Company: OC
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001370946-25-000077
Chunk: 212

Company: Owens Corning
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 212
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 regulatory and government authorities and work with its customers and end-users to assist with remediation for the recall. The Company has included an estimated liability for expected future costs related to the Recalled Products on its Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023. 

Due to these nonconformances, the Company reviewed the Paroc insulation product portfolio. The review has concluded. In addition to addressing the Recalled Products, the Company continues to assess potential nonconformances related to certain ventilation duct and steel beam insulation products. Paroc suspended sales of these affected insulation products as a precautionary measure while it reviews the potential nonconformances, but has not issued recalls. We expect to incur costs associated with the resolution of this matter. The amount or range of any potential loss cannot be reasonably estimated at this time.

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Table of ContentsITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

RESULTS OF OPERATIONS

Consolidated ResultsTwelve Months Ended December 31,(In millions)20242023Net sales$10,975 $9,677 Gross margin$3,254 $2,683 % of net sales30 %28 %Marketing and administrative expenses$1,044 $831 Loss on sale of business$91 $— Impairment due to strategic review$483 $— Gain on sale of site$— $(189)Other expense, net$365 $106 Non-operating (income) expense, net$(1)$145 Earnings before interest and taxes$1,128 $1,667 Interest expense, net$212 $76 Income tax expense$275 $401 Net earnings attributable to Owens Corning$647 $1,196 

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

Net sales increased $1,298 million in 2024 compared to 2023. The increase in net sales was primarily driven by the revenues from our Doors segment as a result of the Masonite acquisition, which was partially offset by lower sales volumes.

GROSS MARGIN

Gross margin increased $571 million in 2024 compared to 2023. The increase was primarily driven by the margins from our Doors segment as