Owens Corning (NYSE:OC) reported second-quarter 2026 income of $2.8 billion and adjusted EBITDA of $660 million, producing a 24% adjusted EBITDA margin because the building-products producer cited industrial and operational initiatives that helped offset uneven development and transforming situations.
Adjusted earnings per diluted share have been $3.93. Income was comparatively flat from the prior-year interval, whereas free money circulate rose to $199 million from $129 million a yr earlier. The corporate stated it returned $264 million to shareholders in the course of the quarter via $200 million of share repurchases and $64 million in dividends, bringing first-half capital returns to $327 million.
→ Sandisk Simply Delivered a Blowout Quarter—This is Why the Inventory Is Falling
“Our crew delivered excellent ends in the second quarter, demonstrating the energy of the corporate we have now constructed and our capacity to execute at a excessive degree in any market situation,” Chair and CEO Brian Chambers stated.
Prices, capital spending and management adjustments
Chief Monetary and Working Officer Todd Fister stated second-quarter EBITDA included a $25 million profit from tariff refunds, with about half of the refund affecting the doorways enterprise and the remainder unfold throughout the enterprise. The refunds partially offset $30 million in web price inflation associated to the Iran battle, he stated.
→ 4 Oil and Gasoline ETF Performs as Costs Keep Sky-Excessive
Owens Corning expects the online price affect associated to Iran to be about $40 million within the third quarter as inflation strikes via stock, with roofing anticipated to be probably the most affected phase. Fister stated the corporate has greater than $20 million in potential extra tariff refunds pending, although the timing is unsure and the potential refunds weren’t included within the firm’s third-quarter outlook.
The corporate ended the quarter with $1.8 billion of liquidity, together with $271 million in money and $1.5 billion out there below financial institution debt services. Its debt-to-EBITDA ratio was 2.4 instances, close to the center of its focused vary of two to 3 instances. Owens Corning stated it intends to repay $400 million of senior notes due within the third quarter utilizing industrial paper.
→ No Hangover: Revisiting Microsoft One Week After Earnings
For the complete yr, Owens Corning expects roughly $800 million of capital additions, with greater than half allotted to productiveness and development packages. The corporate is constructing a brand new Fiberglas line in Kansas Metropolis that’s anticipated to start working subsequent yr and initially serve industrial and industrial insulation purposes. It is usually setting up a roofing plant in Alabama, with capability anticipated to be out there by mid-2028.
Chambers stated Jonathan Collins will be a part of Owens Corning as chief monetary officer on Aug. 10. Fister will transition to president and chief working officer, main enterprise initiatives supposed to speed up development, enhance efficiency and additional combine the corporate’s go-to-market technique.
Roofing profitability stays sturdy regardless of inflation
Roofing gross sales have been about $1.3 billion, up barely from a yr earlier, supported by favorable product combine and demand for higher-value merchandise. EBITDA declined $16 million to $441 million, whereas the phase’s EBITDA margin was 34%.
Fister stated larger inflation, together with transportation prices, created damaging price-cost dynamics as a result of pricing was comparatively flat in the course of the quarter. The corporate stated it’s seeing stable realization of worth will increase introduced in the course of the second quarter.
Owens Corning stated its shingles and elements volumes have been barely forward of the broader market, aided by its contractor engagement mannequin and demand for roofing programs and elements. These positive aspects have been partly offset by decrease nonwovens volumes following the exit of a low-margin contract.
For the third quarter, the corporate expects roofing income to say no by a mid-to-high single-digit proportion from the prior yr and an EBITDA margin of about 30%. Administration expects asphalt roofing market shipments to say no by a excessive single-digit proportion, reflecting quantity that was pulled into the second quarter forward of worth will increase and heavier distributor stock.
Chambers stated distributor inventories are “a little bit heavier than regular,” although situations differ by area. He stated second-half roofing demand shall be more and more depending on storm exercise and regional tendencies. The corporate expects pricing positive aspects to construct via the third and fourth quarters, however stated the timing of a return to price-cost neutrality relies on enter, asphalt and transportation inflation.
Insulation development led by non-residential and European markets
Insulation income elevated 4% to $971 million, pushed primarily by larger volumes and a modest foreign money profit. Phase EBITDA was $213 million, under the prior-year degree because of barely decrease pricing and ongoing inflation, whereas the EBITDA margin was 22%.
The corporate cited energy in North American non-residential and European markets. North American residential income elevated barely as larger volumes offset the results of earlier pricing actions. Fister stated non-residential demand has benefited from pockets of energy together with information facilities, healthcare, interiors and U.S. reindustrialization exercise.
In Europe, Owens Corning reported development from industrial execution and enhancing core markets. Administration stated it believes Europe is positioned for stronger development situations over time after a number of years of below-average exercise.
For the third quarter, the corporate expects insulation income to develop by a mid-single-digit proportion, with North American non-residential income up by a low-double-digit proportion. It expects the phase’s EBITDA margin to stay in step with the second quarter’s 22% degree.
Owens Corning additionally plans to restart its smaller Nephi, Utah, insulation plant within the fourth quarter. Fister stated the ability will assist serve West Coast residential clients and assist the corporate’s community throughout deliberate furnace rebuilds over the subsequent two years. The Kansas Metropolis line is anticipated to offer extra community flexibility when it begins manufacturing.
Doorways phase pursues margin enlargement
Doorways income declined 7% to $513 million, primarily due to strategic divestitures. Owens Corning bought its distribution enterprise within the first quarter, which had about $70 million in annual web income, and bought an Oregon elements facility late final yr that had about $50 million in annual gross sales. Collectively, these actions diminished second-quarter income by about $30 million.
Doorways EBITDA was $57 million, down from the prior yr due to decrease volumes and better transportation prices. The phase generated an 11% EBITDA margin, above the corporate’s steerage because of tariff refunds.
Administration stated it has achieved $135 million of run-rate enterprise price synergies in doorways, exceeding its unique $125 million goal by the tip of the second yr of possession. Chambers additionally stated Owens Corning has recognized one other $75 million of structural price enhancements throughout operations.
For the third quarter, Owens Corning expects doorways income to say no by a mid-single-digit proportion, once more largely reflecting divestitures, and anticipates an EBITDA margin of about 10%. The corporate expects price optimization and expanded industrial exercise to assist longer-term margin enchancment, though materials and transportation inflation are anticipated to maintain price-cost dynamics damaging within the quarter.
On the enterprise degree, Owens Corning expects third-quarter income of $2.6 billion to $2.7 billion, barely under the prior-year interval, and an adjusted EBITDA margin of roughly 20% to 22%.
About Owens Corning (NYSE:OC)
Owens Corning is a worldwide chief in composite supplies and constructing merchandise, with a major deal with insulation, roofing, and fiberglass composites. The corporate serves skilled contractors, builders and industrial producers by offering options designed to enhance vitality effectivity, structural efficiency and sturdiness. Its merchandise are utilized in residential, industrial, and industrial purposes worldwide.
The corporate’s core product strains embody fiberglass insulation for thermal and acoustic consolation, roofing shingles and underlayment programs engineered for climate safety, and superior composite supplies for markets equivalent to wind vitality, automotive, marine and infrastructure.
This immediate information alert was generated by narrative science expertise and monetary information from MarketBeat in an effort to present readers with the quickest reporting and unbiased protection. Please ship any questions or feedback about this story to contact@marketbeat.com.
The article “Owens Corning Q2 Earnings Name Highlights” was initially printed by MarketBeat.
View MarketBeat’s high shares for August 2026.
