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Owens Corning OC has announced its 2028 financial goals and provided an update on its revamped enterprise strategy at its 2025 Investor Day.
Per Brian Chambers, chair and chief executive officer at Owens Corning, “Our renewed enterprise strategy capitalizes on the market-leading positions of one of our three businesses and the unique capabilities of The OC Advantage to generate revenue growth, more resilient margins and substantial cash flow. With the strategic choices and structural improvements we have made, the new Owens Corning is well-positioned to generate significant value for our customers and shareholders and deliver on our long-term financial targets.”
OC stock inched up 1% during yesterday’s after-hours trading session, indicating optimistic investors’ sentiments on its recent business and long-term performance updates.
Owens Corning 2028 Targets Unraveled
The company operates through three reportable segments, Roofing, Insulation and Doors. It revealed the revised long-term adjusted EBITDA margin goals through 2028 for all three segments.
The adjusted EBITDA margin expectations through 2028 for the Roofing, Insulation and Doors segments are placed at 30%, 24% and 18%, respectively. These expectations are supported by the contractor engagement model, high-value branded roofing system, structural cost improvements, flexible and efficient manufacturing network and improved market conditions. Owens Corning believes that these three market-leading businesses will be able to navigate through market uncertainties on the back of the mentioned synergies and achieve the targets.
OC expects its annual revenues to grow to $12.5 billion in 2028 compared with $10.6 billion pro forma revenues reported in 2024. Consolidated adjusted EBITDA margin is expected to be mid-20%, with return on capital to be up more than the mid-teens percentage.
Moreover, the company expects the cumulative free cash flow to be $5.5 billion through 2025 to 2028, with $2 billion to be returned to shareholders through dividends and share repurchases by the end of 2026. OC also highlighted its board of directors approving a share repurchase authorization for up to 12 million shares, which adds to the previously announced share repurchase program, having approximately 5.7 million shares remaining as of March 31, 2025.
Owens Corning’s Enterprise Strategy Makeover
The company highlighted the makeover of its enterprise strategy, which currently stands on three distinct priorities. Firstly, strengthening market-leading positions; secondly, leveraging enterprise scale and capabilities; and lastly, extending product offerings in existing businesses.
These redefined strategies stand on the platform created by the effective amalgamation of the company’s three reportable segments and the operating capabilities of the OC Advantage. The OC Advantage comprises OC’s iconic brand, commercial strength, leading technology and victorious cost position.