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Owens Corning
(NYSE:OC)
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Rating:51Neutral
Price Target:
$129.00
â–¼(-11.47% Downside)
Action:Reiterated
Date:09/17/26
The score is held back primarily by deteriorated profitability and higher leverage despite strong cash generation. Technical signals also reflect a clear downtrend (below key moving averages with negative MACD). Offsetting factors include resilient cash flow, a moderate dividend yield, and an earnings-call picture of solid current profitability and capital returns, though near-term inflation and volume/margin headwinds cap upside.
Positive Factors
Strong Cash Generation
Strong operating cash flow and robust free cash flow give Owens Corning internal funding for capital investment, shareholder returns, and debt service. This cash-generation capacity provides resilience through cyclical construction markets, although the durability of cash flow should be assessed alongside recent accounting losses.
Negative Factors
Sustained Profitability Deterioration
The move from historically positive margins to recent net losses materially weakens earnings quality and reduces the company’s ability to absorb operating pressure. Near-break-even EBIT also leaves less margin for error, making durable recovery dependent on improved volumes, pricing, mix, and cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Strong operating cash flow and robust free cash flow give Owens Corning internal funding for capital investment, shareholder returns, and debt service. This cash-generation capacity provides resilience through cyclical construction markets, although the durability of cash flow should be assessed alongside recent accounting losses.
Read all positive factors
Owens Corning (OC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.01B
Dividend Yield2.49%
Average Volume (3M)974.80K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth-11.79%
EPS Growth-310.77%
CountryUS
Employees25,000
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)-8.14
Shares Outstanding79,048,680
10 Day Avg. Volume1,266,940
30 Day Avg. Volume974,802
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)2.42
Price to Sales (P/S)0.92
P/FCF Ratio9.71
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$170.73Price Target Upside17.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)10.04
Revenue Forecast (FY)$9.98B
Owens Corning Business Overview & Revenue Model
Company Description
Owens Corning provides residential and commercial building products in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: Roofing, Insulation, and Doors. The company offers laminate and strip asph...
How the Company Makes Money
Owens Corning makes money primarily by manufacturing building and industrial materials and selling them to customers across construction and manufacturing value chains. Its key revenue streams align to its operating segments: (1) Roofing: OC gener...
Owens Corning Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Strong Enterprise Profitability
Adjusted EBITDA of $660 million in Q2 with an adjusted EBITDA margin of 24%, demonstrating substantial profitability and earnings resiliency in the current market environment.
Negative Updates
Near-Term Inflationary Pressure (Iran Conflict Impact)
Net cost inflation related to the Iran conflict was ~$30 million in Q2 and management expects approximately $40 million of net cost impact in Q3 as inflation moves through inventory, with continued exposure to asphalt, transportation/diesel and certain polymer inputs.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Enterprise Profitability
Adjusted EBITDA of $660 million in Q2 with an adjusted EBITDA margin of 24%, demonstrating substantial profitability and earnings resiliency in the current market environment.
Read all positive updates
Company Guidance
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.Owens Corning Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
44
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.85B | 10.10B | 10.97B | 9.68B | 9.76B | 8.50B |
| Gross Profit | 2.58B | 2.88B | 3.29B | 2.84B | 2.71B | 2.22B |
| EBITDA | 682.00M | 975.00M | 1.75B | 2.17B | 2.07B | 1.91B |
| Net Income | -670.00M | -522.00M | 647.00M | 1.20B | 1.24B | 995.00M |
Balance Sheet | ||||||
| Total Assets | 12.73B | 12.98B | 14.07B | 11.24B | 10.75B | 10.02B |
| Cash, Cash Equivalents and Short-Term Investments | 271.00M | 353.00M | 361.00M | 1.61B | 1.10B | 959.00M |
| Total Debt | 5.73B | 6.16B | 5.62B | 3.27B | 3.22B | 3.12B |
| Total Liabilities | 8.92B | 9.09B | 8.96B | 6.03B | 6.13B | 5.68B |
| Stockholders Equity | 3.77B | 3.85B | 5.08B | 5.17B | 4.58B | 4.30B |
Cash Flow | ||||||
| Free Cash Flow | 550.00M | 962.00M | 1.25B | 1.19B | 1.31B | 1.09B |
| Operating Cash Flow | 1.75B | 1.79B | 1.89B | 1.72B | 1.76B | 1.50B |
| Investing Cash Flow | -411.00M | -765.00M | -3.39B | -356.00M | -623.00M | -377.00M |
| Financing Cash Flow | -1.33B | -1.07B | 334.00M | -877.00M | -974.00M | -881.00M |
Owens Corning Technical Analysis
Negative
145.71
Price Trends
140.33
Negative
133.56
Negative
125.16
Negative
Market Momentum
-5.56
Positive
32.70
Neutral
24.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OC, the sentiment is Negative. The current price of 145.71 is above the 20-day moving average (MA) of 130.45, above the 50-day MA of 140.33, and above the 200-day MA of 125.16, indicating a bearish trend. The MACD of -5.56 indicates Positive momentum. The RSI at 32.70 is Neutral, neither overbought nor oversold. The STOCH value of 24.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OC.
Owens Corning Risk Analysis
Owens Corning disclosed 32 risk factors in its most recent earnings report. Owens Corning reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Owens Corning Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.92B | 22.43 | 35.36% | 0.83% | 8.57% | 8.25% | |
66 Neutral | $13.80B | 15.67 | -406.43% | 1.86% | -0.56% | 15.03% | |
66 Neutral | $15.87B | 106.34 | 2.27% | 2.70% | 42.93% | -67.45% | |
65 Neutral | $13.05B | 18.49 | 41.06% | 1.40% | 1.90% | -2.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $10.01B | -15.10 | -17.10% | 2.49% | -11.79% | -310.77% | |
48 Neutral | $4.80B | 31.73 | 6.31% | 2.64% | -2.31% | -61.33% |
* Industrials Sector Average
OC
Owens Corning
120.72
-15.78
-11.56%
AWI
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162.13
-28.56
-14.98%
CSL
Carlisle Companies
314.13
-9.37
-2.90%
FBIN
Fortune Brands Innovations
37.99
-13.57
-26.31%
MAS
Masco
67.31
-1.88
-2.72%
JHX
James Hardie Industries PLC
26.10
7.51
40.40%
Owens Corning Corporate Events
Business Operations and StrategyExecutive/Board Changes
Owens Corning Adds Independent Director to Strengthen Governance
Positive
Sep 16, 2026
On September 16, 2026, Owens Corning’s board expanded from nine to ten members and elected Michael J. DeVito, a seasoned housing finance executive, as an independent director. DeVito, who previously led Freddie Mac and held senior home lendi...
Business Operations and StrategyExecutive/Board Changes
Owens Corning Announces New CFO and Leadership Changes
Positive
Jul 29, 2026
On July 29, 2026, Owens Corning announced that its board has appointed Jonathan M. Collins as executive vice president and chief financial officer, effective August 10, 2026, with a compensation package that includes a $775,000 base salary, annual...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.