10-Q · August 5, 2026
Owens Corning reported Q2 continuing-operations revenue of $2.756 billion and diluted EPS of $3.84, but adjusted EBITDA fell 6% to $660 million and adjusted EBITDA margin declined to 24% from 26%. Management's Q3…
Earnings analysis · 10-Q
OC earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Owens Corning reported a weak third quarter, with revenue down 7.3% year over year to $2,489 million, gross margin down to 24.7%, and diluted EPS of negative $3.18. Insulation growth was more than offset by sharp…
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Owens Corning reported a weak third quarter, with revenue down 7.3% year over year to $2,489 million, gross margin down to 24.7%, and diluted EPS of negative $3.18. Insulation growth was more than offset by sharp Roofing and Doors declines, while $443 million of Doors impairment charges highlighted a materially reduced outlook for that business. Cash generation remained positive, with $1,057 million of nine-month operating cash flow and approximately $434 million after capex, but cash fell to $179 million against approximately $4.9 billion of debt and continued housing, demand, inflation, and destocking pressures.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-3.18
What stood out
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Revenue and gross margin declined
Third-quarter revenue was $2,489 million, down $195 million or 7.3% from $2,684 million a year ago and down from $2,760 million in the prior quarter. Gross margin fell to 24.7% from 28.2% year over year and 28.8% in Q2 2026.
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EPS improved year over year, worsened sequentially
Diluted EPS was a loss of $3.18 versus a loss of $5.92 a year ago, but deteriorated sharply from positive diluted EPS of $2.80 in Q2 2026. The quarter included a $366 million Doors goodwill impairment and a $77 million Doors tradename impairment.
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Insulation growth offset weakness
Insulation was the only segment to grow, with revenue up 6% to $1,001 million and EBITDA up $3 million to $215 million. Higher volume of 5% and $11 million of higher selling prices were largely offset by $29 million of input-cost inflation and $20 million of higher delivery costs.
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Roofing faced severe demand pressure
Roofing revenue declined 16% to $1,042 million and EBITDA declined $124 million to $299 million. Lower volume of 17%, $28 million of input-cost inflation, and $16 million of higher delivery costs drove the decline.
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Cash generation remained positive
Nine-month operating cash flow was $1,057 million and cash paid for property, plant, and equipment was $623 million, implying approximately $434 million of operating cash flow after capex. Continuing-operations capex was $595 million, up from $503 million in the prior-year period.
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Divestiture and liquidity support cash
The company completed the Glass Reinforcements divestiture for $370 million of proceeds and had $179 million of cash from continuing operations at September 30, 2026. It also retained $1.5 billion of revolver availability, with no revolver borrowings outstanding.
What to watch
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Doors impairment and weak outlook
Doors demand and valuation deteriorated materially: third-quarter Doors revenue fell 11% to $483 million, EBITDA fell 55% to $25 million, and management cited lower volumes, inflation, and weakness in discretionary repair and remodeling and residential new construction. The company recorded $366 million of goodwill impairment and $77 million of tradename impairment, fully eliminating Doors goodwill.
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Roofing demand and destocking risk
Management expects additional Roofing inventory destocking in the fourth quarter following limited storm activity. Roofing volume fell 17% year over year, while input-cost inflation was $28 million and higher delivery costs were $16 million in the quarter.
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Lower cash and significant debt burden
Liquidity declined while near-term obligations remain material: cash from continuing operations was $179 million versus $345 million at December 31, 2025, total debt was approximately $4.9 billion, and $499 million of senior notes mature in the second quarter of 2027. Short-term debt included $100 million of commercial paper with a weighted-average maturity of 9 days.
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Inflation and logistics pressure
Input-cost inflation and delivery costs pressured all operating segments. In the quarter, Insulation incurred $29 million of input-cost inflation and $20 million of higher delivery costs, while Doors incurred $12 million of higher delivery costs and $10 million of combined lower-volume and input-cost pressure.
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Housing and consumer weakness
The company identified continued housing and consumer uncertainty: U.S. housing starts averaged 1.293 million in Q3 2026 versus 1.330 million a year earlier, and management expects North American new residential construction to remain challenged due to affordability and consumer uncertainty.
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No formal risk-factor changes
The filing states there were no material changes to the risk factors in the 2025 Form 10-K. However, the company continues to face unresolved product-related exposure from Paroc ventilation duct and steel beam insulation products; potential costs cannot currently be reasonably estimated.
Management's outlook
No consolidated revenue or EPS guidance was provided in the 10-Q. Management expects 2026 general corporate expenses of approximately $235 million to $245 million and describes near-term demand as challenged in Roofing, Insulation, and Doors; quantitative Q4 revenue and adjusted EBITDA outlook was provided in the separate November 4, 2026 earnings release rather than this filing.
Earlier filings 4
10-Q · May 6, 2026
Owens Corning reported Q1 2026 results with a revenue of $2.58 billion and an EPS of -1.92, missing consensus estimates of $2.17 billion in revenue and $0.97 EPS. The revenue declined 9.5% compared to the prior year…
10-K · February 25, 2026
Owens Corning (OC) is reshaping into a focused building-products company after the 2024 Masonite acquisition and the announced divestiture of its Glass Reinforcements business. Reported 2025 net sales were $10.1 billion…
10-K · February 24, 2025
Owens Corning reported net sales of $11.0 billion in 2024 and is reshaping its portfolio after the May 15, 2024 $3.2 billion acquisition of Masonite and a February 13, 2025 definitive agreement to sell its global glass…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.