Owens Corning (NYSE:OC) reported second-quarter 2026 revenue of $2.8 billion and adjusted EBITDA of $660 million, producing a 24% adjusted EBITDA margin as the building-products manufacturer cited commercial and operational initiatives that helped offset uneven construction and remodeling conditions.
Adjusted earnings per diluted share were $3.93. Revenue was relatively flat from the prior-year period, while free cash flow rose to $199 million from $129 million a year earlier. The company said it returned $264 million to shareholders during the quarter through $200 million of share repurchases and $64 million in dividends, bringing first-half capital returns to $327 million.
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“Our team delivered outstanding results in the second quarter, demonstrating the strength of the company we have built and our ability to execute at a high level in any market condition,” Chair and CEO Brian Chambers said.
Costs, capital spending and leadership changes
Chief Financial and Operating Officer Todd Fister said second-quarter EBITDA included a $25 million benefit from tariff refunds, with about half of the refund affecting the doors business and the rest spread across the enterprise. The refunds partially offset $30 million in net cost inflation related to the Iran conflict, he said.
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Owens Corning expects the net cost impact related to Iran to be about $40 million in the third quarter as inflation moves through inventory, with roofing expected to be the most affected segment. Fister said the company has more than $20 million in potential additional tariff refunds pending, though the timing is uncertain and the potential refunds were not included in the company’s third-quarter outlook.
The company ended the quarter with $1.8 billion of liquidity, including $271 million in cash and $1.5 billion available under bank debt facilities. Its debt-to-EBITDA ratio was 2.4 times, near the middle of its targeted range of two to three times. Owens Corning said it intends to pay off $400 million of senior notes due in the third quarter using commercial paper.
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For the full year, Owens Corning expects approximately $800 million of capital additions, with more than half allocated to productivity and growth programs. The company is building a new Fiberglas line in Kansas City that is expected to begin operating next year and initially serve commercial and industrial insulation applications. It is also constructing a roofing plant in Alabama, with capacity expected to be available by mid-2028.
Chambers said Jonathan Collins will join Owens Corning as chief financial officer on Aug. 10. Fister will transition to president and chief operating officer, leading enterprise initiatives intended to accelerate growth, improve performance and further integrate the company’s go-to-market strategy.
Roofing profitability remains strong despite inflation
Roofing sales were about $1.3 billion, up slightly from a year earlier, supported by favorable product mix and demand for higher-value products. EBITDA declined $16 million to $441 million, while the segment’s EBITDA margin was 34%.
Fister said higher inflation, including transportation costs, created negative price-cost dynamics because pricing was relatively flat during the quarter. The company said it is seeing solid realization of price increases announced during the second quarter.
Owens Corning said its shingles and components volumes were slightly ahead of the broader market, aided by its contractor engagement model and demand for roofing systems and components. Those gains were partly offset by lower nonwovens volumes following the exit of a low-margin contract.
For the third quarter, the company expects roofing revenue to decline by a mid-to-high single-digit percentage from the prior year and an EBITDA margin of about 30%. Management expects asphalt roofing market shipments to decline by a high single-digit percentage, reflecting volume that was pulled into the second quarter ahead of price increases and heavier distributor inventory.
Chambers said distributor inventories are “a little heavier than normal,” though conditions vary by region. He said second-half roofing demand will be increasingly dependent on storm activity and regional trends. The company expects pricing gains to build through the third and fourth quarters, but said the timing of a return to price-cost neutrality depends on input, asphalt and transportation inflation.
Insulation growth led by non-residential and European markets
Insulation revenue increased 4% to $971 million, driven primarily by higher volumes and a modest currency benefit. Segment EBITDA was $213 million, below the prior-year level due to slightly lower pricing and ongoing inflation, while the EBITDA margin was 22%.
The company cited strength in North American non-residential and European markets. North American residential revenue increased slightly as higher volumes offset the effects of earlier pricing actions. Fister said non-residential demand has benefited from pockets of strength including data centers, healthcare, interiors and U.S. reindustrialization activity.
In Europe, Owens Corning reported growth from commercial execution and improving core markets. Management said it believes Europe is positioned for stronger construction conditions over time after several years of below-average activity.
For the third quarter, the company expects insulation revenue to grow by a mid-single-digit percentage, with North American non-residential revenue up by a low-double-digit percentage. It expects the segment’s EBITDA margin to remain in line with the second quarter’s 22% level.
Owens Corning also plans to restart its smaller Nephi, Utah, insulation plant in the fourth quarter. Fister said the facility will help serve West Coast residential customers and support the company’s network during planned furnace rebuilds over the next two years. The Kansas City line is expected to provide additional network flexibility when it begins production.
Doors segment pursues margin expansion
Doors revenue declined 7% to $513 million, primarily because of strategic divestitures. Owens Corning sold its distribution business in the first quarter, which had about $70 million in annual net revenue, and sold an Oregon components facility late last year that had about $50 million in annual sales. Together, those actions reduced second-quarter revenue by about $30 million.
Doors EBITDA was $57 million, down from the prior year because of lower volumes and higher transportation costs. The segment generated an 11% EBITDA margin, above the company’s guidance due to tariff refunds.
Management said it has achieved $135 million of run-rate enterprise cost synergies in doors, exceeding its original $125 million target by the end of the second year of ownership. Chambers also said Owens Corning has identified another $75 million of structural cost improvements across operations.
For the third quarter, Owens Corning expects doors revenue to decline by a mid-single-digit percentage, again largely reflecting divestitures, and anticipates an EBITDA margin of about 10%. The company expects cost optimization and expanded commercial activity to support longer-term margin improvement, although material and transportation inflation are expected to keep price-cost dynamics negative in the quarter.
At the enterprise level, Owens Corning expects third-quarter revenue of $2.6 billion to $2.7 billion, slightly below the prior-year period, and an adjusted EBITDA margin of approximately 20% to 22%.
About Owens Corning (NYSE:OC)
Owens Corning is a global leader in composite materials and building products, with a primary focus on insulation, roofing, and fiberglass composites. The company serves professional contractors, builders and industrial manufacturers by providing solutions designed to improve energy efficiency, structural performance and durability. Its products are used in residential, commercial, and industrial applications worldwide.
The company’s core product lines include fiberglass insulation for thermal and acoustic comfort, roofing shingles and underlayment systems engineered for weather protection, and advanced composite materials for markets such as wind energy, automotive, marine and infrastructure.
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The article “Owens Corning Q2 Earnings Call Highlights” was originally published by MarketBeat.
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