Financial Data and Key Metrics Changes - The company achieved a 10% increase in revenues year-over-year, with earnings growing by 30% [10][21] - Adjusted EBITDA for the second quarter was $703 million, resulting in an adjusted EBITDA margin of 26% [10][21] - Free cash flow for the quarter was $129 million, down from $336 million in the same period last year, primarily due to working capital timing [22] Business Line Data and Key Metrics Changes - Roofing business revenues increased by 4% year-over-year to $1.3 billion, with EBITDA of $457 million and margins of 35% [26][27] - Insulation business revenues decreased by 4% to $934 million, with EBITDA of $225 million and margins of 24% [28][30] - Doors business generated revenue of $554 million with EBITDA of $75 million and margins of 14% [31] Market Data and Key Metrics Changes - North American residential new construction demand remains pressured, representing only about 25% of overall revenue [12] - Non-residential markets in North America showed stable demand, while Europe experienced encouraging improvements [12] - The company completed the sale of its building materials business in China and Korea, which had annual revenues of approximately $130 million [13] Company Strategy and Development Direction - The company is focused on high-value building materials in attractive markets, emphasizing a strategic business mix that positions it to outperform [11][12] - Investments are being made to expand capacity and modernize assets, including new production lines in roofing and insulation [14][15] - The company aims to achieve $125 million in enterprise synergies from the integration of its doors business, with significant progress already made [16] Management's Comments on Operating Environment and Future Outlook - The management expects overall market demand for non-discretionary roofing repair activity to remain solid but to decline compared to the prior year due to lower storm activity [36] - For the third quarter, revenue is anticipated to be approximately $2.7 billion to $2.8 billion, slightly below or in line with the prior year [37] - The company remains confident in its ability to deliver higher, more durable margins through market cycles and generate strong free cash flow [43] Other Important Information - The company maintained a recordable incident rate of 0.6, reflecting a strong commitment to safety [9] - The company has returned nearly $440 million of its $2 billion capital return commitment through dividends and share repurchases [11][24] - The company was recognized on the Fortune 500 list for the 70th consecutive time, highlighting its brand strength and commitment to customer success [18][19] Q&A Session Summary Question: North American industry capacity utilization trends - The company noted that industry capacity utilization remains below 90%, impacting pricing dynamics, with limited traction on price increases due to inflation [46][50][52] Question: Revenue expectations for non-residential insulation in Europe - The company expects modest growth in non-residential insulation in Europe, driven by strong demand in specific markets like data centers [55][59] Question: Performance outlook for the doors business - The company anticipates low double-digit to low teens EBITDA margins for the doors business in Q3, with ongoing cost synergy realization contributing to stability [63][66] Question: Mix dynamics in insulation and roofing - The company indicated that negative mix in insulation was timing-related and not a permanent issue, while roofing continues to see strong demand for laminated shingles [75][76] Question: Contribution from new capacity in roofing - The company expects the new capacity from the Medina facility to ramp up over the back half of the year, supporting contractor demand despite overall market conditions [85][86]

Financial Data and Key Metrics Changes - Revenues increased by 10% year-over-year, with earnings growing by 30% [8][10] - Adjusted EBITDA for the second quarter was $703 million, with an adjusted EBITDA margin of 26% [8][21] - Free cash flow for the quarter was $129 million, down from $336 million in the same period last year [22] - The company returned $279 million to shareholders through share repurchases and dividends [23] Business Line Data and Key Metrics Changes - Roofing business sales were $1.3 billion, up 4% from the prior year, with EBITDA of $457 million and margins of 35% [25][26] - Insulation business revenues were $934 million, a 4% decrease from the previous year, with EBITDA of $225 million and margins of 24% [28][29] - Doors business generated revenue of $554 million, with EBITDA of $75 million and margins of 14% [30] Market Data and Key Metrics Changes - North American repair and remodel activity accounts for over half of the company's revenue, with stable demand in non-residential markets [11] - Residential new construction demand is under pressure, representing only about a quarter of overall revenue [11] - European markets are showing encouraging improvement, with gradual recovery expected [11][36] Company Strategy and Development Direction - The company is focused on high-value building materials in attractive markets, emphasizing structural improvements and strategic investments [10][12] - Recent acquisitions and divestitures, including the sale of the building materials business in China and Korea, are part of the strategy to sharpen focus [12][21] - The company aims to leverage its OC Advantage, which includes brand strength, technology, and cost position, to drive growth [15][16] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's ability to deliver higher, more durable margins and strong free cash flow despite challenging market conditions [42] - For the third quarter, revenue is expected to be approximately $2.7 billion to $2.8 billion, slightly below or in line with the prior year [36] - The company anticipates ongoing cost inflation and a slight decline in residential new construction demand [39][41] Other Important Information - The company achieved a recordable incident rate of 0.6, maintaining a safe operating environment [7] - The company has captured more than 75% of its enterprise run rate synergy target of $125 million from the Masonite acquisition [15] - The company is on track to return $2 billion to shareholders through dividends and share repurchases by 2026 [23] Q&A Session Summary Question: North American industry capacity utilization trends - Management noted that industry utilization was below 90%, impacting pricing dynamics, with limited traction on price increases due to inflation [45][49] Question: Revenue expectations for non-residential insulation in Europe - Management indicated modest growth in non-residential insulation, driven by strong demand in data centers and manufacturing [55][59] Question: Performance of the doors business - Management expects low double-digit to low teens EBITDA margins for the doors business, driven by ongoing cost synergies and network optimization [63][66] Question: Mix dynamics in insulation and roofing - Management clarified that negative mix in insulation was timing-related and not a permanent trend, while roofing mix remains stable with increased demand for laminated shingles [72][74]

Financial Performance Highlights - Owens Corning's Q2 2025 net sales from continuing operations reached $2747 million, a 10% increase compared to Q2 2024's $2497 million[13, 16] - Adjusted EBITDA for Q2 2025 was $703 million, up from $678 million in Q2 2024, while the adjusted EBITDA margin was 26% compared to 27%[13, 16] - Year-to-date 2025 net sales were $5277 million, a 17% increase from $4514 million in the same period of 2024[13, 16] - Year-to-date 2025 adjusted EBITDA reached $1268 million, compared to $1193 million in 2024, with adjusted EBITDA as a percentage of net sales at 24% versus 26%[13, 16] - Roofing business delivered Q2 2025 revenue of $1303 million, a 4% increase from $1252 million in the prior year, with an EBITDA of $457 million and a 35% EBITDA margin[20] - Insulation business delivered Q2 2025 revenue of $934 million, a 4% decrease from $974 million in the prior year, with an EBITDA of $225 million and a 24% EBITDA margin[23] - Doors business delivered Q2 2025 revenue of $554 million, with an EBITDA of $75 million and a 14% EBITDA margin[27] Balance Sheet and Capital Deployment - Free cash flow for Q2 2025 was $129 million[19] - $279 million of free cash flow was returned to shareholders through share repurchases and dividends in Q2 2025[19] - Capital additions totaled $198 million in Q2 2025[19] - The company maintained liquidity of $1700 million, including approximately $200 million in cash and $1500 million available on a bank debt facility[19] - Net debt-to-adjusted EBITDA ratio was 21x at the end of Q2 2025[19] Full-Year 2025 Outlook - General corporate EBITDA expenses are projected to be between $240 million and $260 million[33] - Interest expense is expected to be between $250 million and $260 million[33] - The full-year effective tax rate is projected to be between 24% and 26%[33] - Capital additions are estimated to be approximately $800 million[33] - Depreciation and amortization are expected to be approximately $650 million[33]

分组1 - Owens Corning reported quarterly earnings of $4.21 per share, exceeding the Zacks Consensus Estimate of $3.8 per share, but down from $4.64 per share a year ago, representing an earnings surprise of +10.79% [1] - The company posted revenues of $2.75 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.57%, although this is a decrease from year-ago revenues of $2.79 billion [2] - Owens Corning has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed, losing about 17.3% since the beginning of the year, compared to the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $3.59 on revenues of $2.66 billion, and for the current fiscal year, it is $13.24 on revenues of $10.38 billion [7] - The Zacks Industry Rank indicates that the Building Products - Miscellaneous sector is in the bottom 32% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements reflect increased net sales and earnings, driven by the Masonite acquisition and offset by the GR business divestiture Consolidated Statements of Earnings Highlights | Metric (in millions, except EPS) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $2,747 | $2,497 | $5,277 | $4,514 | | **Operating Income** | $505 | $418 | $912 | $794 | | **Net Earnings from Continuing Operations** | $333 | $257 | $588 | $534 | | **Net Earnings (Loss) from Discontinued Operations** | $29 | $29 | $(319) | $50 | | **Net Earnings Attributable to Owens Corning** | $363 | $285 | $270 | $584 | | **Diluted EPS - Continuing Operations** | $3.91 | $2.91 | $6.86 | $6.06 | | **Diluted EPS - Total** | $4.25 | $3.24 | $3.15 | $6.63 | Consolidated Balance Sheet Highlights | Metric (in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,916 | $3,378 | | **Total Assets** | $14,483 | $14,075 | | **Total Current Liabilities** | $2,574 | $2,297 | | **Total Liabilities** | $9,279 | $8,955 | | **Total Equity** | $5,204 | $5,120 | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | $278 | $517 | | **Net Cash Flow used for Investing Activities** | $(347) | $(3,154) | | **Net Cash Flow (used for) provided by Financing Activities** | $(112) | $1,321 | | **Net Decrease in Cash** | $(96) | $(1,349) | - On February 14, 2025, the company announced the sale of its glass reinforcements (GR) business, which has been **reclassified to discontinued operations**[21](index=21&type=chunk) - The company acquired Masonite International Corporation on May 15, 2024, establishing the **new Doors reportable segment**[22](index=22&type=chunk)[23](index=23&type=chunk) [Note 2: Discontinued Operations](index=10&type=section&id=2.%20Discontinued%20Operations) The glass reinforcements business was classified as a discontinued operation, resulting in a pre-tax loss of $381 million for H1 2025 - The company entered a definitive agreement to sell its glass reinforcements (GR) business for an estimated purchase price of **$515 million**[43](index=43&type=chunk) - A **pre-tax loss of $381 million** was recorded in the first six months of 2025 upon classifying the GR business as a discontinued operation[46](index=46&type=chunk)[47](index=47&type=chunk) Financial Summary of Discontinued Operations (in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $306 | $292 | $576 | $575 | | **Net Earnings (Loss) Attributable to Owens Corning** | $29 | $29 | $(319) | $50 | [Note 3: Segment Information](index=12&type=section&id=3.%20Segment%20Information) The company reorganized into Roofing, Insulation, and Doors segments and changed its profitability measure from EBIT to EBITDA - The company reorganized into three new reportable segments: **Roofing, Insulation, and Doors**, effective January 1, 2025[50](index=50&type=chunk) - The company changed its segment measure of profitability from Earnings Before Interest and Taxes (EBIT) to **Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)**[60](index=60&type=chunk) Net Sales by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Roofing** | $1,303 | $1,252 | $2,423 | $2,350 | | **Insulation** | $934 | $974 | $1,843 | $1,931 | | **Doors** | $554 | $311 | $1,094 | $311 | | **Consolidated** | $2,747 | $2,497 | $5,277 | $4,514 | EBITDA by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Roofing** | $457 | $437 | $789 | $775 | | **Insulation** | $225 | $246 | $450 | $469 | | **Doors** | $75 | $61 | $143 | $61 | | **Total Reportable Segments** | $757 | $744 | $1,382 | $1,305 | [Note 6: Goodwill and Other Intangible Assets](index=19&type=section&id=6.%20Goodwill%20and%20Other%20Intangible%20Assets) Total goodwill stood at $2.814 billion, with the Doors segment's goodwill passing an impairment test by a narrow margin Goodwill by Segment (in millions) | Segment | June 30, 2025 | | :--- | :--- | | **Roofing** | $661 | | **Insulation** | $637 | | **Doors** | $1,516 | | **Total** | $2,814 | - An interim goodwill impairment test for the Doors reporting unit found no impairment, but its **fair value exceeded carrying value by only approximately 5%**[89](index=89&type=chunk)[90](index=90&type=chunk) [Note 8: Acquisitions](index=22&type=section&id=8.%20Acquisitions) The company acquired Masonite International for $3.2 billion, establishing the new Doors segment and recording $1.5 billion in goodwill - The company acquired 100% of Masonite shares on May 15, 2024, for a total purchase price of **$3.2 billion**[100](index=100&type=chunk) - The Masonite acquisition contributed **revenues of $1,094 million** and earnings of $23 million for the six months ended June 30, 2025[102](index=102&type=chunk) - The purchase consideration allocation resulted in **$1.5 billion of goodwill**, which is not tax-deductible[112](index=112&type=chunk) [Note 11: Restructuring](index=27&type=section&id=11.%20Restructuring) The company incurred $21 million in restructuring costs year-to-date, primarily related to the Masonite acquisition synergies - Following the Masonite acquisition, the company initiated restructuring actions with estimated total costs of **$12 million in cash charges and $30 million in non-cash charges**[135](index=135&type=chunk) Total Restructuring Costs from Continuing Operations (in millions) | Period | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Costs** | $(18) | $(47) | $(21) | $(61) | [Note 12: Debt](index=29&type=section&id=12.%20DEBT) Total long-term debt reached $5.1 billion after issuing $2.0 billion in senior notes to fund the Masonite acquisition - In May 2024, the company issued **$2.0 billion in new senior notes** to repay borrowings used for the Masonite acquisition[152](index=152&type=chunk) - On March 5, 2025, the company established a **$1.5 billion commercial paper program** and had $420 million of notes outstanding as of June 30, 2025[174](index=174&type=chunk) - The Senior Revolving Credit Facility was amended to **increase its capacity to $1.5 billion** and extend its maturity to March 2030, with no borrowings outstanding[165](index=165&type=chunk) [Note 15: Earnings per Share](index=36&type=section&id=15.%20Earnings%20per%20Share) The company repurchased $322 million of its stock in H1 2025 and approved a new 12-million-share repurchase authorization - The company repurchased **2.3 million shares for $322 million** in the first six months of 2025[209](index=209&type=chunk) - A new share repurchase program for up to **12 million shares** was approved, leaving 16.0 million shares available for repurchase under all authorizations[208](index=208&type=chunk)[209](index=209&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales and earnings grew, driven by the Masonite acquisition and strong Roofing performance, which offset weakness in Insulation - Net earnings from continuing operations attributable to Owens Corning were **$334 million in Q2 2025**, compared to $256 million in Q2 2024[219](index=219&type=chunk) Adjusted EBITDA from Continuing Operations Reconciliation (in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Earnings from Continuing Operations Attributable to Owens Corning** | $334 | $256 | $589 | $534 | | **Adjustments (Interest, Tax, D&A, other items)** | $369 | $422 | $679 | $659 | | **Adjusted EBITDA from Continuing Operations** | $703 | $678 | $1,268 | $1,193 | [Roofing Segment Results](index=43&type=section&id=Roofing%20Segment%20Results) The Roofing segment's net sales and EBITDA increased due to higher selling prices, which offset rising manufacturing and input costs - Q2 2025 net sales **increased by $51 million (4%)** YoY, primarily due to higher selling prices[243](index=243&type=chunk) - Q2 2025 EBITDA **increased by $20 million** YoY, with higher selling prices more than offsetting higher manufacturing and input costs[244](index=244&type=chunk) [Insulation Segment Results](index=44&type=section&id=Insulation%20Segment%20Results) The Insulation segment's net sales and EBITDA declined due to lower sales volumes, production downtime, and cost inflation - Q2 2025 net sales **decreased by $40 million (4%)** YoY, driven by approximately 4% lower sales volumes[248](index=248&type=chunk) - Q2 2025 EBITDA **decreased by $21 million** YoY, impacted by production downtime, unfavorable mix, and input cost inflation[250](index=250&type=chunk) [Doors Segment Results](index=45&type=section&id=Doors%20Segment%20Results) The new Doors segment, from the Masonite acquisition, generated $554 million in net sales and $75 million in EBITDA in Q2 2025 - The Doors segment reported **net sales of $554 million** and **EBITDA of $75 million** for Q2 2025[257](index=257&type=chunk)[258](index=258&type=chunk) - The company anticipates near-term challenges for the Doors segment due to **weakness in North American and European residential markets**[259](index=259&type=chunk) [Liquidity, Capital Resources and Other Related Matters](index=46&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Other%20Related%20Matters) The company maintains a strong liquidity position despite a decrease in operating cash flow primarily due to working capital changes - Primary liquidity sources as of June 30, 2025, include **$230 million in cash**, a **$1.5 billion undrawn credit facility**, and a **$1.5 billion commercial paper program**[264](index=264&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk) - Net cash from operating activities for H1 2025 was **$278 million**, a decrease of $239 million from 2024, primarily due to changes in working capital[271](index=271&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material change in its market risk exposure during the first half of 2025 - There were **no material changes** in the company's market risk exposure during the first half of 2025[303](index=303&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the reporting period[305](index=305&type=chunk) - **No material changes** occurred during the quarter that affected the company's internal control over financial reporting[306](index=306&type=chunk) [PART II – OTHER INFORMATION](index=52&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 13 of the financial statements - Information regarding legal proceedings is detailed in **Note 13** of the financial statements[309](index=309&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors since its 2024 Annual Report, other than those noted in Q1 2025 - There have been **no material changes** to the risk factors disclosed in the 2024 Form 10-K, except as noted in the Q1 2025 10-Q[310](index=310&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased $223 million of its stock in Q2 2025 and has 16.0 million shares remaining under its repurchase authorizations Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **April 2025** | 1,886 | $140.16 | | **May 2025** | 744,313 | $137.61 | | **June 2025** | 885,292 | $136.21 | | **Total Q2** | 1,631,491 | $136.85 | - A new share repurchase program for up to **12 million shares** was approved on May 13, 2025, leaving **16.0 million shares available for repurchase**[313](index=313&type=chunk)[317](index=317&type=chunk)

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Owens Corning reported strong Q2 2025 results with 10% net sales growth and sustained adjusted EBITDA margins over 20% [Enterprise Performance](index=1&type=section&id=Enterprise%20Performance) Q2 2025 saw net sales and earnings growth, but adjusted diluted EPS and free cash flow declined significantly Key Financial Highlights ($ in millions, except per share) | ($ in millions, except per share) | Q2 2025 | Q2 2024 | Change | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $2,747 | $2,497 | +10% | $5,277 | $4,514 | +17% | | **Net Earnings Attributable to OC** | $334 | $256 | +30% | $589 | $534 | +10% | | **Adjusted EBITDA** | $703 | $678 | +4% | $1,268 | $1,193 | +6% | | **Diluted EPS** | $3.91 | $2.91 | +34% | $6.86 | $6.06 | +13% | | **Adjusted Diluted EPS** | $4.21 | $4.39 | -4% | $7.17 | $7.78 | -8% | | **Operating Cash Flow** | $327 | $493 | -34% | $278 | $517 | -46% | | **Free Cash Flow** | $129 | $336 | -62% | ($123) | $208 | -159% | - The company highlighted key achievements for Q2 2025, including a **10% increase in net sales**, a **12% net earnings margin**, and the **return of $279 million to shareholders** through dividends and share repurchases[5](index=5&type=chunk) [Strategic & Operational Highlights](index=2&type=section&id=Strategic%20%26%20Operational%20Highlights) Strategic moves include significant shareholder returns, a completed divestiture, and a new 12 million share repurchase authorization - The company returned **$279 million to shareholders in Q2** and **nearly $440 million year-to-date**, remaining on track to deliver its **commitment of $2 billion in returns over 2025 and 2026**[8](index=8&type=chunk)[13](index=13&type=chunk) - Strategic portfolio adjustments include the **completed sale of its building materials business in China and Korea (approx. $130 million annual revenue)** and continued progress on the **divestiture of its glass reinforcements business**[13](index=13&type=chunk) - The Board of Directors approved a **new share repurchase authorization for up to 12 million shares of common stock**[13](index=13&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Q2 2025 saw Roofing sales up 4% with 35% EBITDA margin, Insulation sales down 4% with 24% margin, and the Doors segment contributing $554 million in sales with a 14% EBITDA margin [Roofing](index=2&type=section&id=Roofing) Roofing segment net sales grew 4% to $1.303 billion in Q2 2025, maintaining a strong 35% EBITDA margin Roofing Segment Performance ($ in millions) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,303M | $1,252M | $2,423M | $2,350M | | **EBITDA** | $457M | $437M | $789M | $775M | | **EBITDA Margin** | 35% | 35% | 33% | 33% | [Insulation](index=2&type=section&id=Insulation) Insulation segment net sales declined 4% to $934 million in Q2 2025, with EBITDA margin slightly contracting to 24% Insulation Segment Performance ($ in millions) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $934M | $974M | $1,843M | $1,931M | | **EBITDA** | $225M | $246M | $450M | $469M | | **EBITDA Margin** | 24% | 25% | 24% | 24% | [Doors](index=2&type=section&id=Doors) The Doors segment, acquired in May 2024, contributed $554 million in Q2 2025 net sales with a 14% EBITDA margin Doors Segment Performance ($ in millions) | Metric | Q2 2025 | Q2 2024* | Six Months 2025 | Six Months 2024* | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $554M | $311M | $1,094M | $311M | | **EBITDA** | $75M | $61M | $143M | $61M | | **EBITDA Margin** | 14% | N/A | 13% | N/A | *Q2 2024 reflects performance post-acquisition on May 15, 2024. [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Q3 2025 outlook projects revenue of $2.7-2.8 billion and 23-25% adjusted EBITDA margin, with full-year capital additions around $800 million - For Q3 2025, the company expects **revenue from continuing operations to be slightly down to in-line with the prior year, in the range of $2.7 billion to $2.8 billion**, with an **adjusted EBITDA margin of approximately 23% to 25%**[16](index=16&type=chunk) - Market expectations for Q3 include a **decline in roofing repair activity** due to lower storm activity, **continued challenges in residential new construction and remodeling**, and **relatively stable non-residential construction in North America**[16](index=16&type=chunk) Current 2025 Financial Outlook Guidance | **Current 2025 Financial Outlook** | **Guidance** | | :--- | :--- | | General Corporate EBITDA Expenses | $240 million to $260 million | | Interest Expense | $250 million to $260 million | | Effective Tax Rate on Adjusted Earnings | 24% to 26% | | Capital Additions | Approximately $800 million | | Depreciation and Amortization | Approximately $650 million | [Financial Statements & Reconciliations](index=6&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section presents unaudited consolidated financial statements for Q2 and H1 2025, along with GAAP to non-GAAP measure reconciliations [Consolidated Statements of Earnings](index=6&type=section&id=Consolidated%20Statements%20of%20Earnings) Q2 2025 net sales increased to $2.75 billion from $2.50 billion, with net earnings attributable to Owens Corning rising to $334 million Consolidated Statements of Earnings ($ in millions) | ($ in millions) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $2,747 | $2,497 | $5,277 | $4,514 | | **Gross Margin** | $858 | $813 | $1,583 | $1,441 | | **Operating Income** | $505 | $418 | $912 | $794 | | **Net Earnings from Continuing Operations** | $333 | $257 | $588 | $534 | | **Net Earnings Attributable to OC** | $363 | $285 | $270 | $584 | [EBITDA & EPS Reconciliation](index=7&type=section&id=EBITDA%20%26%20EPS%20Reconciliation) This section reconciles Net Earnings to Adjusted EBITDA and Diluted EPS to Adjusted Diluted EPS, with Q2 2025 Adjusted EBITDA at $703 million EBITDA Reconciliation ($ in millions) | ($ in millions) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Earnings from Continuing Operations** | $333 | $257 | $588 | $534 | | **EBITDA** | $677 | $561 | $1,243 | $1,045 | | **Adjusted EBITDA from Continuing Operations** | $703 | $678 | $1,268 | $1,193 | EPS Reconciliation (per share) | (per share) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Diluted EPS from Continuing Operations** | $3.91 | $2.91 | $6.86 | $6.06 | | **Adjusted Diluted EPS from Continuing Operations** | $4.21 | $4.39 | $7.17 | $7.78 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $14.48 billion, total liabilities $9.28 billion, and total equity $5.20 billion, with $230 million in cash Consolidated Balance Sheets ($ in millions) | ($ in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $230 | $321 | | **Total current assets** | $3,916 | $3,378 | | **Total Assets** | $14,483 | $14,075 | | **Total current liabilities** | $2,574 | $2,297 | | **Total Liabilities** | $9,279 | $8,955 | | **Total Equity** | $5,204 | $5,120 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, net cash from operating activities was $278 million, a decrease from prior year, with significant cash used for investing and financing Consolidated Statements of Cash Flows ($ in millions) | ($ in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash flow provided by operating activities** | $278 | $517 | | **Net cash flow used for investing activities** | ($347) | ($3,154) | | **Net cash flow (used for) provided by financing activities** | ($112) | $1,321 | | **Net decrease in cash** | ($96) | ($1,349) | [Free Cash Flow Reconciliation](index=13&type=section&id=Free%20Cash%20Flow%20Reconciliation) Q2 2025 free cash flow was $129 million, down from Q2 2024, resulting in a negative free cash flow of -$123 million for H1 2025 Free Cash Flow Reconciliation ($ in millions) | ($ in millions) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Cash Flow Provided by Operating Activities** | $327 | $493 | $278 | $517 | | **Less: Cash paid for property, plant and equipment** | ($198) | ($157) | ($401) | ($309) | | **Free Cash Flow** | $129 | $336 | ($123) | $208 | [Other Information](index=4&type=section&id=Other%20Information) This section details the company's use of non-GAAP financial measures and provides a forward-looking statements disclaimer outlining potential risks and uncertainties [Use of Non-GAAP Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow for internal review and to enhance investor understanding - The company uses **non-GAAP measures, including EBITDA, adjusted EBITDA, adjusted earnings, adjusted EPS, and free cash flow**, to supplement investors' understanding of its financial information[18](index=18&type=chunk) - These **non-GAAP measures are used internally for purposes such as reporting to the Board of Directors, performance analysis, and determining employee compensation**[19](index=19&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section provides a disclaimer on forward-looking statements, outlining risks and uncertainties that may cause actual results to differ materially - The news release contains **forward-looking statements that are subject to risks and uncertainties which may cause actual results to differ materially**[23](index=23&type=chunk) - Key risks include **levels of construction activity, supply chain disruptions, inflation, interest rate volatility, and competitive pricing factors**[23](index=23&type=chunk)

Core Insights - Owens Corning (OC) has been recognized as a Dividend Aristocrat, demonstrating strong financial performance with revenue growth exceeding 8% annually and earnings growth surpassing 10% over the past decade [1] Company Performance - The company has consistently compounded its revenue and earnings, indicating a robust business model and effective management strategies [1] Analyst Perspective - The insights provided are based on extensive market research and focus on dividend growth investment strategies, reflecting a long-term positive outlook for Owens Corning [1]

Core Points - Olive Resource Capital Inc. has announced a new Normal Course Issuer Bid program to repurchase common shares, believing that the market price may not reflect the underlying value of the business [2] - The company granted 2,050,000 incentive stock options to its Directors and Officers, with an exercise price of $0.05 per share, expiring on July 18, 2030, and vesting over three years [3] - As of the date of the release, Olive Resource Capital Inc. has 106,144,709 common shares outstanding [4] - Olive is a resource-focused merchant bank and investment company, primarily investing in natural resource companies at various stages of development [5]

Core Insights - The global polypropylene chopped strands market is projected to grow from $1.20 billion in 2024 to $2.15 billion by 2034, with a CAGR of 5.75% driven by demand in electric vehicles and renewable energy storage solutions [2][17]. Market Overview - The Polypropylene Chopped Strands (PPCS) market is expanding due to their use as reinforcement materials in automotive, construction, and textiles, enhancing strength and durability [3][4]. - The Asia-Pacific region is expected to dominate the market, supported by strong manufacturing in China, Japan, and South Korea, alongside high demand for electric vehicles and energy storage [5]. Market Trends - There is an increasing demand for lightweight materials in the automotive sector to improve fuel efficiency and reduce emissions, with stricter environmental regulations pushing manufacturers towards PPCS [6]. - The growth in construction and infrastructure development is a significant driver for PPCS, as urbanization increases the need for durable materials [7][8]. Market Challenges - Fluctuating raw material prices, particularly for polypropylene derived from petroleum, pose challenges for the PPCS market, affecting production costs and profitability [9]. Key Players - Major companies in the polypropylene chopped strands market include Owens Corning, China Jushi CO. Ltd., and Saint Gobain S.A., employing strategies such as business expansions and partnerships [10][11]. Market Segmentation - Dry-Use Chopped Strands (DUCS) are expected to lead the product type segment due to their compatibility with thermoplastics, while transportation is anticipated to be the leading application segment [12][13].

Core Thesis - Owens Corning is positioned to benefit from the aging housing market and growth in its core markets, with strong fundamentals and a cheap stock valuation [4][5][10] Industry Trends - The typical home in the U.S. reached a record age of 36 years in 2024, up from 27 years in 2012, due to a lack of new supply and better affordability of older homes [5][6] - The U.S. construction industry has seen a significant decline in new home builds, with only 9% of homes built in the 2010s, the lowest share since the 1940s [6] Company Segments - Owens Corning has three reportable business segments: Roofing (44% of revenue), Insulation (35%), and Doors (21%) as of 1Q25 [11][10] - Each of these segments is forecasted to grow over the next decade, providing long-term opportunities for the company [10][19] Financial Performance - Since 2014, Owens Corning has achieved an 8% annual revenue growth and a 17% annual growth in net operating profit after tax (NOPAT) [12][13] - The NOPAT margin improved from 6% in 2014 to 14% in the trailing twelve months (TTM), with return on invested capital (ROIC) increasing from 4% to 11% [13][17] Shareholder Returns - The company has paid $898 million in cumulative dividends since 2019, increasing its quarterly dividend from $0.22/share in 1Q19 to $0.69/share in 1Q25, resulting in a current yield of 1.9% [18] - Owens Corning repurchased $2.8 billion worth of shares from 2019 to 1Q25, with a new authorization for 12 million shares in May 2025 [20][21] Cash Flow Generation - From 2019 to 2023, Owens Corning generated $4.6 billion in free cash flow (FCF), equating to 25% of the company's enterprise value [22] - Despite a negative FCF of -$3.7 billion in 2Q24 due to an acquisition, the company has since reported positive and rising FCF in subsequent quarters [23] Market Challenges - Current economic uncertainty is impacting consumer spending, particularly in home purchases, with homes selling at the slowest pace in six years [26] - A significant number of homes (worth $698 billion) are currently for sale, representing a 20% increase from the previous year [26] Valuation Insights - At a current price of $140/share, the market expects Owens Corning's profits to decline by 10% from TTM levels, despite historical growth rates of 19% compounded annually over the last five years [29][30] - If NOPAT grows at a slower rate of 2% annually through 2034, the stock could be worth $171/share, indicating a potential upside of 22% [31]