Owens Corning : Q1 2025 Earnings Report Presentation
OC
Published on 05/07/2025 at 09:04
RESULTS
Brian Chambers | Chair & Chief Executive Officer
Todd Fister | Chief Financial Officer
May 7, 2025 | Q1 2025
COMPANY HIGHLIGHTS
Brian Chambers
FINANCIAL RESULTS
Todd Fister
BUSINESS OUTLOOK
Brian Chambers
QUESTIONS AND DISCUSSION
All
3
($ in millions)2
Q1 2025
Q1 2024
Net sales
2,530
2,017
Adjusted EBITDA
565
515
Adjusted EBITDA as % of net sales
22%
26%
Maintained high level of safety performance, including Doors segment
19th consecutive quarter delivering 20% or better adjusted EBITDA margins1
Growth investments and strategic divestitures are reshaping Owens Corning for long-term value creation
Issued 19th annual sustainability report, highlighting efforts toward enterprise goals
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Five-year financial performance3
2021 2022 2023 2024 LTM
30%
25%
20%
15%
10%
5%
0%
2020-2024: As reported; 2025: Continuing operations
Continuing operations
2021-2023: As reported; 2024-LTM: Continuing operations
Net sales in millions
Adj. EBITDA as % of net sales
4
($ in millions, except per share data)1
Q1 2025
Q1 2024
Net sales
2,530
2,017
Net sales growth
25%
n/a
Net earnings attributable to OC
255
278
Net earnings attributable to OC as % of net sales
10%
14%
Adjusted EBITDA
565
515
Adjusted EBITDA as % of net sales
22%
26%
EPS (diluted)
$2.95
$3.16
Adjusted earnings
256
299
Adjusted EPS (diluted)
$2.97
$3.40
Continuing operations
Capital allocation strategy remains focused on consistently generating strong free cash flow, returning approximately 50% to investors over time, and maintaining an investment grade balance sheet, while executing on business strategies to grow the company
First-Quarter 2025:
Cash Generation and Return
Free cash outflow of $252mm
Returned $159mm of free cash flow to shareholders through share repurchases and dividends
At the end of Q1, 5.7mm shares were available for repurchase under the current authorization
Internal Investment
Capital additions of $203mm
Return on capital was 16% for the last twelve months1
Liquidity
Maintained liquidity of $1.9b, consisting of approximately $400mm of cash and $1.5b of availability on
bank debt facility
1. Refer to Appendix A for additional details
($ in millions)1
Q1 2025
Q1 2024
Net sales
1,120
1,098
EBITDA
332
338
EBITDA as % of net sales
30%
31%
Delivered first-quarter revenue of
$1.1b, up 2% from prior year
Generated $332mm of EBITDA with
30% EBITDA margin
Demand remained strong; shingle volumes in-line with the U.S. asphalt shingle market
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Five-year financial performance2
2021 2022 2023 2024 LTM
35%
30%
25%
20%
15%
10%
5%
0%
($ in millions)1
Q1 2025
Q1 2024
Net sales
909
957
EBITDA
225
223
EBITDA as % of net sales
25%
23%
Delivered first-quarter revenue of
$909mm, down 5% from prior year
Generated $225mm of EBITDA with
25% EBITDA margin
Expanded margin in mixed end market conditions
$4,000
$3,200
$2,400
$1,600
$800
$0
Five-year financial performance2
2021 2022 2023 2024 LTM
25%
20%
15%
10%
5%
0%
($ in millions)
Q1 2025
Net sales
540
EBITDA
68
EBITDA as % of net sales
13%
Revenue by Product1 Revenue by Geography1
Delivered first-quarter revenue of
$540mm
Generated $68mm of EBITDA with
13% EBITDA margin
On track to exceed $125mm of enterprise cost synergies
Interior
Components
Exterior
Europe
Canada
U.S.
Source: Owens Corning management estimates, Owens Corning SEC filings; Business mix statistics based on 2024 net sales for the period May 15, 2024 through December 31, 2024. Rest of world (not shown) accounts for <1%.
FY 2025
General corporate EBITDA expenses
$240mm - $260mm
Interest expense1
$250mm - $260mm
Full-year effective tax rate1
24% - 26%
Capital additions1
Approximately $800mm
Depreciation and amortization
Approximately $650mm
Reflects full company performance inclusive of discontinued operations
ENTERPRISE:
Revenue growth for continuing operations of high single-digits, compared to prior year's revenue of $2.5 billion
Expect building products end markets in North America and Europe to provide solid, but mixed, opportunities
Anticipate positive price for the enterprise overall, more than offsetting anticipated cost inflation
Adjusted EBITDA margin of low-to-mid 20%
ROOFING INSULATION DOORS
Revenue up low-single digits
Industry shipments for U.S. shingle end-market demand down low to mid-single digits with OC shingle volumes in line with the market
Normalized attachment rates for Components and growth in nonwovens
Expect to incur moderate cost inflation, with positive price/cost
Anticipate higher manufacturing costs
EBITDA margin slightly below Q2 2024
Revenue down mid single-digits
In North American residential, revenue down low to mid-teens on lower demand
In North American non-residential and
Europe, revenue similar to prior year
Anticipate currency headwind
Expect to incur cost inflation, offset by ongoing price realization
EBITDA margin near mid-20%
Revenue up low-single digits sequentially
Continuing to perform well relative to
market conditions
Slightly stronger seasonal demand
Ongoing synergies and cost controls to largely offset tariffs
EBITDA margin of low double-digit to low-teens, similar to Q1 2025
The above outlook reflects a year-over-year comparison to resegmented Q2 2024 results except for the Doors outlook, which is compared to Q1 2025
Disclaimer
Owens Corning published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 13:03 UTC.