Owens Corning has demonstrated remarkable financial resilience in its latest fiscal report, navigating a complex market landscape to deliver strong fourth-quarter and full-year results for 2025. The company's strategic focus on operational efficiencies, effective cost management, and targeted investments has enabled it to sustain impressive profitability despite facing headwinds such as decreased residential demand and a subdued storm season. These efforts underscore Owens Corning's commitment to creating value for shareholders while strategically positioning itself for future growth and market recovery.
For the fourth quarter of 2025, Owens Corning recorded revenues of $2.1 billion and an adjusted EBITDA of $362 million, achieving a 17% adjusted EBITDA margin. The full fiscal year 2025 saw the company generate $10.1 billion in revenue and $2.3 billion in adjusted EBITDA, with a healthy 22% adjusted EBITDA margin. CEO Brian Chambers noted that the company has effectively generated higher margins even with lower market volumes, attributing this success to operational improvements and an advantageous product mix. Significant investments in capacity and productivity projects were also highlighted as key to supporting future growth as market conditions are anticipated to improve.
The company faced several challenges, particularly in its Roofing segment, where Q4 sales declined by 27% year-over-year. This was largely due to a weaker U.S. residential market, inventory destocking by distributors, and an unusually calm storm season, which reduced demand for roofing repairs. Despite these pressures, the Roofing segment maintained robust margins of 26% in Q4 and 32% for the full year, supported by production curtailments and product mix enhancements.
Owens Corning's financial discipline extended to its cash flow and shareholder returns. The company generated $1.8 billion in operating cash flow in 2025 and returned approximately $1 billion to shareholders through dividends and share repurchases. The year concluded with a debt-to-EBITDA ratio of 2.1x and approximately $1.8 billion in liquidity, positioning the company favorably. For 2026, a soft start is anticipated, with improvements expected in the latter half, alongside planned capital expenditures of around $800 million.
The Insulation division also experienced shifts, with Q4 revenue decreasing by 7% due to the sale of a Chinese building materials business and reduced volumes in North American residential and non-residential markets. However, the European market remained stable, benefiting from currency tailwinds. The Doors segment saw a 14% decline in Q4 revenue, affected by lower volumes in new construction and discretionary repair and remodel activities, as well as inflation and tariffs. Despite these challenges, Owens Corning continues to focus on integrating its Doors business and exceeding its synergy targets.
Looking ahead to 2026, Owens Corning expects continued challenging market conditions in the short term, with a rebound projected for the second half. The first quarter is forecasted to see revenues between $2.1 billion and $2.2 billion, with an adjusted EBITDA margin in the mid-teens, reflecting the impact of earlier production curtailments. The company anticipates a relatively flat North American residential new construction market compared to 2025, a slight increase in discretionary repair and remodel demand, and a return to typical storm activity patterns for roofing demand.
Owens Corning, a global leader in composite materials and building products, has demonstrated exceptional adaptability and strategic foresight in a challenging economic environment. The company's sustained financial performance, proactive management of market headwinds, and ongoing commitment to innovation and shareholder returns highlight its strong operational foundation and potential for continued success. Through strategic portfolio adjustments, efficiency improvements, and investments in key growth areas, Owens Corning is well-positioned to capitalize on future market recoveries and reinforce its leadership in the industry.