Owens Corning Q4 FY2025 earnings call

• Unconditional commitment to safety with industry-leading recordable incident rate. • Delivered strong financial results in 2025 with revenue and adjusted EBITDA. • Made strategic moves like selling China/Korea business and divesting glass reinforcements. • Progressing with Doors integration, exceeding cost synergy commitments. • Leveraging brand, commercial strength, technology, and cost position for growth. • Promoted José Méndez-Andino to Chief Innovation Officer and Annie Baymiller to EVP and CIO. • Owens Corning named one of Wall Street Journal's top 250 Best-Managed Companies.

Roofing: Q4 sales $774M, down 27% yr-over-yr; full year sales $4.4B, down 4%. Q4 EBITDA $199M, down yr-over-yr; full year EBITDA $1.4B, margin 32%. Insulation: Q4 revenues $916M, down 7%; full year net sales $3.7B, down 6%. Q4 EBITDA $186M, down $42M yr-over-yr; full year EBITDA $848M, margin 23%. Doors: Q4 revenue $486M, down 14%; full year net sales $2.1B. Q4 EBITDA $33M, margin 7%; full year EBITDA $232M, margin 11%.

• 2026 outlook: Near-term market challenging, improving in second half. • First quarter outlook: Anticipated revenue ~$2.1B - $2.2B, adjusted EBITDA margin mid-teens. • Full year outlook: North American residential new construction flat; discretionary repair/remodel up slightly; Roofing demand improves throughout year; nonres construction improves; Europe market conditions gradually improve. • Roofing: Q1 ARMA market shipments down low 20%, revenue decline low 20% yr-over-yr; EBITDA margin low 20%. • Insulation: Q1 revenue down mid- to high single digits; price down slightly; EBITDA margins just below 20%. • Doors: Q1 revenue down mid-teens; EBITDA margin in line with Q4.

• Market conditions remaining weaker than expected. • Impact of tariffs on Doors business. • Uncertainty around regulatory approvals for divestitures. • Potential impact of dynamic tariff environment due to Supreme Court decision.

Q: How comfortable are you with your visibility into 2Q to 4Q?

A: Visibility is ramp-up based on market expectations, with volume progression improving throughout the quarter in all businesses, and expecting market improvements to drive volumes.

Q: Focus on CapEx guide for $800M.

A: Excludes glass reinforcements, includes investments in Roofing and Insulation for growth and cost efficiency, with plan to return to ~4% CapEx as percentage of revenue long term.

Q: D&A and Roofing price increase.

A: D&A in line with guide, Roofing price increase announced in April expected to realize in Q2.

Q: Channel inventories and severe weather in Roofing.

A: Restocking activity delayed by winter weather, but tough winter could lead to additional repair/reroofing activity later; destocking at end of year, restocking expected to ramp up.

Q: Contractor pull-through opportunities.

A: Leveraging roofing contractor engagement model to dealers and homebuilders, with 38% increase in dealer enrollments in 2025.

Q: Full year potential for Roofing.

A: Expected slower start, but Q2-Q4 more in line with 10-year averages.

Q: Targeted pricing action in Insulation and Doors.

A: Targeted moves to close price gaps, relatively stable pricing environment with some margin compression in Insulation res.

Q: Asset curtailment in Insulation.

A: Curtailed manufacturing plant in Utah, different capacity utilization for batts/rolls vs loosefill, industry capacity supports 1.4-1.5 million starts.

Q: Volume declines and price realization in Roofing.

A: Volume decline due to delayed restocking, but order entry and backlogs growing, expecting price realization in Q2 and beyond.

Q: Synergies from Doors acquisition.

A: On track to realize $125M cost synergies, with potential upside, finding operational cost efficiencies in tough environment.

Q: Shareholder returns.

A: Committed to $2B return of cash to shareholders, working on divestitures like Doors distribution business and glass reinforcements divestiture.

Q: Insulation production curtailment and non-res strength.

A: Plan to curtail production based on market weakness, non-res strength in data centers and industrial process applications.