revenue
2600–2700 $million
Q3 2026
official guidance
OWENS CORNING
Last · NYSE$111.26-1.53 (-1.36%)close · yahoo · 12h ago
Market cap$8.79B79.0M sh
P/E · TTM-21.6fwd 9.9 · eps -5.14 · loss
Beta1.32vs S&P 500
Div yield2.80%annual · TTM
52w range
$97.53$159.91
Volume986.3Ksession
| Revenue | $5.0B |
|---|---|
| Operating income | $602.0M |
| Net income | $121.0M |
| Free cash flow | $-188.0M |
| Operating margin | 12.0% |
| Net margin | 2.4% |
| Return on equity | 3.2% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong execution and structural growth are offset by a soft Q3 setup and unresolved inflation recovery.
Hold.
Owens Corning beat Q2 expectations decisively, with adjusted EPS of $3.93 versus $3.09 consensus and revenue of $2.756 billion versus $2.658 billion, while adjusted EBITDA was $660 million at a 24% margin. However, Q3 guidance points to revenue of $2.6-$2.7 billion and a 20%-22% EBITDA margin as roofing volumes normalize, distributor inventories unwind, and inflation keeps price/cost negative; the long-term thesis remains credible but near-term earnings risk is not fully cleared.
Themes
- Q2 Earnings Beat
- Q3 Guidance
- Roofing Inventory
- Price Cost Inflation
- Insulation Growth
- Doors Synergies
Near term
Roofing revenue is expected to decline mid- to high-single digits in Q3, with ARMA shipments down high-single digits after Q2 pre-buying ahead of price increases.
Roofing EBITDA margin is guided to approximately 30% versus 34% in Q2, with management attributing most of the sequential decline to volume deleverage and some negative price/cost.
Distributor roofing inventories are described as somewhat heavier than normal; normalization depends on storm activity and may extend into Q4 if the season is light.
More than $20 million of potential tariff refunds could provide modest upside in Q3 or Q4, but the refunds are excluded from guidance and are not recurring earnings.
Insulation is guided to mid-single-digit revenue growth in Q3, including low-double-digit growth in North American nonresidential, while Doors revenue is expected to decline mid-single digits and margins remain approximately 10%.
Longer term
Insulation has attractive exposure to data centers, health care, reindustrialization, European recovery, energy-efficiency regulation and an underbuilt housing stock; however, data centers remain 5% or less of company revenue and management provided limited backlog visibility.
The Kansas City insulation line, planned Nephi restart and future plant rebuilds should improve network flexibility and support nonresidential growth, but capacity additions raise execution and utilization risk if construction markets remain weak.
Doors has exceeded its original cost-synergy target, achieving $135 million versus $125 million, with another $75 million of structural cost improvements identified; successful conversion of these initiatives into sustainable margin expansion is important to the thesis.
Insulation margins remain below the 24% long-term target. Management cited pricing, mix and productivity, but the recovery is dependent on housing conditions and improved price/cost.
The branded, vertically integrated portfolio and contractor/distributor pull-through model appear to support market-share resilience, while AI-enabled sales analytics could improve customer retention and cross-selling, though financial benefits remain unquantified.
Capital allocation remains supportive, with $800 million of 2026 capital additions planned and a commitment to return $1 billion to shareholders in 2026, but debt remains near the middle of the target range at 2.4x EBITDA.
Red flags
Management acknowledged that Roofing may not reach price/cost neutrality until 2027 if asphalt, energy and delivery inflation remain elevated, weakening confidence in the near-term margin recovery.
Analyst questioning highlighted that Insulation margins are several hundred basis points below the 24% target; management's path relies on future pricing traction, mix and productivity rather than a quantified bridge or timeline.
Q3 revenue and margin guidance embeds a material sequential slowdown despite Q2's beat, and the roofing volume pull-forward creates a difficult near-term comparison.
The Q2 result benefited from $25 million of tariff refunds, while the Q3 outlook includes approximately $40 million of Iran-related net cost inflation; separating sustainable operating improvement from temporary items is difficult.
Management did not quantify roofing channel inventory levels, insulation backlog, or the expected earnings contribution from AI and broader Doors distribution placement.
The incoming CFO transition on August 10 adds an execution and communication-change risk during a period of portfolio integration, inflation and capacity investment.
Forward outlook
ebitda
20–22 pct
Q3 2026
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
$3.06
Est. revenue
2.6B
Earnings transcripts
- Issuer IR
Q2 2026 earnings call transcript
OWENS CORNING
- Issuer webcast
Q2 2026 Earnings Webcast Replay (expires 08/05/2027)
OWENS CORNING
- Issuer IR
Q1 2026 earnings call transcript
OWENS CORNING
- Issuer webcast
Q1 2026 Earnings Webcast Replay (expires 05/06/2027)
OWENS CORNING
- Issuer webcast
Q4 2025 Earnings Webcast Replay (expires 02/25/2027)
OWENS CORNING
Documents
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