Louisiana-Pacific Corporation (NYSE: LPX), a leading building materials manufacturer, reported stronger-than-expected first-quarter financial results on Tuesday, surpassing Wall Street estimates despite challenging industry conditions.

For the first quarter, Louisiana-Pacific reported revenue of $724 million, beating analyst expectations of $711.08 million, according to Benzinga Pro. The company also posted adjusted earnings of $1.27 per share, exceeding estimates of $1.19 per share.

The company’s sales remained flat overall compared to the prior year, as siding revenue increased 11% year-over-year while oriented strand board (OSB) revenue declined 15%. Louisiana-Pacific said it generated $64 million in cash from operations during the quarter, underscoring stable operating performance despite industry headwinds.

At the end of the quarter, Louisiana-Pacific reported $256 million in cash and cash equivalents, down from $340 million at the end of 2024. Total liquidity remained strong at $1 billion, positioning the company for continued investment and operations.

“Despite tariff uncertainty and a slow start to the building season, LP’s Siding order file is on pace for a record second quarter, driven by ExpertFinish growth, share gains in new residential construction, and a recovering shed market,” said Brad Southern, chairperson and CEO of Louisiana-Pacific. Southern emphasized the company’s resilience in navigating market volatility while maintaining momentum in its siding business.

In addition to its earnings report, Louisiana-Pacific declared a quarterly cash dividend of 28 cents per share, payable on June 3 to shareholders of record as of May 20.

Looking ahead, the company issued guidance for continued growth in its core siding business. Louisiana-Pacific expects siding sales to increase 9% to 10% in the second quarter and more than 9% for the full year 2025. Capital expenditures for the year are projected to total approximately $410 million, reflecting ongoing investments in production capacity and efficiency improvements.

Executives will further elaborate on the company’s financial performance and outlook during a conference call scheduled for 11 a.m. ET.

The results come as the building materials sector faces persistent challenges, including fluctuating lumber prices, ongoing inflationary pressures, and slowing construction activity in some markets. Despite these hurdles, Louisiana-Pacific continues to focus on expanding its share in the siding market and leveraging its operational strength to drive long-term growth.

Investors will be closely watching the company’s progress in capitalizing on residential construction trends and demand recovery in key product segments, particularly as interest rates and macroeconomic conditions influence housing markets through the remainder of 2025.

Originally reported by Adam Eckert in Benzinga.