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What were the key takeaways from Owens Corning's earnings call?

**Key Takeaways:**
- **Q3 Performance:** $2.7B revenue, $638M EBITDA (24% margin) despite -3% YoY volume. 
- **Segment Strengths:** 
  - Roofing: 34% EBITDA margin, new Alabama plant 
  - Insulation: 23% EBITDA margin, Arkansas foam expansion 
  - Doors: 10% EBITDA margin, 40% of $125M synergies captured 
- **Q4 Outlook:** 16-18% EBITDA margin, $2.1-2.2B revenue (-mid/high teens YoY). 
- **Strategic Investments:** $800M CapEx for growth (e.g., Alabama shingles, Arkansas foam). 
- **Shareholder Returns:** $2B+ free cash flow, $2B+ returns (2025-26). 
- **Risks:** Tariffs ($12M Q3), market volatility, production curtailments.

**【CEO Opening Remarks】**
- Q3 revenue: $2.7B, adjusted EBITDA: $638M (24% margin). 
- Challenges: Weaker residential trends (-10% U.S. shingle market), quiet storm season (no named storms in Q3). 
- Strategic investments: 
  - $6M/sq new laminate shingle plant in Alabama 
  - Arkansas XPS foam plant (2026 operational) 
  - Kansas City fiberglass line for flexible production 
- Long-term outlook: 20%+ EBITDA margins, $2B+ free cash flow, $2B shareholder returns (2025-26). 

**【CFO Financial Commentary】**
- Q3 results: 
  - GAAP net income: $420M 
  - Adjusted EBITDA: $638M (24% margin) 
  - Free cash flow: $752M 
- Segment performance: 
  - Roofing: $1.2B rev, 34% EBITDA margin 
  - Insulation: $941M rev, 23% EBITDA margin 
  - Doors: $545M rev, 10% EBITDA margin 
- Key initiatives: 
  - $125M enterprise cost synergies (40% captured) 
  - $780M goodwill impairment in Doors (due to near-term market weakness) 
- Q4 guidance: 
  - Revenue: $2.1-2.2B (-mid/high teens YoY) 
  - EBITDA margin: 16-18% 

**【Q&A Highlights】**
1. **Roofing Pricing Strategy**
- Q4 pricing up slightly YoY, but negative price/cost due to inflation. 
- Seasonal destocking expected to reduce volumes by ~20% YoY. 
- Contractor engagement model maintains ~90% loyalty. 

2. **Insulation Market Dynamics**
- Resi Insulation: -7% YoY due to housing starts, nonres stable. 
- Europe: Gradual recovery in nonres construction. 
- 2025 Insulation margin: ~20% (vs. 2024's 23%). 

3. **Doors Segment Challenges**
- Q3 EBITDA: $56M (10% margin) vs. $63M prior year. 
- $12M tariff impact Q3, similar expected Q4. 
- 40% of $125M synergies captured, +$75M structural savings identified. 

4. **Capital Allocation**
- 2025 CapEx: $800M (includes $80M Glass Reinforcement) 
- Share buybacks: $220M Q3, $700M+ YTD 
- 2025-26 shareholder returns: $2B (dividends + buybacks)

Owens Corning (OC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

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Net Income

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Net Income Attributable to Owners of the Company

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

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OC

OC fundamentals

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