, net and loss on impairments of assets ( 10 ) ( 49 ) 15

General corporate expense, loss on early debt extinguishment, other income (expense), interest, net and equity in unconsolidated affiliates ( 16 ) ( 78 ) ( 139 )

Income before income taxes, including equity in unconsolidated affiliates 560 252 1,159

Provision for income taxes ( 140 ) ( 74 ) ( 274 )

Income from continuing operations $ 420 $ 178 $ 885

Loss attributed to noncontrolling interest — — 3

Income attributed to LP from continuing operations $ 420 $ 178 $ 888

IDENTIFIABLE TANGIBLE LONG LIVED ASSETS

$ 2,708 $ 2,941 $ 2,581

Year Ended December 31,

Long lived assets

$ 1,191 $ 1,063

Canada 439 468

South America 107 93

Total identifiable tangible long lived assets

Total long lived assets

$ 1,737 $ 1,624

Long lived assets include property, plant and equipment, timber and timberlands, and right of use assets.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data