OC · Owens Corning

Owens Corning's first-quarter 2026 results reflect a transitional period as the company completed the sale of its glass reinforcements business, shifting to a pure-play branded building products company. Net sales from continuing operations declined 10% year-over-year to $2.3 billion, driven by softer market conditions, particularly in roofing where demand was impacted by carryover effects from 2025. Net earnings from continuing operations plummeted 85% to $38 million, while adjusted EBITDA fell 35% to $369 million, resulting in an adjusted EBITDA margin of 16%, down from 22% a year ago. The decline was broad-based across segments: Roofing EBITDA margin fell from 30% to 24%, Insulation from 25% to 19%, and Doors from 13% to 7%. Management attributed the resilient revenue and margins to strong commercial and operational execution despite the challenging environment. The company generated negative operating cash flow of $154 million and negative free cash flow of $387 million, partly due to working capital and the discontinued operations impact. Looking ahead, Owens Corning provided second-quarter 2026 guidance for revenue of $2.6-$2.7 billion and adjusted EBITDA margin of 20%-22%, implying a sequential improvement. The company also expects $60 million in incremental costs from Iran conflict inflation. The completed sale of glass reinforcements for ~$280 million in cash proceeds positions the company for higher, more resilient margins and cash flows. Capital allocation remains shareholder-friendly, with $63 million returned via dividends and a commitment to return $2 billion over 2025-2026. The company also noted potential $25 million in tariff refunds.