Second-Quarter 2026
Filed Aug 5, 2026Owens Corning Demonstrates Value of Reshaped Company; Delivers Strong Results from Continuing Operations in the Second Quarter
Second-quarter net sales from continuing operations were in line with the prior year and the company delivered a 24% adjusted EBITDA margin, strong operating cash flow, and $264 million of shareholder returns. Earnings, adjusted EBITDA, adjusted diluted EPS, and segment EBITDA margins were lower than the prior year, while third-quarter revenue is expected to be slightly below the prior year and adjusted EBITDA margin is expected to be approximately 20% to 22%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net Sales from Continuing OperationsGAAP | $2,756 million | – | $9 million —% |
| Net Earnings Attributable to OC from Continuing OperationsGAAP | $310 million | – | (7)% |
| Net Earnings Margin from Continuing OperationsGAAP | 11% | – | – |
| Adjusted EBITDA from Continuing Operationsnon-GAAP | $660 million | – | (6)% |
| Adjusted EBITDA Margin from Continuing Operationsnon-GAAP | 24% | – | – |
| Diluted EPS from Continuing OperationsGAAP | $3.84 | – | (2)% |
| Adjusted Diluted EPS from Continuing Operationsnon-GAAP | $3.93 | – | (7)% |
| Operating Cash FlowGAAP | $398 million | – | 22% |
| Free Cash Flownon-GAAP | $199 million | – | 54% |
| Six Months Net Sales from Continuing OperationsGAAP | $5,021 million | – | (5)% |
| Six Months Net Earnings Attributable to OC from Continuing OperationsGAAP | $348 million | – | (41)% |
| Six Months Net Earnings Margin from Continuing OperationsGAAP | 7% | – | – |
| Six Months Adjusted EBITDA from Continuing Operationsnon-GAAP | $1,029 million | – | (19)% |
| Six Months Adjusted EBITDA Margin from Continuing Operationsnon-GAAP | 20% | – | – |
| Six Months Diluted EPS from Continuing OperationsGAAP | $4.31 | – | (37)% |
| Six Months Adjusted Diluted EPS from Continuing Operationsnon-GAAP | $5.15 | – | (28)% |
| Six Months Operating Cash FlowGAAP | $244 million | – | (12)% |
| Six Months Free Cash Flownon-GAAP | $(188) million | – | (53)% |
| Recordable Incident Rateother | 0.75 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| RoofingThe company expects seasonal storm demand to be in line with historical averages, while heavier second-quarter inventory stocking is expected to impact third-quarter distributor purchases. | $1,313 million | – | – |
| InsulationSecond-quarter results were supported by demand for the company’s high-performing branded building products. | $971 million | – | – |
| DoorsThe company has achieved $135 million of enterprise run-rate cost synergies by applying its commercial and operational playbook to unlock value for the Doors business. | $513 million | – | – |
Third-quarter 2026 and Current 2026 Financial Outlook outlook
- Revenueapproximately $2.6 billion to $2.7 billion
- Tax rate24% to 26%
- NoteThird-quarter 2026 enterprise adjusted EBITDA margin: approximately 20% to 22%.
- NoteThird-quarter 2026 incremental costs from inflationary impact from the Iran conflict: approximately $40 million.
- NoteGeneral Corporate EBITDA Expenses: $245 million to $255 million.
- NoteInterest Expense: $255 million to $265 million.
- NoteCapital Additions: Approximately $800 million.
- NoteDepreciation and Amortization: Approximately $680 million.
- NoteCash taxes are anticipated to be lower.
Capital returns
- Returned $264 million to shareholders in the second quarter.
- Repurchased 1.7 million shares of common stock for $200 million.
- Paid a quarterly cash dividend of $64 million.
- 10.8 million shares were available for repurchase under the current authorizations at the end of the quarter.
- Remains committed to returning $2 billion of cash to shareholders over 2025 and 2026 through dividends and share repurchases.
What drove it
- Second-quarter results were supported by demand for the company’s high-performing branded building products.
- The company cited market-leading positions and differentiated commercial capabilities.
- The company achieved $135 million of enterprise run-rate cost synergies, exceeding its commitment to deliver $125 million by mid-2026.
- The company is on track to deliver an additional $75 million of structural cost improvements through network optimization and operational efficiencies.
- The sale of the glass reinforcements business advances the strategy to operate as a residential-focused building products leader in North America and Europe and is intended to enhance capital efficiency.
Concerns
- Discretionary remodeling activity and residential new construction are expected to remain under some pressure.
- Heavier second-quarter inventory stocking is expected to impact third-quarter distributor purchases.
- Inflationary impact from the Iran conflict is expected to result in incremental costs of approximately $40 million in the third quarter.
- Third-quarter revenue is expected to be slightly below the prior year.
- Second-quarter adjusted EBITDA margin was 24%, compared with 26% in the prior year.
- Doors EBITDA margin was 11%, compared with 14% in the prior year.
What to watch
- Third-quarter revenue guidance of approximately $2.6 billion to $2.7 billion and enterprise adjusted EBITDA margin guidance of approximately 20% to 22%.
- The effect of heavier second-quarter inventory stocking on third-quarter roofing distributor purchases.
- The anticipated approximately $40 million of third-quarter incremental costs from the Iran conflict.
- Delivery of an additional $75 million of structural cost improvements.
- Residential repair activity, residential remodeling activity, U.S. housing starts, and commercial construction activity.
- Capital additions expected to be Approximately $800 million.
Balance sheet and cash flow
- Operating Cash Flow was $398 million in the second quarter and reflects full company performance inclusive of discontinued operations.
- Free Cash Flow was $199 million in the second quarter and reflects full company performance inclusive of discontinued operations.
- Operating Cash Flow was $244 million for the six months and reflects full company performance inclusive of discontinued operations.
- Free Cash Flow was $(188) million for the six months and reflects full company performance inclusive of discontinued operations.
- Completed the sale of its glass reinforcements business on April 30, 2026.
- Capital Additions are expected to be Approximately $800 million.
Analysis
Owens Corning reported second-quarter net sales from continuing operations of $2,756 million, compared with $2,747 million in the prior year. Net earnings attributable to OC from continuing operations were $310 million, compared with $334 million, and diluted EPS was $3.84, compared with $3.91. Adjusted EBITDA was $660 million, compared with $703 million, while adjusted diluted EPS was $3.93, compared with $4.21. The company characterized revenue as in line with the prior year and cited demand for its high-performing branded building products.
Margins remained substantial but declined from the prior-year period. Net earnings margin was 11%, compared with 12%, and adjusted EBITDA margin was 24%, compared with 26%. Segment EBITDA margins were 34% for Roofing, 22% for Insulation, and 11% for Doors, compared with 35%, 24%, and 14%, respectively, in the prior year. Roofing generated $1,313 million of net sales, Insulation generated $971 million, and Doors generated $513 million.
Cash generation improved in the quarter, with operating cash flow of $398 million compared with $327 million and free cash flow of $199 million compared with $129 million. These cash-flow measures reflect full company performance inclusive of discontinued operations. The company returned $264 million to shareholders through repurchases of 1.7 million shares for $200 million and a quarterly cash dividend of $64 million. It also completed the sale of its glass reinforcements business on April 30, 2026, a step it said enhances capital efficiency.
The company highlighted $135 million of enterprise run-rate cost synergies from the Doors business, exceeding its $125 million commitment by mid-2026, and said it is on track for an additional $75 million of structural cost improvements. These company-specific initiatives are central to the reported emphasis on productivity, margin resilience, and the strategic shift to a residential-focused building products company.
For the third quarter, Owens Corning expects revenue of approximately $2.6 billion to $2.7 billion, slightly below the prior year, and enterprise adjusted EBITDA margin of approximately 20% to 22%. Management expects pressure on discretionary remodeling and residential new construction, expects second-quarter inventory stocking to affect third-quarter roofing distributor purchases, and anticipates approximately $40 million of incremental costs from the Iran conflict. The current 2026 outlook includes capital additions of Approximately $800 million, while the company remains committed to returning $2 billion of cash to shareholders over 2025 and 2026.
Management, verbatim
These outstanding second-quarter results demonstrate the strength of our reshaped company. Our performance is a direct result of our strategic pivot to build a large-scale, residential-focused building products company with unique and unifying competitive advantages across market-leading businesses.
Brian Chambers, Chair and Chief Executive Officer
Our second-quarter performance was driven by the disciplined commercial work of our teams and the execution of company-specific initiatives to grow our revenue and improve productivity. We continue to demonstrate our ability to perform across cycles while positioning Owens Corning for even greater success as market conditions improve.
Todd Fister, Executive Vice President and Chief Financial and Operating Officer
Not in the filing
stated, not guessed- Period-end date for the second quarter of 2026.
- GAAP gross profit and gross margin.
- GAAP operating income and operating margin.
- Total operating expenses.
- Cash balance.
- Debt balance.
- Net debt.
- Prior-quarter comparisons for reported enterprise metrics.
- Year-over-year revenue changes for Roofing, Insulation, and Doors.
- Prior-quarter revenue comparisons for Roofing, Insulation, and Doors.
- Segment operating income or segment EBIT.
- Segment EBITDA year-over-year change percentages.
- Prior guidance, as no previous outlook section was provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.