Owens Corning (NYSE:OC) shares surged Wednesday after the company reported second-quarter 2025 results that beat analyst expectations on both earnings and revenue.
The company reported adjusted diluted earnings per share from continuing operations of $4.21, topping the $3.81 estimate. GAAP diluted EPS from continuing operations increased 34% to $3.91, up from $2.91 a year earlier.
Revenue rose 10% year over year to $2.747 billion, exceeding the $2.703 billion analyst forecast. Net earnings attributable to Owens Corning rose to $334 million, up from $256 million in the prior-year quarter, resulting in a net earnings margin of 12%.
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Adjusted EBITDA increased 4% to $703 million, with a margin of 26%, marking the company's 20th consecutive quarter of delivering adjusted EBITDA margins of 20% or higher.
In the Roofing segment, sales rose 4% to $1.303 billion, with EBITDA of $457 million and a margin of 35%. The Insulation segment saw a 4% decline in sales to $934 million, generating $225 million in EBITDA at a 24% margin. The newly acquired Doors business contributed $554 million in revenue and $75 million in EBITDA, with a margin of 14%.
Operating cash flow totaled $327 million, down from $493 million in the year-ago period. Free cash flow dropped 62% to $129 million.
Owens Corning ended the quarter with $230 million in cash and cash equivalents. The company is also moving forward with the planned divestiture of its glass reinforcements business, expected to close in 2025 pending regulatory approval.
The company returned $279 million to shareholders during the quarter through dividends and share repurchases, bringing year-to-date shareholder returns to nearly $440 million.
Outlook
For the third quarter, Owens Corning expects sales between $2.7 billion and $2.8 billion, compared to the $2.685 billion analyst estimate.
Adjusted EBITDA margin is projected between 23% and 25%. The company anticipates minimal tariff impact, estimating a net effect of about $10 million after mitigation measures.
Executive Vice President and CFO Todd Fister commented, "With confidence in our cash generation, we returned significant cash to shareholders – nearly $440 million in the first half – and remain on track to deliver our commitment of $2 billion in returns over the next two years," said Executive Vice President and Chief Financial Officer Todd Fister. "Even in current market conditions, we expect to maintain strong EBITDA margins and shareholder returns while investing to accelerate long-term growth and incremental cash generation."
Price Action: At last check Wednesday, OC shares were trading higher by 4.76% to $147.54.
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