Owens Corning (OC) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $2.489B, down 7% YoY; adjusted EBITDA was $489M at a 20% margin amid softer end-market demand.

• Free cash flow was $622M; $337M was returned to shareholders and $299M of debt was repaid in Q3.

• A $476M non-cash Doors impairment contributed to a $248M net loss; adjusted diluted EPS was $2.44.

• Q4 guidance calls for $2.0B–$2.2B revenue and a 10%–12% adjusted EBITDA margin amid weak demand, inflation and downtime.

Financial highlights

• Q3 net sales were $2.489B versus $2.684B; adjusted EBITDA was $489M versus $638M, with margin at 20% versus 24%.

• Q3 net loss from continuing operations was $248M versus $495M; adjusted diluted EPS was $2.44 versus $3.67.

• Nine-month sales were $7.510B versus $7.961B; adjusted EBITDA was $1.518B versus $1.906B, with a 20% margin versus 24%.

• Q3 operating cash flow was $813M and free cash flow was $622M; nine-month free cash flow was $434M.

Outlook and guidance

• Q4 revenue is expected at $2.0B–$2.2B with a 10%–12% adjusted EBITDA margin; inflation, transportation costs, seasonality and downtime weigh on the outlook.

• Q4 Roofing revenue is expected down high-single digits, with an 18%–20% EBITDA margin; U.S. industry shipments are expected down high teens.

• Q4 Insulation revenue is expected up mid-single digits with a high-teens EBITDA margin; Doors revenue is expected down mid-single digits with a low-single-digit margin.

• FY 2026 outlook includes corporate EBITDA expenses of $235M–$245M, interest expense of $255M–$265M, tax rate of 24%–26%, capital additions of ~$800M and D&A of ~$680M.

• Long-term outlook targets ~$12.5B revenue in better markets, mid-20% EBITDA margins, mid-teens returns on capital and at least $1.5B annual free cash flow.