Owens Corning’s second quarter saw a positive market reaction, with management crediting the company’s diversified product mix and operational discipline as key drivers of performance. CEO Brian Chambers highlighted that over half of company revenue now comes from North American repair and remodel activity, especially nondiscretionary roofing projects, which remained steady despite broader construction headwinds. Management also pointed to recent capacity expansions and strategic divestitures as factors supporting stable margins and improved earnings. "Our team delivered second quarter results that continue to demonstrate how the new Owens Corning outperforms in any set of market conditions," Chambers said, emphasizing the benefits of the company’s shift toward high-value building materials.
Is now the time to buy OC? Find out in our full research report (it’s free).
Owens Corning (OC) Q2 CY2025 Highlights:
- Revenue: $2.75 billion vs analyst estimates of $2.71 billion (10% year-on-year growth, 1.4% beat)
- Adjusted EPS: $4.21 vs analyst estimates of $3.82 (10.3% beat)
- Adjusted EBITDA: $703 million vs analyst estimates of $662.1 million (25.6% margin, 6.2% beat)
- Revenue Guidance for Q3 CY2025 is $2.75 billion at the midpoint, above analyst estimates of $2.69 billion
- Operating Margin: 18.4%, up from 16.7% in the same quarter last year
- Organic Revenue was flat year on year vs analyst estimates of 3.8% declines (285.1 basis point beat)
- Market Capitalization: $12.5 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Owens Corning’s Q2 Earnings Call
- John Lovallo (UBS) asked about North American capacity utilization and pricing triggers. CFO Todd Fister explained that capacity utilization remains below the 90% level typically needed for broad price increases, and described current pricing as stable but highly targeted.
- Anthony Pettinari (Citi) focused on growth dynamics in nonresidential insulation, especially in Europe. Fister detailed modest growth expectations, with data centers and industrial applications providing higher-margin opportunities and noted early signs of recovery in Europe.
- Michael Rehaut (JPMorgan) questioned the path to higher EBITDA margins for the Doors business. CEO Brian Chambers pointed to network optimization, cost synergies, and integrated commercial strategies as levers to reach long-term targets near 20% margins.
- Stephen Kim (Evercore ISI) asked for clarity on product mix effects in Insulation and Roofing. Fister attributed negative mix in Insulation to timing of specific projects, while Chambers said Roofing mix remained stable, supported by growing demand for laminate shingles.
- Philip Ng (Jefferies) inquired about production curtailment in North American residential insulation. Fister explained current curtailments are managed through maintenance downtime rather than permanent shutdowns, with efforts focused on inventory discipline and cash generation.
Catalysts in Upcoming Quarters
In coming quarters, our team will closely monitor (1) the pace of capacity ramp-up and contractor engagement in Roofing, (2) margin stability in Insulation and Doors segments as cost and tariff pressures evolve, and (3) signs of demand recovery in European and nonresidential construction markets. Progress on planned divestitures and execution of cost synergies will also be important drivers of Owens Corning’s future performance.
Owens Corning currently trades at $150, up from $140.89 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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