Executive Summary

Q4 2024 revenue rose 23% year over year to $2.84B; adjusted EBIT was $430M (15% margin) and adjusted EBITDA was $629M (22% margin). GAAP diluted EPS was $(2.97) driven by non‑cash and strategic charges; adjusted EPS was $3.22, essentially flat YoY .
Full‑year 2024 delivered $11.0B sales (+13%), $2.7B adjusted EBITDA (25% margin), and $1.2B free cash flow; 51% of FCF returned to shareholders via dividends and buybacks .
Strategic transformation advanced: definitive agreement to sell Glass Reinforcements for $755M EV (closing expected 2025) and announced a new Southeast U.S. shingle plant (≈6M squares capacity, production expected 2027). Doors integration on track with synergy run‑rate building .
1Q25 outlook: mid‑20% revenue growth (continuing ops) and low‑20% enterprise EBITDA margin; FY25 framework: $240–260M corporate expense, $250–260M interest, 24–26% tax, ~$800M capex, ~$650M D&A .

What Went Well and What Went Wrong

What Went Well
- Roofing and Insulation sustained premium profitability: Q4 Roofing EBIT/EBITDA margins 31%/32%; Insulation 17%/23% with positive pricing; Composites margins improved YoY (EBIT 9%, EBITDA 18%) .
- Structural resilience and cash: 18th straight quarter with mid‑teens adjusted EBIT and ≥20% adjusted EBITDA; FCF $479M in Q4 and $1.2B for the year; 51% of FCF returned to shareholders .
- Strategy execution: Doors acquisition contributing ($564M Q4 revenue), synergy capture underway; announced sale of Glass Reinforcements to refocus portfolio; added laminate shingle capacity (Medina conversion mid‑2025; new Southeast plant) .
- Quote (CEO): “2024 was a transformative year… reshaping the company… while consistently delivering higher, more resilient earnings and cash flow.” .
What Went Wrong
- GAAP loss in Q4: $(258)M net loss and $(2.97) diluted EPS, driven by $672M adjusting items including $483M impairment from strategic review and $91M loss on business sale; adjusted EPS held at $3.22 .
- Doors near‑term softness and pricing normalization: Q4 Doors EBIT margin 5% (15% EBITDA) amid softer NA/EU markets and purchase accounting impact; management re‑aligned price points, expecting recovery with R&R and new construction rebound .
- Components volume headwinds and higher manufacturing costs in Roofing; attachment rates normalized and maintenance spend elevated; management guided to inflation headwinds persisting into early 2025 .

Financial Results

Headline quarterly progression (oldest → newest):

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($B)	$2.79	$3.05	$2.84
Diluted EPS (GAAP)	$3.24	$3.65	$(2.97)
Adjusted Diluted EPS	$4.64	$4.38	$3.22
Adjusted EBIT ($M)	$588	$582	$430
Adjusted EBIT Margin %	21%	19%	15%
Adjusted EBITDA ($M)	$742	$766	$629
Adjusted EBITDA Margin %	27%	25%	22%
Free Cash Flow ($M)	$336	$558	$479

YoY comparison (Q4):

Metric	Q4 2023	Q4 2024
Revenue ($B)	$2.30	$2.84
Diluted EPS (GAAP)	$1.46	$(2.97)
Adjusted Diluted EPS	$3.21	$3.22
Adjusted EBITDA Margin %	22%	22%

Segment breakdown (Q4 2024 vs Q4 2023):

Segment Metric	Q4 2023	Q4 2024
Roofing Net Sales ($M)	$928	$912
Roofing EBIT / EBITDA Margin	31% / 32%	31% / 32%
Insulation Net Sales ($M)	$931	$926
Insulation EBIT / EBITDA Margin	16% / 22%	17% / 23%
Doors Net Sales ($M)	—	$564
Doors EBIT / EBITDA Margin	N/A	5% / 15%
Composites Net Sales ($M)	$514	$515
Composites EBIT / EBITDA Margin	5% / 13%	9% / 18%

Selected cash and returns (FY 2024):

KPI	2024
Free Cash Flow ($B)	$1.25
FCF Conversion (to Adjusted Earnings)	89%
Liquidity at Year‑End	~$1.7B (≈$0.4B cash + ~$1.3B facilities)
Return on Capital	16%
Capital Additions ($M)	~$647

Note on estimates: S&P Global consensus EPS and revenue for Q4 2024 were unavailable due to API limit; estimate comparisons are omitted.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue growth (continuing ops)	Q1 2025	N/A	Mid‑20% vs PY $2.0B (adjusted for reclass)	New
Enterprise EBITDA margin	Q1 2025	N/A	Low‑20%	New
General Corporate Expenses	FY 2025	N/A	$240–260M (incl. certain GR costs)	New
Interest Expense	FY 2025	N/A	$250–260M	New
Effective Tax Rate (Adjusted)	FY 2025	N/A	24–26%	New
Capital Additions	FY 2025	N/A	≈$800M (incl. GR)	New
Depreciation & Amortization	FY 2025	N/A	≈$650M (ex‑GR D&A)	New
Segment resegmentation	FY 2025	N/A	Nonwovens + structural lumber → Roofing; two glass fiber plants → Insulation; corporate eliminations ~½ of 2024	New

Additional strategic updates:

Announced sale of Glass Reinforcements to Praana Group (EV $755M; closing expected 2025) .
New Southeast U.S. shingle plant (≈6M squares capacity; production expected 2027); Medina, OH conversion to laminates mid‑2025 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q4 2024)	Trend
Doors integration & synergies	Synergy target $125M enterprise; early sourcing/OpEx wins; Doors EBITDA margin ~20% in initial period	~$30M 2024 OpEx/sourcing synergies realized; run‑rate ≈$75M annually; Q4 Doors EBITDA margin 15%; margin rebuild via synergies, network optimization, and demand recovery	Integration progressing; near‑term margin dip stabilizing
Roofing pricing & laminate mix	Positive price realization; laminate mix shift tailwind; components destock at distributors	Further carryover pricing; April ’25 price action; components attachment rates normalized; higher manufacturing/maintenance costs near term	Pricing power intact; cost inflation/maintenance a modest headwind
Insulation pricing & utilization	NA residential strong; June price increase realized; high‑90s utilization; Europe soft	Positive price‑cost; NA res slightly up; Technical & Global down modestly; Q1 guide low‑20% EBITDA margin	Solid NA; Europe remains soft but stable
Composites portfolio action	Strategic review ongoing	Sale of Glass Reinforcements signed; resegmentation of retained nonwovens and glass fiber assets	Portfolio simplification accelerates
Tariffs / supply chain	NA market health; integrated supply chains mentioned	Tariff exposure ≤5% of enterprise COGS; concentrated in Doors (~2/3) and Insulation (~1/3); “local‑for‑local” mitigates risk	Manageable exposure; mitigation tools ready
Capex & capacity	Evaluating U.S. fiberglass expansion; Medina conversion planned	2025 capex ≈$800M; new Southeast shingle plant (2027)	Elevated near term; modernizing asset base

Management Commentary

Strategy and earnings quality: “We… consistently delivering higher, more resilient earnings and cash flow.” – Brian Chambers, CEO .
Capital allocation and cash: “Free cash conversion was 89%… At year‑end, liquidity of $1.7B.” – Todd Fister, CFO .
Portfolio focus: “Sale of… glass reinforcements… strengthens Owens Corning as a focused… building products leader.” – CEO .
Roofing capacity expansion: “New… plant… capable of producing around six million squares per year… expected to begin production in 2027.” – Company release .

Q&A Highlights

Tariff exposure quantified: Total potential tariff exposure ≤5% of enterprise cost base, with ~2/3 in Doors and ~1/3 in Insulation; Roofing exposure de minimis. Management emphasized “local‑for‑local” production and mitigation toolkit .
Roofing margins outlook: Healthy 2025 core margin setup with pricing carryover and April action; headwinds from inflation and maintenance; components pressure largely behind after Q1 .
Doors margin path: Near‑term mix/price normalization and softer markets weighed on Q4; margin rebuild via synergies (sourcing/OpEx), network optimization (site actions), and operating leverage as demand improves; limited input risk to lumber; finished‑goods cross‑border flows drive tariff sensitivity .
Resegmentation mechanics: Nonwovens + structural lumber into Roofing; two glass fiber plants into Insulation; added revenue at similar segment margins; corporate eliminations approximated to ~half 2024 levels .
Capex trajectory: Step‑up to ~$800M in 2025 for multi‑year growth/productivity/sustainability projects; long‑term structural capex target 4–5% of sales after projects complete .

Estimates Context

S&P Global consensus EPS and revenue for Q4 2024 were unavailable at the time of analysis due to API rate limits; therefore, estimate comparisons are omitted. Management did not provide Q4 explicit guidance prior but did outline a Q1 2025 and FY 2025 framework .

Key Takeaways for Investors

Quality of earnings intact: Adjusted EPS held YoY in Q4 despite sizable non‑cash restructuring/impairment charges; enterprise margins remain structurally higher (18th straight quarter ≥20% adjusted EBITDA) .
Roofing remains the profit engine with pricing/mix tailwinds and added laminate capacity (Medina mid‑2025; new Southeast plant 2027), supporting durable high‑20s/low‑30s margin architecture through cycles .
Doors is the near‑term swing factor: EBITDA margins 15% in Q4, with synergy run‑rate building and margin uplift expected alongside R&R/new construction recovery—monitor pricing normalization and tariff policy developments .
Portfolio simplification a catalyst: Glass Reinforcements sale (EV $755M) and resegmentation sharpen focus on building products, reduce capital intensity, and should improve capital efficiency and cash conversion over time .
1Q25 setup constructive: Mid‑20% revenue growth (continuing ops) and low‑20% EBITDA margin despite mixed macros; watch components attachment rates and manufacturing cost inflation .
Cash discipline continues: $1.2B FCF in 2024, 89% conversion, dividend lifted to $0.69 (Dec. 2024), and stated intent to return ≥50% of FCF over time while funding growth capex .
Risk checks: Europe exposure in Insulation/Technical remains soft; tariff risk manageable and quantified; capex elevated near‑term but aligned to high‑return projects .

All data and quotes are sourced from Owens Corning’s Q4/FY2024 8‑K and press releases, and the Q4 2024 earnings call transcript as cited above.

Owens Corning (OC)·Q4 2024 Earnings Summary