LOUISIANA-PACIFIC CORP 10-K

ITEM 8. Financial Statements and Supplementary Data REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the stockholders and the Board of Directors of Louisiana-Pacific Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Louisiana-Pacific Corporation and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, cash flows, and stockholders’ equity, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 17, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue — Refer to Note 3 to the Financial Statements Critical Audit Matter Description The Company’s revenue consists of product sales and is recognized when obligations under the terms of a contract (i.e., purchase order) with the Company’s customers are satisfied. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. 43 Auditing revenue required a significant extent of effort and the involvement of professionals with expertise in information technology (“IT”) necessary for us to identify, test, and evaluate the Company’s system and automated controls. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the Company’s revenue transactions included the following, among others: • With the assistance of our IT specialists, we: • Identified the significant system used to process revenue transactions and tested the general IT controls over the system, including testing of user access controls, change management controls, and IT operations controls. • Performed testing of automated controls within the relevant revenue streams, as well as the controls designated to ensure the accuracy and completeness of revenue. • We tested the design and operating effectiveness of internal controls within the relevant revenue business processes. • With the assistance of our data specialists, we created data visualizations to evaluate recorded revenue and evaluate trends in the transactional revenue data. • For a sample of revenue transactions, we performed detail transaction testing by agreeing the amounts recognized to source documents and testing the mathematical accuracy of the recorded revenue. • With the assistance of our data specialists, we performed a reconciliation of all automated revenue transactions recorded in the system, and for a sample of revenue transactions within the population, traced the transaction from the testing performed to the respective journal entry data. /s/ Deloitte & Touche LLP Nashville, Tennessee February 17, 2026 We have served as the Company’s auditor since 1997. 44 Consolidated Statements of Income Amounts in millions, except per share Year Ended December 31, 2025 2024 2023 Net sales $ 2,708 $ 2,941 $ 2,581 Cost of sales ( 2,119 ) ( 2,110 ) ( 1,988 ) Gross profit 589 832 593 Selling, general, and administrative expenses ( 329 ) ( 291 ) ( 257 ) Loss on impairments ( 44 ) ( 5 ) ( 30 ) Other operating credits and charges, net ( 7 ) ( 4 ) ( 19 ) Income from operations 209 530 287 Interest expense ( 15 ) ( 14 ) ( 14 ) Investment income 16 22 18 Other non-operating (expense) income ( 15 ) 9 ( 43 ) Income before income taxes 195 547 248 Provision for income taxes ( 50 ) ( 140 ) ( 74 ) Equity in unconsolidated affiliates 1 13 3 Net income $ 146 $ 420 $ 178 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: Basic 70 71 72 Diluted 70 71 72 See Notes to the Consolidated Financial Statements. 45 Consolidated Statements of Comprehensive Income Amounts in millions Year Ended December 31, 2025 2024 2023 Net income $ 146 $ 420 $ 178 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 24 ( 33 ) 6 Changes in defined benefit pension plans — — 4 Other comprehensive income (loss), net of tax 24 ( 33 ) 10 Comprehensive income $ 170 $ 388 $ 187 See Notes to the Consolidated Financial Statements. 46 Consolidated Balance Sheets Amounts in millions, except per share amounts December 31, 2025 2024 ASSETS Cash and cash equivalents $ 292 $ 340 Receivables, net of allowance for doubtful accounts of $ 1 at December 31, 2025 and 2024 127 131 Inventories 363 357 Prepaid expenses and other current assets 28 27 Total current assets 809 855 Property, plant, and equipment, net 1,709 1,579 Timber and timberlands 13 29 Operating lease assets, net 23 25 Goodwill and intangible assets 22 26 Investments in and advances to affiliates 17 17 Other assets 25 20 Deferred tax assets 8 4 Total assets $ 2,627 $ 2,556 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued liabilities $ 285 $ 287 Income taxes payable 5 11 Total current liabilities 291 299 Long-term debt 348 348 Deferred income taxes 177 145 Non-current operating lease liabilities 22 24 Contingency reserves, excluding current portion 26 27 Other long-term liabilities 33 43 Total liabilities 896 885 Commitments and contingencies (Note 12) Stockholders’ equity: Preferred stock, $ 1 par value; 15 shares authorized, no shares issued — — Common stock, $ 1 par value; 200 shares authorized; 85 shares issued, and 70 shares issued and outstanding, respectively, as of December 31, 2025; 86 shares issued and 70 shares issued and outstanding, respectively, as of December 31, 2024 85 86 Additional paid-in capital 508 478 Retained earnings 1,621 1,615 Treasury stock, 15 shares and 16 shares at cost as of December 31, 2025 and 2024, respectively ( 385 ) ( 386 ) Accumulated comprehensive loss ( 98 ) ( 122 ) Total stockholders’ equity 1,731 1,671 Total liabilities and stockholders’ equity $ 2,627 $ 2,556 . See Notes to the Consolidated Financial Statements. 47 Consolidated Statements of Cash Flows Amounts in millions Year Ended December 31, 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 146 $ 420 $ 178 Adjustments to net income: Depreciation and amortization 145 126 119 Impairment of goodwill and long-lived assets 44 5 30 Stock-based compensation expense 30 20 13 Pension loss due to settlement — — 4 Deferred taxes 24 ( 4 ) 44 Foreign currency remeasurement and transaction losses 11 — 50 Other adjustments, net 12 ( 12 ) 6 Changes in assets and liabilities (net of acquisitions and divestitures): Receivables 9 3 ( 8 ) Inventories ( 18 ) 9 ( 46 ) Prepaid expenses and other current assets 1 ( 5 ) ( 1 ) Accounts payable and accrued liabilities ( 2 ) 23 ( 40 ) Income taxes payable, net of receivables ( 18 ) 19 ( 33 ) Net cash provided by operating activities 382 605 316 CASH FLOWS FROM INVESTING ACTIVITIES: Property, plant, and equipment additions ( 291 ) ( 183 ) ( 300 ) Acquisition of facility assets — — ( 80 ) Proceeds from sale of assets — 1 9 Investment in affiliates — ( 17 ) — Other investing activities, net — 16 ( 4 ) Net cash used in investing activities ( 291 ) ( 183 ) ( 376 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of long-term debt — — ( 80 ) Borrowing of long-term debt — — 80 Payment of cash dividends ( 78 ) ( 74 ) ( 69 ) Purchase of stock ( 61 ) ( 212 ) — Other financing activities ( 2 ) ( 7 ) ( 8 ) Net cash used in financing activities ( 141 ) ( 292 ) ( 77 ) EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 1 ( 12 ) ( 24 ) Net increase (decrease) in cash, cash equivalents, and restricted cash ( 48 ) 118 ( 161 ) Cash, cash equivalents, and restricted cash at beginning of period 340 222 383 Cash, cash equivalents, and restricted cash at end of period $ 292 $ 340 $ 222 Supplemental cash flow information: Cash paid for income taxes, net $ ( 42 ) $ ( 124 ) $ ( 65 ) Cash paid for interest, net $ ( 14 ) $ ( 14 ) $ ( 15 ) Unpaid capital expenditures $ 33 $ 32 $ 15 See Notes to the Consolidated Financial Statements. 48 Consolidated Statements of Stockholders’ Equity Amounts in millions, except per share amounts Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated Comprehensive Income (Loss) Total Stockholders’ Equity Shares Amount Shares Amount Balance as of December 31, 2022 88 $ 88 16 $ ( 388 ) $ 462 $ 1,371 $ ( 99 ) $ 1,433 Net income — — — — — 178 — 178 Cash dividends on common stock paid ($ 0.24 per share quarterly) — — — — — ( 69 ) — ( 69 ) Issuance of shares under stock plans — — ( 1 ) 14 ( 10 ) — — 4 Taxes paid on net settlement — — — ( 12 ) — — — ( 12 ) Purchase of stock — — — — — — — — Compensation expense associated with stock-based compensation — — — — 13 — — 13 Other comprehensive income — — — — — — 10 10 Balance as of December 31, 2023 88 88 16 ( 386 ) 465 1,479 ( 89 ) 1,557 Net income — — — — — 420 — 420 Cash dividends on common stock paid ($ 0.26 per share quarterly) — — — — — ( 74 ) — ( 74 ) Issuance of shares under stock plans — — — 12 ( 7 ) — — 5 Taxes paid on net settlement — — — ( 11 ) — — — ( 11 ) Purchase of stock ( 2 ) ( 2 ) — — — ( 211 ) — ( 214 ) Compensation expense associated with stock-based compensation — — — — 20 — — 20 Other comprehensive loss — — — — — — ( 33 ) ( 33 ) Balance as of December 31, 2024 86 86 16 ( 386 ) 478 1,615 ( 122 ) 1,671 Net income — — — — — 146 — 146 Cash dividends on common stock paid ($ 0.28 per share quarterly) — — — — — ( 78 ) — ( 78 ) Issuance of shares under stock plans — — — 6 — — 6 Taxes paid on net settlement — — — ( 6 ) — — — ( 6 ) Purchase of stock ( 1 ) ( 1 ) — — — ( 61 ) — ( 62 ) Compensation expense associated with stock-based compensation — — — — 30 — — 30 Other comprehensive income — — — — — — 24 24 Balance as of December 31, 2025 85 $ 85 15 $ ( 385 ) $ 508 $ 1,621 $ ( 98 ) $ 1,731 See Notes to the Consolidated Financial Statements. 49 INDEX TO THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note: Description Page No. Note 1 Summary of Significant Accounting Policies 51 Note 2 Present and Prospective Accounting Pronouncements 58 Note 3 Revenue 58 Note 4 Earnings Per Share 60 Note 5 Business Exit Credits and Charges 60 Note 6 Income Taxes 61 Note 7 Leases 66 Note 8 Long-Term Debt 67 Note 9 Stockholders’ Equity 69 Note 10 Other Operating and Non-Operating Income (Expense) 71 Note 11 Impairment of Long-Lived Assets 72 Note 12 Commitments and Contingencies 73 Note 13 Product Warranties 75 Note 14 Retirement Plans and Post-Retirement Benefits 75 Note 15 Segment Information 76 50 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Louisiana-Pacific Corporation and our subsidiaries are a leading provider of high-performance building solutions that meet the demands of builders, remodelers, and homeowners worldwide. 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. 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. See “Note 15 - Segment Information” below for information regarding our products and segments. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. The Consolidated Financial Statements include the accounts of LP and our controlled subsidiaries. All intercompany transactions, profits, and balances have been eliminated. 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 Cash and cash equivalents include cash on hand and short-term investments of three months or less when purchased. These investments are stated at cost, which approximates market value. Receivables Receivables consisted of the following (dollar amounts in millions): December 31, 2025 2024 Trade receivables $ 95 $ 100 Income tax receivables 16 12 Other receivables 17 21 Allowance for doubtful accounts ( 1 ) ( 1 ) Total Receivables $ 127 $ 131 Trade receivables are primarily generated by sales of our products to our wholesale and retail customers. Other receivables at December 31, 2025 and 2024 primarily consisted of sales tax receivables and other miscellaneous receivables. 51 Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We are required to classify these financial assets and liabilities into two groups: (1) recurring, measured on a periodic basis, and (2) non-recurring, measured on an as-needed basis. There are three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable or can be corroborated by observable market data. Level 3 Valuations based on models where significant inputs are not observable. Unobservable inputs are used when little or no market data is available and reflect the Company’s own assumptions about the assumptions market participants would use. The Company’s financial instruments consist of cash and cash equivalents, short-term receivables, trade payables, debt instruments, and trading securities. Carrying amounts reported on the balance sheet for cash and cash equivalents, receivables, and accounts payable approximate fair value due to the short-term maturity of these instruments. See “Note 8 - Long Term Debt” below for further information regarding the fair value of long-term debt instruments. Trading securities consist of rabbi trust financial assets, which are recorded in other assets in our Consolidated Balance Sheets. The rabbi trust holds assets attributable to the elections of certain management employees to defer the receipt of a portion of their compensation. The assets of the rabbi trust are invested in mutual funds and are reported at fair value based on active market quotations, which represent Level 1 inputs. Inventories Inventories are valued at the lower of cost or net realizable value. Inventory costs include materials, labor, and operating overhead. The FIFO (first-in, first-out) or average cost methods are used to value our inventories as of December 31, 2025. 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 (dollar amounts in millions): December 31, 2025 2024 Logs $ 62 $ 64 Other raw materials 42 41 Semi-finished inventory 38 33 Finished products 222 220 Total Inventories $ 363 $ 357 52 Property, Plant, and Equipment Property, plant, and equipment, including capitalized interest, are recorded at cost and consisted of the following (dollar amounts in millions): December 31, 2025 2024 Land, land improvements, and logging roads, net of road amortization $ 225 $ 215 Buildings 525 500 Machinery and equipment 2,602 2,457 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 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, 2025 2024 2023 Cost of sales $ 134 $ 120 $ 111 Selling, general and administrative expenses 4 3 4 Total depreciation and amortization $ 138 $ 123 $ 115 Logging road construction costs are capitalized and included in land and land improvements. These costs are amortized as the timber volume adjacent to the road system is harvested. Long-lived assets to be held and used (primarily property, plant, and equipment and timber and timberlands) are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When impairment is indicated, the book values of the assets are written down to their estimated fair value as calculated by the expected discounted cash flow or estimated net sales price. See “Note 11 - Impairment of Long-Lived Assets” below for a discussion of charges related to impairments of property, plant, and equipment. Long-lived assets that are held for sale are written down to the estimated sales proceeds less cost to sell unless the estimated net proceeds exceed the carrying value. 53 Goodwill and Intangible Assets Goodwill and indefinite-lived intangible assets are assessed annually for impairment during the fourth quarter or earlier upon the occurrence of certain events or substantive changes in circumstances. In accordance with Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other, companies may opt to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A qualitative assessment includes factors such as financial performance, industry and market metrics, and other factors affecting the reporting unit. If this assessment concludes that it is more likely than not that the fair value of a reporting unit exceeds its carrying value, then goodwill is not considered impaired, and no further impairment testing is required. Conversely, if the qualitative assessment concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we must then compare the fair value of the reporting unit to its carrying value. Impairment is evaluated by applying a fair value-based test. 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): Goodwill Developed Technology Total Goodwill and Intangibles Balance at December 31, 2023 $ 19 $ 7 $ 27 Additions — — — Impairment — — — Amortization — (1) (1) Balance at December 31, 2024 19 7 26 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. 54 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, 2025 2024 Beginning Balance $ 23 $ 25 Additions — 1 Impairment (13) — Amortization (2) (3) Ending Balance $ 8 $ 23 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 We account for investments in affiliates when we do not have a controlling financial interest using the equity method under which LP’s share of earnings and losses of the affiliate is reflected in earnings, and dividends are credited against the investment in the affiliate when declared. Restricted Cash Our restricted cash accounts generally secure outstanding letters of credit. 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 (dollar amounts in millions): December 31, 2025 2024 Trade accounts payable $ 129 $ 139 Salaries and wages payable 84 80 Accrued customer incentives 50 48 Taxes other than income taxes 5 4 Current portion of operating lease liabilities 9 8 Other accrued liabilities 9 9 Total Accounts payable and accrued liabilities $ 285 $ 287 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. 55 Other Long-Term Liabilities Other long-term liabilities were as follows (dollar amounts in millions): December 31, 2025 2024 Post-retirement obligations $ 6 $ 7 Asset retirement obligations 9 9 Uncertain tax positions 5 13 Warranty reserves 5 5 Pension benefit obligation 1 2 Other 6 8 Total Other long-term liabilities $ 33 $ 43 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 We record the fair value of the legal and conditional obligations to retire and remove long-lived assets in the periods in which the obligations are incurred. These obligations primarily consist of monitoring costs on closed landfills, timber reforestation obligations associated with our timber licenses in Canada, and site restoration costs. When the related liability is initially recorded, we capitalize the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its settlement value, and the capitalized cost is depreciated over the useful life of the related asset. 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 2025 and 2024 is summarized in the following table (dollar amounts in millions): Year Ended December 31, 2025 2024 Beginning balance $ 9 $ 8 Accretion expense 1 1 Adjusted to expense (cost of sales and other operating credits and charges, net) — 1 Ending balance $ 9 $ 9 Income Taxes We account for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our Consolidated Financial Statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than the enactment of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period that includes the enactment date. Additionally, deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion of the deferred tax assets will not be realized. We recognize the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We classify interest related to income tax liabilities or uncertain tax positions as interest expense or interest income and, if applicable, penalties are recognized as a component of income tax expense. 56 We are subject to global intangible low-taxed income, an incremental tax on foreign income. We have made an accounting election to record this tax in the period the tax arises. Stock-Based Compensation 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 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. The fair value of our performance stock units is estimated using the Monte Carlo simulation pricing model. The key assumptions used in this model include expected volatility, risk-free rate, and average and grant date stock prices. The estimate of expected volatility for performance stock units is based upon historical stock price volatility and the length of the performance period. The risk-free interest rate is based on zero-coupon U.S. Treasury bonds. The beginning average stock price equals the average closing value stock price over the defined period of trading days with the assumption that dividends distributed during the period were reinvested. Foreign Currency Translation The functional currency for our Canadian subsidiaries is the U.S. dollar. The books and records for these subsidiaries are maintained in the Canadian dollar. The financial statements of these foreign subsidiaries are remeasured into U.S. dollars using the historical exchange rate for property, plant, and equipment, timber and timberlands (related depreciation and amortization on both property, plant, and equipment and timber and timberlands), goodwill, and certain other non-monetary assets. We use the exchange rate at the balance sheet date for the remaining assets and liabilities, including deferred taxes. 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 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. Assets and liabilities are translated into U.S. dollars using rates of exchange at the balance sheet date. 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. Advertising Costs Advertising costs of $40 million, $37 million, and $25 million in 2025, 2024, and 2023, respectively, are principally expensed as incurred and included as part of selling, general, and administrative expenses within our Consolidated Statements of Income. Advertising costs include product displays, media production costs, agency fees, sponsorships, and cooperating advertising. Other Operating Credits and Charges, Net We classify amounts unrelated to ongoing core operating activities as other operating credits and charges, net in the Consolidated Statements of Income. Such items include, but are not limited to, restructuring charges (including severance charges), business exit credits and charges, charges to establish and maintain litigation or environmental reserves, product reserves, gains or losses from settlements with governmental or other organizations, and gains or losses on the sale or disposal of long-lived assets. Due to the nature of these items, amounts in the income statement can fluctuate from year to year. The determination of which items are considered significant and unrelated to core operations is based upon management’s judgment. Retirement Benefits We are required to use actuarial methods and assumptions in the valuation of defined benefit obligations and the determination of expense. Actuarial gains or losses, curtailments, prior service costs or credits, and transition obligations not previously recognized are recorded as a component of accumulated comprehensive loss. 57 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. 2. PRESENT AND PROSPECTIVE ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements Income Taxes (Topic 740): Improvements to Income Tax Disclosures 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. 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. 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): Disaggregation of Income Statement Expenses 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. 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 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. 3 . REVENUE 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. 58 The Company conducts business through three operating segments: Siding, OSB and LPSA. 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, 2025 2024 2023 Siding $ 1,679 $ 1,549 $ 1,319 Other 10 9 9 Net sales attributable to Siding 1,689 1,558 1,328 OSB - Structural Solutions 472 650 565 OSB - Commodity 347 514 446 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. , purchase orders) with our customers are satisfied; generally, this occurs with the transfer of control of our products at a point in time. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The shipping cost incurred by us to deliver products to our customers is recorded in cost of sales. The expected costs associated with our warranties continue to be recognized as an expense when the products are sold. During 2025, 2024, and 2023, our top ten customers accounted for approximately 47 %, 49 %, and 50 % of our sales, respectively, in the aggregate. No individual customer exceeded 10% of our sales in 2025, 2024, or 2023. Our businesses routinely incur customer program costs to obtain favorable product placement, promote sales of products, and maintain competitive pricing. Customer program costs and incentives, including rebates and promotion and volume allowances, are accounted for as a reduction in net sales at the time the program is initiated and/or the revenue is recognized. The costs include, but are not limited to, volume allowances and rebates, promotional allowances, and cooperative advertising programs. These costs are recorded at the later of the time of sale or the implementation of the program based on management’s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on our estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, merchandising support, and customer training. Management adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations). As of December 31, 2025 and 2024, we accrued $ 50 million and $ 48 million, respectively, for customer rebates recorded in accounts payable and accrued liabilities on our Consolidated Balance Sheets. We ship some of our products to customers’ distribution centers on a consignment basis. We retain title to our products stored at the distribution centers. As our products are removed from the distribution centers by retailers and shipped to retailers’ stores, title passes from us to the retailers. At that time, we invoice the retailers and recognize revenue for these consignment transactions. We do not offer a right of return for products shipped to the retailers’ stores from the distribution centers. The amount of consignment inventory as of December 31, 2025 and 2024, was $ 18 million and $ 23 million, respectively. 59 4. EARNINGS PER SHARE Basic earnings per share is based on the weighted average number of shares of common stock outstanding. Diluted earnings per share is based upon the weighted average number of shares of common stock outstanding plus all potentially dilutive securities that were assumed to be converted into common shares at the beginning of the period under the treasury stock method. 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 (dollar and share amounts in millions): Year Ended December 31, 2025 2024 2023 Net income $ 146 $ 420 $ 178 Weighted average common shares outstanding - basic 70 71 72 Dilutive effect of employee stock plans — — — Shares used for diluted earnings per share 70 71 72 Net income per share of common stock: Basic $ 2.09 $ 5.91 $ 2.47 Diluted $ 2.08 $ 5.89 $ 2.46 5. 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 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. Business exit credits and charges, net consisted of the following (dollar amounts in millions): 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 — 11 — Restructuring and other related charges: Inventory write-down 3 — — ( 7 ) Other operating credits and charges including personnel-related costs such as severance 4 — 3 ( 1 ) Total business exit credits and charges $ — $ 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. 4 Included within other operating credits and charges, net on the Consolidated Statements of Income. 60 6. INCOME TAXES Income Tax Provision The components of income from continuing operations before income taxes, including equity in unconsolidated affiliates, were (dollar amounts in millions): Year Ended December 31, 2025 2024 2023 Domestic $ 163 $ 469 $ 207 Foreign 32 91 45 Total $ 196 $ 560 $ 252 The components of our income tax provision (benefit) from continuing operations were (dollar amounts in millions): Year Ended December 31, 2025 2024 2023 Current tax provision (benefit): U.S. federal $ 9 $ 97 $ 17 State and local ( 4 ) 18 ( 1 ) Foreign 21 29 14 Net current tax provision 26 144 30 Deferred tax provision (benefit): U.S. federal 26 ( 8 ) 22 State and local 5 ( 3 ) 1 Foreign ( 11 ) 2 21 Net valuation allowance increase (decrease) 4 5 — Net deferred tax provision (benefit) 24 ( 4 ) 44 Total income tax provision $ 50 $ 140 $ 74 61 Deferred Taxes The tax effects of significant temporary differences creating deferred tax assets and liabilities were (dollar amounts in millions): December 31, 2025 2024 Deferred tax assets: Accrued liabilities $ 21 $ 22 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 Total deferred tax assets 82 91 Valuation allowance ( 14 ) ( 10 ) Total deferred tax asset net of valuation allowance $ 68 $ 81 Deferred tax liabilities: Property, plant and equipment ( 201 ) ( 192 ) Unremitted foreign earnings ( 25 ) ( 19 ) Operating lease assets ( 7 ) ( 7 ) Other deferred tax liabilities ( 4 ) ( 4 ) Total deferred tax liabilities ( 237 ) ( 222 ) Net deferred tax liabilities $ ( 169 ) $ ( 141 ) Balance sheet classification: Long-term deferred tax asset $ 8 $ 4 Long-term deferred tax liability ( 177 ) ( 145 ) 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, 2025, consisted of (dollar amounts in millions): Operating Loss Benefit Amount Valuation Allowance Expiration Beginning in 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 ) 62 We periodically review the need for valuation allowances against deferred tax assets and recognize these deferred tax assets to the extent that their realization is more likely than not. As part of our review, we consider all positive and negative evidence, including earnings history, the future reversal of deferred tax liabilities, and the relevant expirations of carryforwards. We believe that the valuation allowances provided are appropriate. If future years’ earnings differ from the estimates used to establish these valuation allowances, or other objective positive or negative evidence arises, we may record an adjustment to the valuation allowance resulting in an impact on tax provision (benefit) for that period. 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, 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. Con. Res. 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. 63 Reconciliation of the U.S. Federal Statutory Rate to the Effective Rate 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, 2025 Amount ($) Percent (%) U.S. federal statutory tax rate $ 41 21 % State and local income taxes 1 9 4 Foreign tax effects Chile Unremitted foreign earnings 4 2 Inflationary adjustments ( 3 ) ( 1 ) Other ( 1 ) — Canada 3 2 Argentina Changes in valuation allowances 3 1 Other ( 2 ) ( 1 ) Other foreign jurisdictions 1 — U.S. Tax credits Research and development tax credits ( 3 ) ( 2 ) U.S. Nontaxable or nondeductible items Nondeductible compensation 3 2 Changes in unrecognized tax benefits ( 7 ) ( 3 ) Other adjustments 2 1 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. 64 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, 2024 2023 Amount ($) Percent (%) Amount ($) Percent (%) U.S. Federal tax rate $ 118 21 % $ 53 21 % State and local income taxes 13 2 8 3 Effect of foreign tax rates 9 2 3 1 Uncertain tax positions ( 2 ) — 7 3 Unremitted foreign earnings 1 — 25 10 Non deductible compensation 3 1 6 2 Tax credits ( 5 ) ( 1 ) ( 5 ) ( 2 ) Prior year changes in tax laws and positions 3 — ( 9 ) ( 3 ) Revisions to prior year estimates — — ( 7 ) ( 3 ) Other items, net — — ( 7 ) ( 3 ) Provision for income taxes $ 140 25 % $ 74 29 % We are subject to U.S. federal income tax as well as income taxes of multiple state jurisdictions. Our foreign subsidiaries are subject to income tax in Canada, Chile, Brazil, Peru, Colombia, Argentina, Paraguay, and Mexico. We generally remain subject to U.S. federal and state examinations for tax years 2018 and subsequent. In addition to the U.S., we have tax years that remain open and subject to examination by tax authorities in the following major tax jurisdictions: Brazil and Chile for tax years 2017 and subsequent; and Canada for tax years 2020 and subsequent. Our tax returns are currently under examination by tax authorities in the U.S. 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): December 31, 2025 Federal $ 7 State 6 Foreign Canada 18 Chile 5 Brazil 5 Other 1 Income Tax Payments $ 42 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. 65 Uncertain Tax Positions 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, 2025 2024 2023 Beginning balance $ 11 $ 13 $ 6 Increases: Tax positions taken in current year 1 1 1 Tax positions taken in prior years — — 6 Decreases: Settlements with taxing authorities in current year — ( 3 ) — Lapse of statute in current year ( 8 ) — — Ending balance $ 4 $ 11 $ 13 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 2025 or 2024. 7 . LEASES 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. We determine if an arrangement is a lease at contract inception. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. As most of our leases do not provide an implicit rate, we used our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. 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. 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): December 31, Balance Sheet Classification 2025 2024 Assets: Operating lease assets Operating lease assets, net $ 23 $ 25 Total lease assets $ 23 $ 25 Liabilities: 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 66 Fo r the years ended December 31, 2025 and 2024, we incurred operating lease expenses of $ 9 million and $ 8 million, respectively, included within costs of sales and selling, general and administrative expenses. 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 $ 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. 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): 2026 $ 10 2027 7 2028 5 2029 3 2030 3 2031 and thereafter 4 Total operating lease payments 32 Less: Interest ( 2 ) Present value of operating lease liabilities $ 30 8. LONG-TERM DEBT December 31, 2025 December 31, 2024 (Dollar amounts in millions) Interest Rate Principal Unamortized Debt Costs Total Principal Unamortized Debt Costs Total Debentures: Senior unsecured notes, maturing 2029, interest rates fixed 3.625 % $ 350 $ ( 2 ) $ 348 $ 350 $ ( 2 ) $ 348 Amended Credit Facility, maturing 2028, interest rates variable varies — — — — — — Total $ 350 $ ( 2 ) $ 348 $ 350 $ ( 2 ) $ 348 Less: current portion — — — — Long-term portion $ 350 $ ( 2 ) $ 348 $ 350 $ ( 2 ) $ 348 67 Senior Notes 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 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 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. 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. , Term SOFR Rate plus an adjustment of 0.10 %) plus a margin of 1.500 % to 2.500 %. The Amended Credit Facility also includes an unused commitment fee, due quarterly, ranging from 0.200 % to 0.425 %. The applicable margins and fees within these ranges are based on our ratio of consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) to cash interest charges. The “base rate” is the highest of (i) the federal funds rate plus 0.5 %, (ii) the U.S. prime rate, and (iii) one-month Adjusted Term SOFR plus 1.0 %. 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 (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. 68 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. Included in such amortized amounts are deferred debt costs associated with our Amended Credit Facility of $ 4 million, which are recorded within other assets on our Consolidated Balance Sheets . 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 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, 2026 $ — 2027 — 2028 — 2029 350 2031 and thereafter — Total $ 350 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. Fair values were based on trading activity among the Company’s lenders and the average bid and ask price as determined using published rates (Level 1 in the U.S. GAAP fair value hierarchy). 9. STOCKHOLDERS’ EQUITY Preferred Stock We are authorized to issue up to 15,000,000 shares of preferred stock at $ 1.00 par value. At December 31, 2025, no shares of preferred stock have been issued. Stock Award Plan We have a stock-based compensation plan under which stock options, SSARs, restricted stock, restricted stock units, and performance stock units may be granted. At December 31, 2025, approximately four million shares were available under the current plan for these awards. Year Ended December 31, (Dollar amounts in millions) 2025 2024 2023 Total stock-based compensation expense (cost of sales and selling, general and administrative) $ 30 $ 20 $ 13 Income tax benefit related to stock-based compensation $ 2 $ 3 $ 2 Impact on cash flow due to taxes paid related to net share settlement of equity awards $ ( 6 ) $ ( 11 ) $ ( 12 ) We recognize the compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three years . SSARs Prior to January 1, 2018, we granted SSARs to key employees under the Company’s then-current stock award plan. 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. The SSARs became exercisable over three years and expire ten years after the date of grant. All outstanding SSARs were vested as of December 31, 2025. 69 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 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. Certain of these awards are eligible to receive dividend equivalent shares. The grant date fair value of these awards approximates market value of the shares. PSUs generally vest based upon the attainment of certain performance and market metrics over a three-year cumulative performance period. Awards based upon the achievement of the performance goals are earned ratably from 0 % to 200 %. If the threshold performance level for the relevant performance goal is met at the end of the performance period, the award may be adjusted based on LP’s three-year total shareholder return (TSR) performance relative to a capital market peer group. This TSR modifier can increase or decrease the award by 20 %, although the TSR modifier cannot cause the award to exceed the maximum of 200 %. Summary of Stock Awards Outstanding The following table summarizes stock awards as of December 31, 2025, as well as activity during the last year: Stock Options / SSARS Restricted Stock Units and Performance Stock Units Number of Awards Weighted Average Exercise Price Number of Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2024 3,150 $ 15.90 575,522 $ 68.87 Granted — — 406,319 108.33 Exercised ( 3,000 ) 15.74 ( 158,320 ) 71.85 Forfeited/cancelled — — ( 174,499 ) 79.96 Outstanding at December 31, 2025 150 $ 19.14 649,022 $ 89.81 Vested and expected to vest at December 31, 2025 1 150 $ 19.14 Exercisable at December 31, 2025 150 $ 19.14 Unrecognized compensation costs (in millions) $ — $ 21 To be recognized over weighted-average period of years 0 1 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. This amount changes based on the market value of our stock, as reported by the New York Stock Exchange. The intrinsic value of SSARs and stock options exercised in the years ended December 31, 2025, 2024, and 2023 was $ 0 million, $ 13 million, and $ 3 million, respectively. The total fair value of awards vested during the years ended December 31, 2025, 2024, and 2023, was $ 17 million, $ 19 million, and $ 31 million, respectively. 70 Share Repurchases 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. 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. We had an aggregate of $ 177 million of repurchase authorization remaining under the 2024 Share Repurchase Program as of December 31, 2025. Employee Stock Purchase Plan 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, 2025, approximately 1 million shares of common stock were reserved for issuance under the ESPP. 10. 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, 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, 2025 2024 2023 Legal settlement — 3 ( 16 ) Reorganization charges ( 6 ) ( 2 ) ( 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 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 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 sales of assets. 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. 71 Non-operating income (expense) Non-operating income (expense) is comprised of the following components (dollar amounts in millions): Year Ended December 31, 2025 2024 2023 Interest expense $ ( 17 ) $ ( 14 ) $ ( 17 ) Amortization of debt charges ( 1 ) ( 1 ) ( 1 ) Capitalized interest 3 1 4 Interest expense, net of capitalized interest $ ( 15 ) $ ( 14 ) $ ( 14 ) Interest income $ 16 $ 22 $ 18 Investment income $ 16 $ 22 $ 18 Foreign currency gain (loss), net $ ( 15 ) $ 9 $ ( 40 ) Pension settlement charges — — ( 4 ) Other — — 1 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. During 2023, we completed the termination of our U.S. and Canadian defined benefit pension plans resulting in the recognition of non-cash, pre-tax charges of $ 4 million. Additionally, we recognized $ 40 million of foreign currency losses primarily driven by $ 32 million of transactional losses on the Argentine peso. 11. IMPAIRMENT OF LONG-LIVED ASSETS We review the carrying values of our long-lived assets for potential impairments and believe we have adequate support for the carrying value of each of these assets based upon the anticipated cash flows that result from our estimates of future demand, pricing, and production costs, assuming certain levels of planned capital expenditures. However, if demand and pricing for our products fall to levels significantly below cycle average demand and pricing, should we decide to invest capital in alternative projects, or should changes occur related to our wood supply for our mills, it is possible that future impairment charges will be required. We also review from time to time possible dispositions of various assets in light of current and anticipated economic and industry conditions, our strategic plan, and other relevant factors. 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 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. 72 12. COMMITMENTS AND CONTINGENCIES We maintain reserves for various contingent liabilities as follows (dollar amounts in millions): December 31, 2025 2024 Environmental reserves $ 27 $ 28 Other reserves — — Total contingencies $ 27 $ 28 Current portion 1 ( 1 ) ( 1 ) Long-term portion $ 26 $ 27 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. Due to the numerous uncertainties and variables associated with these assumptions and judgments, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties. We regularly monitor our estimated exposure to contingencies and, as additional information becomes known, may change our estimates significantly. While no estimate of the range of any such change can be made at this time, the amount that we may ultimately pay in connection with these matters could materially exceed, in either the near term or the longer term, the amounts accrued to date. Our estimates of our loss contingencies do not reflect potential future recoveries from insurance carriers except to the extent that recovery may, from time to time, be deemed probable as a result of an insurer’s agreement to payment terms. Environmental Matters We maintain a reserve for undiscounted estimated environmental loss contingencies. This reserve is primarily for estimated future costs of remediation of hazardous or toxic substances at numerous sites currently or previously owned by the Company. Our estimates of our environmental loss contingencies are based on various assumptions and judgments, the specific nature of which varies considering the particular facts and circumstances surrounding each environmental loss contingency. These estimates typically reflect assumptions and judgments as to the probable nature, magnitude, and timing of the required investigation, remediation and/or monitoring activities and the probable cost of these activities, and in some cases reflect assumptions and judgments as to the obligation or willingness and ability of third parties to bear a proportionate or allocated share of the cost of these activities. Due to the numerous uncertainties and variables associated with these assumptions and judgments, and the effects of changes in governmental regulation and environmental technologies, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties. 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 (dollar amounts in millions): Year Ended December 31, 2025 2024 Beginning balance $ 28 $ 26 Adjustments to expense (other operating credits and charges, net and cost of sales) — 2 Payments made ( 1 ) ( 1 ) Ending balance $ 27 $ 28 During 2024, we adjusted our reserves at several sites to reflect current estimates of remediation costs and environmental settlements. 73 Other Proceedings We are party to other legal proceedings in the ordinary course of business. Based on the information currently available, we do not believe that the resolution of such proceedings could reasonably be expected to have a material adverse effect on our financial position, results of operations, cash flows, or liquidity. Self-Insurance We are primarily self-insured for workers’ compensation and employee health care liability costs. Self-insurance liabilities for workers’ compensation are determined based upon a valuation performed by an actuarial firm. The estimate of future workers’ compensation liabilities incorporates loss development and an estimate associated with incurred but not yet reported claims. These claims are discounted. Self-insurance liabilities for employee health costs are determined actuarially based upon claims filed and estimated claims incurred but not yet reported. These claims are discounted. Indemnities and Guarantees We are a party to certain contracts in which we agree to indemnify third parties for certain liabilities that arise out of or relate to the subject matter of the contract. In some cases, this indemnity extends to related liabilities arising out of the negligence of the indemnified parties, but usually excludes any liabilities caused by gross negligence or willful misconduct of the indemnified parties. We cannot estimate the potential amount of future payments under these agreements until events arise that would trigger the liability. Additionally, in connection with certain sales of assets and divestitures of businesses, we have agreed to indemnify the applicable buyer and certain related parties for certain losses or liabilities incurred by the buyer or such related parties with respect to (1) the representations and warranties made to the buyer by us in connection with the applicable sale or divestiture and (2) liabilities related to the pre-closing operations of the assets or businesses sold. Indemnities related to pre-closing operations generally include environmental liabilities, tax liabilities, and other liabilities not assumed by the buyer. Indemnities related to the pre-closing operations of sold assets or divested businesses typically do not represent added liabilities for us, but simply serve to protect the buyer from potential liability associated with the obligations that existed (known and unknown) at the time of the sale. We record accruals for those pre-closing obligations that are considered probable and estimable. We have not accrued any additional amounts as a result of the indemnity agreements summarized below, as we believe the fair value of the guarantees is not material. In connection with various sales of our timberlands, we have agreed to indemnify the relevant buyers with respect to losses resulting from breaches of limited representations and warranties contained in the related agreements. These indemnities generally are capped at a maximum potential liability and have an unspecified duration. We also have various other indemnities that are individually and in the aggregate immaterial. We record a liability related to specific indemnification when future payment is probable, and the amount is estimable. 74 13. PRODUCT WARRANTIES We offer warranties on the sale of most of our products and record an accrual for estimated future claims. 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 (dollar amounts in millions): Year Ended December 31, 2025 2024 Beginning balance $ 6 $ 8 Changes in warranty provision 1 — Payments made ( 1 ) ( 1 ) Total warranty reserves $ 6 $ 6 Current portion of warranty reserves 1 ( 2 ) ( 2 ) Long-term portion of warranty reserves 2 $ 5 $ 5 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. However, it is possible that additional charges may be required. 14. RETIREMENT PLANS AND POST-RETIREMENT BENEFITS We sponsor various defined contribution retirement plans and benefit pension plans that provide retirement benefits to substantially all our employees. Most regularly scheduled employees are eligible to participate in the defined contribution retirement plans except those covered by a collective bargaining agreement unless the collective bargaining agreement explicitly allows for participation in our plans. We contribute to a multiemployer plan for certain employees covered by collective bargaining agreements. We also provide other post-retirement benefits consisting primarily of healthcare benefits to certain retirees who meet age and service requirements. The defined benefit pension plans were limited to active and retired employees that were eligible prior to the plans being frozen. Defined Contribution Plans We sponsor defined contribution plans in the U.S. and Canada. 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). Under the profit-sharing feature of these plans, we may elect to contribute a discretionary amount as a percentage of eligible wages. Included in the assets of the 401(k) and profit-sharing plans are 0.4 million shares of LP common stock that represented approximately 6 % of the total market value of plan assets at December 31, 2025. In Canada, we sponsor both defined contribution plans and Registered Retirement Savings Plans for hourly and salaried employees that allow for employee tax deferrals. We provide a 100 % match for employee contributions up to 4 % and provide a 50 % match of employee’s contributions from 4 % to 6 % (subject to certain limits). Expenses related to the U.S. and Canadian defined contribution plans and the Registered Retirement Savings Plans, including the profit-sharing feature, were $ 21 million, $ 20 million, and $ 15 million in 2025, 2024, and 2023, respectively. Other Benefit Plans We have several plans that provide post-retirement benefits other than pensions, primarily for salaried employees in the U.S. and certain groups of Canadian employees. The obligation at December 31, 2025 and 2024 for these post-retirement benefits was $ 7 million and $ 8 million, respectively. The net expense related to these plans was not significant in 2025, 2024, or 2023. 75 In 2004, we adopted the Louisiana-Pacific Corporation 2004 Executive Deferred Compensation Plan (the Deferred Compensation Plan). Pursuant to the Deferred Compensation Plan, participants are eligible to defer up to 90 % of their base salary and annual cash incentives that exceed the limitation as set forth by the Internal Revenue Service and receive a 5 % match on their contributions. Each Deferred Compensation Plan participant is fully vested in all employee deferred compensation and earnings credited associated with employee contributions. Employer contributions and associated earnings vest over periods not exceeding five years . 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. 15. SEGMENT INFORMATION 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). 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. • 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 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. 76 Information about our segments is as follows (dollar amounts in millions): Year Ended December 31, 2025 Siding OSB Total Revenues from external customers $ 1,689 $ 832 $ 2,521 Reconciliation of revenue Other revenues 1 187 Total consolidated revenues $ 2,708 Less: Cost of sales ( 1,157 ) ( 815 ) Selling, general, and administrative expenses ( 176 ) ( 68 ) Depreciation and amortization 81 54 Other segment items 2 7 5 Reportable segment Adjusted EBITDA $ 444 $ 7 $ 452 Year Ended December 31, 2024 Siding OSB Total Revenues from external customers $ 1,558 $ 1,184 $ 2,742 Reconciliation of revenue Other revenues 1 199 Total consolidated revenues $ 2,941 Less: Cost of sales ( 1,092 ) ( 872 ) Selling, general, and administrative expenses ( 155 ) ( 62 ) Depreciation and amortization 74 45 Other segment items 2 5 3 Reportable segment Adjusted EBITDA $ 390 $ 298 $ 688 Year Ended December 31, 2023 Siding OSB Total Revenues from external customers $ 1,328 $ 1,026 $ 2,354 Reconciliation of revenue Other revenues 1 227 Total consolidated revenues $ 2,581 Less: Cost of sales ( 1,005 ) ( 789 ) Selling, general, and administrative expenses ( 125 ) ( 61 ) Depreciation and amortization 67 43 Other segment items 2 3 2 Reportable segment Adjusted EBITDA $ 269 $ 220 $ 490 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. 77 Year Ended December 31, 2025 2024 2023 Reconciliation of profit (loss) Reportable Segment adjusted EBITDA $ 452 $ 688 $ 490 Add (deduct): 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 1 ( 44 ) ( 5 ) ( 6 ) Other operating credits and charges, net 2,3 ( 6 ) ( 8 ) ( 18 ) Product-line discontinuance charges 3 ( 2 ) — — Business exit credits and charges 2 — 14 ( 32 ) Interest expense ( 15 ) ( 14 ) ( 14 ) Investment income 16 22 18 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, 2025 2024 2023 Capital Expenditures Siding $ 184 $ 108 $ 212 OSB 83 63 59 Other 24 11 29 Total capital expenditures $ 291 $ 183 $ 300 December 31, 2025 2024 Identifiable Assets Siding $ 1,419 $ 1,307 OSB 531 553 Other 677 696 Total assets $ 2,627 $ 2,556 Other identifiable assets include cash and cash equivalents, short-term and long-term investments, corporate assets, and other items. 78 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 4 16 19 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, 2025 2024 2023 Total sales - Point of origin U.S. $ 2,430 $ 2,611 $ 2,265 Canada 669 675 610 South America 202 214 241 Inter-geographic sales ( 593 ) ( 559 ) ( 535 ) Total sales $ 2,708 $ 2,941 $ 2,581 Year Ended December 31, 2025 2024 Long lived assets U.S. $ 1,191 $ 1,063 Canada 439 468 South America 107 93 Total long lived assets $ 1,737 $ 1,624 Long lived assets include property, plant and equipment, timber and timberlands, and right of use assets. 79 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.