Q2 2026 Owens Corning Earnings Call Transcript
Key Points
- Owens Corning Inc (OC) delivered strong Q2 results with revenue of $2.8 billion and adjusted EBITDA of $660 million, achieving a 24% margin despite challenging market conditions.
- The company exceeded its DOORS synergy commitment, achieving $135 million in run-rate cost synergies, surpassing the original $125 million target, and identified an additional $75 million in structural cost improvements.
- Insulation segment showed resilience with 4% revenue growth, driven by strong performance in European and North American non-residential markets, including pockets of high growth in data centers.
- Roofing business demonstrated market outperformance with shingle and components volumes slightly ahead of the broader market, supported by strong demand for premium duration products and an expanding contractor network.
- The company returned $327 million to shareholders in the first half of 2026 and remains on track to deliver $1 billion in shareholder returns for the year, reflecting strong cash generation and disciplined capital allocation.
- Owens Corning Inc (OC) is investing $800 million in capital to strengthen competitive positions, including new highly efficient manufacturing assets like the Kansas City fiberglass line and Alabama roofing plant, positioning for future growth.
- Owens Corning Inc (OC) faces significant cost inflation, with Q2 impacted by $30 million in net cost inflation related to the Iran conflict, and anticipates a further $40 million impact in Q3, pressuring margins.
- Roofing EBITDA declined $16 million year-over-year due to higher inflation and negative price-cost dynamics, with pricing remaining relatively flat in the quarter.
- The Doors business experienced a 7% revenue decline due to strategic business exits and lower volumes, with EBITDA down year-over-year, though margins improved to 11%.
- The company expects Q3 revenue to decline to $2.6-$2.7 billion, with adjusted EBITDA margins contracting to 20%-22%, reflecting weaker seasonal demand and ongoing inflationary pressures.
- Roofing volumes are expected to be down high single-digits in Q3 due to pull-forward effects from Q2 price increases, leading to heavier distributor inventories and reduced purchases.
- Insulation margins remain under pressure, sitting at the lower end of the long-term target range due to negative price-cost dynamics and continued inflation, with recovery dependent on future pricing actions and productivity gains.
Hello, everyone.
Thank you for joining us and welcome to the Owens Corning second quarter 2026 earnings call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand to withdraw your question, press star one again.
I will now hand the conference over to Darren Garvin, Director of Investor Relations. Please go ahead.
Good morning and thank you for joining us to discuss Owens Corning second quarter 2026 results. Joining me today are Brian Chambers, our Chair and Chief Executive Officer and Todd Pfister, our Chief Financial and Operating Officer.
Our earnings release, Form 10-Q and presentation slides were issued earlier this morning and are available on the Investors section of our website at owenscorning.com.
Following our prepared remarks, we will open the call for Q&A. To allow for broad participation, please limit yourself to one question.
Before we
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
