Shares of Owens Corning (NYSE: OC) plummeted 5.19% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report. Despite beating analysts' expectations on several key metrics, investors appeared concerned about the company's margin outlook and the impact of ongoing tariffs on its business.

The Toledo, Ohio-based building materials manufacturer reported adjusted earnings per share (EPS) of $2.97, surpassing the consensus estimate of $2.87. Revenue for the quarter came in at $2.53 billion, slightly above analysts' expectations of $2.51 billion. However, the company swung to a net loss of $93 million, or $1.08 per share, primarily due to the divestiture of its glass-reinforcements business, which is now reported as discontinued operations.

Despite the better-than-expected results, investors seemed to focus on the company's margin outlook and ongoing challenges. Owens Corning expects to reduce its tariff exposure in the second quarter to a net impact of $10 million, down from about $50 million, primarily in its doors business. However, the company anticipates delivering an adjusted EBITDA margin in the low-to-mid 20% range for Q2, which may have disappointed some investors hoping for stronger profitability. Additionally, the company's forecast of high single-digit revenue growth for Q2 2025 may have fallen short of more optimistic expectations, given the current economic environment and challenges in the construction industry.