Owens Corning (OC) Q1 2025 earnings summary

Executive summary

• Net sales from continuing operations reached $2.53 billion in Q1 2025, up 25% year-over-year, driven by the newly acquired Doors business contributing $540 million in revenue.

• Adjusted EBITDA was $565 million, a 10% increase, with a 22% margin, marking the 19th consecutive quarter above 20%.

• Net earnings from continuing operations were $255 million, with diluted EPS of $2.95 and adjusted EPS of $2.97.

• The company completed the $3.2 billion acquisition of Masonite International, adding a new Doors segment, and entered an agreement to divest its global glass reinforcements business.

• Issued the 19th annual sustainability report and ranked fourth on Barron's list of 100 most sustainable U.S. companies.

Financial highlights

• Q1 2025 net sales were $2.53 billion, up $513 million year-over-year, primarily due to the Masonite acquisition.

• Adjusted EBITDA was $565 million, up 10% year-over-year; adjusted EPS was $2.97.

• Free cash flow was a net outflow of $252 million, reflecting seasonal working capital and capital additions.

• Gross margin was $725 million (29% of net sales), up from $628 million year-over-year.

• $159 million was returned to shareholders via $100 million in share repurchases and $59 million in dividends.

Outlook and guidance

• Q2 2025 revenue is expected to grow high single digits year-over-year from $2.5 billion, with adjusted EBITDA margin projected in the low to mid-20% range.

• Roofing revenue to grow low single digits; insulation revenue to decline mid-single digits; doors revenue to increase low single digits sequentially.

• Capital additions for 2025 expected at ~$800 million; depreciation and amortization ~$650 million.

• Tariff impact in Q2 expected to be a net $10 million, mainly in doors; second half exposure could be 1%-2% of COGS.

• General corporate EBITDA expenses for 2025 estimated at $240–$260 million; interest expense $250–$260 million; effective tax rate 24–26%.