Owens ning(OC) - 2025 Q3 - Quarterly Results

Financial Performance - Reported Net Sales from Continuing Operations of $2.684 billion, a 3% decrease from the prior year[4] - Adjusted EBITDA of $638 million, representing a 10% decrease year-over-year, with an adjusted EBITDA margin of 24%[5][9] - Net Loss attributable to Owens Corning was $(495) million, with a net loss margin of (18%) from continuing operations[4][5] - Net sales for the three months ended September 30, 2025, were $2,684 million, a decrease of 2.9% compared to $2,763 million in the same period of 2024[25] - Gross margin for the three months ended September 30, 2025, was $757 million, down from $851 million in 2024, reflecting a decline of 11.0%[25] - The company reported a net loss of $494 million for the three months ended September 30, 2025, compared to net earnings of $321 million in the same period of 2024[25] - Adjusted EBITDA from continuing operations for the three months ended September 30, 2025, was $638 million, representing 24% of net sales, compared to 26% in Q3 2024[27] - Basic loss per share from continuing operations was $(5.93) for Q3 2025, compared to earnings of $3.30 per share in Q3 2024[29] - For the nine months ended September 30, 2025, net sales increased to $7,961 million, up 9.4% from $7,277 million in the same period of 2024[25] - Net earnings for the nine months ended September 30, 2025, were a loss of $225 million, compared to a profit of $905 million in the same period of 2024[35] Cash Flow and Shareholder Returns - Operating Cash Flow of $918 million, an increase of 31% compared to the previous year[4][5] - Free Cash Flow of $752 million, reflecting a 35% increase year-over-year[4][5] - The company returned $278 million to shareholders through dividends and share repurchases in Q3 2025[7] - Free cash flow for the nine months ended September 30, 2025, was $629 million, down from $766 million in 2024[43] - Net cash flow provided by operating activities for the nine months ended September 30, 2025, was $1,196 million, slightly down from $1,216 million in 2024[35] Future Outlook - Owens Corning expects revenue from continuing operations in Q4 2025 to decline mid-to-high teens to approximately $2.1 billion to $2.2 billion[15] - The company anticipates adjusted EBITDA margin from continuing operations of approximately 16% to 18% for Q4 2025[15] - Owens Corning is on track to exceed $125 million in enterprise cost synergies by mid-2026[11] - The new shingle plant in Prattville, Alabama, is expected to come online in 2027 to support future growth[11] Segment Performance - The Roofing segment reported net sales of $1,240 million for the three months ended September 30, 2025, a 2% increase from $1,221 million in 2024[37] - The Insulation segment experienced a 7% decline in net sales, reporting $941 million for the three months ended September 30, 2025, down from $1,008 million in 2024[38] - The Doors segment saw a significant increase in net sales, rising 85% to $1,639 million for the nine months ended September 30, 2025, compared to $884 million in 2024[39] Expenses and Liabilities - Total operating expenses increased significantly to $1,084 million in Q3 2025 from $379 million in Q3 2024, primarily due to a goodwill impairment charge of $780 million[25] - The company incurred a total adjusting items expense of $784 million for the three months ended September 30, 2025, compared to $72 million in the same period of 2024[27] - Goodwill impairment charge amounted to $780 million for the nine months ended September 30, 2025, with no such charge in 2024[41] - Total liabilities increased from $8,955 million at December 31, 2024, to $9,079 million at September 30, 2025, an increase of 1.4%[33] - Total assets decreased from $14,075 million at December 31, 2024, to $13,517 million at September 30, 2025, a decline of 4%[33] - Total equity decreased from $5,120 million at December 31, 2024, to $4,438 million at September 30, 2025, a decline of 13.3%[33] Interest and Earnings - The company’s interest expense for the nine months ended September 30, 2025, was $192 million, compared to $148 million in the same period of 2024[25] - Adjusted diluted earnings per share from continuing operations for the nine months ended September 30, 2025, were $10.81, down from $11.83 in the same period of 2024[29]