Roofing sales have modestly increased for Owens Corning in the third quarter of 2025, though challenging market conditions have resulted in losses for the manufacturer.

Owens Corning reported a 3% decrease in overall net sales for its third quarter compared to the same time last year. The manufacturer’s Q3 2025 results show net sales from continuing operations of $2.68 billion, down from $2.76 billion in Q3 2024 and below the consensus forecast of $2.71 billion.

The manufacturer reported a loss of $495 million in net income, from a net income of $287 million in Q3 2024. According to Todd W. Fister, executive vice president and chief financial officer, Owens Corning had adjusting items of $784 million, primarily due to a non-cash impairment charge in its door business of $780 million.

“This impairment is driven by updates to the macro assumptions in our accounting valuation model due to near-term market weakness, not a change in our longer-term view of the earnings potential of the business,” Fister said during a Nov. 5 earnings call.

Adjusted EBITDA for Q3 was reported at $638 million, with an adjusted EBITDA margin from continuing operations of 24%.

“Our third-quarter financial results continue to demonstrate our ability to perform at a high level even in the face of challenging market conditions, as we see weakening residential demand trends in the U.S. impacting our volumes in both repair and remodel and new construction product lines,” said Chair and Chief Executive Officer Brian Chambers.

Roofing Sees Small Gains

During the earnings call, Chambers said market demand for roofing products was impacted by a “uniquely quiet” storm season, with no named storms making landfall in the United States in Q3.

Even so, he said roofing and insulation are performing well due to structural improvements. Q3 roofing sales were reported at $1.2 billion, up 2% from the prior year. Year-to-date roofing sales came in at $3.6 billion, up from $3.5 billion the same time last year.

“When we compare today's results to similar market conditions seen over the past 10 years, we have improved margins by over 500 basis points in both our roofing and insulation businesses,” he said during the call.

He said the company will seek to unlock efficiencies in roofing and create network flexibility through “ongoing debottlenecking efforts.” This includes the startup of its new laminate shingle line in Medina, Ohio, earlier this year, as well as a new future plant located in the Southeast.

“This facility, which will be built in Alabama, will include leading technology and have the capacity to produce approximately 6 million squares of laminate shingles annually, enhancing service across our network,” he said.

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The company will lean on its contractor network program as well, which has grown by 9% since the beginning of 2025.

“Our results in the third quarter continue to demonstrate the power of our contractor engagement strategy and vertically integrated cost position to outperform the market and deliver resilient earnings,” Fister said.

Owens Corning is also expanding its insulation through investments like a new fiberglass line in Kansas City, Kan., providing a flexible production line that serves both residential and non-residential customers.

Insulation net sales fell to $941 million in the third quarter, down from $1 billion in Q3 2024, or a 7% decrease.

Outside of its financial performances, Owens Corning leadership noted that, in honor of October being Manufacturing Appreciation Month, the company maintained a recordable incident rate of 0.56.

Fourth Quarter Predictions

Looking ahead, Owens Corning expects minimal fourth-quarter impact from tariff exposure as a result of long-term and short-term mitigation efforts, based on current tariff policies.

In roofing, revenue is anticipated to be down mid-20% versus the prior year. Ongoing inflation is also expected to cause negative price costs for the fourth quarter.

“For nondiscretionary roofing repair activity, we expect the market to be down significantly on lower second-half storm activity and Q4 seasonality,” said Chambers.

In the fourth quarter, the company anticipates reducing its approximately $50 million tariff exposure to a net impact of about $10 million, primarily in its doors business.

“As we navigate near-term market dynamics, we remain focused on maximizing our performance and investing in the growth of the enterprise to create long-term value for our customers and shareholders,” Chambers said.

Owens Corning stock dropped 8.6% in premarket trading on Wednesday following the release of its Q3 results. As of 3:30 p.m. Nov. 7, its stock was $104.19, down from an opening of $104.46.