Owens Corning (OC) Q2 2026 Earnings Report

The call presented a clear mix of strength and resilience—solid profitability (24% adjusted EBITDA margin), improving free cash flow (+54% YoY), disciplined capital returns, and operational achievements (exceeded Doors synergy targets, major growth investments). However, meaningful near-term headwinds were emphasized: inflation tied to the Iran conflict, negative price/cost dynamics, tariff-related impacts, and Q3 revenue/margin guidance indicating softer roofing volumes due to pull-forward inventory. On balance, the company appears fundamentally strong with multiple levers for long-term growth and disciplined capital allocation, but near-term volatility and inflation risks temper the outlook.

For the third quarter the company expects enterprise revenue of $2.6–$2.7 billion with adjusted EBITDA margin of about 20%–22% (reflecting a Q3 Iran-related net cost impact of roughly $40 million that is included in the outlook); Roofing revenue is expected down mid‑ to high‑single digits with ARMA shipments down high single digits, volumes broadly in line with the market and an anticipated Roofing EBITDA margin of ~30% (negative price/cost expected); Insulation is expected to grow mid‑single digits (North American residential flat to prior year, North American nonres up low double digits, Europe up) with Q3 EBITDA margin roughly in line with Q2 at ~22%; Doors revenue is expected down mid‑single digits (partly reflecting divestitures) with a Q3 EBITDA margin of ~10% (pricing slightly positive but overall negative price/cost); companywide items: full‑year corporate EBITDA expense $245–$255 million, 2026 effective tax rate 24%–26%, depreciation & amortization ≈ $680 million, capital additions ≈ $800 million (more than half for productivity/growth), and tariff‑refund timing/amounts were excluded from the guidance.