Owens Corning (OC) Q2 2025 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in Q2 2025, with net sales of $2.75 billion and adjusted EBITDA of $703 million at a 26% margin, driven by the Doors business acquisition and strong commercial execution.

• Net earnings attributable to shareholders rose to $334 million (12% of net sales), with diluted EPS from continuing operations at $3.91 and adjusted EPS at $4.21.

• Maintained adjusted EBITDA margins at or above 20% for the 20th consecutive quarter, demonstrating resilience in challenging markets.

• Completed sale of China and Korea building materials business; progressing on divestiture of glass reinforcements business.

• Returned $279 million to shareholders in Q2 via dividends and share repurchases, with a commitment to return $2 billion over 2025–2026.

Financial highlights

• Q2 2025 net sales were $2.75 billion, up $250 million year-over-year; six-month net sales reached $5.28 billion, up 17% year-over-year.

• Adjusted EBITDA was $703 million (26% margin); net earnings attributable to shareholders were $334 million in Q2, up 30% year-over-year.

• Diluted EPS from continuing operations was $3.91, up from $2.91 in Q2 2024; adjusted EPS was $4.21.

• Free cash flow was $129 million, down from $336 million in Q2 2024, due to working capital timing and higher capital additions.

• Capital additions were $198 million in Q2; return on capital was 13% for the twelve months ending June 30, 2025.

Outlook and guidance

• Q3 2025 revenue expected at $2.7–$2.8 billion, slightly down to in line with prior year; adjusted EBITDA margin guidance is 23%–25%.

• Roofing revenue forecasted up low to mid-single digits; insulation and doors segments expected to see revenue declines.

• Full-year 2025 CapEx expected at $800 million, with elevated near-term investment; effective tax rate for 2025 expected at 24%–26%.

• General corporate EBITDA expenses for 2025 estimated at $240–$260 million; interest expense $250–$260 million; D&A ~$650 million.

• Minimal Q3 impact from tariffs, with net exposure reduced to ~$10 million, mainly in the Doors business.