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**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

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

OC

OC fundamentals

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