Hello, everyone. Welcome to the 2025 Owens Corning Investor Day. I'm Amber Wohlfarth, Vice President of Corporate Affairs and Investor Relations here at Owens Corning. On behalf of our entire company, we want to thank you for taking the time to join us today. For those of you joining us virtually, thank you for tuning in. We're so glad you're here. For those of you here in the room in Toledo, welcome to our headquarters. It's great to see so many familiar faces. I hope as you walked into the building this morning and came through our product display area, you got a sense of the pride that we have in our brand, our purpose, and our people. Today, you'll hear from key leaders across our company, including our Chair and Chief Executive Officer, Brian Chambers, our Chief Financial Officer, Todd Fister, and each of our segment presidents.
You'll have a chance to hear from our full executive team when we finish the morning with time dedicated for Q&A. I know you're all ready to jump in, but before we do, just a few housekeeping reminders. First, for those of you here in Toledo, in the unlikely event that we have a safety emergency, you'll hear a siren that sounds in the room, and it will be accompanied with a description of the nature of the incident. The exits to this room are the doors that you came in over here. There are doors behind the production booth. There are also doors behind this screen. Once you exit the room, members of our safety team will give you further instructions. Second, today's remarks will include forward-looking statements subject to risks and uncertainties that could cause our actual results to differ materially.
We undertake no obligation to update these statements beyond what is required under applicable securities laws. For more information on these risks, please refer to slide four of our presentation. Next, the presentation slides and today's remarks contain non-GAAP financial measures. Explanations and reconciliations for non-GAAP to GAAP measures may be found in our presentation, which will be available on the Investor Section of our website during the CFO's final portion of the event. Today's slide presentations will be made available on our website at the beginning of each speaker's section. You can visit investor.owenscorning.com. Additionally, a transcript and recording of today's presentations will be available on our website for future reference. Now, before Brian kicks us off, please enjoy this short video highlighting the new Owens Corning built to outperform.
Can we go back? This is the moment. Tonight is the night. We'll fight till it's over. So we put our hands up like the ceiling can hold us. Like the ceiling can hold us. Can we go back? This is the moment. Tonight is the night. We'll fight till it's over. So we put our hands up like the ceiling can hold us. Like the ceiling can hold us.
We put our hands up.
Good morning, everyone. It is great to be here with all of you. Thanks for making time to join us for our 2025 Investor Day. On each of our earnings calls over the past few years, I have been updating you on our journey to reshape and focus Owens Corning as a building productqs leader in North America and Europe, where we can leverage our unique commercial, operation, and innovation capabilities to create additional value for our customers and our shareholders.
Over the next few hours, we're excited to share how all these strategic investments and structural changes, combined with our unique commercial capabilities and disciplined operational execution, have come together to create a new Owens Corning, a company that is more focused on high-value building products, a company that has unique operating advantages that we are now leveraging in every business, and a company that is built to outperform with multiple paths to deliver organic growth, higher, more resilient EBITDA margins, and generate significant cash flows and strong returns. While you will hear throughout the morning that there are many aspects of Owens Corning today that are different in terms of our market focus and operational capabilities, what has remained consistent are a core set of operating principles and values that have been a key driver for our success.
It starts with our people and our commitment to safety and ensuring we have a great place to work that attracts, develops, and retains the very best talent in the world. It includes our commitment to a shared mission, purpose, and set of values and winning the right way. It is our unwavering commitment to our customers, knowing that long-term success is driven by our ability to help our customers win and grow in the market. These principles have been key to driving our success over the past few years and give us a great foundation for future growth and performance. Let's start with what our team has accomplished since our last Investor Day in November of 2021.
At that time, we laid out an ambitious plan to accelerate our growth, deliver higher, more sustainable earnings, and generate significant free cash flow with a commitment to deliver 50% or more back to shareholders. To deliver these results, I introduced an enterprise strategy designed to unlock what I describe as the full potential of Owens Corning by enhancing and leveraging our enterprise capabilities through a more focused approach on building and construction materials. Over the past three and a half years, our team has worked hard to execute our strategy and deliver on every one of the financial commitments we made at that time. Since 2021, we have grown revenue annually by 9% on average. With strong commercial execution and increased investments in innovation and marketing, we delivered a 4% organic CAGR, with remaining growth coming from the Masonite acquisition.
Our focused approach to improving customer and product mix, along with the structural changes made in our manufacturing networks and operational costs, has expanded our average Adjusted EBIT margin by nearly 500 basis points. At the same time, we have also reduced the long-term capital requirements of the company and delivered CapEx as a percent of sales at 5% on average. We have returned 63% of free cash flow to shareholders through dividends and share repurchases from 2022 through 2024, consistent with our capital allocation strategy. Over that time, we have demonstrated the strength and durability of our margins and the power of the company to outperform the market and our peers through a wide variety of operating environments.
For 19 consecutive quarters, we have delivered Adjusted EBITDA margins of 20% or more, giving us great confidence that with our disciplined execution and customer focus, we can sustain this margin performance as we continue to grow the company. With our focus on working capital, we have translated strong EBITDA margin performance into significant free cash flow generation. In fact, since 2019, we have returned $3.6 billion of cash to shareholders through increasing dividend that has more than doubled during that time and repurchasing more than a quarter of our outstanding shares. All of this has resulted in industry-leading TSR performance, which has been a key focus of our team.
Through the combination of these strategic investments, structural changes, and consistent execution, we have delivered top quartile TSR performance, with our shares outperforming the S&P 500, our key peers, and the building products industry overall in the five-year period from 2019 to 2024. We are very proud of our performance and delivering these returns for our shareholders. As you can see, more than half of the value creation came from organic EBITDA growth over that period as we grew revenues and expanded margins. Since 2019, EBITDA in our insulation business has more than doubled, and EBITDA in our roofing business nearly tripled. Another significant portion of TSR was generated through our consistent return of capital to shareholders via dividends and share repurchases that I just showed. These gains, however, have been tempered over this time by a decline in our trading multiple that has remained below our peers.
Going forward, we expect to close this gap driven by a similar mix of above-market organic earnings growth and consistent return of capital. With the structural changes made to the company, which is generating higher, more consistent earnings and cash flow, as well as the opportunities for continued revenue growth, we see significant upside to owning our shares as the market recognizes the full value of the new Owens Corning. Let's talk more about the new Owens Corning and why we have great confidence we can sustain this level of performance. For us, it's very simple. We see the impact of the strategic choices and structural improvements made over the past several years, giving us sustainably stronger market positions, operating margins, and returns.
As I said earlier, we have been very purposeful in the strategic choices we have made over the last three and a half years to reshape and focus the company on high-value building products in large and attractive markets. Given our market-leading positions, we are making several organic investments to provide needed capacity to service the growth opportunities we continue to see. You will hear more throughout the morning about these investments and new capacity to better service our customers. We've also invested in strategic acquisitions that complement our existing product lines and leverage our customer and channel knowledge. Most recently, we saw an exciting opportunity to move into a new product category with a belief that we could grow revenues, expand margins, and generate strong cash flows through our unique ownership advantages.
Today, a year since closing on the Masonite acquisition, I remain confident in our ability to deliver on the revenue, margin, and cash goals we set for the business as we implement the same playbook we used to grow and strengthen our roofing and insulation businesses over the last several years. As disciplined operators and capital allocators, we have also made difficult decisions to sell or exit certain product lines, businesses, and geographies that do not fit our building products focus or do not allow us to build market-leading positions. Progress on the sale of glass reinforcements and our building products business in China and Korea continue to track in line with our expectation to close both transactions later this year.
Through these strategic choices, we have sharpened our focus on high-value building products in North America and Europe, which best positions us in end markets and applications that value the unique capabilities of our company. This has created a very different Owens Corning from where we were just a few years ago. We have exited businesses that sell more commoditized input materials and repositioned ourselves in attractive building product categories, with more than a third of our revenue coming from non-discretionary reroofing activities. We have narrowed our geographic focus to North America and Europe, allowing us to allocate more resources to strengthen our market-leading positions in two of the largest building product markets.
In addition to focusing the company on attractive building product categories and geographies, we've also increased the long-term revenue and earnings growth potential of the company by making several changes to structurally improve our market positions, our customer and product mix, and our cost positions. In each business, we are actively investing time and resources to create demand for our products and strengthen our customer share positions with the leaders in the industry. Later this morning, you'll hear more about our contractor engagement model and the value we are creating by helping them grow their businesses with our products, our brand, and our marketing services. We are also working with lumber dealers, builders, and architects to create demand for our products and product pull-through for our distribution partners. We've improved our product mix over time, driving top-line growth and margin expansion.
In roofing, we've capitalized on the market conversion to laminate shingles, adding capacity to service this high-margin business while increasing our roofing components' attachment rates. In insulation, we have grown our non-residential and European portion of the business to approximately 60%, where our products are specced into projects that provide functionality beyond thermal performance. Over time, these product lines carry more durable margins and are less price-sensitive versus new residential products. We are also investing to fuel future growth. As I mentioned, we are expanding our capacity in many of our product categories to service customer demand. In addition, we are investing in product and process innovation, brand, and digital tools, which creates unique value for our channel partners that supports our price premiums in the market. Operationally, we continuously look at our manufacturing network and supply chain to drive cost efficiencies.
Through this work, we have optimized our network footprint and unlocked capacity in our existing production lines to help us serve the increasing demand from our customers and improve our cost position. We continue to utilize TPM as our lean methodology to eliminate waste and improve safety, productivity, and efficiency in our manufacturing plants. Another leverage point we have been able to create with a more focused and integrated company is increased OpEx efficiency by utilizing common operating practices across the organization. All these structural improvements have been a driving force in our financial performance over the past few years and provide the foundation for sustaining this level of performance going forward. Through these strategic choices and structural changes, we have built a high-performing building products company with three market-leading businesses leveraging a shared enterprise playbook, each with opportunities to grow.
Over the past decade, we've built a resilient, high-margin roofing business, which is uniquely positioned within a non-discretionary product category. Later this morning, Gunnar will walk you through the key performance drivers of the business, including our industry-leading contractor engagement model that builds loyalty to Owens Corning and creates pull-through demand for our distribution partners. In insulation, we've built a more diverse and efficient business, generating higher, more sustainable margins. Over the last 10 years, we have pivoted the business from more cyclical residential insulation to be more heavily driven by insulation products used in commercial and industrial applications, which are specified and provide better margin stability. Nico will share how we have positioned the business to serve the increasing demand of our products through a highly efficient and flexible production network in a market with attractive secular tailwinds.
With the addition of doors, we've added a category leader where we can bring the same commercial and operational playbook we used in roofing and insulation to enhance the performance of our newest business. Rachele will share more with you on how we are delivering near-term margin improvements through our integration and cost optimization work while positioning the business for longer-term growth. With common channels to market and downstream customers, each of our businesses has opportunities for additional revenue and earnings growth as we better leverage our enterprise scale and unique OC advantages. In total, we've built a company designed to outperform with multiple paths to drive organic growth, deliver higher, more resilient EBITDA margins, and generate significant cash flow and strong returns. I'll close out this section highlighting a point I made at the start. At the core of our success is our people.
To succeed, the best strategies and operating plans need to be implemented by a strong and experienced team. We have a great leadership team at Owens Corning, with diverse skills and experiences and a common commitment to the success of our teams, the success of our customers, and the success of our company and shareholders. Our management team is a great blend of leaders with a rich history at the company and outside perspectives. At Owens Corning, we invest a significant amount of time and effort into developing great talent and internal succession. Most recently, we welcomed Rachel Marcon to the executive team to lead our doors business, and you will hear more from her later this morning. You will also hear from our other business presidents, Gunnar Smith and Nico Del Monaco.
As we wrap the morning, Gina Barredo, who recently took on the expanded role of Chief Administrative Officer, and Jose Mendez- Andino, our Chief R&D Officer, will join us on stage for Q&A. Now, I would like to welcome our Chief Financial Officer, Todd Fister, to join me as we shift our focus to discuss how we are building on the progress and performance of the last few years and positioning the company for future growth and success. Todd?
Thank you, Brian. Good morning, everyone. It's good to see you all today. This is my third Investor Day with Owens Corning. The first was as Managing Director at Insulation. The second was President of Insulation and now as CFO. I am so proud of what our entire team has accomplished since our last Investor Day.
Owens Corning has become one of the best-performing companies in building products and one of the most consistent. We made the strategic choice to be a company focused on one thing and only one thing, being the best building products company in North America and Europe. Today, Brian and I are excited to share how we will take the company forward.
At our last Investor Day, we laid out a strategy to drive our growth and performance that led to the financial results we've been delivering. It included a set of strategic priorities and enterprise capabilities that we believe would best position Owens Corning to capitalize on the market opportunities and support the growth of our customers. That strategy provided a great blueprint that led to our ability to deliver top quartile performance over the last five years. Moving forward, we see even more opportunities given the secular trends that play to the strengths of our company.
Brian and I frequently talk about creating multiple paths for Owens Corning to deliver strong returns. The foundation of our strategy is the choice on where to play, a focus on essential branded building products like roofing, insulation, and doors in North America and Europe. These are large markets. Our total addressable market is $95 billion today, and our share of that market is only 11%. The doors acquisition alone added almost $30 billion to our addressable market. That's one of the reasons we acquired doors. It provided opportunities for long-term growth in a fragmented industry where Masonite was a clear market leader. Our addressable markets are attractive with deep profit pools.
The majority of our business is local for local, building products manufactured in region using local materials and shipped to local customers to meet their specific code requirements and building practices. While we all know building products demand can change quarter to quarter, the long-term secular tailwinds are very favorable. Both the U.S. and Europe have aging and underbuilt residential housing stock. Homeowners expect good design and aesthetics, putting a premium on better products for both new construction and repair and remodel. Within our insulation business, we have two unique growth drivers: the ability to benefit from onshoring in the construction emission-critical facilities, as well as increased demand for energy-efficient solutions. Rising demand for electricity and energy, in part driven by the boom in AI and data centers, is likely to continue to strengthen these tailwinds in both North America and Europe.
As always, the most cost-effective way to have more energy available is to eliminate energy waste, which ultimately requires more insulation. Combined, these tailwinds create a strong foundation for Owens Corning to add capacity and grow volumes as we service our customers.
Working with our customers to understand how we can help them win and grow in the market has been a critical part of our company's success. You will hear more from our customers via video at the beginning of each of our business reviews. Here you see a snapshot of what's most important to them. I can tell you that in all my conversations with our customers, these themes are consistent and cut across each of our three businesses.
Whether I'm talking with someone who buys roofing or insulation or doors or all three, what I find is they value our product offering, but it's a small part of what differentiates us from our competitors. As you can see from these quotes, they value the knowledge and commitment of our people. They value our brand. They value our commercial expertise and thought leadership. They value our innovative programs and technology. They value our quality, reliability, and service. Individually, these attributes provide us with interesting differentiators. Collectively, these can be organized to create a powerful set of advantages that are not only unique to Owens Corning, but that can be scaled across our company now that we are more focused and more integrated.
Based on the growth potential we see within our total addressable market and these key differentiators most valued by our customers, we've updated our enterprise strategy to reflect the opportunities we see for the new Owens Corning. This strategy focuses on a set of priorities and unique capabilities that best leverage our three businesses and support our ambition to continue outperforming the market. As you can see on the left side of the chart, we've set three strategic priorities to drive our investment choices and operating priorities. The first is to continue focusing on strengthening our current market-leading positions, prioritizing investments that deliver organic growth and drive productivity. The second is to take full advantage of a more integrated company by better leveraging our enterprise scale and capabilities, prioritizing the OC advantages as well as opportunities to simplify and standardize work across the company.
The third is to look for opportunities where we can extend our product offering within roofing, insulation, and doors to support the needs of our customers and leverage existing go-to-market strategies. At the center of our strategy is a set of capabilities that are truly unique to Owens Corning and most valuable to our customers: our iconic brand, our unparalleled commercial strength, our leading technology, and our winning cost positions. Combine these OC advantages, create a playbook that can be scaled and leveraged across all three of our businesses to increase revenues and margins, creating value for both our customers and our shareholders. Let's review each of these capabilities in a little more detail, including how they separate Owens Corning from every other building products company.
The OC advantage is four unique OC capabilities that enable us to win and create value in building products, capabilities we have built and strengthened over decades. Every day, our Owens Corning team seeks to be consistent in our execution, to be reliable, and do what we say we will do in applying our OC advantage to help customers and shareholders win. The OC advantage starts with our brand. The Owens Corning brand has an almost 90-year history in building products. We were the first company to trademark a color, pink. We have a 45-year history with the Pink Panther, which has become synonymous with Owens Corning in the market. Pink on a job site stands for authentic, high-quality, reliable, and trustworthy products that offer good value.
The Owens Corning brand stands for the thousands of employees who care deeply about our customers and are committed to their success, and one Pink Panther who makes our brand recognizable and fun to homeowners who do not interact with building products every day. The Owens Corning brand resonates powerfully with homeowners, contractors, builders, and our distribution partners. In roofing, our brand is three times more trusted among homeowners than competitor brands. This helps roofing contractors win business across the kitchen table, leveraging our brand in their sales and marketing materials, a brand that homeowners who might purchase one or two roofs in their lifetime recognize and trust. Our brand creates real value for those contractors who close more contracts and make more money as a result of partnering with us.
In insulation, we are still best known as the company that sells the iconic pink fiberglass insulation that's one of the most recognizable products in the home. We have a powerful trade brand that resonates with contractors who work every day to help builders complete homes on time and on budget. At home centers, pro remodelers and DIY homeowners recognize our brand on shelf and online, helping to drive store traffic and average ticket size. Compared to a wide range of competitors in insulation and adjacent product categories, Owens Corning has the highest Net Promoter Score, with only one competitor in an adjacent category close to our results. We have a powerful brand that means something to the decision-makers in our end markets.
In addition to our brand, our commercial strength is unparalleled in the market. It's the result of investments we've been making for decades to create a holistic approach to working with our customers, which has created strong and loyal connections with the contractors, builders, and specifiers, and distribution partners that use our products. I shared in my opening comments that a core driver for us is the commitment to our customer success. It's a commitment that starts with me and our leadership team and goes throughout the entire organization. This quote on the slide from an insulation customer is very representative of what I hear from many of our customers. Owens Corning stands out because of their understanding of our business, our needs, and their ability to help us grow. That is the very definition of unparalleled commercial strength.
It's taken years for us to build, and it's difficult to replicate because it touches so many elements of how we connect with our customers that goes well beyond our products. The strength starts with our commercial team and the significant number of resources we have in the market to support each of the regions and local communities where our customers operate. The knowledge, experience, and commitment of our sales team is exceptional, which allows us to be valuable consultants to our customers. We utilize the full breadth of our company's resources to accomplish this. This customer-first approach is not new, as we have partnerships that span years and even decades. What is new is the breadth and depth of our capabilities, tools, and resources that we have today and how we utilize them.
It's our ability to customize the support and solutions to meet the unique needs of our customers that truly differentiates us in the market. While other companies can replicate some of the pieces, they can't easily replicate the model. It's this model that we're using today to strengthen our distribution partnerships and accelerate our downstream pull-through demand creation. We have built one of the strongest and broadest distribution networks in building products. Our go-to-market strategy utilizes all four primary channels of distribution, providing broad access to our products in the market. We have built incredibly strong partnerships over time and support over 8,000 distributor locations and over 4,000 home center locations. With the addition of Masonite, we are creating new opportunities with distributors who see value in offering a complete Owens Corning package of roofing, insulation, and doors.
Another unique and critical part of the commercial strength is our focus on building strong and loyal connections with the contractors, builders, and specifiers that use our products. This is also a long-term strategy that we've invested in and accelerated over the past several years to build an engagement model that can be utilized across our company. Today, you will hear more about how each of our businesses are seeing the positive impacts of this work as we expand our reach into the market and help those downstream customers build their businesses around our brand, our products, and our services. Going forward, we see significant opportunities to grow our market positions even further, given the strength of our distribution positions and the loyalty being built with our downstream customers. Another key advantage supporting our growth and performance is our technology.
Owens Corning has a long and rich history of being a leader in innovation and technology, which has helped fuel our growth and strengthen our market positions. At our last Investor Day, I shared that we were increasing our investments in R&D to accelerate our rate and pace of product and process innovation. Over the past 3.5 years, this investment in building new capabilities, new labs, and new pilot lines is paying off with increased product launches, more impactful process improvements, and more recently, an expanding array of digital tools to support our customers. Over the past three years, we have launched over 150 new or refreshed products across our company, allowing us to maintain our competitive advantage and capture new market opportunities. In fact, over 20% of our revenues are coming from new or improved products launched over that time.
This level of innovation not only highlights our ability to service changing market demands and customer needs, but also underscores our ability to translate R&D investments into commercial success. It is not just about the products we're developing, but how we are helping our customers through the use of digital tools. Our technology roadmap includes a wide range of touchpoints with our customers to help them select products, place orders, train employees, and create co-branded marketing materials. Through these tools, we not only create demand for our products, we create valuable connections that build loyalty to our company. In addition to accelerating our product innovation and expanding our digital offering, we've also continued to improve our process technologies.
This has been a hallmark of our company's success: our ability to continually improve our production processes, leveraging advanced process control systems and new manufacturing technology that has led to increased line speeds and improved quality and service. Notable outcomes of these efforts include the additional capacity gained in roofing and the structural cost improvements in insulation. Both are examples of how our leading technology not only contributes to our unparalleled commercial strength and top-line growth, but also helps to deliver our winning cost position.
This leadership team knows that the best performers in building products serve their customers well and have a winning cost position. When I'm in our plants, I'm amazed at the creativity of our teams in finding new productivity opportunities and by the curiosity and knowledge about what our customers value. You could see this playbook come to life in the Masonite acquisition.
We initially committed to $125 million in enterprise cost synergies in sourcing, supply chain, and overhead expenses. Today, we're raising that target. Rachele will outline the details, but I'll share now that our operating playbook is driving much more opportunity. Owens Corning has developed a strength in network optimization, rigorously evaluating our operations to unlock trapped capacity, expand low-cost capacity, and address high-cost assets in our network. We refined this approach in insulation and roofing, and now we're applying it to doors. As a result, we're making targeted modernization investments to add low-cost assets to our fleet and are evaluating choices in doors to automate and drive cost reductions. We have a playbook for vertical integration, providing cost efficiencies and guaranteed supply in roofing and doors. We also have been leveraging our operating expense structure to drive synergies in doors.
As we narrow our focus on building products in North America and Europe, we have further opportunities to transform our processes, driving simplification, standardization, and automation. The result is OpEx remaining at or below 11% of sales, while we invest more in brand, commercial, and technology. Finally, I'm proud of the work of our outstanding operations teams to generate approximately $350 million in cumulative cost productivity from 2019 to 2024.
As we execute on these three strategic priorities and fully leverage the power of the Owens Corning advantage, we are well positioned to continue outperforming the market with multiple paths to delivering on our long-term financial commitments you see here. Given the secular trends impacting housing and construction and our market-leading positions, we see a number of opportunities for our company and expect to grow revenues to $12.5 billion by 2028.
With the strategic choices and structural improvements made over the past several years, we have built a company that operates with higher, more durable margins and expect to continue delivering Adjusted EBITDA margins of mid-20%. With this performance, we will continue to be disciplined capital allocators of the more than $5 billion of free cash flow we expect to generate through 2028, with a focus on delivering mid-teen returns on capital. Todd will share more details on each of these financial targets later this morning. First, let's hear from our presidents on how each of our businesses are positioned to execute our strategy and deliver these results, starting with our roofing business.
The benefits of being able to sell Owens Corning products in a home, I think the biggest one is the brand backing. Everybody knows the Pink Panther. What's amazing about Owens Corning is that it becomes an extension of our brand. It's very easy to be in the home and to really sell the Owens Corning product because we feel like we are part of the Owens Corning family.
Yeah, I mean, Owens Corning has been amazing in the last seven, eight years since we've been part of your program. I mean, just the resources you guys have given us with either sales training, financing options, going to Toledo and meeting with leadership on HR and marketing and just different things. It's been amazing. I think Owens Corning helps our business grow through really the thought leadership and the management team always being willing to talk to us about different ideas and opportunities that we have within our business, willing to share the insights that they get. They bring that to each and every contractor in the network to help them grow their business, help their teams, and ultimately be successful.
I think everybody on the market recognizes the Owens Corning products. That makes the product easy to sell for me. The clients already have an idea of what Owens Corning means. Having the trainings and everything that we got, the support from the Owens Corning team allows me to sell this product easier to the clients. Something very important that I also like a lot is the warranty system that they have. When it's a really good product, it's a really good warranty department or system that they have to offer and give that peace of mind to the clients. Like the product that they're getting, they're going to be for a long term. It's a peace of mind with that.
Hello, everyone. My name is Gunnar Smith, and I have the privilege of leading our roofing business. I appreciate the opportunity to share more about the business and the market today. My career in residential steep slope roofing spans close to 30 years. I have spent the majority of this time in the market face to face with distributors, retailers, and contractors. That is a unique perspective I bring to this role and to Owens Corning. We have taken a multi-decade approach to invest in and build a deep understanding of our distribution partners and their customer, the roofing contractor. We are positioned to uniquely meet their needs and have driven a transformational shift in our business and in the industry, paving the way for leadership in areas like contractor engagement, higher value roofing systems, shingle innovation, and more. We are well positioned to sustain top-tier financial performance.
I'm excited to have the opportunity to share the keys of our success with all of you today. We have one of the most attractive building products businesses due to our market position and the unique value we create with contractors. This can be seen through our P&L, which is one of the best P&Ls in building products. It's important to emphasize that we have a unique market-leading position in a rare non-discretionary building product category. This is supported by a shift to higher value roofing systems where we lead with our top-rated shingles and portfolio of roofing components backed by the iconic Owens Corning brand. Our unique advantages create and capture value through our contractor engagement model. We benefit from deep partnerships with this growing network of contractors who purchase our branded roofing systems and rely on our business services and tools.
We're making investments to service our customers and drive growth while strengthening our vertically integrated cost position. These themes and the structural actions we have taken to improve our margin give us confidence that we will sustain our strong financial performance going forward. We're raising our long-term EBITDA margin guidance to 30% on average. To set context for our discussion, I want to ground this group on the makeup of our roofing business, which includes our shingles, components, and asphalt business, and our newly integrated non-wovens business. We are uniquely positioned in the North American steep slope roofing market with a leading product system. Our Duration shingles with SureNail technology have been critical to the success of our portfolio. Our components business enables us to sell accessories under OC branded roofing systems, as well as under tile, metal, solar, and non-OC asphaltic roofs.
This business has seen incredible growth over the last four years, with margins similar to the overall roofing segment and will continue driving growth here. If you take a look at the visual on your right showing the construct of a shingle, you can see the layers. We start with glass fiber, make it into mat, and then coat it with asphalt and granules. We're vertically integrated. We make the fiber, we make the mat, and we process our own asphalt. Internally, this gives us an innovation and cost advantage, which I'll talk more about. We're extremely proud of our performance in the roofing business, which is primarily focused in North America repair and remodel. Over the last five years, our earning performance has outpaced our revenue growth by more than two times. This isn't just recent growth and margin expansion.
If we look back 10 years, this was a $1.8 billion business with 15% margins. Leveraging the OC advantage, we've grown it to $4.6 billion and have doubled our margin rate to more than 30%. We have made strategic choices to drive this outstanding performance and create a sustainable business that is positioned for growth. The value we create with contractors delivers a pricing premium. Our OC contractor network is the largest it's ever been and continues to grow. Our heavy focus on selling a branded roofing system has grown the accessory attachment rate in our high-value components business. We continue to invest in laminate shingle capacity to service growth in the market and sustain our winning cost position. We have structurally transformed the business by exiting low-margin businesses like protective packaging and geosynthetics.
We continue to build confidence that we will build this strong financial performance with a leading position in a unique and attractive market. I want to emphasize that this is not your traditional repair and remodel market. More than 80% of demand is driven by non-discretionary re-roof. This is a product category with a built-in recurring replacement cycle. With the growth of U.S. housing stock, the market presents continued opportunity. In the last five years, the number of housing units in the U.S. has increased by 12%. A larger housing stock means a larger pool of homes available for re-roofing. Even as housing growth has expanded by this amount, we've seen the average age of the U.S. home increase to record levels. In sight of this non-discretionary re-roof market, we have also seen an increase in storm demand, which is creating a new normal.
Over the last five years, storm demand has increased by more than 15% compared to the previous five years. These major storms and weather events are impacting more people and more homes than ever before as we cover more land with buildings. For example, in the storm-prone Dallas-Fort Worth metro area, housing stock has grown at two times the national average over the last decade. I could say the same about Houston or Nashville. There is above-market growth in storm-impacted areas. In this same time period, the market has also seen a mixed shift from strips to laminate shingles, which now represent 95% of the market. There's growing demand for resilient roofing systems that provide higher value from homeowners and better margins for contractors and OC. These systems start with a premium laminate shingle like our Duration product, which brings unique innovation to our offering.
Inside of this market, we have delivered a very steady price CAGR in the low single digits in response to the value we create through our contractor engagement model and our Owens Corning branded roofing system. I'd like to highlight our leading components business, which gives us the ability to meet the demand for higher value and more resilient roofs. To put it simply, our business is so much more than shingles, as you can see here. With our components portfolio, we offer an OC branded roofing system that provides a higher performing roof for homeowners. The system secures profitable business growth for the contractor and OC benefits from attractive attachment revenue. We've seen the system value play out in our components attachment rates, which have grown annually over the last five years.
This is also a growth driver for us because our components play under other materials like tile, metal, solar, and non-OC asphaltic roofs. We have grown this business organically and inorganically. As you can see through system sales and focus, we have delivered a 12.5% revenue CAGR on components over the last five years, which has outpaced the larger portfolio. We continue to pursue growth opportunities in this area of the business. I am super excited to talk to you about our contractor engagement model. It is truly the heartbeat of our commercial strategy. This is a key takeaway from my roofing presentation today. It is the blueprint for success that cannot be easily replicated. We have built our strategy around a deep understanding of roofing contractors and what they value.
What we have learned is that the expertise and tools we provide through our OC contractor network are just as important as our market-leading products. We recently surveyed our contractors, and they reinforced this point of view. While Duration is the best and most recognized shingle in the market, there are several other things that rank as equally important. You started to hear that firsthand in the opening video. We help our customers not just sell in the home, but run their overall businesses better with digital marketing tools, with training and development, with lead generation and management. We help them build stronger businesses. These relationships become sticky because they proudly leverage our brand and the Pink Panther on their trucks, on their shirts, in their co-marketing. They are committed to doing business with us. Keep in mind that many of these contractors are small to medium-sized businesses.
We help take their business to the next level as a Fortune 500 partner. We know their trade in the industry extremely well. Our commercial team partners to grow their businesses holistically beyond a transactional relationship with a product manufacturer. This unique commercial partnership is backed by the power of our brand, which is the most trusted and recognized roofing brand in the home. It's easy for contractors to sell. It's also easy for them to buy. We have the most diverse customer portfolio in the industry with leading placement across all channels where contractors choose to shop. With our components portfolio and extensive training, we coach our contractors to sell a resilient roofing system. This gives them the ability to offer homeowners a high-performing roof while also growing their business revenue.
These attached accessories come with an attractive margin, and our contractors continue to scale up to a more premium mix. Note the trend line on the chart here. While our total laminate shingle strip mix mirrors the market, we continue to pull more Duration, our premium shingle product, through our OC contractor network. The value we create with contractors helps support our distribution partners and their businesses with inbound demand. Our distributors and retailers are eager to service these market-leading contractors, and we support them with local market knowledge and the power of our iconic brand. Today, our OC contractor network is made up of more than 26,000 contractors with deep loyalty to OC who grow their partnership with our business and purchase our full roofing system. We know we're building sustainable growth because of the proof you see here.
The majority of our shingle volume flows through this network, and program membership has grown at an annual rate of 17% over the last decade. We continue to see more contractors wanting to partner with Owens Corning. In order to service the demand we create through our contractor model and reinforce our winning cost position, we're investing in additional laminate shingle capacity, new capabilities, and supply security. At our last Investor Day in 2021, we committed to unlocking incremental capacity through debottlenecking. The team worked incredibly hard to deliver on that, which led to nearly 4 million additional squares. Our share in the market has been limited by our shingle capacity. We have sold every laminate shingle that we could produce over the last five years with contractors wanting more. Earlier, I talked about the industry mix shift from strips to laminate shingles.
We currently produce strips in our Medina, Ohio facility, but we're investing to convert that line to produce laminate shingles. It will come online next month, creating an additional 2 million squares of capacity. This is a capital-efficient project that improves our cost position and supports the growing demand for our products. We also announced a new roofing plant, which will be built in the Southeast and operational in the second half of 2027. This new plant will service our expanding contractor network in the fastest-growing market in the U.S. This creates more opportunity for system selling and profitable business growth while also benefiting our entire network with improved service across the country. With our leadership position and the trend towards more resilient roofing systems, we see more opportunity for components, particularly underlayments, with alternative roofing materials.
As our unique capabilities in this space become more relevant, we're increasing investments in our Houston components manufacturing facility to support productivity and margin sustainability while also unlocking more growth. Finally, to keep up with the demand for our shingles, we want to ensure that we have sufficient mat capacity to support our roofing growth. Our investment in our Fort Smith mat line also gives us the opportunity to sell externally to growing building product categories. As I've reinforced today, you should expect our roofing business to deliver top-tier financial performance and one of the best P&Ls in building products. We're the leader in a non-discretionary market driven by re-roofing. We continue to create and capture sustainable value through our unique contractor model and branded roofing system. We're investing to service customers and drive growth while strengthening our vertically integrated cost position.
These three things, in combination with the actions we've taken since 2021, give us confidence that we will maintain and deliver long-term EBITDA margin of 30% on average. These acknowledgments reflect the incredible effort and dedication that our team brings to work every day. Their commitment to our value of caring for each other is evident in our business's 10% reduction in recordable injuries in 2024. I also want to thank our customers who choose us as their preferred partner and trust us to help them win and grow. On behalf of myself and the roofing leadership team, we appreciate your time and investment in Owens Corning. Thank you.
Next, you'll hear from Nico Del Monaco, President of our Insulation business. Before he joins, we want to share some more customer perspectives.
The Owens Corning brand is unusual. It's very high consumer awareness in the marketplace with the Pink Panther out there in front. It plays well in the marketplace. Everybody knows what it stands for. It stands for efficiency, sustainability, and it's been a good brand over the years.
The CEE program has so many benefits and has helped us tremendously. The networking that we get from the national meeting and talking with other contractors and sharing best business practices has been second to none. The business support that we get, the training materials that we get, the installer training is incredible. Of course, the Installer of the Year award and celebrating excellence, we have been a past winner. It has helped motivate our installers to try and achieve that goal.
Advantages for the CEE program for us, the big thing is the warranty that we're able to provide to our customers. The other thing that helps us out too is just it's such a huge back-end office support. We're not a large organization. To be able to have that team there to be able to support us, just for us, it's a time saver . [Foreign language].
How does Owens Corning help our business grow? It's all about the people. It's the people that call on us, call on our branches, talk to customers, help us when we have a situation where we need help from them. They've been great. And so we've been loyal Owens Corning customers now for over 20 years.
All right, so good morning, everyone. I'm Nico Del Monaco, President of the Insulation business. I've been with Owens Corning for almost 25 years now and serve as the President of Insulation for almost two. Before this role, I was leading our European businesses, inclusive of Insulation, and before that, I led our non-movements business. Over the years, I have seen the Insulation business perform, grow, and navigate through many, many different market conditions. Today, I'm extremely proud to represent the talented Insulation team and to share with you what we have accomplished. Today, I'll tell you a story for the Insulation business that is very different from what we did or what it was five years ago. In 2020, this business delivered 18% EBITDA margins.
Last year, in a similar housing starts market, we delivered 24% EBITDA. What changed? Our conviction that the need for insulation will continue to grow over time as the world seeks more energy-efficient homes and buildings has not changed. We continue to believe that beyond thermal performance, product attributes such as moisture protection or compressive strength will continue to propel the demand for our product categories. However, versus five years ago, Owens Corning has developed several unique capabilities that we in insulation are taking full advantage of. We have built an insulation business that reduces our cyclicality. While maintaining our leadership position in our residential market, we have increased investment in more stable and durable non-residential products and applications. We win with the winners. We strengthen and build relationships with customers by leveraging our brand, contractor loyalty programs, and technology.
We have invested in our assets and processes and innovation to build a fleet that best serves our end markets with a competitive cost position. Our flexible network allows us to adjust to the various market conditions and maintain our technology leadership. Finally, we have a very disciplined approach to consistently drive productivity and cost improvement that are sustainable. We do all this on top of improving our safety performance by 32% since 2019. As a result, we are now delivering higher and more consistent margin, and we are raising our EBITDA margin guidance to 24% on average. Let me dive a little bit more into the transformation we made. Since last Investor Day, we have simplified, rebalanced, and refocused our business.
Accounting for approximately 40% of our revenue last year, the North America residential market is an important part of the business, and we'll continue to invest to maintain our market-leading position. Over the last five years, we have grown disproportionately in non-residential applications in North America and Europe, now accounting approximately for 40% and 20% of our 2024 revenue, respectively. We got there very intentionally by making a series of choices. In North America non-residential, we are partnering with our customers and focusing our efforts on attractive and growing end markets, including onshoring of manufacturing, warehousing, healthcare, or education. These markets outpace the average North America building market and have structurally higher and more stable margins. Our product offering allows us to maximize the opportunity of high-growth data centers. In our European businesses, we are focusing on commercial applications demanding more sustainable products and solutions and higher performance.
These markets are less cyclical and entail higher barrier to entry. The regions and segments we operate in are growing faster than the average of the European region. Finally, we recently announced the exit of our building materials businesses in China and Korea. As we look ahead, we are ready to capture exciting growth opportunities and realize higher earnings potential. We now have an industry-leading insulation business with a unique market position, delivering more stable margins. We have built this business with a track record of very strong performance. We have delivered against our commitment to outperform the market and create a foundation of financial stability and consistent execution. We have achieved significantly improved performance, almost 800 basis points of margin improvement versus 2019, delivering 24% EBITDA last year.
The margin performance is sustainable over time because we took several actions that have structurally changed the business, starting with a strong commercial execution with a disciplined pricing for value approach, as well as building the right product and channel mix, growing alongside industry leaders. We have a better balance between North America residential and non-residential, new build versus repair and remodel, and our focus footprint in Europe. We have structurally changed our cost position through three key actions: a disciplined approach to deliver about 2% productivity annually, exiting high-cost assets and lower-margin products and regions, and building a more flexible and modernized network to serve our customers. Finally, we continue to invest in our leading technology to deliver process and product innovation, which allows us to yield more of existing assets, and we launched close to 50 new or improved products since 2019.
As you have seen in our results, this has proven to be a very good and winning recipe. I see tremendous opportunity ahead as customers seek our support and guidance on secular trends as it relates to energy efficiency and sustainability. Here is what we are seeing. In North America residential, energy efficiency and underbuilt housing will drive more demand for insulation products. As we observed in the last decade, each home consumes about 30% more pounds of insulation today. While this varies year over year, we expect the trend will continue long-term. This, combined with home shortages, will continue to propel demand for insulation materials. We believe the insulation industry needs further investments to support the expected market growth. In non-residential applications, those applications and the demand for high-performance products and growing markets.
For example, onshoring, mission-critical facilities, and other highly engineered applications like data centers, where the market is growing at a CAGR of 15%. We are also seeing an opportunity in the discretionary repair and remodel space, where 39% of all commercial building spend is taking place. In Europe, the continuing focus on sustainability is changing construction practices. We expect to see growth as the region emerges from the recent slowdown, and regulations such as the Green Deal require more energy-efficient buildings and drive demand. I think the opportunity ahead of us is really exciting, and our insulation business will see growth rates above the construction market. Our ability to capture and capitalize on those trends will be well supported through two key enablers of success: how we win with our customers and how we win through cost. Let's start with the customers.
When I think of our competitive advantage, the first thing that comes to my mind is our iconic brand. Our pink insulation is the number one most recognized and trusted brand in the North America market, with a strong preference across the industry. Amongst our customers, the Pink Panther brand of Owens Corning is rated 60%-70% more distinctive, more unique compared to other insulation brands. Our global portfolio of brands commands a price premium and enables us to hold the number one or number two position in the market we serve in North America and Europe. In both our residential and non-residential markets, our recognized brand represents quality, high performance, service, and innovation. In the retail channel, the value of our brand is very well recognized and appreciated by their customers, both professionals and homeowners, enhancing customer loyalty and creating demand.
Our research indicates that we are one of the few that have added brand awareness from contractor to homeowners. Our Pink Panther brand recognition is driving demand across home centers, where, again, Owens Corning is the number one overall most prefe rred insulation brand, the number one pro preferred insulation brand, and the most specified mineral wool brand in the retail channel. Customer feedback and data show that the power of our brand gives us a critical advantage in the marketplace. On top of this, our market engagements go well beyond our brands and our products. We have continued to make investments to create downstream demand and pull through for our products. In North America, learning from our roofing business, as you just heard from Gunnar, our contractor engagement model differentiates us both in residential and non-residential.
For example, as you heard in the opening video, our Certified Energy Expert program brings training and marketing support to help our residential contractors grow their business. Our air care program continues to help increase the use of insulation through HVAC contractors. Finally, our engineer and construction team engages with architects, specifiers, and contractors to drive specification and pull through in commercial applications. Product is important, but it's not enough alone to position our business to win. We get the greatest advantage when we pair our cutting-edge product technology with our deep technical expertise and services. In Europe, customer-driven innovation and specification power allow us to win in high-performance applications. As an example, the ongoing trend for the functionalization of flat roofs for commercial building, where the market is growing three times faster than the average commercial market.
Our foam glass, cellular glass technology, and our expertise in this performance application enable urban structures to transform flat roof spaces into functional spaces like green roofs and parking structures, like you can see on the picture. This has unlocked incremental value from the 2017 Pittsburgh Corning acquisition and continues to drive material substitution. As you can see, we have multiple paths to win with our customers. Let me now dive into how we can win through cost. Our business is poised to grow with sustainable performance and stable margin in any market conditions. As a proof point, our variable manufacturing cost per unit has gone down on average 10% across our global business since 2019. We continue to realize the benefits of our cost actions, like our investments in modernizing our assets to create flexible and cost-effective networks to maintain a winning cost position.
For instance, we exited assets that were aging or higher cost, like Santa Clara and Wabash, and we invested in brand new world-class assets, like our fiberglass facility in Nephi, Utah, or mineral wool in Joplin, Missouri. Our investments in product and innovation, where we have invested in several pilot lines that are unique to the industry. This, combined with our expertise in chemistry and fiber geometry, allows us to innovate without disrupting our manufacturing network. As a result, we benefit from higher throughput, better density efficiency, extended furnace life, and reduced our waste. Finally, we drive approximately 2% improvement per year in productivity by using the total productive maintenance methodology. Not only do we drive cost improvement, but we reduce the need for reinvestment by better maintaining our assets and pull more volumes. Beyond cost improvement, all these also improve our return on capital.
Looking forward, we'll continue to invest in productivity with a lens for growth. We have announced a set of investments for more modern and flexible assets. As you know, we are currently executing several investments enabling multiple paths to deliver returns and year-over-year cash flow improvements. Our investment strategy serves attractive markets with flexible capacity while reducing our capital intensity by modernizing our assets. As you know, last year, we announced one of the needed investments to support market growth with our new line of fiberglass capacity in Kansas City. This state-of-the-art investment will deliver cost and capital efficiency, as well as additional capacity. Notably, this new line will have the flexibility to serve both the North America non-res market and residential segment, as well as unlock capacity in our network. We will capitalize on rising commercial market growth with our low-capital-intensive greenfield investment in Russellville, Arkansas.
This investment will increase our XPS foam capacity and is on track to start later this year. In Europe, as you heard me talk about the growing demand in commercial roofs, as well as the growth in industrial applications like LNG or carbon capture, I'm very happy to share that we are making a new investment in our foam glass plant in the Czech Republic to boost capacity by 50% and increase, sorry, our asset efficiency. Finally, in our European stone wool business, we are making an investment to reduce carbon emissions by 80% in our Swedish plant and reduce costs while supporting market recovery. In closing, what I want you to walk away with today is the fact that our strategic choices and structural improvement have positioned us for sustained and profitable growth. We have transformed the business to maintain and deliver higher EBITDA margins.
As I stated, we are raising our long-term guidance to 24% EBITDA on average. We now have an industry-leading business serving attractive and growing markets. I believe we have unique capabilities to win with our customers, thanks to our iconic brand, broad portfolio offering, and engagement beyond the product that distinguishes us in the industry. On top of that, our discipline in operational excellence and investment strategy to build a lower capital-intensive asset fleet will give us a winning cost position. We now have multiple paths to realize the full potential of the insulation business. I really want to thank you for giving me the opportunity to present an insulation business that I'm extremely proud of. I'm very thankful to our customers, our partners, and even more to the very talented and engaged insulation team across the insulation business that consistently delivers in all market conditions.
We look forward to the exciting opportunities ahead of us. Thank you very much. I will now turn it over to Rachel Marcon, President of the Doors business. Before that, let's first hear about some of our Doors customers.
Owens Corning helps us grow and achieve our goals in a couple of different ways. Our goal is to provide service greatness to our partners. We do that by being the preferred choice of the customer, by being a great partner to our vendor, and being a great place to work for our people. The Owens Corning brand provides significant value for us as a distributor by being in the marketplace with our customers, providing significant products that add value throughout the home, and generating significant performance for that end consumer. It is a brand and a product that is quality. It is backed up.
Owens Corning's got great people that stand up to what the product says it's supposed to do. At Builders FirstSource`, we are committed to providing superior value for our customers. We do this in part by supplying them with quality products when and where they require them. The Owens Corning brand is respected across our industry as one that signifies reliability, consistency, and most importantly, trust. I feel like we've got a really good partnership with Owens Corning, and we're real careful about companies that we partner with. One of the reasons, there's a lot of good reasons for us being good partners, but kind of top of the list, as always, we like and trust each other. That makes it easy for us to work together. I think we also share the same objectives for growth.
I think both companies see that as one of the primary ways to deliver value to our shareholders. The Pink Advantage Dealer Program is a bundling program that is proving to be very successful in the market by bringing what would normally be independent decision-making together with a group of products and put incentives behind that. Those incentives start to become really, really meaningful, and that drives a buying habit, a buying behavior that shows up as loyalty in the business and just starts to create a flywheel effect and some momentum in your business that makes everything go more smoothly.
The benefit of the Owens Corning Builder Advantage Program is the ability to offer our customers a range of products: roofing, insulation, and doors, with the convenience of dealing with one supplier, saving our customers time and effort. This also allows Builders FirstSource to introduce customers to products they might not have otherwise considered so sourcing from us.
Good morning. It's great to see all of you here today. I am Rachel Marcon. I joined Owens Corning nine years ago, and I have held a variety of roles in Europe and the U.S. during that time. Most recently, I served as the General Manager of our global non-wovens business, and I was part of our roofing segment leadership team. This past year has been one of the most exciting and transformative in our company's history, with tomorrow marking the one-year anniversary of Owens Corning's entry into the doors market with the closing of the Masonite acquisition. I'm both honored and excited for the opportunity to lead this business and to share both the progress we have made as well as the bright future we see for the business.
Doors provides the company with a differentiated growth platform that complements the roofing and insulation businesses you just heard Gunnar and Niko walk you through. The doors business also opens up entirely new opportunities for the enterprise to elevate our leadership position in branded building products. During our time together, I will start by providing an overview of what differentiates our doors business and makes us the leading manufacturer of products and solutions for our customers. I will then unpack the work we have done to build a winning cost platform from synergy capture, as well as the active set of projects driving our efficiency to new levels. After that, I will provide more information around how we are driving growth through differentiation and by leveraging the company's commercial strength to create pull-through demand with our customers.
Finally, I will put all these pieces together to show how we're structurally improving the doors business to achieve 20% EBITDA margins, leveraging our enterprise scale and the Owens Corning advantage. The doors business competes in an attractive market that provides us with opportunities to both differentiate our product offering and grow with our customers through superior quality and service. This is another essential building product category. In the U.S., the average single-family home installs approximately 16 interior doors and three exterior doors. Doors provide many benefits to homeowners that support the way they live and address needs that include security, energy efficiency, style and design, controlling light and sound, and providing a way to flex depending on each family's changing needs throughout the day or over the years.
Our doors business offers a comprehensive portfolio of products, systems, innovations, and designs in the industry and positions us as the ideal partner to create growth for our customers. We hold either a number one or number two position in each of our four product categories. Starting on the left, we are known as the clear leader in residential interior doors, and the Masonite brand has been synonymous with quality and value for 100 years. Our fleet of manufacturing assets positions us as the partner of choice for the most well-recognized building products distributors and retailers in the industry. Our interior product portfolio includes hollow core doors that deliver both quality and value, solid core doors that enhance the sound-dampening performance of the product, and beautiful solid wood doors.
We can satisfy a wide range of interior door applications with our designs and features, making us the industry reference for what a door company should be. Our residential exterior doors benefit from a full portfolio of steel, aluminum, wood, and fiberglass doors to meet every homeowner need. The most prominent location where these products are used is the front entry to a home, which is a key focal point that requires outstanding craftsmanship, design, and durability, and provides many opportunities to differentiate and innovate with our industry-leading research and development capabilities. In addition to the entry door, we can meet the needs of any other door opening to the outside of a home with the most important security, style, and durability features. The Fleetwood doors and windows have been the gold standard choice that architects and luxury builders have preferred for decades.
Every door and window we make is custom-built to the performance and design requirements of the most stunning residential properties you can find. This is also an attractive category for us, with strong margins that are above the segment average. Our line of Endura-branded exterior door components makes our doors portfolio extremely comprehensive in the North American market, which gives us a unique design and cost advantage in building an exterior door system while also allowing us to sell components on non-OC door systems. The breadth of our door systems offering enables our customers to combine our residential exterior door with our components offering as an integrated system. It creates a high-performance product that is 64% more air and watertight while maintaining the style, design, and maintenance profile that homeowners value. This exterior door system, combining doors and components, is a lot like our roofing systems, combining shingles and underlayment.
Our products work better together and create better outcomes for our customers. The attractiveness of our business is not just in our product mix, but also our end market mix, with channels that align very well with Owens Corning's roofing and insulation businesses. Let us look at where we sell our products. As the leading manufacturer of innovative door systems, we generate over $2 billion in annual revenue. Most of our revenue is generated in North America, where we have a balanced level of exposure to new construction and the repair remodel segments of the market, with an even mix between interior and exterior components. Our broad distribution network provides consistent reach in the U.S. and Canada to serve builders, dealers, and contractors, and our product portfolio delivers solutions that enable our partners to serve all of their customers' needs.
Now that I have set up the background on our business segment, let's spend some time talking through the work that has been underway to strengthen the margin performance of the business. Since acquiring the doors business, our teams have been hard at work, ensuring both a smooth integration and delivering the expected cost improvement needed to transform the margin profile of the business. Starting with synergies, we are on track to exceed the $125 million of enterprise cost synergies that we committed to when the acquisition was announced. In fact, we have already captured 70% of that value during our first year of ownership through Q1 2025, which is a run rate figure, approximately half of which will be recognized through the doors segment's P&L.
In addition, our teams have identified further upside to our synergy commitment that will give us the ability to expand margins and generate cash. In addition to the original OpEx and sourcing synergies, we have identified a comprehensive list of projects and opportunities to drive operational improvement and create efficiencies that we expect to generate an additional $75 million of structural cost savings for doors over the coming years. This is what Owens Corning does best. As you have already heard from my colleagues, these advantages have created a proven track record of improving margins in both our roofing and insulation businesses over time. The list of projects is compelling and includes opportunities to streamline our footprint, invest in automation, and increase efficiency across the business.
Most importantly, our plans will deliver these margin improvements while keeping the needs of our customers at the forefront and maintaining our leadership in quality and service. Our focus on operational excellence is creating the healthy foundation of a winning cost position to support growth in all of our product categories. When combined with the full advantage of the capabilities offered by the enterprise, this will drive a meaningful change in driving our performance moving forward. Now, I would like to talk you through the key drivers of value that I see in the industry and some of the tools that we have to win and grow. As I mentioned earlier, doors competes in a market segment with multiple opportunities to differentiate in our product offering to deliver value with our customers.
In a recent survey we conducted, interior doors customers ranked quality and service as three to four times more important than price. This means that when we deliver a high-quality product with dependable and reliable service, our customers will choose Owens Corning as their partner of choice year after year. The great news is that we are already doing this. The right side of the slide shows that we ranked number one on satisfaction with customers in our key channels on every one of these attributes. Our total Net Promoter Score is also ranked number one versus our competition. For one important channel, home centers, our lead on NPS is 15 points versus our next best competitor.
This reinforces the fact that we have a truly unique position within the industry that we can build upon by leveraging the full power of Owens Corning's leading capabilities in quality, service, and brand. There is great excitement with our customers for how Owens Corning will take the business to even greater heights in these key differentiation areas. There are two main paths to long-term value creation. Now, the doors is part of Owens Corning, and both directly leverage the OC advantage that Brian and Todd talked about earlier. The first is centered around operational excellence. As we mentioned earlier, we will be optimizing and improving our manufacturing network to ensure a winning cost position. Similar to our insulation business 10 years ago, we have a network that can be operated more efficiently while maintaining strong service levels.
We will focus on enhancing our service capabilities and on further improving quality through automation and the implementation of our TPM approach. By ensuring we work safely through the company's world-class Safer Together operating framework, we have already reduced recordable injuries by 50% versus the already above-average performance prior to our ownership. The second path to value creation is illustrated by the customer quote you can read on the right side of the slide, which is all about leveraging the strength of Owens Corning's iconic brand and the unparalleled commercial strength recognized by our customers to accelerate growth. With a strong foundation on quality and service at the right cost, the Owens Corning brand and its reputation as authentic and trustworthy, as high quality and good value augments Masonite and can be a difference maker in delivering performance that our customers trust. Let's talk more about growth.
Our leading product portfolio and capabilities give the doors business an outstanding platform to drive growth with our customers. As part of Owens Corning, leveraging the commercial strength of the enterprise, we have more tools and capabilities than ever before to capitalize on our full potential. Our channels in North America are highly complementary to the other businesses, and this synergy creates new advantages and opportunities for our teams. At home centers, Masonite and Owens Corning have a long history of partnering with the leading retailers in that space. They value our brand reputation with homeowners and small contractors, our in-store service, and our merchandising capabilities. Our dedicated account teams across categories and the digital tools we have developed improve their customer experience. The scale of our product assortment and strength of our brands have created new joint growth opportunities.
In this channel, we provide a value-added service through complete pre-hung door systems ready to be purchased and installed by remodeling contractors. Our consistent track record as a supplier of choice demonstrates the value of the Owens Corning brand in the retail channel. Our experienced teams understand the needs of homeowners and contractors and translate these into successful growth strategies for our home center partners. In the wholesale channel, as I shared earlier, we provide a very comprehensive door offering, and we are helping our distribution partners grow with their own down channel customers in new and exciting ways. We have already started to see the benefit of the Owens Corning commercial advantage within doors.
The Owens Corning Peak Advantage Dealer Program is a customer loyalty and support program, much like our roofing contractor network program, that allows Owens Corning to serve the over 4,000 small family-owned lumber dealers in the U.S. and connect them with the full power of our commercial strength. This creates downstream demand and pulls products through distribution, giving our customers another lever to serve their end customers. In 2025, doors have now been added to the program. No other program in the industry offers the breadth we do, and the early feedback from customers has been outstanding, as you just heard in the video. In the first quarter, we saw an acceleration in the number of new dealer signups, and we expect to add more than 20% to the membership count by year-end, which is a faster growth rate than the program has seen recently.
Wholesale customers who carry doors now have access to a recognized loyalty program like our insulation customers, and they can leverage our brand strength in their discussions with both existing and prospective new dealers. The benefit compounds for those who carry the full Owens Corning product portfolio and now have stronger reasons to partner with us holistically on their growth, leveraging our commercial capabilities to drive loyalty and reward their customers for supporting our product. This go-to-market strategy highlights how our three businesses can show up together in the market and help our customers win. When you pull all this together, the doors business has line of sight to driving margins into the high teens in the midterm and delivering margins at or above 20% through the broader industry demand cycle.
500 basis points of that improvement will be driven by the cost work that has been underway since the first day of the acquisition close, with half coming from cost synergies and half through the network optimization projects the team has identified. As I shared earlier, we are well on our way towards delivering and exceeding the near-term total enterprise cost synergy target of $125 million. Adding the ongoing cost optimization work, we are confident that we have the right levers within our control to achieve 18% margins with limited market improvements. We do not expect the market volumes to stay where they are. As I shared earlier, we see multiple paths and levers to differentiate and deliver growth for doors. Our position has enabled OC to grow our share and strengthen our partnership with our long-term and new customers alike.
Our growth initiatives are expected to deliver revenue increases above the market, and when coupled with improved market conditions, it will bring us to 20% EBITDA and beyond. To close, our team is focused on enhancing what was already one of the strongest door manufacturing platforms in North America and Europe, and we are excited to be able to share how this work is coming together. I am very thankful to our customers and partners for their trust during the acquisition and to our doors team for their resilience and passion for the business. With the powerhouse advantages of the Owens Corning enterprise and the three compelling strategies of our roofing, insulation, and doors business, we hope you have a better understanding of what makes Owens Corning such a compelling investment story with above-market growth, sustained strong margins, and outstanding cash generation potential as we look to the future.
Thank you for your attention during the first section of this presentation today, and now I'm going to turn it back to Amber.
All right. We are now going to take a short break, so we'll come back together at 10:50 A.M., so about 20 minutes, and have Todd talk us through our financial results that the businesses will deliver together. Thank you.
Hello everyone and welcome back. I'm excited to be here today to discuss why we view Owens Corning as such a compelling investment opportunity. Earlier this morning, Brian and I shared our refreshed enterprise strategy with a path to deliver great results over the next three years. The new Owens Corning is built to outperform. We are already a high-performing building products company, and we are positioned to compound long-term value for shareholders.
This strategy results in strong financial returns, growing to $12.5 billion in revenue, delivering mid-20s EBITDA margins, generating $5 billion in free cash flow, and mid-teens returns on capital. As I shared earlier, few companies have the combination of long-term secular tailwinds that benefit OC. Roofing is a leading branded business in a rare non-discretionary category. As Gunnar shared, we benefit from long-term housing growth and see population growth in parts of the U.S. that have more storm activity and more intense climates. More than 80% of this business is driven by repair activity and recurring roof replacements. Our insulation business also is well positioned to grow, as we've done consistently for the last decade, benefiting from energy efficiency trends, particularly in Europe.
With the addition of the doors business, we've expanded our product offering in discretionary repair and remodel, and we're well positioned to capitalize on the market rebound over time. In the long term, the housing market in the U.S. has been underbuilt and needs investment in both new construction and repair and remodeling. Beyond strong secular trends, Owens Corning has a long history of winning with our customers. While we manufacture products, what we sell is a long-term relationship with OC that helps our customers grow their businesses. Gunnar, Nico, and Rachele shared how all three businesses are leveraging our contractor programs, brand, and innovation to position OC to win with the winners. We remain confident that Owens Corning is the right commercial owner of the doors business.
Adding doors to our company gives us another growth platform where we can apply the OC playbook with channels and customers we know well. Finally, organic volume growth has been limited in recent years as we were sold out in the largest product lines like asphalt shingles and fiberglass insulation. Over the next few years, we will start up multiple assets in North America and Europe to provide volume for future growth, beginning with our Medina shingle line later this quarter. The result of this is $12.5 billion in revenue by 2028, with our rate of growth accelerating through this period as new assets come online. We have multiple paths to deliver this growth. While we expect market conditions to improve, we've assumed relatively flat macros on the path to achieve the results. While pricing improves modestly, we anticipate our revenue growth to be primarily driven by above-market volume growth.
We will focus on growing above market through increased capacity in fiberglass and shingles, as well as our strong positions across all of our businesses. We will continue to seek price and mix upside as we add more value for our customers. The new Owens Corning has multiple paths to drive increased revenue, with an emphasis on organic volume growth, and we are making the strategic investments to support this. For 19 consecutive quarters, our EBITDA margins have exceeded 20%, and we have significantly outperformed our prior margin guidance for both roofing and insulation. Today, we are raising our enterprise guide to a mid-20s EBITDA margin on average, and we expect margins to range between 20%-27% in normal economic conditions. You can see our market assumptions on this page. At the average, we are among the highest margin companies in building products.
The roofing guide is 30% on average, driven by the uniqueness of the non-discretionary market combined with our commercial and operating model. We expect the range to be 27%-35%, depending primarily on the shingle market size. Insulation has exceeded 20% EBITDA margins for 16 consecutive quarters as a result of our operating discipline and strategic choices. The 24% margin guide is strong for our industry, but the low end of the range is also notable. We expect our insulation business to remain above a 20% margin in normal conditions, well ahead of our historic performance. Doors margins are the outlier today, but we've been here before in roofing and insulation, and just as we did in those businesses, we'll execute the OC playbook to increase margins. Doors has as strong a starting position as either of those two businesses.
In both roofing and insulation, we applied the OC advantage to structurally improve margins. This did not happen overnight, but it did happen consistently over the years as we strengthen each business commercially and operationally. We're confident Rachele and her team will deliver results close to insulation and roofing over time. To deliver the above-market growth and sustained EBITDA margins we've discussed today, we are investing in capital projects at elevated levels in the near term. You've heard about the attractive investments we're making to expand capacity across the enterprise in North America and Europe. These capital projects will contribute to the future earnings of the new Owens Corning, but they also drive an improvement in capital efficiency as we modernize our assets. Once we complete these projects, expect CapEx to structurally decline to 4% of sales.
The combination of this declining capital intensity, along with above-market growth and strong margins, delivers significant cash generation. We anticipate generating more than $5 billion in free cash flow from 2025 to 2028, with improvements sequentially through this period. We expect to return to a very attractive 17% return on capital by 2028 as we grow into the doors acquisition that added significant invested capital to our balance sheet. A 17% return on capital and a bigger balance sheet results in more value creation for shareholders. These substantial cash flows create opportunities to return significant cash to shareholders while we also invest for earnings growth. We seek to maintain an investment-grade balance sheet. We are targeting two to three times net leverage and do not intend to allow leverage to decline as much as in recent years. We remain focused on returning cash to shareholders through dividends and share repurchases.
Owens Corning has a strategy that results in organic EBITDA growth, strong cash generation, and significant return of cash to shareholders, all critical drivers of historical and future TSR. We view Owens Corning as a company that can continue to drive strong above-market shareholder returns. As a result, we are committing to a $2 billion return of cash to shareholders through dividends and share repurchases over this year and next. This represents approximately 100% of our expected free cash flow in this period. The board earlier this week approved an increase in our share repurchase authorization to support this capital allocation. We have talked today about the new Owens Corning that is built to outperform. If you leave today with one thing, I want it to be this final section. Ten years ago, OC was a 16% EBITDA margin business that traded at more than 8x EBITDA.
In recent years, our multiple has been lower. Why? The argument was our capital intensity, earnings sustainability, and the fit of glass reinforcements within our building products business. Since our last Investor Day, we've addressed each of those. The glass reinforcements business is under contract to be sold, improving our focus, cyclicality, and capital intensity. We've reshaped and refocused the company and created multiple paths to generate consistent returns in different markets. We've earned a reputation as a leadership team that delivers on our commitments. We have a strong playbook to create value in building products, built on our decades of experience and know-how. By 2024, we expanded our EBITDA margins to 25% through the strategic choices and structural improvements we've discussed today. As a result, OC is better positioned for future profitable growth.
We now generate one of the highest EBITDA margins in our industry, and we committed today to maintaining high margins in typical market conditions. As strong as our historic TSR has been, we see opportunity to continue to drive top quartile TSR. In addition, we see opportunity to trade in line with high-performing peers as we emerge as the new Owens Corning. We have shared our financial targets to achieve $12.5 billion in revenue by 2028 and mid-20s Adjusted EBITDA margins, while generating $5 billion in free cash flow and delivering a mid-teens return on capital. We view our stock as an excellent investment, which is why we are committing to a $2 billion return of cash to shareholders between this year and next. The new Owens Corning is built to outperform.
I'd now like to invite Brian and the rest of the executive team to join me on stage for Q&A. Thank you.
All right. Yeah. If you have any questions, please raise your hand. We've got a couple of mic runners in the room, and we'll just kind of go right through. You can start here, John. Go for it.
Hi, John Lovallo from UBS. Thanks very much for doing this, guys. First question is on the $12.5 billion in revenue by 2028. I mean, you talked about a flat macro, modest, or some price improvement and above-market volume. I guess I'm curious on that volume piece. What is sort of the thought process in terms of organic versus M&A?
Yeah, that would be primarily setting up a path for organic growth. That's one of the biggest strategic priorities I talked about, how we strengthen our market-leading positions, prioritizing investments in growth and productivity. As Todd shared, when we went through that growth curve, the investments we're making in capacity, they're going to come online over the next three years. We would expect with that capacity, we can start to see above-market growth as we continue to look at our customer share positions and how we can help support that downstream growth. All that we talked about in terms of those demand drivers, that capacity is going to help us to be able to service the growth that we've really been struggling to get at here over the last few years in a lot of our product categories where we've been sold out and that increasing demand is out there for us.
The step up of CapEx investment is actually a recognition that we've got great businesses generating great returns. We just need additional product capacity in order to service that downstream demand. The biggest drivers of that going forward, as Todd mentioned, are going to be volume growth that would trend at or above the market. That's really the biggest driver in that 12.5% . Anything else you want to?
No, the only other thing I would add is when we think about price, we're assuming price offsets inflation through this period, but we're not seeing additional price accretion to margin through the period. Really, it is an organic volume story that reflects the strength of the market positions we have, as well as the new CapEx coming online through this period, including the roofing shingle asset that we would expect to start in late 2027.
That's helpful. Maybe the follow-up would be for Gunnar, just on the pull-through model of contractors pulling through the product through distribution. I mean, I do not think this is something that's necessarily new, but it's something that you guys have been talking about more and more. Curious what in your mind are the biggest drivers. I mean, obviously there's product portfolio, there's the quality of the product, the relationships, but what sort of differentiates OC in this regard? Does this position you in a way that it really does not matter quite as much what the fighter brands are doing on pricing?
That's very much the point. At the end of that question was the point. Yeah, the value drivers are largely beyond product. What our contractors would say, if we had contractors up here serving them right now, asking them about this now, they would say, "You have the best products in the market. We love bundling the system and selling that in the home." More important, the value we create through our program beyond that and how we help their businesses creates a stickiness that, yes, separates them and separates us, separates them from their competitors, us from our competitors. That stickiness is infectious. More and more contractors are wanting to come in to compete against others that are leveraging those skills and those skill sets that we give them. I think I'd say a couple of things. First, product.
Second, the ability to offer a full system. Third, all the value beyond product. I do not think that is easy to replicate. Yes, we have been doing this for a while. Yes, we are starting to talk about it more because it is becoming more and more of an advantage that is just pointing to exactly the results we are delivering. I think we are far ahead of the competition, and it is going to be really difficult for someone to replicate that.
Yeah, Phil. Right behind you, Phil. Other way, Phil. There we go.
Hey, guys. Thanks for all the great color. I guess first question is for Todd. You gave some helpful ranges in terms of margins through different housing starts environment. I think the low end was 1.2 million starts. On the shingle side, 135 million squares, which is both dramatically down from where we are today. In that backdrop, can you kind of give us the framework in terms of that margin profile? Because you said your downside EBITDA margin is 20%, which is really good in what is historically viewed as a cyclical business. Just give us some comfort in terms of some of the buffers and the flexibility of what you could do this cycle versus past cycles in a more downside-type air pocket recession environment, whether it is roofing, insulation, or doors.
Sure. Thanks, Phil. When you look at the overall enterprise guide, we have the 20%-27% range for the enterprise. On the downside, what really comes through is the strength of the roofing business that Gunnar talked about. When you think of the portfolio mix that we have now across all three businesses, we have a roofing business that really is driven by non-discretionary re-roof demand.
It is somewhat acyclical in that it is driven by recurring re-roofing. It is also driven by storm activity that we see in population centers that are increasingly growing in storm-intense areas. We have a roofing business that is not going to cycle with what many of you think the housing market cycles with, which is new construction. We also have a discretionary repair and remodel position now that is very different than what we have had historically with the doors business. You saw that with the summary that Brian shared around the increased position that we have in discretionary repair and remodel. When we think about our business, really we have three big macros. We have non-discretionary repair and remodel. We have discretionary repair and remodel. Then we have new construction starts.
It's really interesting when you think of the first quarter of this year, so just Q1 results of this year. Our RES North America position in terms of revenue is about 15% of the enterprise revenue, 15% of the enterprise revenue. When you think about the impact of that business on overall enterprise results, it's somewhat muted by the fact that we've grown our roofing business. We now have a doors business that's different. We've got an insulation business that's far more focused on non-RES in North America as well as in Europe. All of those, as well as the structural margin options we still have within our portfolio to create more value and how we operate our operations, give us confidence that 20% is a good number on the downside.
Yeah, maybe I'd add. I mean, that's part of the company we've built now is that we're diversified to an extent inside building products. When you look at our revenue makeup, about half or a little over half our revenue makeup is now going to be in repair and remodel, a third of that in non-discretionary. You got about 25% total new construction, 15% on RES, and about 25% non-RES. When you look at a 1.2 million housing start, it generally is going to get offset by some other more positive macros in roofing or in non-RES commercial insulation or in Europe in a way that really now balances out where we've got that great confidence that even if one of those macros continues to trend down, the strength of the company now we've built is that there are other opportunities to hold those margins up and on average keeping and sustaining a 20%+ EBITDA margin through kind of any of those economic scenarios.
Super. Just another question for me. I know you guys talked about it was a bigger focus today versus the last Investor Day in terms of the value sell on the enterprise value piece. Brian, kind of help us think through where are you with that journey. Certainly, it feels like Gunnar talked about extensively on the roofing side, that go-to-market strategy on the contractor and nailing that relationship on the dealer side. What's that opportunity to value sell? Do you have salespeople that are more dedicated at the corporate level where you're pulling forward through all the different categories? Certainly, it sounds like door is an opportunity, but just kind of help us think through that opportunity set and where you are from a journey standpoint across your portfolio.
Yeah, I think we're, if I kind of turn it at an overall enterprise level, we're just getting started on really fully leveraging the value and power of these downstream demand creation programs. In roofing, it's really been the model that's been now a decade in the making that's created that blueprint of, as Gunnar said, product, service, training, contractor engagement, marketing tools, in-home services.
That model now is where we take a look and say, "Okay, around a builder alliance initiative, how can we now bring the full scope of our products along with services for some of the production builders, but for sure the regional builders, the custom builders that really value the brand, value a full product offering, value our marketing services as an example?" That is early days. We're just getting started. The Pink Advantage Dealer Direct, that's to the lumber dealers that Rachele talked about, 4,000+ smaller lumber dealers. A lot of them are family-owned businesses that look a lot like a contracting business. How do we bring that full suite of services and brand and capabilities to help them grow their business? That is very early days.
I think we're further along in roofing, but as we now replicate that model in insulation and doors, we see a lot of upside growth potential to create demand for our products. I'd also add what's the uniqueness of this is we're not only creating demand for our products with those builders and contractors and specifiers, we're creating demand for our distribution partners. It also strengthens our position with them of why they want to support, service, and stock our products on a broad number of distribution outlets. It's that downstream pull-through that builds loyalty, but it also creates business for our distribution partners that is really an important part of that downstream model and why we see so much upside potential to driving growth for the company now as we leverage those across all three businesses
All right, maybe Mike, and I am going to ask maybe if we can limit to one question because there's a lot of hands up so that we can maybe get to everyone, but Mike will come down here next.
Thanks. Mike Rehaut, JPMorgan. I was actually about to ask too, so I'll limit it. I guess on the margin side, you talk about, particularly in roofing and insulation, kind of a higher level or sustaining the recent higher level of margins on average going forward compared to the last few years. Maybe for each of those businesses, if you could kind of describe what's changed structurally and in the face of potential pricing weakness that might occur to the extent that the market further softens in the near term, how do you anticipate sustaining those higher margins?
In particular, I'm thinking about areas like either productivity, some of the network optimization, and even areas like the stronger OCCN, things like that that perhaps come with it higher margins. We'd love to get that sense again for insulation and roofing. If there's any way to kind of think about breaking down, it seems like a 400 or 500 basis point improvement since the last analyst day.
Yeah, yeah. Maybe, Nico, how do you start with the work that's been done in insulation?
Yep. Happy to start. Thanks for the question. On the insulation side, you heard me earlier. We have improved about 800 basis point margin from 2019 to today. In the ballpark, we would probably estimate about two-thirds of that is structural improvement that we have made over time. It's really a consequence of actually what you just mentioned. I mean, on one end, we have done a lot of network optimization and repositioning. As I gave a few examples, we have shut down some assets, but it also allows us to reposition our network. As you think of insulation, we share assets among sometimes multiple end markets. As you optimize these, you create more efficiencies in the network. Clearly the second aspect really is I talked briefly about TPM. It's how we drive that methodology across the network. I'll give you two easy examples. Think of like Kaizen type of project where you have high returns. Think of how much takt time, how much products output per minute you have, and then you can improve this by 10%, 20%, 30%. That's a methodology we have deployed across the network.
The concept of autonomous maintenance, like for example, historically you operate an equipment, it breaks down, maintenance comes over. Now we shift that to how you restore your equipment in its natural condition and the operators maintain, which creates much longer mean to failure type of time. You just get better efficiencies. That is kind of a couple of examples of what we have done in the network to improve the structural margins. Yeah.
I think in roofing, I appreciate the question. I think in roofing, it is three big things that I would bucket. One, structural, we exited revenue that really was not margin accretive. Two, we have had productivity opportunity and different productivity opportunities in different businesses, if you will. Not just always shingles, but in our coated woven manufacturing. I would say attachments as contractors learn to sell the system, the attachment rates increase. Those are high-calorie attachments. We talked about that with the components business. Finally, I'd say more commercially, the question earlier was about separating us from our competitors. We are now somewhat insulated from some of that lower-end competitive activity because of the value we create with contractors. They are less reactionary to maybe some price moves in the market because they see more value selling in the home with our system and our full package and the warranty they can put behind that and all those things. Yeah.
I think it's a core thesis in our doors business. I don't know, Rachele, if you want to talk about some of the.
No, exactly. I mean, I had a couple of questions on this during the break. The intent is really to leverage both on the productivity side and the operational excellence side. What we have done, really the OC playbook, we have applied in my past life in non-woven and insulation or in roofing. At the same time, leverage the commercial strength and what we are starting to build through some of the network and dealer program and leverage that within doors.
Thanks.
All right. We have not gone to the side yet. Mike, you want to? We can get it to you. There we go. Yeah.
Thanks. Mike Dahl from RBC. Just back on roofing margins, I am wondering if you can address how the capacity dynamic for the industry influences your range because inclusive of your own, there has obviously been a number of announcements that probably add up at face value to 10%-15% of industry capacity over the next four or five years coming on. How does that impact your range in both kind of the near and medium term?
Yeah. First of all, it's a material conversion business. One of the unique aspects of this business is that material conversion, we don't have this high carrying cost if we aren't leveraging the assets. That said, for us personally, our share of capacity versus our share of demand and that growing share of demand was out of balance. Addressing inside the house, that's something we had to go do. When I look holistically across the industry, though, there are two things I would point to. One, take that story back even further. Capacity continues to be added into the industry in North America. We've performed through that. We've increased our margins through that. We've increased our pricing through that. We've had no share concerns through that.
We've increased our attachments through that. We have a track record that that's irrelevant. Material conversion is the next piece of that. Finally, I would say with the math, no comment on the math other than there are also sometimes optimization. Rarely do our competitors talk about what's not going to be run. What's being pulled out? You have to think about it holistically. The strip slam piece is also significant. That accelerated rapidly during the pandemic years. I think that accelerated beyond what anybody in the industry would have anticipated because of lack of some of the materials. An example might be if you only had granules to run so many squares, our customers prefer us to run laminates to strip versus strips. I think that accelerated adoption.
I think all this said and done will get us back to capacity utilization rates across the industry that we're used to running in, which are normal. We're not concerned about it.
Yeah. Pass it down. There we go.
Yeah. That one just passed. Pass the microphone forward. Thank you. At that point.
Yeah. Thank you. Matt Bouley, Barclays. Yeah, thanks everyone for all the details. I wanted to ask around the revenue growth. The $12.5 billion for the enterprise. I want to just draw that into the roofing segment because I think it's pretty clear where we are on starts versus the high end of your starts assumption and what that would mean for some segments. In terms of that roofing industry volumes, we kind of are around the top end of that right now. If we're thinking about kind of a 6% revenue CAGR for the enterprise, does that hold for the roofing segment as well? Are there building blocks around market share, attachment rates and components, price, things like that to just kind of give us a little bit more comfort? Yeah, just any more details on that roofing growth.
Yeah. Maybe I'll make one comment and I'll turn to you. When you think about that, it's about a 4.5% kind of CAGR, 4.5%-5% in that space. I'd say broadly, every business has fairly similar opportunities in terms of that growth rate when we break that down between roofing, insulation, and doors. A big part of that inside roofing and insulation, which I know Gunnar will turn it to you then, is going to be in this capacity piece in terms of how we continue to grow above the market. Gunnar, maybe I'll let you kind of pick it up on some of the growth potential that you see inside the business.
Yeah. I see a few things. One, fundamentally inside the marketplace, even though we've achieved a lot of price across the industry, I know Owens Corning's achieved a lot of price over the last several years. One thing that's unique about the industry too is that the alternative materials outside of asphalt are still significantly more expensive because of material, because of the things that have to go underneath those cladding materials, if you will, and because of labor. Asphalt is the easiest to install. Because of those three things, there is a lot of value to asphalt roofing, and it is significantly lower than the next alternative. We have room to grow from a price standpoint. That is kind of A. B, you saw the growth that I shared with our contractor program. Those contractors are entering our program, and we have no more squares to give them. That growth was contractors that are not even yet buying. They are waiting to buy. They are getting into our system, and they are ready for us to give them capacity. We have above-market growth built in there. I think our share will enhance as a result. We see a growth as the share improves or as market growth improves for shingles. You get this attachment rate, and that is going to grow along with it.
The attachment rate of our accessories is actually outperforming the market. I pointed that out historically. We anticipate that moving forward. Fundamentally, you're seeing drivers in how do you build a more resilient roof? The fortified roofing systems you hear about along the Gulf States, things like that leverage really high-end underlayments that we feel like we're in a leading position in.
Thanks. Just want to hand it forward to Keith. Pass the baton.
Thank you. Keith Hughes, Truist. My question is also for Gunnar. You just talked about accessories. How big can that get as a percentage of your business? If you hit maybe a realistic goal, what could you hit? Could it be half the business? What number would you get to?
It's a tough one to answer. I'm not sure I want to put that out. I would say it will continue in the foreseeable future to grow above and beyond our shingle business and above and beyond the roofing industry.
Is that just from better attachment with roofers?
More roofers selling our system that has gained a lot of popularity and the CAGR in that continues to grow, and we think that's going to continue. I mentioned resilient roofs, fortified roofs, things like that. You are seeing over the years, for example, you saw a lot of asphalt come out of shingles in the industry, but you saw more accessories and more underlayments. It is part of a system. Our system is very popular with our contractor base. One. Two, I talked about our system that we can sell to help that same kind of resiliency under things that are not asphalt, whether that be metal, tile. We have high-temp underlayments that can handle solar and the temperature that's created under solar. It will continue to outperform the market. I think I'll leave the answer there.
I mean, Gunnar shared kind of the CAGR that's been shown in that components rate, that 12.5% growth rate. I think we see line of sight to continuing at that growth rate for the foreseeable future through a combination of that improvement and increase of attachment rates that are being used on roofs with full systems. We also see organic growth inside the existing categories we've gotten. And there's some acquisition opportunity. When we talk about that third strategic pillar of extending our product capabilities in core businesses, when I look inside our roofing components, there are product categories that we look at and say those might be attractive in terms of some further expansion there as we bring a full system to the market.
Okay. Thank you.
I'll take you past this, Steve.
Thanks a lot. I guess my question would be for Brian. I think what you laid out today is really encouraging for the investment community because it accentuates the positives of your existing story and the opportunities inherent in it. I think that the street was really on board with that. But when you made the acquisition of Masonite, the investor base, I think, felt that perhaps they were observing a change in your thinking about the future direction and the opportunity set and so forth. You touched a little bit on it when you talked about the TAM. You did not talk as much about that today. You talked a lot more about internal opportunities. Would it be right to say that there has been maybe a shift back towards focusing on that? Or is that the wrong way to think about it? Maybe if you could contextualize for us kind of how you're thinking about longer-term expansion opportunities outside of your existing portfolio, that would be helpful.
Yeah. No, and I appreciate the question. I think you are hearing that. We see tremendous opportunities now inside these three core essential building product businesses in roofing, insulation, and doors. When we think about investments going forward, that's where we see the big priorities in terms of how we strengthen each of those positions through organic investments. As I was just talking about on roofing components, there might be some smaller ones, but these would take the shape of ones pre-Masonite, Pittsburgh Corning, a PROC, an Interrep, things that really complemented the footprint and the go-to-market strategies of our existing businesses. If I look at Masonite, I mean, Masonite was an important repositioning of the company. I mean, we wanted to be more building products focused. We wanted to find growth opportunities around branded residential products.
We felt we had unique distributor and downstream demand creation opportunities and the opportunity to leverage great cost synergies by bringing that product portfolio into our company. I believe then, I believe today, it is very complementary. When we look at our distribution partners and our downstream builders, dealers, exterior contractors that do roofing and doors, there are a lot of opportunities we see on the revenue side that fits. There are a lot of opportunities we saw in an opportunity to take a good business and make it better with more durable margins with our cost playbook and operational playbook we are bringing into it today. That was a part of reshaping and refocusing the company on building products, more focused on R&R, more focused on U.S. and North America opportunities. That work we feel really good about.
Going forward, when we think about capital allocation, we now see great opportunities for investments on the organic investments we've talked about because we think we can expand our market positions in every one of the businesses we operate today. We believe then that gives us the opportunity to also pivot some of our capital allocation priorities back to returning to shareholders in a more meaningful way. Given the value of our company, given the outlook we see, and given our current trading multiple, we think our company's a fantastic investment, which is why we're now committing to that near-term piece. I think it was a reshaping to get the company where it is today, focused in a building products company in essential categories where we've got market positions that we feel we can grow with organically and through some adjacency kind of acquisitions.
Taking that strong free cash flow generation and now returning that back to shareholders in a more meaningful way in the near term as we digest the Masonite acquisition, as we bring these organic investments to market, we think we've got great opportunities now to do both in a more balanced way.
Yep. We can go to Sam, and then we can go to maybe to Garrett.
No, thanks so much. Sam Reid, Wells Fargo. I wanted to drill down a little bit on insulation in Europe. It sounds like you're bringing a little bit of incremental capacity online. That might have been an announcement today. Maybe just talk through the capacity backdrop in Europe as it stands now. We have a lot less visibility on that capacity. We spend a lot of time focusing on the U.S. b usiness, and sometimes the European business gets lost in the shuffle, and it should not. Within that backdrop, that capacity backdrop, maybe talk through kind of how that capacity could help accelerate organic growth in Europe, even in perhaps, say, a flat macro.
Yep. Thanks. First, I will start maybe by repositioning our business in Europe because we tend to talk like insulation in Europe, but we are very focused on some very specific end markets, both geographically or applications, right, with specifically stone wool and foam glass overall. I would say, first, since we acquired the PROC business, really, we have applied the playbook you have heard of today. Today, the overall European business is in a very, very strong position despite the market we are at today, which is kind of a very complete difficult market relative to what is happening in Europe.
From that perspective, we have tons of, I do believe, tons of earnings potential, both top line and bottom line, as we think of how to think of Europe going forward. With regards to the investments, I mean, this is one we have been really working on that is supported with very strong big trends happening in Europe. You heard me talk about commercial roofs, which not only are sometimes it's a choice, sometimes it's actually mandatory, right? Some countries just put an obligation to have any vertical structure to have the roof commercialized and functionalized, either green roofs, parkings, and so on. We have seen that growth, like double digit, and in some countries, even more growth happening. That is going to continue. Not only do we believe that's the right choice, but I think this capacity should come on stream sometime in 2026, early 2027.
We should start to see the benefit of that coming up pretty quickly as well.
Thanks. We can go here to Garik.
Yep. Hi, thanks. Garik Shmois, Loop Capital. Question on doors. Struck by the chart that showed that customers are three to four times less likely to care on pricing relative to service and quality. Wondering if market conditions improve, does this imply that you see a significant amount of pricing opportunity, or do you expect to continue to gain share more from service, especially given some of the market dislocations occurring right now?
Yeah. Maybe I'll open, and then I can do it. I think there's the opportunities we see for both going forward. I think given the quality and service value drivers that we're seeing, and Michelle has spent a lot of time over the last few weeks looking into this, I think in the near term, it creates some volume opportunities for us because we're performing at a better rate than some of the competitors in the market today. That gives us those near-term opportunities. Over time, we absolutely think that that brings pricing capabilities. Today, in the market, we carry a price premium relative to other doors manufacturers. We think we can extend that and enhance that through all the work that we've talked about and through bringing the commercial model to bear in the doors business. I think in the near term, probably more leaning on the volume opportunities we see in the market.
Absolutely, over time, we see pricing opportunities to capture that value very similar to how we do it today in insulation and in roofing. I would say that's what the chart shows us.
I mean, what the chart says is that with the right focus on the value proposition of the product, this is when we're able to value and generate that price premium. I think this is really what Owens Corning brings to life. We've talked about it in roofing, but we have the same in insulation. I had the same in non-wovens before coming into this role. The focus is more on the value proposition, of which what our customers tell us is quality and service first. From that should come the price premium that we deserve.
Anthony?
Anthony Pettinari from Citi. In North America, you have this kind of core position in asphalt shingles and fiberglass insulation. As you think about 2028, next five years, is your assumption that asphalt shingles market share versus metal or tile roofing or fiberglass versus mineral wool or spray foam? Are you assuming that these market shares are kind of static, or are there opportunities to grow either organically or inorganically in some of these competing technologies where OC is less dominant or maybe not even involved at all?
Yeah. Yeah. You want to start roofing and then maybe we can talk about fiberglass, mineral wool, and some of the product categorie there.
Independent surveys suggest that four out of five roofs in North America, steep slope roofs, are asphalt. It was the same number 20 years ago. I think that's interesting to think about as a backdrop. However, I think there's a reason for that. I'll get to that. I think there's a reason to that. The labor I mentioned earlier, the value versus the alternative materials, all those things. And frankly, aesthetically, that's typically, that's traditionally what's in neighborhoods. It's a little hard even to get real practical here for a homeowner to say, "I'm just going to totally change the look of the whole neighborhood with my one roof," right? You don't see a lot of that. However, we look every year at those trends. Because if those trends start changing, our model of value creation with contractors of servicing distribution could apply to those other materials. We look at it every year. If we see trends that are going to change, that's where we would start to think about different applications.
In the meantime, now covering the ground in the middle, is our components business. The underlayments, I mentioned high temp, I mentioned really high-end underlayments and such, play under those systems. That is why I mentioned it a couple of times this morning, that we are close to those markets and we are building relationships with those contractors as well. Sometimes those underlayments create as much value as the cladding in some of those other materials.
Yeah. Maybe just a couple of things I have added on the market. Gunnar went through it in his presentation. There is growing housing stock, primarily using asphalt shingles. There is more housing stock in storm-impacted regions. Those are parts of the country that are going to continue to grow in population. That is going to create more opportunity in those spaces. I think there's some growth drivers in the business around housing stock and around where those houses are being built. That is also kind of a built-in market driver for potential growth as we go forward on roofing.
Yep. And insulation?
From insulation, you mentioned a couple of product lines there. I'll try to touch on those three. I believe that for fiberglass, I believe it's and will remain the most economical and most efficient product to deliver energy efficiency in, by the way, RES and non-RES. If you think on the RES side, I mean, fiberglass is like 1%-2% of how much you spend when you build a home. And you have the return of that investment for your lifetime.
From that perspective, it's a very, very strong value proposition on the fiberglass side and has great sustainability profile with a very low global warming potential. I think that competitive advantage will stay out there for the foreseeable future. There are some unique applications, like you mentioned, spray foam makes sense. That's why we wanted to enter that product category as well. I think they are there for a specific reason. I know sometimes people might think like those really overlap and may, I mean, there's still a price differential that is noticeable. I think those remain very unique, like unvented attics and those type of things and more like air-seal type of applications. I think overall, I don't expect any big shift.
Where I'm personally very intrigued in is the mineral wool side, where obviously we have a global now platform technology with PAROC acquisition that brought us a very unique and best-in-class technology. That's a product line I expect has probably growth potential in the U.S. and that we'll continue to keep a look as we look at the market going forward, if you think of like fire performance.
And Brian in the back here.
Brian Biros, Thompson Research . Can you expand a little bit more on the door synergies increase that you talked about today? It's mentioned as structural cost improvements. Just any more detail on kind of what that includes, if it's manufacturing, throughput, manufacturing costs, supply side, anything further would be interesting. Thank you.
Yeah. Go ahead and kind of walk through a little bit more. Yeah.
I was going to say all of the above. The first focus on the cost synergies was very much OpEx and sourcing focused. I would say today we're now moving to our second focus, which is very much focused on the network. We're doing an evaluation of our full manufacturing footprint. This is a steep evaluation because you heard me talk about the multiple product portfolio that we have that we serve to customers. We're thinking about customer by customer, plant by plant, SKU by SKU to evaluate what makes sense. We're going to be looking at both optimizing as well as improving our manufacturing footprint to serve the best the growth that we are trying to drive, which is both on the interior side as well as on the exterior side. That's the optimization and improving piece.
The other piece, I would say, is very much to automation and efficiency, which you mentioned as well. I would say the TPM approach that Nico described is very, very relevant for doors as well, and I think is a very big opportunity. It is really both sides, as well as evaluating the spread of the manufacturing footprint from a supply point of view and based on where these customer opportunities are as we leverage some of the dealer programs that we have across our three categories with roofing and insulation, looking at the customer base and where we are best positioned to serve those customers in those areas in the U.S.
Trevor?
Hi, Trevor Allinson at Wolfe Research. I want to follow up on the capital allocation question, encouraging to see that you're going to return a lot more cash to shareholders here over the next couple of years. It looks like from your free cash flow projections, that free cash flow accelerates into 2027, 2028. Can you perhaps just talk about your thoughts on returning capital to shareholders in those out years of your projected forecast now versus the next couple of years?
Thank you, Trevor. Certainly, the commitment we made was for 2025 and 2026. And the $2 billion reflects about 100% of what we would expect to generate this year and next year of free cash flow. Our long-term commitment remains the commitment that we've had, which is we want to return more than 50% to shareho ders over time.
When you look at what our board approved in terms of the increase in the share repurchase authorization that we released as an 8K before today started, it gives you an indication of the magnitude over this period. If we applied the $2 billion in the first couple of years and then a 50% in the last couple of years of what that would mean in terms of the total number of repurchases at today's value of the enterprise. Certainly, as Brian said earlier, we view our own stock right now as an excellent investment for all of the reasons that we discussed today, not only the strength of the underlying performance and the strength of the cash flows that we see, but also where we trade relative to similarly performing peers.
Yeah. Maybe I'd add here that ties a little bit to Stephen's earlier question. I mean, if you go back and look at our capital allocation strategy for the last five years, I mean, we've returned 63% of cash to shareholders. We've bought back over 25% of our shares. We've more than doubled the dividend. We were able to deploy capital for organic growth and acquisitions, even a large one for Masonite. I think the Masonite acquisition was about portfolio shifting and shaping to be focused in branded residential building products. It wasn't a shift in our capital allocation. We actually have been able to continue with that and deploy cash in those organic growth opportunities and inorganic. I think going forward in the near term, as we digest the acquisition and that work, we want to put more in to all the reasons we talked about.
You can expect that our long-term focus on capital allocation is going to be very consistent with what we've done in the last five years. It's an important part of our investment thesis. We know that. We are large cash generators. We want to return a significant amount back to shareholders over time through dividends and share repurchases. I think that's a core part of how we think about capital allocation and how we run the company.
Can we go back here?
Yeah. Thanks. Good morning. David McGregor at Longbow Research. I wanted to ask you about specification business. It seems as you build out a branded building products business, there's got to be a pretty good specification opportunity in there, right? On an earlier slide, you mentioned you had a little over 100 spec writers right now.
I just wonder if you could talk about your plans for growing that specified business. Do you make conscious effort to develop products and capacity that would go to market through a specified, that high-margin specified process? I would guess it is concentrated in doors, but maybe not. Maybe it is opportunity in roofing and insulation as well. Maybe you could talk about that.
Thank you. Thanks. Actually, most applicable and most utilized in our insulation business in our non-R ES. Maybe Nico, I will have you talk about that specification business.
Yeah. I mean, that is mostly obviously on the non-residential of the business. That is really a model we like. That is why you heard me talk about the effort we are putting into this. If I would have to give you a very good example, like the foam glass product line is the best example I can think of. Think about those high-risk type of buildings, usually high investments where there is little appetite to any risk of water, moisture, whatsoever. We do have teams out there in the market, not only talking with architects, but then also being on the jobs, overseeing installations to make sure the installer can provide the guarantees and warranties that go beyond it. That would be a very typical model. That is something you would see as well on the mineral wool side, stone wool side. That is the model we like. What we like as well, it gives us a good long-term visibility because typically those are projects that go like 12-18 months out.
When I think of foam glass, we have a pipeline of opportunities that really goes well beyond the next three or six months typical cycle you would see in normal insulation businesses. Yeah, that's something we love, something we invest in in Europe and in North America.
Adam?
Hey, everyone. Adam, Zelman & Associates. Question on the starts outlook at the low end and as it relates to insulation. I guess if we go to 1.2 million starts, how do you think pricing would behave given the current capacity for the industry as well as some of the adds that you guys and others are making?
Yeah. You want to touch a little bit on what you've seen and then Nico I can.
Yeah. Why do I not start? What we've shared historically is we thought the industry could support between 1.4 million and 1.5 million starts. If you're at 1.2 million, you can do the calculation of roughly what utilization would be at that level. Historically, what we've seen in the industry is when utilization is greater than 90%, we do see price accretion occur. There really isn't a defined pattern of what happens if utilization is below 90% because a lot of it depends on the duration. We're in a period now where we've seen two consecutive quarters of relatively weak housing starts. I mean, it's not uncommon in this industry to see a quarter or two of starts similar to the levels that we're seeing right now before they rebound in the future. What we're really looking to is what happens in the back half of this year and into next year as we think about pricing dynamics.
I would pivot back though at the enterprise level. When you look at our exposure to RES new construction, it's relatively modest. At 15% of revenue, you can make whatever assumption you want to make around what would happen with pricing in a 1.2 million market. Our exposure is limited by the fact that Owens Corning today really doesn't depend as much on RES new construction as we would have 10 years ago or even 5 years ago when we think about the portfolio of businesses.
Yeah. Maybe I'll build on that. I mean, remind you today in insulation, we are 40% of the business exposed to housing starts. The remainder of the business is not. Yet, even whatever happened with start, we still expect growth in the other segments. Between RES and non-RES, there is an overlap also on kind of the consumption of capacity for glass fiber. That is why when we think also how we are making our investments, like I mentioned Kansas City, we see multiple paths because that line can serve both markets. In a weak housing start, we might be dedicating the line to other applications like data centers who consume a lot of fiberglass, for example. The other thing I would say from a pricing point of view is, typically we price for value. As you heard today, we invest in a lot of other things to create the value and maintain a premium. Over the long term, between the growth driver and where we are investing, I expect pricing to remain constructive.
The point is, as Todd said, there might be pockets and shorter period of times where it's more competitive. We will remain competitive. As I said, we also want to maintain our leadership position. Yes, that premium can shift sometimes and shrink or re-expand again. Over the long term, I'm pretty confident about the constructive pricing environment.
We've got time for maybe one last question. You can go ahead, Mike.
Thanks. Appreciate it. Bring that one up.
Get you a second.
Yeah.
Thanks very much. Question on the increased door synergy target going from $125 million to $200 million. Just hoping to get a little bit more on the timing of that. Obviously, the $125 million was committed to in the first two years of the acquisition. How to think about that additional $75 million. If that also fits with the slide where you had getting from roughly 18%- 22%, if that was kind of contemplated as part of that additional expansion. Yeah. Do you want to walk through?
Yeah. I would say the perspective today is that we will reach these targets within the next couple of years. We have a number of initiatives that are ongoing and that will enable us to reach these $200 million of structural cost improvements over the next couple of years. What I referred to was these high teen margins, the 18%, we see as very reachable in the near term on current market conditions. I think the bigger opportunity then comes from the growth initiatives and the helping market conditions. This is when we can really get to 20% and beyond.
Yeah. Maybe a little more color on the timing on some of these. The $125 million we said by the end of our second year, and that's tracking. Some of these are also going to involve system deployment and new operating systems. Those are going to take a little time. That is why over the next couple of years, because some of the capacity optimization efforts and network optimization efforts, some of the additional synergies we see in front are going to be key, is going to be systems to unlock those. We have to get those in place. That is just going to take us probably 12-18 months as we get some new systems deployed and get those operating parameters all common and the same approach. That will help drive, I think, and unlock some of these additional synergies over the next two to three years. Thank you.
Okay. All right. I think that wraps up our Q&A portion here.
All right. Thanks for all your questions. Let me close with just a couple of slides. We are very proud of the work and the performance. As you can see, we have got a great team here and across the organization that has been driving results and performance. I want to leave you probably with a couple of slides. This is one that for me, this is the new Owens Corning, a focused building products company. We are operating three market-leading businesses leveraging a shared enterprise playbook. Each are positioned to deliver above-market growth and strong performance. In fact, that has come through with the increase in our long-term guides in our roofing business, our insulation business, a reaffirmation of our path to get to 20% EBITDA in doors.
What links these together is the brandedness of each of these, the distribution partners, the pull-through, and all of these are essential building products. All of them are used in every home that's built in the spaces today. We're more focused in terms of North America and Europe. We've really got now attractive markets with some significant secular tailwinds. Three market-leading businesses with growth going forward. In total, we're a company that's built to outperform. We're going to be executing a clear set of strategic priorities, which we've shared, and which will shape our investment decisions, our operating priorities. We're leveraging a unique set, a truly unique set of advantages that differentiate Owens Corning and drives the growth and performance in each of our businesses, leveraging our brand, our unparalleled commercial strength, our leading technology, and of course, our winning cost position.
As I always talk about, and Todd talks about as we go out and talk about the performance of the company, we've really now built a company with multiple paths to achieving our financial results. Multiple paths for revenue growth, which we've talked about, multiple paths to generating mid-20% adjusted EBITDA margins, generating mid-teens, and now a company that we expect to generate now up to $5 billion of free cash flow between now and 2028, returning $2 billion of that between now and the end of the year, and then continuing that capital allocation strategy that has been fundamental to how we've deployed capital over the last several years. With our strategy, our unique operating advantages, and certainly our consistent execution, we're excited about the opportunities we have to continue delivering value to our customers and to our shareholders. I really appreciate your time today.
Thank you for joining us and allowing us to share the story of the new Owens Corning. Thank you. Safe travels back for those here in Toledo.