$62 Million Bet Lifts LPX Stock to a Top Holding in This Portfolio Even as Earnings Fall

2026-03-04 16:04:53

On February 17, 2026, 59 North Capital Management disclosed a buy of 737,406 shares of Louisiana-Pacific (LPX 0.96%), an estimated $62.31 million trade based on quarterly average pricing.

What happened

According to an SEC filing dated February 17, 2026, 59 North Capital Management increased its stake in Louisiana-Pacific by 737,406 shares during the fourth quarter. The estimated transaction value was $62.31 million, calculated using the average closing price for the quarter. The ending position was 3,536,884 shares, with a quarter-end value change of $36.93 million, which includes both share additions and stock price movement.

What else to know

The position now represents 8.89% of 13F reportable AUM.
Top holdings after filing:
- NYSE: AER: $475.93 million (14.8% of AUM)
- NYSE: DTM: $365.06 million (11.4% of AUM)
- NASDAQ: NWSA: $338.63 million (10.5% of AUM)
- NYSE: KMI: $312.66 million (9.7% of AUM)
- NYSE: LPX: $285.64 million (8.9% of AUM)
As of Tuesday, LPX shares were priced at $82.66, down 16% over the past year and well underperforming the S&P 500, which is instead up about 16%.

Company overview

Metric	Value
Price (as of Tuesday)	$82.66
Market Capitalization	$6 billion
Revenue (TTM)	$2.71 billion
Net Income (TTM)	$146.00 million

Company snapshot

Louisiana-Pacific offers engineered wood products, including siding, oriented strand board (OSB), and laminated veneer lumber, with primary revenue from building materials for residential and commercial construction.
The company operates a vertically integrated model, manufacturing and distributing building products through four business segments across North and South America.
It serves retailers, wholesalers, homebuilders, and industrial customers in North America, South America, Asia, Australia, and Europe.

Louisiana-Pacific is a leading manufacturer of engineered wood building materials, with a focus on siding, OSB panels, and structural solutions for construction markets. The company leverages a diversified product portfolio and international reach to address both new construction and remodeling demand. Its integrated operations and established distribution channels support scale and resilience in the cyclical building products sector.

What this transaction means for investors

This move is interesting because it signals conviction in a cyclical operator at a moment of weakness. Louisiana-Pacific is not putting up peak cycle numbers. Full year 2025 net sales fell to $2.7 billion, and net income dropped to $146 million from $420 million a year earlier, as weaker OSB pricing weighed on results. Fourth quarter sales came in at $567 million, and the company posted a small net loss. That is not the type of headline that attracts momentum money.

But more closely, the story starts looking better. The Siding segment continues to grow, with full-year sales up 8% to $1.7 billion and segment EBITDA rising to $444 million. The business generated $382 million in operating cash flow in 2025 and ended the year with about $1 billion in liquidity and $348 million of long-term debt.

This portfolio already leans into infrastructure, energy, and asset-heavy names like AER, DTM, and KMI. Adding to LPX, now 9% of assets, fits that blueprint.

Ultimately, if housing stabilizes and OSB pricing recovers even modestly, earnings power could look very different from 2025, and that’s what a long-term investor might be looking for.

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