Company: OC
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-022858
Chunk: 66

Company: Owens Corning
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 66
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 Reportable Segments

Effective January 1, 2025, due to a strategic shift in how we manage our business as a result of the agreement to sell the GR business and the classification of the GR business as a discontinued operation, we changed the composition of our reportable segments. As a result, all prior period information was recast to reflect this change. The Company now has three reportable segments: Roofing, Insulation and Doors.

Tariff and Trade Uncertainties

Beginning in the first quarter of 2025, the U.S. government announced additional tariffs on goods imported into the U.S. from numerous countries and multiple nations have responded with reciprocal tariffs and other actions. The Company continues to monitor the economic effects of such announcements. Based on the current tariff policies, the Company expects to partially offset the operating profit impact of the enacted tariffs with supply chain adjustments and productivity and cost savings actions. To the extent additional tariffs or other trade restrictions are enacted and the Company is unable to offset the tariffs or the tariffs negatively impact demand, the Company’s revenue and profitability could be adversely impacted.

RESULTS OF OPERATIONS

Consolidated Results

  Three Months EndedMarch 31,(In millions)20252024Net sales$2,530 $2,017 Gross margin$725 $628 % of net sales29 %31 %Marketing and administrative expenses$261 $190 Other expense, net$22 $35 Earnings from continuing operations before interest and taxes$407 $376 Interest expense, net$64 $16 Income tax expense$88 $83 Net earnings from continuing operations attributable to Owens Corning$255 $278 Net (loss) earnings from discontinued operations attributable to Owens Corning$(348)$21 Net (loss) earnings attributable to Owens Corning$(93)$299 

The Consolidated Results discussion below provides a summary of our results and the trends affecting our business, and should be read in conjunction with the more detailed Segment Results discussion that follows.

NET SALES

In the first quarter 2025, net sales increased $513 million compared to the same period in 2024. For the first quarter 2025, the increase in net sales was primarily driven by the revenues from our Doors segment as a result of the Masonite acquisition, which were partially offset by lower sales volumes for our Roofing and Insulation segments.

GROSS MARGIN

In the first quarter 2025, gross margin increased $97