Owens Corning has achieved $135 million of enterprise run-rate cost savings from its Doors business, exceeding its commitment to deliver $125 million by mid-2026, as the building products company advances another $75 million of structural cost reductions.
The additional savings are expected to come from network optimization and operating efficiencies, bringing realized and targeted improvements associated with the strategy to approximately $210 million.
The cost program is part of Owens Corning’s broader effort to reshape itself into a large-scale, residential-focused building products company. In April, the company completed the sale of its Glass Reinforcements business, which generated approximately $370 million of net cash proceeds.
Doors generated Q2 sales of $513 million, down 7% year-over-year, while EBITDA declined to $57 million from $75 million and EBITDA margin fell to 11% from 14%. The results demonstrate the importance of the ongoing productivity program as underlying market conditions remain challenging.
Across continuing operations, Owens Corning generated $2.76 billion of Q2 net sales and adjusted EBITDA of $660 million, representing a 24% margin. Adjusted diluted EPS was $3.93.
Cash generation remained strong. Operating cash flow increased 22% to $398 million and free cash flow increased 54% to $199 million.
Owens Corning returned $264 million to shareholders during Q2, including $200 million of share repurchases and $64 million of dividends. The company remains committed to returning $2 billion to shareholders across 2025 and 2026.
KEY QUOTES:
“Our second-quarter performance was driven by the disciplined commercial work of our teams and the execution of company-specific initiatives to grow our revenue and improve productivity. We continue to demonstrate our ability to perform across cycles while positioning Owens Corning for even greater success as market conditions improve.”
“In the second half of the year, we are committed to maintaining our healthy balance sheet, investing in capital projects to grow our future earnings power, and returning significant cash to shareholders.”
Todd Fister, Executive Vice President and Chief Financial and Operating Officer of Owens Corning
