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1. Company Snapshot

1.a. Company Description

Owens Corning manufactures and markets insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, and internationally.It operates in three segments: Composites, Insulation, and Roofing.The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and other specialized products.


Its products are used in building structures, roofing shingles, tubs and showers, pools, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades applications in the building and construction, renewable energy, and infrastructure markets.This segment sells its products directly to parts molders, fabricators, and shingle manufacturers.The Insulation segment manufactures and sells insulation products for residential, commercial, industrial, and other markets for thermal and acoustical applications; and glass fiber pipe insulation, flexible duct media, bonded and granulated mineral fiber insulation, cellular glass insulation, and foam insulation products used in construction applications.


This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors under the Thermafiber, FOAMULAR, FOAMGLAS, Paroc, Owens Corning PINK, and FIBERGLAS Insulation brand names.The Roofing segment manufactures and sells aminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications, as well as synthetic packaging materials.This segment sells its products through distributors, home centers, lumberyards, retailers, and contractors, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries.


Owens Corning was incorporated in 1938 and is headquartered in Toledo, Ohio.

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1.b. Last Insights on OC

Owens Corning faced negative drivers, including a 3% decrease in net sales from continuing operations, and a non-cash, pre-tax impairment charge of $780 million related to its doors business. The company reported Q3 earnings of $3.67 per share, surpassing estimates, but this was down from $4.38 per share a year ago. An investigation by Pomerantz Law Firm on behalf of investors may also have impacted the stock. Additionally, the company's operating cash flow and free cash flow were $918 million and $752 million, respectively.

1.c. Company Highlights

2. Owens Corning's Q3 2025 Earnings: A Resilient Performance Amidst Challenging Market Conditions

Owens Corning delivered a solid Q3 2025 performance, with revenues of $2.7 billion and adjusted EBITDA of $638 million, resulting in an adjusted EBITDA margin of 24%. The company's financial results demonstrate its ability to perform at a high level in challenging market conditions, despite weakening residential trends in the U.S. impacting volumes in both repair and remodel and new construction product lines. The earnings per share (EPS) came out at '-5.92' relative to estimates at '3.64', a significant miss.

Publication Date: Nov -06

📋 Highlights
  • Q3 2025 Revenue & EBITDA: Generated $2.7 billion in revenue and $638 million in adjusted EBITDA with 24% margin, despite market challenges.
  • Roofing Contractor Growth: Expanded contractor network by 9% year-to-date, driven by commercial strength and customer value.
  • Insulation Margin Resilience: Maintained 23% EBITDA margin in Q3, reflecting structural improvements despite volume declines.
  • Shareholder Returns: Committed to returning $2 billion to shareholders by 2026 via dividends and buybacks.
  • 2025 Full-Year Outlook: Projects revenue to grow modestly with 22–23% EBITDA margin, despite Q4 margin contraction to 16–18%.

Segment Performance

The Roofing segment saw sales of $1.2 billion, up 2% from the prior year, driven by positive price realization. However, the U.S. asphalt shingle market on a volume basis was down low double digits compared to the prior year. The Insulation segment delivered EBITDA margins of 23% in Q3, resulting in EBITDA of $212 million, down $36 million from the prior year. The Doors business generated revenue of $545 million, down 5% from the prior year, primarily due to lower volumes.

Guidance and Outlook

Owens Corning expects revenue to decline mid- to high teens versus the prior year in Q4 2025, with an EBITDA margin of approximately 16% to 18% for the enterprise. The company anticipates a revenue decline of mid-20% year-over-year in the Roofing segment, with a high 20% decline in ARMA market shipments. The Insulation segment revenue is expected to decline high single digits year-over-year, primarily due to a volume decline in North American residential.

Valuation and Future Prospects

With a P/E Ratio of -19.22 and an EV/EBITDA of 10.01, the market is pricing in a challenging near-term outlook for Owens Corning. However, the company's commitment to generating long-term EBITDA growth and cash flow growth for investors remains unchanged. As Todd Fister stated, "Our capital allocation strategy remains focused on generating strong free cash flow, delivering mid-teens returns on capital, returning cash to shareholders, and maintaining an investment-grade balance sheet while we invest in attractive capital projects for growth."

Analysts' Estimates and Future Growth

Analysts estimate next year's revenue growth at 0.2%, indicating a relatively flat growth trajectory. However, Owens Corning's focus on capacity expansion and driving improved efficiency is expected to drive long-term growth. The company's priority is to stay disciplined with working capital and maintain good cash flows, while preserving a strong balance sheet at the low end of its targeted range of 2 to 3x Net Debt / EBITDA.

3. NewsRoom

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Owens Corning Announces 15% Dividend Increase

Dec -04

Source: businesswire.com

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Owens Corning Names Annie Baymiller Executive Vice President, Chief Information Officer to Accelerate Digital Technology-Driven Growth

Dec -04

Source: businesswire.com

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Fisher Asset Management LLC Raises Holdings in Owens Corning Inc $OC

Dec -03

Source: defenseworld.net

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Olive Resource Capital Reports Record Third Quarter Investment Performance of 61.8% and Net Income of $5.2 Million

Dec -01

Source: newsfilecorp.com

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Knife River (NYSE:KNF) & Owens Corning (NYSE:OC) Head-To-Head Review

Dec -01

Source: defenseworld.net

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Owens Corning - OC

Nov -20

Source: prnewswire.com

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Olive Resource Capital Provides Update on Investments for October 2025

Nov -10

Source: newsfilecorp.com

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Owens Corning (OC) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Roofing

Expected Growth: 2.2%

The roofing segment is expected to grow slightly above the global revenue growth hypothesis due to increasing demand for energy-efficient and durable roofing products, driven by rising housing starts and repair and remodel activity.

Insulation

Expected Growth: 2.5%

The insulation segment is expected to grow above the global revenue growth hypothesis due to increasing demand for energy-efficient buildings, driven by stringent building codes and government regulations promoting energy conservation.

Composites

Expected Growth: 1.8%

The composites segment is expected to grow slightly below the global revenue growth hypothesis due to its exposure to various industries with different growth dynamics, and potential fluctuations in demand from the automotive and other sectors.

Doors

Expected Growth: 7.2%

The growing demand for energy-efficient and durable doors, driven by increasing consumer focus on sustainability and home renovation, will drive the segment's growth.

Corporate, Other and Eliminations

Expected Growth: None%

None

7. Detailed Products

Roofing

Owens Corning's roofing products include asphalt shingles, metal roofing, and roofing underlayment, designed to provide durability and weather resistance for residential and commercial buildings.

Insulation

Owens Corning's insulation products include fiberglass batts, foam board, and spray foam, designed to provide energy efficiency and comfort in residential and commercial buildings.

Composites

Owens Corning's composites products include glass fiber reinforcements, resin systems, and composite materials, designed for use in a variety of industrial and consumer applications.

Cellulose Insulation

Owens Corning's cellulose insulation products are made from recycled paper products and are designed to provide energy efficiency and sustainability in residential and commercial buildings.

8. Owens Corning's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Owens Corning is medium due to the availability of alternative building materials such as drywall and plywood. However, the company's focus on innovative products and sustainability may reduce the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers for Owens Corning is low due to the company's strong brand reputation and wide distribution network. Customers have limited bargaining power to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Owens Corning is medium due to the company's dependence on raw materials such as fiberglass and resin. However, the company's vertical integration strategy may reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants for Owens Corning is low due to the high barriers to entry in the building materials industry. New entrants would require significant investment in manufacturing facilities, technology, and distribution networks.

Intensity Of Rivalry

The intensity of rivalry for Owens Corning is high due to the competitive nature of the building materials industry. The company faces intense competition from established players such as Saint-Gobain and Johns Manville.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.78%
Debt Cost 3.95%
Equity Weight 61.22%
Equity Cost 11.15%
WACC 8.36%
Leverage 63.36%

11. Quality Control: Owens Corning passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Masco

A-Score: 5.4/10

Value: 6.5

Growth: 5.9

Quality: 6.0

Yield: 4.0

Momentum: 2.5

Volatility: 7.7

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Owens Corning

A-Score: 4.9/10

Value: 5.2

Growth: 7.4

Quality: 4.4

Yield: 4.0

Momentum: 2.0

Volatility: 6.3

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Simpson Manufacturing Co

A-Score: 4.9/10

Value: 3.1

Growth: 7.9

Quality: 7.5

Yield: 1.0

Momentum: 3.0

Volatility: 6.7

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Installed Building Products

A-Score: 4.8/10

Value: 2.9

Growth: 9.0

Quality: 5.6

Yield: 2.0

Momentum: 5.0

Volatility: 4.0

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GMS

A-Score: 4.7/10

Value: 4.4

Growth: 7.6

Quality: 4.1

Yield: 0.0

Momentum: 6.5

Volatility: 5.7

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Carlisle

A-Score: 4.5/10

Value: 4.0

Growth: 8.0

Quality: 5.2

Yield: 2.0

Momentum: 1.0

Volatility: 6.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

113.63$

Current Price

113.63$

Potential

-0.00%

Expected Cash-Flows