- Full-Year Financial Performance Generated $10.1 billion in revenue and $2.3 billion adjusted EBITDA with a 22% margin, marking fifth consecutive year of 20%+ margins.
- Shareholder Returns Returned $1 billion to shareholders in 2025 (totaling $4 billion since 2020) via dividends and buybacks, with a 15% dividend hike tripling per-share payout vs. 5 years ago.
- Strategic Divestitures Sold China/Korea operations and announced glass reinforcements divestiture, unlocking $125 million in enterprise synergies from Doors acquisition integration.
- Operational Efficiency Achieved $75 million in cost synergies (manufacturing network optimization, automation) and plans $25–$30 million annual savings by year-end.
- 2026 Outlook Projects $30 million first-quarter production curtailment costs but targets normalized CapEx at 4% of revenue and meets consensus EBITDA estimates with leverage at 2.1x EBITDA.
Segment Performance
The Doors business faced significant challenges in 2025, with a 14% decline in fourth-quarter revenue to $486 million. Annual revenue was approximately $2.1 billion, with an EBITDA of $232 million and an 11% margin. Despite market headwinds, the integration is progressing well, with $125 million in enterprise run rate synergies captured to date. As Brian Chambers noted, "We're unlocking the full power of the enterprise to accelerate our performance by leveraging a set of capabilities that are truly unique to Owens Corning and creating the OC Advantage."
Outlook and Guidance
The company expects North American residential new construction activity to be relatively flat in 2026, while discretionary repair and remodel activity is anticipated to be up slightly. Roofing demand is expected to improve throughout the year, with full-year demand in line with historical averages. For the first quarter, Roofing revenue is expected to decline 20% year-over-year, driven by lower storm-related repair demand and delayed distributor restocking activity. Analysts estimate revenue growth of 3.2% for the next year.
Valuation and Return on Investment
Owens Corning's current valuation metrics include a P/E Ratio of -8.82, P/B Ratio of 2.72, P/S Ratio of 1.0, EV/EBITDA of 30.92, Dividend Yield of 2.32%, and Free Cash Flow Yield of 6.06%. The company's return on capital is 12% for the 12 months ending December 31, 2025, below the long-term target of mid-teens or better. The company's leverage is at 2.1x EBITDA, giving it ample capacity for return on cash flows and its balance sheet.
Operational Efficiencies and Cost Savings
The company is committed to driving operational cost efficiencies, having identified $75 million of operational cost synergies tied to its manufacturing network. It expects to deliver $25 million to $30 million of additional operational cost improvements through network optimization and expects to finish the year at that run rate. The company remains committed to its $2 billion return of cash to shareholders in 2025 and 2026.