Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenue of $2.1 billion and Adjusted EBITDA of $362 million, with an Adjusted EBITDA margin of 17% [7] - For the full year 2025, revenue reached $10.1 billion and Adjusted EBITDA was $2.3 billion, resulting in an Adjusted EBITDA margin of 22% [8] - The company returned $1 billion to shareholders through dividends and share repurchases in 2025, marking a total of over $4 billion returned since 2020 [8] Business Line Data and Key Metrics Changes - Roofing business sales in Q4 were $774 million, down 27% year-over-year, primarily due to lower shingle volumes [25] - Insulation business achieved Q4 revenues of $916 million, down 7%, driven by lower volumes in North American residential markets [27] - Doors business generated Q4 revenue of $486 million, down 14% from the prior year, affected by lower volumes in new construction and remodeling [29] Market Data and Key Metrics Changes - The U.S. residential market faced weakening trends, with a notably quiet storm season impacting roofing repair demand [6] - North American residential new construction and discretionary repair activity are expected to remain soft in early 2026, with a gradual improvement anticipated in the second half of the year [34] - European market conditions are expected to remain stable, benefiting from currency tailwinds [36] Company Strategy and Development Direction - The company is focusing on reshaping its portfolio by divesting from non-core businesses and enhancing its presence in residential product categories [9][10] - Strategic investments in manufacturing efficiency and capacity expansion are underway, with a focus on long-term cost efficiency [16] - The company aims to leverage its brand strength and unique capabilities to drive revenue growth and achieve mid-20% Adjusted EBITDA margins over the long term [12][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market conditions in 2025 but expressed confidence in the company's ability to generate strong financial results as market conditions improve [18][34] - The outlook for 2026 includes expectations for a gradual recovery in residential markets, with a focus on capturing pent-up demand for housing and renovations [44] - Management emphasized the importance of operational efficiency and strategic investments to enhance future growth potential [19][44] Other Important Information - The company achieved a recordable incident rate of 0.60, reflecting its commitment to safety [7] - The company has made significant progress in integrating its new Doors business and achieving cost synergies [11] - The company expects to maintain a disciplined capital allocation strategy while investing in high-return growth opportunities [24] Q&A Session Summary Question: How comfortable is the company with visibility into Q2 to Q4 and meeting consensus estimates? - Management indicated that visibility is improving, with expectations for roofing demand to increase throughout the year as market conditions normalize [47][49] Question: What types of investments are included in the $800 million CapEx guide? - The $800 million CapEx is focused on growth-oriented and productivity investments in Roofing and Insulation, supporting ongoing cost efficiency [52][54] Question: Can the company discuss the contractor pull-through opportunities mentioned? - Management highlighted the success of its contractor engagement model and its expansion to lumber and building material dealers, resulting in a 38% increase in dealer enrollments [68][70]

Owens Corning (NYSE:OC) Q4 2025 Earnings call February 25, 2026 09:00 AM ET Company ParticipantsAmber Wohlfarth - VP of Corporate Affairs and Investor RelationsBrian Chambers - Chair and CEOMatthew Bouley - Managing DirectorTodd Fister - EVP and CFOConference Call ParticipantsAdam Baumgarten - Vice President and Equity Research AnalystAnthony Pettinari - Managing Director and Senior Equity AnalystBrian Biros - Senior AnalystJohn Lovallo - Managing Director and Senior Equity AnalystMichael Rehaut - Executive ...

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenue of $2.1 billion and Adjusted EBITDA of $362 million, with an Adjusted EBITDA margin of 17% [5] - For the full year 2025, revenue reached $10.1 billion and Adjusted EBITDA was $2.3 billion, resulting in an Adjusted EBITDA margin of 22% [6][20] - The company returned $1 billion to shareholders through dividends and share repurchases in 2025, marking a total of over $4 billion returned since 2020 [7] Business Line Data and Key Metrics Changes - Roofing business Q4 sales were $774 million, down 27% year-over-year, with full-year sales of $4.4 billion, down 4% [24][25] - Insulation business Q4 revenues were $916 million, down 7%, with full-year sales of $3.7 billion, down 6% [26][27] - Doors business generated Q4 revenue of $486 million, down 14%, with full-year sales of approximately $2.1 billion [28][29] Market Data and Key Metrics Changes - The U.S. asphalt shingle market declined approximately 10% for the year, with a significant drop in the second half due to weak storm demand [25] - North American residential new construction and discretionary repair and remodel activity are expected to remain soft in early 2026, reflecting the lowest level of quarterly housing starts in six years [33] Company Strategy and Development Direction - The company is focusing on enhancing operational efficiency and accelerating organic growth through strategic initiatives [5] - Major strategic moves include divesting from non-core businesses and shifting towards residential product categories [9] - The company aims to achieve a mid-20% Adjusted EBITDA margin profile over the long term through factory modernization and cost efficiency initiatives [15] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year with weakening U.S. residential trends and distribution destocking [4] - For 2026, the company expects market conditions to improve in the second half of the year, with multiple paths to deliver strong results [33] - The company anticipates first quarter revenue from continuing operations of approximately $2.1 billion to $2.2 billion, in line with Q4 [34] Other Important Information - The company achieved a recordable incident rate of 0.60, which is industry-leading among U.S. manufacturers [5] - The company has been recognized as one of The Wall Street Journal's top 250 Best Managed Companies, ranking 73rd overall [17] Q&A Session Summary Question: How comfortable is the company with visibility into Q2 to Q4? - Management expressed confidence in visibility, expecting roofing demand to improve throughout the year as market conditions normalize [46][48] Question: What types of investments are included in the $800 million CapEx guide? - The $800 million CapEx is focused on growth-oriented and productivity-oriented investments in Roofing and Insulation, supporting ongoing cost efficiency [50][52] Question: Can the company elaborate on the contractor pull-through opportunities? - The company is leveraging its successful contractor engagement model to create downstream demand, with a significant increase in dealer enrollments [66][69]

FOURTH-QUARTER AND FULL-YEAR 2025 RESULTS Brian Chambers | Chair & Chief Executive Officer Todd Fister | Chief Financial Officer February 25, 2026 | Q4 & FY 2025 FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES This presentation and the associated remarks contain forward-looking statements. We caution you against relying on these statements as they are subject to risks, uncertainties and other factors and actual results may differ materially from those results projected in the statements. These risks, uncer ...

Core Viewpoint - ROCKWOOL A/S has adjusted its full-year earnings outlook for 2025 due to an unplanned factory closure in Switzerland and ongoing challenging market conditions, particularly in the UK, Canada, and Russia [1][3]. Financial Performance - Revenue for the first nine months of 2025 reached 2,910 MEUR, reflecting a one percent increase compared to the previous year, with 2024 acquisitions contributing a two-percentage point positive impact [6]. - Q3 2025 revenue was 963 MEUR, showing a two percent increase in local currencies and a one percent increase in reported figures compared to last year, also benefiting from the 2024 acquisitions [6]. - EBIT for the first nine months of 2025 decreased by 11 percent to 457 MEUR, with an EBIT margin of 15.7 percent, down 2.1 percentage points from the previous year [6]. - In Q3 2025, EBIT decreased by 14 percent to 150 MEUR, with an EBIT margin of 15.5 percent, down 2.6 percentage points compared to Q3 2024 [6]. Outlook Adjustments - The EBIT margin for full-year 2025 is now expected to be between 14 and 15 percent, revised from a previous outlook of below 16 percent [1][5]. - The company maintains its revenue expectations to be at the same level as last year, with an investment level around 450 MEUR excluding acquisitions [5]. - The factory in Flums, Switzerland, is currently non-operational due to a production-related incident, impacting Q4 2025 earnings negatively, with ongoing negotiations with insurance companies expected to conclude in early 2026 [3][4]. Market Conditions - The UK insulation business faced unexpected challenges in Q3 2025, with large flat roof projects being cancelled or postponed, although sales have returned to normal levels in early Q4 2025 [4]. - The construction market in Canada is heavily affected by rising inflation and trade tensions, leading to a significant impact on market demand, with no near-term improvement anticipated [4]. - The downturn in Russia continues to negatively affect Group earnings due to sales price decreases and higher-than-expected inflation [4].

Core Insights - The company reported solid financial results for Q3 2025, generating $2.7 billion in revenue and $638 million in adjusted EBITDA, with an adjusted EBITDA margin of 24% despite challenging market conditions [5][20][21] - The roofing segment faced a uniquely quiet storm season, impacting demand, while the insulation business experienced weakening residential trends [6][7][10] - The company remains focused on disciplined capital allocation, returning over $700 million to shareholders and maintaining a commitment to return $2 billion over 2025 and 2026 [6][23] Financial Performance - Revenue for Q3 decreased by 3% year-over-year due to lower volumes, but adjusted EBITDA remained strong at $638 million [20][21] - The company achieved an adjusted earnings per diluted share of $3.67 for the quarter [21] - Free cash flow for Q3 was $752 million, up from $558 million in the same period last year, reflecting disciplined working capital management [22] Market Conditions - The roofing market was impacted by the absence of named storms in the U.S. for the first time in a decade, leading to lower demand [7][25] - The insulation business saw a 7% revenue decline primarily due to lower demand for residential products and the sale of the building materials business in China [27] - The doors segment experienced a 5% revenue decline, attributed to slower discretionary spending and weaker new construction activity [29] Strategic Initiatives - The company is investing in operational efficiencies and expanding capacity, including a new plant in Alabama for roofing products [12][14] - The contractor network has grown by about 9% since the beginning of the year, reflecting the company's strong commercial position [13] - The company is on track to achieve $125 million in enterprise cost synergies from the doors business integration [30][15] Outlook - For Q4, the company anticipates revenue to decline mid to high teens compared to the prior year, with adjusted EBITDA margins expected to be around 16% to 18% [34][40] - The roofing segment is expected to see a high 20% decline in shipments due to lower storm activity and inventory management [35] - The insulation business is projected to decline high single digits in revenue, primarily due to lower demand in North America [38]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated $2.7 billion in revenue and $638 million in adjusted EBITDA, resulting in an adjusted EBITDA margin of 24% [6][17] - Revenue decreased by 3% year-over-year due to lower volumes, while adjusted earnings per diluted share were $3.67 [17][18] - Free cash flow for the quarter was $752 million, an increase from $558 million in the same period last year [18] Business Line Data and Key Metrics Changes - **Roofing Business**: Revenue was $1.2 billion, up 2% from the prior year, driven by positive price realization despite flat volumes. EBITDA was $423 million, maintaining a 34% margin [20][22] - **Insulation Business**: Revenue decreased by 7% to $941 million, primarily due to lower demand for residential products. EBITDA margins were 23%, resulting in $212 million in EBITDA [23][24] - **Doors Business**: Revenue was $545 million, down 5% from the prior year, with EBITDA of $56 million and margins of 10% [24][25] Market Data and Key Metrics Changes - The U.S. roofing market faced a uniquely quiet storm season, with no named storms making landfall, impacting demand [8][22] - Residential trends in the U.S. are weakening, affecting volumes in both repair and remodel and new construction product lines [8][10] - Non-residential construction activity in North America is expected to decline slightly, while European markets are anticipated to gradually improve [29] Company Strategy and Development Direction - The company is focused on maintaining strong cash generation capabilities and disciplined capital allocation, with a commitment to return $2 billion to shareholders over 2025 and 2026 [7][19] - Strategic investments are being made to enhance market-leading positions, including a new plant in Alabama for roofing and a new fiberglass line in Kansas City for insulation [11][12] - The divestiture of the glass reinforcements business is targeted for completion by the end of the year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve margin and cash flow goals despite current financial performance challenges [9][10] - The outlook for Q4 anticipates revenue to be approximately $2.1 billion to $2.2 billion, down mid to high teens versus the prior year, with adjusted EBITDA margins expected to be around 16-18% [29][30] - The company expects to see a gradual recovery in the European market and improved housing affordability in the U.S. as mortgage rates decline [10][29] Other Important Information - The company was recognized as one of the 100 Best Corporate Citizens, ranking third for its environmental, social, and governance performance [15] - The company continues to focus on operational efficiencies and cost synergies, with a target of achieving $125 million in enterprise cost synergies by the end of the second year of ownership [13] Q&A Session Summary Question: Concerns about roofing margins and pricing pressure - Management indicated that pricing has remained positive throughout the year, driven by the value provided to contractors and distributors, despite typical seasonal pressures [37][39] Question: Non-residential demand and project delays - Management noted project delays in both the U.S. and Mexico, viewing them as shifts from quarter to quarter and potentially into 2026 [42][44] Question: Doors segment impairment and market share - Management explained the impairment was due to near-term market weakness, but they remain confident in long-term earnings potential and are focused on cost synergies [46][48] Question: Inventory destocking and its impact - Management expects inventory destocking to normalize in Q1, with cautious buying behavior anticipated from distributors [71][73]

Financial Performance - Owens Corning's Q3 2025 net sales were $2684 million, a decrease of 3% compared to Q3 2024's $2763 million[16] - Adjusted EBITDA for Q3 2025 was $638 million, compared to $705 million in Q3 2024[12] - Adjusted EBITDA as a percentage of net sales was 24% for Q3 2025, down from 26% in Q3 2024[12] - Net loss attributable to Owens Corning was $495 million in Q3 2025, compared to net earnings of $287 million in Q3 2024[16] - Free cash flow for Q3 2025 was $752 million[18] Segment Results - Roofing business net sales were $1240 million in Q3 2025, up 2% from $1221 million in Q3 2024, with an EBITDA of $423 million and a 34% EBITDA margin[19] - Insulation business net sales were $941 million in Q3 2025, down 7% from $1008 million in Q3 2024, with an EBITDA of $212 million and a 23% EBITDA margin[22] - Doors business net sales were $545 million in Q3 2025, down 5% from $573 million in Q3 2024, with an EBITDA of $56 million and a 10% EBITDA margin[25] Capital Allocation - The company returned $278 million of free cash flow to shareholders through share repurchases and dividends in Q3 2025[18] - The company is committed to returning $2 billion to shareholders through share repurchases and dividends by the end of 2026[13]

Financial Data and Key Metrics Changes - Revenues increased by 10% year-over-year, with earnings growing by 30% [8][10] - Adjusted EBITDA for the second quarter was $703 million, with an adjusted EBITDA margin of 26% [8][21] - Free cash flow for the quarter was $129 million, down from $336 million in the same period last year [22] - The company returned $279 million to shareholders through share repurchases and dividends [23] Business Line Data and Key Metrics Changes - Roofing business sales were $1.3 billion, up 4% from the prior year, with EBITDA of $457 million and margins of 35% [25][26] - Insulation business revenues were $934 million, a 4% decrease from the previous year, with EBITDA of $225 million and margins of 24% [28][29] - Doors business generated revenue of $554 million, with EBITDA of $75 million and margins of 14% [30] Market Data and Key Metrics Changes - North American repair and remodel activity accounts for over half of the company's revenue, with stable demand in non-residential markets [11] - Residential new construction demand is under pressure, representing only about a quarter of overall revenue [11] - European markets are showing encouraging improvement, with gradual recovery expected [11][36] Company Strategy and Development Direction - The company is focused on high-value building materials in attractive markets, emphasizing structural improvements and strategic investments [10][12] - Recent acquisitions and divestitures, including the sale of the building materials business in China and Korea, are part of the strategy to sharpen focus [12][21] - The company aims to leverage its OC Advantage, which includes brand strength, technology, and cost position, to drive growth [15][16] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's ability to deliver higher, more durable margins and strong free cash flow despite challenging market conditions [42] - For the third quarter, revenue is expected to be approximately $2.7 billion to $2.8 billion, slightly below or in line with the prior year [36] - The company anticipates ongoing cost inflation and a slight decline in residential new construction demand [39][41] Other Important Information - The company achieved a recordable incident rate of 0.6, maintaining a safe operating environment [7] - The company has captured more than 75% of its enterprise run rate synergy target of $125 million from the Masonite acquisition [15] - The company is on track to return $2 billion to shareholders through dividends and share repurchases by 2026 [23] Q&A Session Summary Question: North American industry capacity utilization trends - Management noted that industry utilization was below 90%, impacting pricing dynamics, with limited traction on price increases due to inflation [45][49] Question: Revenue expectations for non-residential insulation in Europe - Management indicated modest growth in non-residential insulation, driven by strong demand in data centers and manufacturing [55][59] Question: Performance of the doors business - Management expects low double-digit to low teens EBITDA margins for the doors business, driven by ongoing cost synergies and network optimization [63][66] Question: Mix dynamics in insulation and roofing - Management clarified that negative mix in insulation was timing-related and not a permanent trend, while roofing mix remains stable with increased demand for laminated shingles [72][74]

Financial Performance Highlights - Owens Corning's Q2 2025 net sales from continuing operations reached $2747 million, a 10% increase compared to Q2 2024's $2497 million[13, 16] - Adjusted EBITDA for Q2 2025 was $703 million, up from $678 million in Q2 2024, while the adjusted EBITDA margin was 26% compared to 27%[13, 16] - Year-to-date 2025 net sales were $5277 million, a 17% increase from $4514 million in the same period of 2024[13, 16] - Year-to-date 2025 adjusted EBITDA reached $1268 million, compared to $1193 million in 2024, with adjusted EBITDA as a percentage of net sales at 24% versus 26%[13, 16] - Roofing business delivered Q2 2025 revenue of $1303 million, a 4% increase from $1252 million in the prior year, with an EBITDA of $457 million and a 35% EBITDA margin[20] - Insulation business delivered Q2 2025 revenue of $934 million, a 4% decrease from $974 million in the prior year, with an EBITDA of $225 million and a 24% EBITDA margin[23] - Doors business delivered Q2 2025 revenue of $554 million, with an EBITDA of $75 million and a 14% EBITDA margin[27] Balance Sheet and Capital Deployment - Free cash flow for Q2 2025 was $129 million[19] - $279 million of free cash flow was returned to shareholders through share repurchases and dividends in Q2 2025[19] - Capital additions totaled $198 million in Q2 2025[19] - The company maintained liquidity of $1700 million, including approximately $200 million in cash and $1500 million available on a bank debt facility[19] - Net debt-to-adjusted EBITDA ratio was 21x at the end of Q2 2025[19] Full-Year 2025 Outlook - General corporate EBITDA expenses are projected to be between $240 million and $260 million[33] - Interest expense is expected to be between $250 million and $260 million[33] - The full-year effective tax rate is projected to be between 24% and 26%[33] - Capital additions are estimated to be approximately $800 million[33] - Depreciation and amortization are expected to be approximately $650 million[33]