Owens Corning delivered robust second-quarter results with earnings per share surging 34% and revenue growth of 10%, demonstrating the building products leader's resilience in challenging market conditions.

The company reported second quarter net earnings of $334 million, or $3.91 per diluted share, compared to $256 million, or $2.91 per share, in the prior year period. Net sales from continuing operations rose 10% to $2.7 billion, including contributions from the Doors business acquired in May 2024.

Owens Corning achieved its 20th consecutive quarter of adjusted EBITDA margins of 20% or higher, posting a 26% margin in the second quarter. The company generated $703 million in adjusted EBITDA, up 4% from the prior year, while maintaining strong profitability across its business segments.

"Our second quarter results continue to demonstrate the strength of our business and resiliency of our earnings to outperform the market despite more challenging near-term conditions," said Chair and Chief Executive Officer Brian Chambers. "This is the result of the structural changes and strategic choices we have made to reshape the new Owens Corning."

Segment Performance Shows Mixed Results

The Roofing segment delivered $1.3 billion in net sales, up from $1.25 billion in the prior year, while maintaining a strong 35% EBITDA margin. The business benefited from commercial strength and operational execution despite mixed market conditions.

Insulation sales declined to $934 million from $974 million in the prior year quarter, with EBITDA margin compressed to 24% from 25%. The segment faced headwinds from softer North American residential markets.

The Doors business, acquired in May 2024, contributed $554 million in sales with a 14% EBITDA margin, adding significant scale to Owens Corning's building products portfolio.

Strong Cash Generation and Shareholder Returns

Owens Corning generated $327 million in operating cash flow and $129 million in free cash flow during the quarter. The company returned $279 million to shareholders through dividends and share repurchases, bringing year-to-date shareholder returns to nearly $440 million.

The company paid a quarterly dividend of $59 million and repurchased 1.6 million shares for $220 million. In May, the board approved a new share repurchase authorization for up to 12 million shares, supporting the company's commitment to return $2 billion to shareholders over 2025 and 2026.

"With confidence in our cash generation, we returned significant cash to shareholders – nearly $440 million in the first half – and remain on track to deliver our commitment of $2 billion in returns over the next two years," said Executive Vice President and Chief Financial Officer Todd Fister.

Third Quarter Outlook

For the third quarter, Owens Corning expects revenue from continuing operations of approximately $2.7 billion to $2.8 billion, slightly down to in line with the prior year. The company anticipates generating adjusted EBITDA margins of approximately 23% to 25%.

The company expects near-term market demand for roofing repair activity to decline in the third quarter due to lower storm activity, while residential new construction and remodeling markets remain challenged. Non-residential construction activity in North America is expected to remain relatively stable.

Chambers emphasized the company's confidence in its long-term strategy: "As we progress through the year, we remain focused on leveraging our unique operating model to strengthen our market positions, sustain our financial performance, and create value for our customers and shareholders."