Owens Corning (NYSE:OC) executives told investors the company delivered results in line with its guidance for the fourth quarter and maintained strong profitability through a year marked by progressively weaker residential demand, distribution destocking in the back half of 2025, and an unusually quiet U.S. storm season that pressured roofing repair activity.
For the fourth quarter, Owens Corning reported revenue of $2.1 billion and adjusted EBITDA of $362 million, representing a 17% adjusted EBITDA margin. For the full year 2025, the company posted revenue of $10.1 billion and adjusted EBITDA of $2.3 billion, with a 22% adjusted EBITDA margin. CEO Brian Chambers said the company is “generating higher margins on lower market volumes” through operating efficiencies and favorable mix, while continuing to invest in capacity and productivity projects intended to support growth as markets recover.
Market conditions and safety performance
Chambers also emphasized safety performance under the company’s “Safer Together” framework. Owens Corning’s recordable incident rate was 0.60 in 2025, which he called industry-leading among U.S. manufacturers, and he said more than half of the company’s sites operated injury-free.
Cash flow, capital allocation, and balance sheet
CFO Todd Fister said the company generated $1.8 billion of operating cash flow in 2025 and returned $1 billion to shareholders through dividends and share repurchases. Fourth-quarter free cash flow was $333 million, and full-year free cash flow was $962 million, which Fister said was down $283 million from the prior year primarily due to higher capital additions.
Capital additions totaled $824 million for 2025, with Fister noting roughly half of capital spending was focused on long-term cost efficiency and growth. Owens Corning’s return on capital was 12% for the 12 months ended Dec. 31, 2025, below its long-term “mid-teens or better” target, which management said remains unchanged.
- Debt to EBITDA: 2.1x at year-end, at the low end of the company’s 2–3x target range
- Liquidity: $1.8 billion, including $345 million of cash and $1.5 billion of revolver availability
- Dividend: Board declared $0.79 per share in December, a roughly 15% increase
- Share repurchases: 5.9 million shares repurchased in 2025
Chambers said the company has returned over $4 billion of cash to shareholders since 2020 and reiterated its Investor Day commitment to return another $1 billion by the end of 2026. In response to a question on shareholder returns, Fister said management remains committed to its $2 billion cash return target across 2025 and 2026, citing strong operating cash flows and balance sheet capacity.
Segment results: Roofing, Insulation, and Doors
Roofing: Fourth-quarter sales were $774 million, down 27% year over year, primarily due to lower shingle volumes. Fister said the U.S. asphalt shingle market declined a similar percentage, driven by unusually low storm activity and lower distributor inventories; the company’s volumes were “in line with the market.” Segment EBITDA was $199 million, and margins were 26%, with management citing relatively flat pricing but negative price-cost as inflation continued. Owens Corning also took production curtailments to manage inventory, with some impact in Q4 and a larger impact expected in Q1 as higher-cost inventory sells through.
For the full year, Roofing sales were $4.4 billion, down 4%, while the U.S. asphalt shingle market declined about 10% for the year. Fister said Owens Corning outperformed the market on volumes overall, supported by its contractor engagement model. Full-year Roofing EBITDA was $1.4 billion, with a 32% margin.
Insulation: Fourth-quarter revenue was $916 million, down 7%, driven by the sale of a building materials business in China and lower volumes in North American residential and non-residential markets. Europe was described as stable and benefited from currency tailwinds. Fourth-quarter segment EBITDA was $186 million, down $42 million year over year, with a 20% margin, reflecting slightly negative pricing, modest inflation, and continued curtailments to manage inventory.
Full-year Insulation sales were $3.7 billion, down 6%, with full-year EBITDA of $848 million and a 23% margin. Management pointed to positive pricing and strong manufacturing performance partially offsetting inflation and downtime. During Q&A, Fister said Owens Corning had previously curtailed one manufacturing plant in Utah (a “cold” curtailment) and also used “hot idle” curtailments elsewhere to remain ready for a market recovery. He described loosefill supply as “tight” due to competitor operational challenges, while batts and rolls had more available supply.
Doors: Fourth-quarter revenue was $486 million, down 14% year over year, driven by lower volumes in both new construction and discretionary repair and remodel. Fister said the previously announced sale of a non-core components facility in Oregon reduced quarterly revenue by $13 million; on an annual basis, the business generated about $50 million of revenue. Fourth-quarter EBITDA was $33 million, and margins were 7%, with inflation and tariffs cited as key pressures.
For the full year, Doors net sales were $2.1 billion and EBITDA was $232 million, with an 11% margin. Fister said 2025 adjusting items totaled $1.2 billion, primarily due to $1.1 billion of non-cash goodwill impairment charges in Doors in the third and fourth quarters. He attributed the impairments to updated macroeconomic assumptions in the valuation model amid near-term market softness, adding they do not reflect a change in longer-term expectations for the business.
Strategic actions, divestitures, and “OC Advantage” initiatives
Chambers outlined portfolio actions aimed at sharpening the company’s focus on residential building products, including completion of the sale of its business in China and Korea and the announced divestiture of the glass reinforcements business, which serves industrial markets. He said regulatory approvals are progressing and the company expects closing “in the next few months.” (The company noted that 2026 outlook items exclude glass reinforcements.)
Management also said it continues to integrate its Doors business amid challenging market conditions, including tariff disruption. Chambers and Fister both said the company is exceeding its commitment to deliver $125 million of enterprise run-rate cost synergies by mid-2026. In Q&A, Chambers said the company sees $10 million to $15 million of potential upside to the synergy target and reiterated plans for an additional $75 million of structural cost improvements in Doors tied to network optimization, automation, and productivity.
Chambers highlighted initiatives under “The OC Advantage,” including:
- Brand and demand generation: leveraging contractor and dealer engagement models, including growth in enrollments for the Pink Advantage Dealer program
- Innovation: more than 30 new or improved products launched in 2025, and the promotion of José Méndez-Andino to Chief Innovation Officer
- Manufacturing modernization: new laminate shingle line in Ohio, a high-speed nonwovens line in Arkansas, and an XPS foam plant in Arkansas, along with Doors network optimization actions including closures and consolidations
- Digital and AI: deploying supply chain optimization agents in North American fiberglass insulation and scaling across the enterprise; promotion of Annie Baymiller to Chief Information Officer
2026 outlook: soft start, improvement expected later in the year
Looking to 2026, management expects challenging conditions to persist in the near term, with improvement in the second half of the year. For the first quarter, Owens Corning forecast revenue of about $2.1 billion to $2.2 billion and an adjusted EBITDA margin in the mid-teens. Chambers said Q1 will reflect the impact of prior production curtailments flowing through the P&L, most notably in Roofing.
For Roofing, the company anticipates laminator market shipments down in the low 20% range year over year in Q1, with Owens Corning shingle volumes down in line with the market and revenue down in the low 20% range. Management expects about a $30 million headwind from production curtailment costs as higher-cost inventory is sold, and noted an April price increase announced earlier in the month, with expected realization beginning in Q2.
In Insulation, Owens Corning expects Q1 revenue down mid- to high-single digits year over year, driven by lower residential volumes and the mid-2025 sale of the China building materials business (which management said had about $130 million of annual revenue). Doors is expected to see Q1 revenue down mid-teens, reflecting weaker volumes and the strategic sales of the Oregon components facility and a company-owned distribution business, which management said had combined annual revenues of about $150 million.
For the full year 2026, Chambers said the company’s revenue and adjusted EBITDA outlook is “largely aligned with current consensus estimates,” with expectations for relatively flat North American residential new construction versus 2025, slightly higher discretionary repair and remodel demand, and a more normal roofing demand pattern tied to typical storm activity. Fister provided additional 2026 financial outlook items, including general corporate EBITDA expenses of $245 million to $255 million, an effective tax rate of 24% to 26%, depreciation and amortization of about $680 million, and capital additions of about $800 million. In Q&A, Fister said elevated 2026–2027 capital spending reflects previously announced projects and reiterated an Investor Day view that capital spending should normalize to about 4% of revenue on a structural basis longer term.
About Owens Corning (NYSE:OC)
Owens Corning is a global leader in composite materials and building products, with a primary focus on insulation, roofing, and fiberglass composites. The company serves professional contractors, builders and industrial manufacturers by providing solutions designed to improve energy efficiency, structural performance and durability. Its products are used in residential, commercial, and industrial applications worldwide.
The company’s core product lines include fiberglass insulation for thermal and acoustic comfort, roofing shingles and underlayment systems engineered for weather protection, and advanced composite materials for markets such as wind energy, automotive, marine and infrastructure.
