Earnings Analysis November 4, 2026

Owens Corning ($OC) Q3 FY2026 Earnings Analysis: Revenue Down 7%, Adjusted EPS Misses Estimates, Guides Q4 Margin at 10-12%

Earnings Report

Revenue: $2.489 billion (YoY -7%, expected $2.621 billion) ❌ Miss

EPS (Earnings Per Share): Adjusted $2.44 (expected $3.05) ❌ Miss · GAAP basis is -$3.15

Guidance: New guidance provided · Q4 revenue $2 billion~$2.2 billion, adjusted EBITDA margin 10~12%

Stock Reaction: After-hours -5.32% ($111.5, as of 11-04 20:05 KST)

Highlights

Cash Generation: Q3 operating cash flow $813 million, free cash flow $622 million

Shareholder Returns: $62 million in dividends, $275 million in share buybacks, $299 million in debt reduction

Insulation: Revenue increased 6% to $1.001 billion, maintaining EBITDA of $215 million

Insulation offset the 16% decline in Roofing revenue by moving in the opposite direction. Net leverage stood at 2.5x, remaining within the company's target range of 2~3x, and $337 million was returned to shareholders in Q3 alone.

Lowlights

Revenue Decline: $2.489 billion, down 7% YoY, falling below the expected $2.621 billion

Adjusted EPS of $2.44: Fell short of the expected $3.05 and decreased from $3.67 last year

$476 million Doors impairment charge: Net loss attributable to common stock of $248 million on continuing operations

Roofing EBITDA margin fell to 29% from 34% a year ago, and Doors was halved to 5% from 10%. The decline in Roofing revenue is a result of the combination of weak storm activity for the second consecutive year and the reduction in distribution inventory.

What the Company Said

Chair and CEO Brian Chambers explained that the downturn in the housing market was compounded by weak storm activity for the second consecutive year and surging transportation and raw material costs. The Q4 outlook provided lower revenue and margins than Q3, reflecting rising costs, seasonality, and production downtime due to weakening market volumes.

Market Reaction and Future Key Points

After the announcement, the stock fell 5.32% in after-hours trading to record $111.5 (as of 11-04 20:05 KST). It has been confirmed that the company's Q4 margin guidance of 10-12% is a significant decrease from the 20% seen in Q3.

It remains to be seen whether Q4 revenue will actually fall within the $2 billion to $2.2 billion range

When the reduction in roofing distribution inventory stops will determine the direction of next quarter's earnings

A key point to watch is how much the increase in transportation and raw material costs will be reflected in Q4 margins

Earnings Call Summary

Once the earnings call concludes and the company script is released, the key takeaways from the call will be added to this section. We will select and summarize only the most important details, such as how management explained performance and outlook, and what analysts asked.