Louisiana-Pacific Corporation LPX has expanded and enhanced its SmartSide ExpertFinish Trim & Siding portfolio with the launch of the Naturals Collection, a new line of nature-inspired colors.

With this new specialized color palette launch, the company has solidified the market presence of its Siding business across North America.

LPX stock climbed 10.5% during Wednesday’s trading hours and inched down 0.04% in the after-hours, after announcing its new product line.

What Does LPX’s Naturals Collection Offer?

The newly launched Naturals Collection offers six versatile prefinished colors, Bonsai Black, Weathered Walnut, Aged Amber, Saffron Cedar, Smoky Slate and Washed White, fabricated to enhance the look of stained wood. The color palette is available in cedar and brushed smooth finishes.

Every prefinished option comes with LPX’s 5/15/50-year limited warranty, ensuring durability and longevity. After the launch of the ExpertFinish product line in 2020, this launch marks the debut of a specialized color palette.

The Naturals Collection will be on the market throughout 2025 through the company’s extensive network of contractors and dealers across North America.

Louisiana-Pacific’s Siding Business Bodes Well

Louisiana-Pacific has been investing extensively to increase the penetration of the Siding products in repair/remodel and roll out SmartSide products. The Siding unit comprised 53% of the company’s net sales in 2024. The higher capacity utilization from increased sales volume helped the Siding business’ EBITDA margin expand 470 basis points to 25% in the said time frame.

Thanks to the continuous efforts, LPX has been witnessing higher-than-expected demand for Smooth SmartSide and ExpertFinish. The company remains committed to growing the Siding revenues in 2025 and beyond. To support this growth, it plans to invest around $200 million in capacity expansion, primarily in the second half of 2025. Investments will continue in 2026 with two expansion projects running simultaneously. Plans include adding a second manufacturing line at LP Houlton, expanding Siding capacity and increasing output at export pre-finishing facilities, with a significant portion of this work happening in parallel.

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In the past six months, shares of this leading manufacturer of high-performance building products have tumbled 17.2% compared with the Zacks Building Products - Wood industry’s 8.5% decline. Although housing market softness, newly levied tariffs and inflation are restricting growth, increased demand for its Siding products and disciplined capital management are likely to support growth and profitability in the upcoming term.

LPX’s Zacks Rank & Key Picks

Louisiana-Pacific currently carries a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the Construction sector.

Quanex Building Products Corporation NX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter earnings surprise of 115.2%, on average. The stock has lost 26.9% year to date. The Zacks Consensus Estimate for Quanex’s fiscal 2025 sales and earnings per share (EPS) implies an increase of 44% and 16.4%, respectively, from a year ago.

EMCOR Group, Inc. EME currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 29%, on average. The stock has trended down 16.8% year to date.

The Zacks Consensus Estimate for EMCOR’s 2025 sales and EPS implies an increase of 12.8% and 8.6%, respectively, from a year ago.

Gibraltar Industries, Inc. ROCK currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has moved down 7.1% year to date.

The Zacks Consensus Estimate for Gibraltar’s 2025 sales and EPS implies an increase of 9.8% and 15.5%, respectively, from a year ago.

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This article originally published on Zacks Investment Research (zacks.com).

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