Owens Corning (NYSE:OC) beats the street again. In its latest earnings news release, the company posted first‑quarter net sales of $2.53 billion, up 25% from $2.02 billion a year earlier, driven by pricing gains and the newly acquired Doors business, which contributed $540 million in revenue. 

Net earnings from continuing operations fell 8% to $255 million, or 10% of sales, compared with $278 million, or 14%, in Q1 2024. 

Including the loss on discontinued operations tied to the divestiture of its glass reinforcements unit, Owens Corning reported a net loss of $93 million.

Chair and Chief Executive Brian Chambers said the results “demonstrate the durability of our earnings and the power of the enterprise to outperform in any operating environment,” while CFO Todd Fister added, “We have created multiple paths to generate consistently strong results.” 

Despite those upbeat remarks, adjusted diluted EPS slipped 13% to $2.97 from $3.40 a year ago, though it still topped the $2.91 analysts expected.

The company’s adjusted EBITDA rose 10% to $565 million, representing a 22% margin — a drop from 26% in Q1 2024 but still the 19th straight quarter above 20%. 

In Roofing, sales edged up 2% to $1.12 billion with a 30% margin; Insulation revenue dipped 5% to $909 million even as its margin improved to 25%; and the Doors segment, first reported as part of continuing operations, posted $540 million in sales with a 13% margin.

Cash flow remained challenged, with an operating cash outflow of $49 million and free cash outflow of $252 million.

Still, OC returned $159 million to shareholders via dividends and share buybacks, and exited the quarter with $1.9 billion of liquidity, including $400 million in cash and $1.5 billion available on its credit facility.

Bank of America analysts warn that recently imposed tariffs could cut sector earnings by up to 20%, injecting fresh uncertainty into building‑materials supply chains. 

“Unmitigated earnings‑per‑share could tank 20% across the sector unless current tariff announcements are adjusted,” as first reported by Business Insider, noting potential price hikes might stifle demand.

Q2 2025 Outlook

• Looking ahead, OC expects minimal Q2 tariff impact:
• Revenue growth of high‑single‑digit percentage versus a prior‑year base of $2.5 billion.
• Adjusted EBITDA margins in the low‑to‑mid‑20% range.
• A net $10 million tariff headwind, down from $50 million in Q1.
• Continued solid demand for nondiscretionary repair, softness in new residential construction, and gradual improvement in European markets.

The company will host its 2025 Investor Day on May 14 in Toledo, Ohio, to discuss long‑term strategy and financial goals through 2028.