Owens Corning Reports $93 Million Net Loss Despite Revenue Growth to $2.53 Billion in Q1 2025

Owens Corning reported a net loss of $93 million for the first quarter of 2025, a significant decline from net earnings of $299 million in the same period of 2024. The company's revenue increased to $2.53 billion, up from $2.02 billion year-over-year, primarily driven by the addition of its newly acquired Doors segment, which contributed $540 million in sales. However, the overall profitability was impacted by a $348 million loss from discontinued operations related to the divestiture of its glass reinforcements business, which is expected to close later in 2025.

The company's gross margin for the quarter was $725 million, representing 29% of net sales, a decrease from 31% in the prior year. Marketing and administrative expenses rose to $261 million, up from $190 million, largely due to the integration of the Doors segment and inflationary pressures. Interest expenses also increased significantly to $64 million from $16 million, reflecting higher debt levels following the Masonite acquisition, which was completed in May 2024 for approximately $3.2 billion.

In terms of operational developments, Owens Corning's restructuring efforts have led to a reorganization of its reportable segments into Roofing, Insulation, and Doors, effective January 1, 2025. This strategic shift aims to enhance operational efficiency and focus on core building products. The company reported a slight decrease in EBITDA for its Roofing segment to $332 million, while the Insulation segment saw a modest increase to $225 million. The newly formed Doors segment generated an EBITDA of $68 million in its first quarter of operation.

Looking ahead, Owens Corning anticipates challenges in the residential construction market due to rising mortgage rates and overall economic conditions. The company plans to manage costs and capital expenditures carefully while focusing on productivity improvements. The ongoing integration of Masonite is expected to provide long-term growth opportunities, although the company remains cautious about potential impacts from tariffs and trade uncertainties that could affect its supply chain and profitability.

Overall, while Owens Corning's revenue growth reflects successful strategic acquisitions, the financial results indicate significant challenges ahead, particularly in managing costs and navigating a complex market environment. The company remains committed to its long-term goals of sustainability and innovation in building products.