LOUISIANA-PACIFIC CORP
For the period ended Dec 31, 2025. Filed Feb 17, 2026.
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FY2025 · Filed Feb 17, 2026
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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.
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.
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 |
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 |
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 |
.
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 |
Consolidated Statements of Stockholders’ Equity
Amounts in millions, except per share amounts
| Common Stock · Treasury Stock · AdditionalPaid-InCapital · RetainedEarnings · AccumulatedComprehensiveIncome (Loss) · TotalStockholders’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 | ||
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 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.