Executive Summary

Q2 2025 delivered resilient results in mixed markets: Net Sales $2.75B (+10% YoY), Adjusted EBITDA margin 26% (20th straight quarter ≥20%), GAAP diluted EPS $3.91, Adjusted diluted EPS $4.21 .
Owens Corning beat Wall Street consensus on both EPS and revenue: Adjusted EPS $4.21 vs $3.82* and revenue $2.747B vs $2.706B*; beat driven by strong Roofing price/mix and disciplined execution offsetting Insulation softness and Doors tariffs (Mgmt: “positive price/cost”) .
S&P Global estimates: EPS and revenue consensus/actual shown below (Values retrieved from S&P Global).
Q3 2025 guide: revenue $2.7–$2.8B (slightly down to in-line YoY) and Adj. EBITDA margin ~23–25%; tariff net impact expected ~$10M (primarily Doors), similar to Q2 .
Capital returns remain a catalyst: $279M returned in Q2 (1.6M shares repurchased, $220M; dividend $59M), new 12M share authorization, and commitment to return $2B over 2025–2026 . Dividend declared $0.69 per share payable Aug 7, 2025 .

What Went Well and What Went Wrong

What Went Well
- Sustained margin durability: Adj. EBITDA margin 26% (20th consecutive ≥20%); CEO: “strength… despite more challenging near-term conditions,” highlighting structural changes and OC operating model .
- Roofing outperformance: Segment revenue $1.30B (+4% YoY) and EBITDA margin 35% with positive price/cost and demand outpacing market .
- Cash returns: $279M returned in Q2; new 12M repurchase authorization and a $2B 2025–2026 capital return commitment; CFO emphasized confidence in cash generation and maintaining strong EBITDA margins .
What Went Wrong
- Insulation softness: Net sales $934M (-4% YoY); EBITDA margin down 100 bps to 24% amid mixed markets and cost inflation .
- Doors margin below enterprise average: EBITDA margin 14% on $554M revenue; tariff exposure remains a headwind (net tariff impact expected ~$10M in Q3, largely Doors) .
- YoY decline in adjusted EPS: $4.21 vs $4.39 prior year, reflecting lower Insulation contribution and mixed markets despite overall revenue growth .

Financial Results

Overall results vs prior year/quarter and vs estimates (USD):

Metric	Q2 2024	Q1 2025	Q2 2025	Vs. YoY	Vs. Q/Q	Vs. Estimates
Net Sales ($B)	$2.497	$2.530	$2.747	+10%	+9% (calc)	$2.747 vs $2.706* (beat)
Diluted EPS (GAAP)	$2.91	$2.95	$3.91	+34%	+33% (calc)	N/A
Adjusted Diluted EPS	$4.39	$2.97	$4.21	-4%	+42% (calc)	$4.21 vs $3.82* (beat)
Adjusted EBITDA Margin	27%	22%	26%	-100 bps	+400 bps (calc)	N/A
Net Earnings Margin (GAAP)	10%	10%	12%	+200 bps	+200 bps (calc)	N/A

S&P Global consensus (Q2 2025): Primary EPS Consensus Mean 3.8154*; Revenue Consensus Mean $2,705.97M*; estimates count EPS=17*, Revenue=16* (Values retrieved from S&P Global).

Segment performance (USD millions):

Segment	Net Sales Q2’24	Net Sales Q2’25	EBITDA Q2’24	EBITDA Q2’25	EBITDA Margin Q2’24	EBITDA Margin Q2’25
Roofing	1,252	1,303	437	457	35%	35%
Insulation	974	934	246	225	25%	24%
Doors	311	554	61	75	N/A	14%

KPIs and cash/returns:

KPI	Q2 2025
Operating Cash Flow	$327M
Free Cash Flow	$129M
Capital Additions	$198M
Shares Repurchased / Spend	1.6M / $220M
Dividend Paid	$59M
Net Debt / LTM Adjusted EBITDA	2.1x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (Continuing Ops)	Q3 2025	N/A (no prior Q3 guide)	~$2.7–$2.8B	New
Adjusted EBITDA Margin	Q3 2025	N/A	~23%–25%	New
Tariff Net Impact	Q3 2025	Q2 anticipated net ~$10M (stated for Q2)	Net ~$10M, primarily Doors	Maintained sequentially
General Corporate EBITDA Expenses	FY 2025	$240–$260M	$240–$260M	Maintained
Interest Expense	FY 2025	$250–$260M	$250–$260M	Maintained
Effective Tax Rate (Adj.)	FY 2025	24%–26%	24%–26%	Maintained
Capital Additions	FY 2025	~ $800M	~ $800M	Maintained
Depreciation & Amortization	FY 2025	~ $650M	~ $650M	Maintained
Dividend	Q2 2025	Prior $0.69 (Dec-24 declaration)	$0.69 per share payable Aug 7, 2025	Maintained

Segment outlook for Q3 2025:

Roofing: Revenue up low-to-mid single digits; EBITDA margin similar to Q3 2024 (34%); positive price/cost, higher manufacturing & SG&A costs .
Insulation: Revenue down mid- to high-single digits; NA residential down low double digits; Europe improving; negative price/cost; low-20% EBITDA margin .
Doors: Revenue down low- to mid-single digits; tariffs and cost inflation persist; EBITDA margin low-double-digit to low-teens .

Earnings Call Themes & Trends

Topic	Q4 2024 (Q-2)	Q1 2025 (Q-1)	Q2 2025 (Current)	Trend
Tariffs/Macro	Flagged challenging macro and tariff risk in outlook	Anticipated minimal Q2 net impact (~$10M), mostly Doors	Q3 net impact ~ $10M, mitigation in place; Doors primary exposure	Managed, steady net impact with mitigation
Pricing & Price/Cost	Positive price realization aided margins	Positive price/cost; 22% Adj. EBITDA margin	Roofing price/mix strength; positive price/cost at enterprise	Stable to positive; supports margins
Roofing Demand	Outperformed U.S. shingle market despite mixed end-markets	Shingle volumes solid	Demand outpacing market; Q3 guide notes lower storm comps	Strong vs market; weather comp headwind ahead
Insulation	Price-led gains in 2024; Europe weaker	NA res softer; 25% margin	Revenue -4% YoY; 24% margin; Q3 guide negative price/cost	Pressure from NA res; Europe improving H2
Doors (Masonite)	First full-quarter EBITDA margin 16% (Q3’24)	$540M revenue, 13% margin	$554M revenue, 14% margin; tariff exposure persists	Integration steady; tariffs suppress margin
Portfolio actions	Glass reinforcements divestiture in process	Discontinued ops classification	Divestiture progressing; completed APAC BM sale in July	Focus sharpened on NA/EU building products

Sources include management quotes and slides: “positive price/cost” , Q3 tariff net impact and Doors exposure , segment guides .

Management Commentary

CEO Brian Chambers: “Our second quarter results continue to demonstrate the strength of our business and resiliency of our earnings to outperform the market despite more challenging near-term conditions… leveraging our unique operating model…” .
CFO Todd Fister: “We expect to maintain strong EBITDA margins and shareholder returns while investing to accelerate long-term growth and incremental cash generation” .
Q3 tariff view and price realization (transcript): management noted continued realization of April price increase with lapping of Aug-24 increase; tariff net impact in Q3 similar to Q2 (Doors most exposed) .

Q&A Highlights

Tariffs: Net impact expected similar Q2→Q3 (~$10M), notably in Doors; mitigation efforts ongoing .
Roofing pricing: Continued price realization from earlier increases; lapping Aug-24 increase noted; demand remains healthy in contractor channels .
Insulation trajectory: NA res volumes softer; Europe expected to gradually improve in H2; negative price/cost near term .
Doors integration/margins: Low-teens EBITDA margin target reiterated amid tariff headwinds; synergy/cost actions continuing .
Guidance clarity: Enterprise Q3 revenue $2.7–$2.8B and Adj. EBITDA margin 23–25% reiterated; lower storm activity vs prior year weighs on Roofing comps .

Estimates Context

Q2 2025 beat vs S&P Global: Adjusted EPS $4.21 vs $3.82*; revenue $2.747B vs $2.706B*; EPS surprise ~+10% and revenue ~+1.5% .
Estimate revisions implications: Roofing price/mix resilience and corporate discipline suggest upward bias to near-term margin assumptions, while Insulation/Doors (tariffs) may cap aggregate upside in Q3 given guide .
Note: Values marked with an asterisk (*) are retrieved from S&P Global.

Key Takeaways for Investors

Structural margin resilience intact: 26% Adjusted EBITDA margin and 20th straight ≥20% quarter underscore durable earnings power through mixed cycles .
Roofing remains the engine: demand outpaces market with stable 35% EBITDA margins; Q3 comps tougher on storms but price/cost remains favorable .
Watch Insulation and Doors: Insulation pressured by NA res; Doors affected by tariffs—key variables for enterprise margin band (23–25% guide in Q3) .
Capital returns as support: $2B 2025–2026 return commitment, expanded buyback, and steady dividend provide shareholder yield underpin .
Portfolio focus progressing: Asia building materials sale completed; glass reinforcements divestiture advancing—tightens focus on NA/EU building products .
Near-term modeling: Anchor Q3 to $2.7–$2.8B revenue and 23–25% Adj. EBITDA margin; assume ~flat tariff net impact vs Q2 and Doors margins low-teens .
Medium-term thesis: Margin durability plus capital allocation should drive compounding; upside levered to NA res normalization, Europe recovery, and Doors synergy/tariff mitigation .

Sources: Q2 2025 8‑K and press release, slides, prior quarter releases, and transcript excerpts: . Transcript links: .

S&P Global estimates: Q2 2025 Primary EPS Consensus Mean 3.8154*; Revenue Consensus Mean $2,705.97M*; counts EPS=17*, Revenue=16* (Values retrieved from S&P Global).

Owens Corning (OC)·Q2 2025 Earnings Summary