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Item 1. Financial Statements

2025-08-06 compared with 2025-05-06 · 177 added, 96 removed, 310 unchanged (47% of the section changed)

2 unchanged sentences

Amounts in millions, except per share amounts

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net sales $ 755 $ 814 $ 1,478 $ 1,539

2 unchanged sentences

Selling, general, and administrative expenses ( 79 ) ( 71 ) ( 154 ) ( 140 )

Loss on impairment ( 17 ) — ( 17 ) —

Other operating credits and charges, net ( 2 ) 2 ( 4 ) 3

11 unchanged sentences

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

Basic 70 72 70 72

Diluted 70 72 70 72

2 unchanged sentences

Amounts in millions

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net income $ 54 $ 160 $ 145 $ 267

5 unchanged sentences

Amounts in millions, except per share amounts

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Cash and cash equivalents $ 333 $ 340

Receivables, net of allowance for doubtful accounts of $ 2 as of March 31, 2025 and $ 1 as of December 31, 2024

Receivables, net of allowance for doubtful accounts of $ 1 as of June 30, 2025 and December 31, 2024

Inventories 370 357

21 unchanged sentences

Common stock, $ 1 par value per share, 200 shares authorized;

85 shares issued and 70 shares issued and outstanding, respectively, as of March 31, 2025;

85 shares issued and 70 shares issued and outstanding, respectively, as of June 30, 2025;

and 86 shares issued and 70 shares issued and outstanding, respectively, as of December 31, 2024

1 unchanged sentence

Retained earnings 1,659 1,615

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

Treasury stock, 15 shares and 16 shares at cost as of June 30, 2025 and December 31, 2024, respectively

( 386 ) ( 386 )

5 unchanged sentences

Amounts in millions

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

2 unchanged sentences

Depreciation and amortization 70 62

Loss on impairment 17 —

Stock-based compensation expense 12 11

Deferred taxes ( 4 ) 4

Foreign currency remeasurement and transaction loss (gain) 7 ( 5 )

Other adjustments, net 2 ( 16 )

8 unchanged sentences

Property, plant, and equipment additions ( 132 ) ( 77 )

Other investing activities, net — 16

Net cash used in investing activities ( 132 ) ( 61 )

25 unchanged sentences

Compensation expense associated with stock-based compensation — — — — 5 — — 5

Other comprehensive (loss) income — — — — — — 12 12

Other comprehensive income — — — — — — 12 12

Balance, March 31, 2025 85 $ 85 15 $ ( 388 ) $ 480 $ 1,625 $ ( 110 ) $ 1,692

Net Income — — — — — 54 — 54

Dividends paid ($ 0.28 per share)

— — — — — ( 19 ) — ( 19 )

Issuance of shares under stock plans — — — 2 1 — — 3

Taxes paid related to net settlement of stock-based awards — — — ( 1 ) — — — ( 1 )

Purchase of stock — — — — — — — —

Compensation expense associated with stock-based compensation — — — — 7 — — 7

Other comprehensive income — — — — — — 6 6

Balance, June 30, 2025 85 $ 85 15 $ ( 386 ) $ 488 $ 1,659 $ ( 104 ) $ 1,742

Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Accumulated Comprehensive (Loss) Income Total Stockholders’ Equity

8 unchanged sentences

Compensation expense associated with stock-based compensation — — — — 6 — — 6

Other comprehensive (loss) income — — — — — — ( 15 ) ( 15 )

Other comprehensive loss — — — — — — ( 15 ) ( 15 )

Balance, March 31, 2024 88 $ 88 16 $ ( 386 ) $ 465 $ 1,555 $ ( 104 ) $ 1,617

Net Income — — — — — 160 — 160

Dividends paid ($0.26 per share)

— — — — — ( 19 ) — ( 19 )

Issuance of shares under stock plans — — — 1 1 — — 3

Taxes paid related to net settlement of stock-based awards — — — — — — — —

Purchase of stock ( 1 ) ( 1 ) — — — ( 101 ) — ( 103 )

Compensation expense associated with stock-based compensation — — — — 4 — — 4

Other comprehensive loss — — — — — — ( 4 ) ( 4 )

Balance, June 30, 2024 87 $ 87 16 $ ( 385 ) $ 471 $ 1,595 $ ( 109 ) $ 1,658

The accompanying Notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

5 unchanged sentences

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

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

The Company operates over 20 manufacturing facilities across the U.S., Canada, Chile, and Brazil, in certain cases through foreign subsidiaries .

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

16 unchanged sentences

The following tables present our reportable segment revenues, disaggregated by revenue source (dollar amounts in millions):

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

By product type and family:

6 unchanged sentences

$ 460 $ 250 $ 43 $ 2 $ 755

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

By product type and family:

6 unchanged sentences

$ 415 $ 351 $ 46 $ 2 $ 814

Six Months Ended June 30, 2025

By product type and family:

Siding OSB LPSA Other Total

Siding Solutions $ 857 $ — $ 13 $ — $ 870

OSB - Structural Solutions — 286 81 — 367

857 286 94 — 1,237

OSB - commodity — 224 — — 224

Other products 5 7 1 4 17

$ 862 $ 517 $ 95 $ 4 $ 1,478

Six Months Ended June 30, 2024

By product type and family:

Siding OSB LPSA Other Total

Siding Solutions $ 772 $ — $ 11 $ — $ 783

OSB - Structural Solutions — 371 79 — 451

772 371 90 — 1,234

OSB - commodity — 283 — — 283

Other products 4 9 3 5 22

$ 776 $ 664 $ 93 $ 5 $ 1,539

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

6 unchanged sentences

Customer program costs and incentives 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.

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 (i) the time of sale or (ii) 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.

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).

9 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net Income $ 54 $ 160 $ 145 $ 267

19 unchanged sentences

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.

The net carrying value of the 3.625 % Senior Notes due in 2029 (2029 Senior Notes) was $ 348 million as of March 31, 2025 and December 31, 2024.

Based on market quotations, the fair value of the 2029 Senior Notes was estimated to be $ 328 million and $ 323 million as of March 31, 2025 and December 31, 2024, respectively.

The net carrying value of the 3.625 % Senior Notes due in 2029 (2029 Senior Notes) was $ 348 million as of June 30, 2025 and December 31, 2024.

Based on market quotations, the fair value of the 2029 Senior Notes was estimated to be $ 333 million and $ 323 million as of June 30, 2025 and December 31, 2024, respectively.

The 2029 Senior Notes and other long-term debt are categorized as Level 1 in the U.S.

1 unchanged sentence

Fair values are based on trading activity among the Company’s lenders and the average bid and ask price is determined using published rates.

In March 2025, LP entered into that certain 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 amends that certain Second Amended and Restated Credit Agreement (the Credit Agreement) that was entered into in November 2022.

The First Amendment amends the Credit Agreement to (1) increase the aggregate principal amount for the 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.

As of March 31, 2025, there were no outstanding borrowings pursuant to the credit facility as amended by the First Amendment (the Amended Credit Facility).

In March 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 amends that certain Second Amended and Restated Credit Agreement (the Credit Agreement) that was entered into in November 2022.

The First Amendment amended the 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.

As of June 30, 2025, there were no outstanding borrowings pursuant to the Amended Credit Facility.

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Trade receivables $ 146 $ 100

4 unchanged sentences

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

Other receivables as of March 31, 2025, and December 31, 2024, primarily consist of sales tax receivables, vendor rebates, and other miscellaneous receivables.

Other receivables as of June 30, 2025, and December 31, 2024, primarily consisted of sales tax receivables, vendor rebates, and other miscellaneous receivables.

Inventories are valued at the lower of cost or net realizable value.

Inventory cost includes materials, labor, and operating overhead.

The first-in, first-out or average cost methods are used to value our inventories as of March 31, 2025.

The first-in, first-out or average cost methods are used to value our inventories as of June 30, 2025.

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Logs $ 56 $ 64

6 unchanged sentences

The Company’s annual assessment date is October 1.

Changes in goodwill and other intangible assets for the three months ended March 31, 2025 are provided in the following table (dollar amounts in millions):

Changes in goodwill and other intangible assets for the six months ended June 30, 2025 are provided in the following table (dollar amounts in millions):

Timber Licenses 1

3 unchanged sentences

Amortization ( 1 ) — ( 1 )

Ending balance March 31, 2025

Ending balance June 30, 2025

$ 22 $ 19 $ 6

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

The Company regularly evaluates the estimated useful lives of its definite-lived intangible assets.

During the quarter ended June 30, 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.

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Trade accounts payable $ 156 $ 139

5 unchanged sentences

Total Accounts payable and accrued liabilities $ 290 $ 287

Other accrued liabilities at March 31, 2025 and December 31, 2024, primarily consisted of accrued interest, worker compensation liabilities, warranty reserves, and other items.

Additionally, trade accounts payable included $ 12 million and $ 32 million related to capital expenditures that had not yet been paid as of March 31, 2025 and December 31, 2024, respectively.

For interim periods, we recognize income tax expense by applying the estimated annual effective income tax rate to year-to-date results unless this method does not result in a reliable estimate of year-to-date income tax expense.

Each period, the income tax accrual is adjusted to the latest estimate and the difference from the previously accrued year-to-date balance is adjusted in the current quarter.

Changes in profitability estimates in various jurisdictions will impact our quarterly effective income tax rates.

The provision for income taxes for the three months ended March 31, 2025, and 2024, reflected an estimated annual effective tax rate of 24 % and 25 %, respectively, excluding discrete items discussed below.

The total tax provision for the three months ended March 31, 2025, was $ 26 million, compared to $ 41 million for the comparable period in 2024.

The total effective tax rate for the three months ended March 31, 2025, was 22 %, compared to 28 % for the comparable period in 2024.

The decrease in the total effective tax rate primarily resulted from the discrete tax benefits and expenses discussed below.

During the three months ended March 31, 2025, we recognized a $ 3 million net discrete tax benefit, and during the three months ended March 31, 2024, we recognized a net discrete tax expense of $ 4 million.

The current year net tax benefit related primarily to inflationary and foreign currency exchange-related effects and stock-based compensation while the net discrete tax expense in the prior year primarily related to inflationary and foreign currency exchange-related effects.

In 2021, the Organization for Economic Cooperation and Development (OECD) announced an Inclusive Framework on Base Erosion and Profit Shifting including Pillar Two Model Rules (Pillar Two) applicable to large multinational corporations which would establish a global per-country minimum tax of 15%.

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

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

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

Other accrued liabilities at June 30, 2025, and December 31, 2024, primarily consisted of accrued interest, worker compensation liabilities, and warranty reserves.

Additionally, trade accounts payable included $ 26 million and $ 32 million related to capital expenditures that had not yet been paid as of June 30, 2025, and December 31, 2024, respectively.

For interim periods, income tax expense is recognized by applying the estimated annual effective tax rate to year-to-date results, unless doing so does not yield a reliable estimate.

Each period, the income tax accrual is updated based on the latest estimate, and any difference from the previously accrued year-to-date balance is recorded in the current quarter.

Changes in profitability estimates across jurisdictions may affect quarterly effective tax rates.

The provision for income taxes for the six months ended June 30, 2025, and 2024, reflected estimated annual effective tax rates of 26 % and 25 %, respectively, excluding discrete items discussed below.

The total tax provision for the three and six months ended June 30, 2025, was $ 19 million and $ 45 million, respectively, compared to $ 53 million and $ 94 million for the corresponding periods in 2024, respectively.

The effective tax rate, including discrete items, for the three and six months ended June 30, 2025, was 26 % and 24 %, respectively, compared to 25 % and 26 % for the comparable periods in 2024.

During the six months ended June 30, 2025, a net discrete tax benefit of $ 4 million was recognized, compared to a net discrete tax expense of $ 4 million for the same period in 2024.

The benefit in the current year was primarily attributable to inflationary and foreign currency exchange-related effects, as well as stock-based compensation.

The prior year's expense was mainly driven by similar inflationary and foreign currency exchange-related impacts.

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 operations are conducted have enacted such legislation.

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

Additionally, in 2024, the Brazilian Congress approved legislation-effective in 2025-that is largely aligned with 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, we do not expect Pillar Two legislation to have a material impact on our effective tax rate or our consolidated results of operations, financial position or cash flows.

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

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

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

On July 4, 2025, H.R.

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

14, informally known as the “One Big Beautiful Bill Act” (OBBBA) was enacted in the U.S.

The OBBBA includes significant provisions, such as permanent extension of certain expiring elements of the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework, and the restoration of favorable tax treatment for specific business provisions.

Certain provisions are effective in 2025, while others will be implemented through 2027.

Given that the legislation was signed into law after the close of the second quarter, its impacts are not included in the operating results for the six months ended June 30, 2025.

The potential effects on the consolidated financial statements are currently under evaluation.

OTHER OPERATING AND NON-OPERATING ITEMS

1 unchanged sentence

Other operating credits and charges, net, is comprised of the following components (dollar amounts in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Reorganization charges $ ( 3 ) $ ( 1 ) $ ( 5 ) $ ( 3 )

1 unchanged sentence

Loss on asset disposal — — ( 1 ) —

Other 2 3 2 3

Other operating credits and charges, net $ ( 2 ) $ 2 $ ( 4 ) $ 3

1 unchanged sentence

Other non-operating items is comprised of the following components (dollar amounts in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Foreign currency gain (loss) $ ( 7 ) $ 5 $ ( 12 ) $ 6

1 unchanged sentence

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.

No impairment was recognized as of March 31, 2025.

We also review from time to time potential dispositions of various assets, considering 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 such assets.

The carrying values of our long-lived assets are reviewed for potential impairments, and adequate support is believed by management to exist for each asset's carrying value based on anticipated cash flows derived from estimates of future demand, pricing, and production costs, assuming certain levels of planned capital expenditures.

However, if demand and pricing for our products decline significantly below cycle-average levels, if capital is allocated to alternative projects, or if changes occur in the wood supply for mills, future impairment charges may be required.

Potential asset dispositions are also periodically reviewed, taking into account current and anticipated economic and industry conditions, the strategic plan, and other relevant factors.

A decision to dispose of specific assets may require assumptions regarding the transaction structure of the disposition to estimate the net sales proceeds, which could be lower than prior estimates of undiscounted future net cash flows.

As a result, impairment charges may be necessary in connection with such dispositions.

During the second quarter of 2025, $ 17 million in non-cash, pre-tax impairment charges were recorded.

These included $ 11 million related to acquired equipment that will not be utilized in future operations, $ 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.

COMMITMENTS AND CONTINGENCIES

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

March 31, 2025 December 31, 2024

Reserves for various contingent liabilities were as follows (dollar amounts in millions):

June 30, 2025 December 31, 2024

Environmental reserves $ 27 $ 28

2 unchanged sentences

Long-term portion $ 26 $ 27

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.

Estimates of 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 are subject to substantial uncertainty.

Estimated exposure to contingencies is regularly monitored, and as additional information becomes available, estimates may change significantly.

Although no estimate of the range of any such change can be made at this time, the amount ultimately paid in connection with these matters could materially exceed, in either the near term or the longer term, the amounts accrued to date.

Estimates of loss contingencies do not reflect potential future recoveries from insurance carriers, except to the extent that recovery is deemed probable based on 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 based on 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.

A reserve is maintained for undiscounted estimated environmental loss contingencies.

This reserve primarily covers estimated future costs for the remediation of hazardous or toxic substances at various sites currently or previously owned by the Company.

Estimates of environmental loss contingencies are based on a range of assumptions and judgments, which vary depending on the specific facts and circumstances of each case.

These estimates typically reflect management's assumptions regarding the probable nature, magnitude, and timing of required investigation, remediation, and/or monitoring activities, as well as the probable costs associated with those activities.

In some cases, estimates also consider the obligation, willingness, or ability of third parties to bear a proportionate or allocated share of the costs.

Due to the numerous uncertainties and variables associated with these assumptions and judgments-as well as the potential effects of changes in governmental regulations and environmental technologies-the precision and reliability of the resulting estimates are subject to substantial uncertainty.

Estimated exposure to environmental loss contingencies is regularly monitored, and estimates may be revised significantly as additional information becomes available.

Other Proceedings

From time to time, we and our subsidiaries are parties to certain legal proceedings arising in our ordinary course of business.

Based on the information currently available, management does 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.

From time to time, the Company and its subsidiaries are parties to certain legal proceedings arising in our ordinary course of business.

Based on currently available information, management does not believe that the resolution of such proceedings could reasonably be expected to have a material adverse effect on the Company's financial position, results of operations, cash flows, or liquidity.

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 for the three months ended March 31, 2025 and 2024, is summarized in the following table (dollar amounts in millions):

Three Months Ended March 31,

Warranties are offered on the sale of most of our products, and an accrual is recorded for estimated future claims.

These accruals are based upon historical experience and management’s estimate of future claim levels.

The activity in the warranty reserves for the three and six months ended June 30, 2025, and 2024, is summarized in the following table (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Beginning balance $ 6 $ 8 $ 6 $ 8

Change in warranty provision — 1 — 1

Payments made — — ( 1 ) ( 1 )

Total warranty reserves 6 8 6 8

1 unchanged sentence

Long-term portion of warranty reserves (included in other long-term liabilities) $ 4 $ 6 $ 4 $ 6

We continue to monitor warranty and other claims associated with our products and believe, as of March 31, 2025, that the warranty reserve balances associated with these matters are adequate to cover future warranty payments.

However, it is possible that additional changes may be required in the future.

Warranty and other product-related claims continue to be monitored by management, and as of June 30, 2025, the warranty reserve balances associated with these matters are considered adequate to cover future warranty payments.

However, additional adjustments may be required in the future.

ACCUMULATED COMPREHENSIVE LOSS

Accumulated comprehensive loss is provided in the following table for the three months ended March 31, 2025 and 2024 (dollar amounts in millions):

Translation Adjustments Other Total

Balance at December 31, 2024

$ ( 122 ) $ — $ ( 122 )

Translation adjustments 12 — 12

Balance at March 31, 2025

$ ( 110 ) $ — $ ( 110 )

Translation Adjustments Other Total

Balance at December 31, 2023

Accumulated comprehensive loss is provided in the following table for the three and six months ended June 30, 2025 and 2024 (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Beginning Balance $ ( 110 ) $ ( 104 ) $ ( 122 ) $ ( 89 )

Translation Adjustments 6 ( 4 ) 18 ( 20 )

Balance at March 31, 2024

$ ( 104 ) $ — $ ( 104 )

Ending Balance $ ( 104 ) $ ( 109 ) $ ( 104 ) $ ( 109 )

SELECTED SEGMENT DATA

We operate in three segments:

The Company operates in three segments:

Siding, OSB, and LPSA.

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

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

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

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

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

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

1 unchanged sentence

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

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

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

Performance of our business segments is evaluated based on net sales and segment Adjusted EBITDA.

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

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

Three Months Ended March 31, 2025

Information regarding the Company's business segments is presented below (dollar amounts in millions):

Three Months Ended June 30, 2025

Siding OSB LPSA Segment Total Other Consolidated

4 unchanged sentences

Depreciation and amortization

20 13 2 36 — 36

Other charges 1

Adjusted EBITDA $ 125 $ 19 $ 9 $ 153 $ ( 10 ) $ 142

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Siding OSB LPSA Segment Total Other Consolidated

4 unchanged sentences

Depreciation and amortization

19 11 2 31 — 31

Other charges 1

Adjusted EBITDA $ 105 $ 125 $ 10 $ 240 $ ( 11 ) $ 229

Six Months Ended June 30, 2025

Siding OSB LPSA Segment Total Other Consolidated

Net sales $ 862 $ 517 $ 95 $ 1,474 $ 4 $ 1,478

Cost of sales ( 590 ) ( 440 ) ( 68 ) ( 1,097 ) ( 6 ) ( 1,103 )

Selling, general, and administrative expenses ( 85 ) ( 34 ) ( 12 ) ( 131 ) ( 24 ) ( 154 )

Adjustments to Adjusted EBITDA:

Depreciation and amortization

40 26 4 70 — 70

Other charges 1

Adjusted EBITDA $ 230 $ 73 $ 21 $ 324 $ ( 20 ) $ 304

Six Months Ended June 30, 2024

Siding OSB LPSA Segment Total Other Consolidated

Net sales $ 776 $ 664 $ 93 $ 1,533 $ 5 $ 1,539

Cost of sales ( 546 ) ( 441 ) ( 69 ) ( 1,056 ) ( 6 ) ( 1,062 )

Selling, general, and administrative expenses ( 75 ) ( 31 ) ( 8 ) ( 114 ) ( 26 ) ( 140 )

Adjustments to Adjusted EBITDA:

Depreciation and amortization

37 22 3 62 — 62

Other charges 1

Adjusted EBITDA $ 195 $ 215 $ 20 $ 429 $ ( 19 ) $ 411

1 Other charges includes stock compensation and income from equity in unconsolidated affiliates.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

NET INCOME TO ADJUSTED EBITDA RECONCILIATION

4 unchanged sentences

Stock-based compensation expense 7 4 12 11

Loss on impairment 17 — 17 —

Other operating credits and charges, net 2 1 4 1

Business exit credits — ( 1 )

Business exit credits and charges — ( 14 ) — ( 15 )

Interest expense 4 4 7 8

3 unchanged sentences

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Identifiable Assets

4 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements