Owens Corning (OC) shares rose Wednesday after the building materials company reported first-quarter earnings that topped Wall Street expectations despite lower revenue and margin pressure.

Earnings Snapshot

The company reported adjusted earnings of $1.22 per share, beating analysts' estimates of 95 cents per share.

Revenue declined 10% year over year to $2.265 billion, exceeding the consensus estimate of $2.162 billion.

Adjusted EBITDA fell 35% from a year earlier to $369 million, while adjusted EBITDA margin narrowed to 16% from 22% in the prior-year quarter.

Operating cash outflow totaled $154 million, compared with an outflow of $49 million a year earlier. Free cash outflow was $387 million.

Owens Corning ended the quarter with $272 million in cash and cash equivalents.

Segment Performance

The Roofing segment reported sales of $960 million, down 14% year over year. EBITDA for the segment totaled $231 million, with a margin of 24%.

The Insulation segment posted sales of $867 million, down 5% from the prior year, generating EBITDA of $167 million and a margin of 19%.

The Doors business contributed revenue of $475 million, down 12% year over year, and EBITDA of $34 million, with a margin of 7%.

Executive Vice President and CFO Todd Fister said, "In the first quarter, Owens Corning executed well in markets that include the carryover impact of 2025 roofing market conditions. We are delivering strong margins at this point in the cycle in Roofing and Insulation, while we continue to reinvest for future growth and margin expansion."

Shareholder Returns

The company returned $63 million to shareholders through dividends during the quarter.

At quarter-end, 12.5 million shares remained available under existing repurchase authorizations. Owens Corning said it continues to target returning $2 billion to shareholders through dividends and share repurchases during 2025 and 2026.

Owens Corning Outlook

For the second quarter, Owens Corning expects revenue of approximately $2.6 billion to $2.7 billion, compared with analysts' estimates of $2.566 billion. The company also expects enterprise adjusted EBITDA margins of about 20% to 22%.

Management said discretionary remodeling activity and residential new construction are expected to remain subdued.

The key economic factors that impact the company's business are residential repair activity, residential remodeling activity, U.S. housing starts, and commercial construction activity.

Roofing demand is expected to remain resilient but slightly below the prior year, primarily due to elevated distributor restocking at the end of the first quarter, assuming no significant storm activity.

The company said North American non-residential construction markets are expected to remain stable, while European markets are projected to improve gradually.

Owens Corning also expects about $60 million in additional second-quarter costs tied to inflationary pressures related to the Iran conflict.

Owens Corning Price Action

OC Price Action: Owens-Corning shares were up 1.46% at $124.70 at the time of publication on Wednesday, according to market data.