Owens Corning (OC) Q4 2025 earnings summary

Executive summary

• Net sales reached $10.1 billion in 2025, up 3% year-over-year, despite challenging market conditions and weak U.S. residential trends.

• Adjusted EBITDA for 2025 was $2.27 billion (22% margin), down from $2.47 billion in 2024; Q4 2025 Adjusted EBITDA margin was 17%.

• Returned $1 billion to shareholders in 2025 via dividends and share repurchases, including a 15% dividend increase and 12th consecutive year of dividend growth.

• Recorded a $1.2 billion non-cash, pre-tax impairment charge in the Doors business, resulting in a net loss of $(188) million for 2025.

• Executed strategic initiatives: divested China and Korea businesses, announced sale of glass reinforcements, and integrated the Doors business.

Financial highlights

• Q4 2025 revenue: $2.1 billion; Adjusted EBITDA: $362 million (17% margin).

• Full year 2025 revenue: $10.1 billion; Adjusted EBITDA: $2.27 billion (22% margin); Adjusted EPS: $12.05.

• Operating cash flow: $1.8 billion; Free cash flow: $962 million, down year-over-year due to higher capital additions.

• Capital additions totaled $824 million in 2025.

• Year-end debt/EBITDA: 2.1x; liquidity: $1.8 billion.

Outlook and guidance

• 2026 market expected to remain challenging in H1, with improvement in H2; full-year revenue and Adjusted EBITDA aligned with consensus.

• Q1 2026 revenue expected at $2.1–$2.2 billion; Adjusted EBITDA margin in mid-teens.

• Roofing Q1 shipments to be down low 20% YoY; insulation revenue down mid to high single digits; Doors revenue down mid-teens.

• CapEx for 2026 guided at $800 million, with over half for strategic growth and efficiency projects.

• Long-term CapEx expected to normalize at ~4% of revenue post-2027.