Core Insights - Owens Corning reported a challenging 2025, with weakening U.S. residential trends and destocking impacting performance, particularly in the roofing segment [2][4] - The company maintained strong profitability with a full-year revenue of $10.1 billion and adjusted EBITDA of $2.3 billion, achieving a 22% adjusted EBITDA margin [3][7] - Management anticipates a soft start to 2026 but expects improvement in the second half of the year, with revenue forecasts for Q1 2026 between $2.1 billion and $2.2 billion [18][21] Financial Performance - For Q4 2025, Owens Corning reported revenue of $2.1 billion and adjusted EBITDA of $362 million, representing a 17% margin [3][7] - The company generated $1.8 billion in operating cash flow for 2025 and returned approximately $1 billion to shareholders [5][9] - Full-year Roofing sales were $4.4 billion, down 4%, while Insulation sales were $3.7 billion, down 6% [11][13] Segment Results - Roofing segment Q4 sales were $774 million, down 27% year-over-year, primarily due to lower shingle volumes and reduced storm activity [10][6] - Insulation segment Q4 revenue was $916 million, down 7%, affected by the sale of a building materials business in China and lower volumes in North America [12] - Doors segment Q4 revenue was $486 million, down 14%, driven by lower volumes in new construction and discretionary repair [14] Strategic Actions - The company is focusing on residential building products, completing the sale of its business in China and Korea, and divesting the glass reinforcements business [16] - Owens Corning is exceeding its commitment to deliver $125 million in cost synergies by mid-2026, with additional structural cost improvements planned [16] - Initiatives under "The OC Advantage" include contractor engagement, innovation with over 30 new products launched, and manufacturing modernization efforts [24] 2026 Outlook - Management expects challenging conditions to persist in early 2026, with revenue anticipated to be flat compared to 2025 and a more normal roofing demand pattern expected [21] - For Q1 2026, Owens Corning forecasts revenue down in the low 20% range for Roofing and mid- to high-single digits for Insulation [19][20] - The company plans approximately $800 million in capital additions for 2026, with a focus on long-term cost efficiency and growth [5][21]