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• Revenue: $2.5 billion, a 25% increase year-over-year.

• Adjusted EBITDA: $565 million, with a margin of 22%.

• Adjusted Earnings Per Share: $2.97.

• Free Cash Flow: Net outflow of $252 million.

• Capital Additions: $203 million for the quarter.

• Liquidity: $1.9 billion, including $400 million in cash.

• Shareholder Returns: $159 million returned through share repurchases and dividends.

• Roofing Revenue: $1.1 billion, up 2% from prior year.

• Roofing EBITDA Margin: 30%.

• Insulation Revenue: $909 million, a 5% decrease from Q1 last year.

• Insulation EBITDA Margin: 25%.

• Doors Revenue: $540 million.

• Doors EBITDA Margin: 13%.

• Dividend: $0.69 per share declared in February.

• Warning! GuruFocus has detected 5 Warning Signs with STU:0FF.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Owens-Corning Inc (NYSE:OC) reported a 25% year-over-year increase in revenue for Q1 2025, reaching $2.5 billion.

• The company achieved an adjusted EBITDA margin of 22%, marking the 19th consecutive quarter of margins above 20%.

• OC's safety performance was notable, with a recordable incident rate of 0.54, significantly lower than the industry average.

• The company is making strategic investments in its roofing and insulation businesses to support long-term growth and improve cost positions.

• OC returned $159 million to shareholders through dividends and share repurchases in Q1 2025.

Negative Points

• The company experienced a net cash outflow of $252 million in Q1 2025, driven by working capital timing and capital additions.

• OC's Insulation segment saw a 5% decrease in revenue compared to Q1 2024, due to market uncertainty and lower demand.

• The Doors business faced challenges with lower volumes in North America and Europe, impacting revenue.

• Tariffs are expected to have a net impact of around $10 million in Q2 2025, primarily affecting the Doors business.

• The company anticipates higher manufacturing costs in the Roofing segment due to maintenance and startup costs, impacting margins.

Q & A Highlights

Q: Can you discuss the scheduled capacity additions in the Insulation sector and the industry's outlook given the current market conditions? A: Todd Fister, CFO, explained that the Insulation industry is seeing new capacity additions, particularly in bat and roll production, which are larger and less flexible than loose fill assets. Despite short-term market fluctuations, long-term demand for insulation is expected to rise due to underbuilt housing in the US and increasing insulation needs per unit. Owens Corning is well-positioned to manage capacity and cost structures effectively.