Owens Corning (OC) · Nov 4, 2026 · Earnings

Owens Corning earnings miss as roofing slump forces Q4 reset

Miss — Adjusted EPS $2.44 vs ~$3.05 consensus; revenue $2.489B vs ~$2.62B consensus

Owens Corning earnings missed expectations as weak roofing demand, destocking and inflation drove a sharp fourth-quarter outlook reset.

Owens Corning entered this quarter as a reshaped, residential-focused building-products company built around Roofing, Insulation and Doors after completing the Glass Reinforcements sale. Its prior Q3 framework called for roughly $2.6–$2.7 billion of revenue and a 20%–22% adjusted EBITDA margin, with the company arguing that structural improvements would offset softer demand.

The quarter missed on both demand and earnings power. Revenue fell to $2.489 billion from $2.684 billion, below published expectations near $2.62 billion, while adjusted EPS was $2.44 versus consensus around $3.05. Adjusted EBITDA dropped 23% to $489 million, and margin compressed to 20% from 24% last year. The result is materially weaker than the market’s already-lowered expectations, not merely a comparison against an unusually strong prior year.

Q3 2026Q3 2025Consensus
Revenue (Financial Highlights)$2.489B (-7.3%)$2.684B$2.62B
Adjusted EPS (Adjusted EPS reconciliation)$2.44 (-33.5%)$3.67~$3.05
Adjusted EBITDA (Financial Highlights)$489M (-23.4%)$638M
Adjusted EBITDA margin (Financial Highlights)20% (-4 pts)24%
Free cash flow (Free Cash Flow reconciliation)$622M (-17.3%)$752M

Roofing, the largest profit engine, was the central break. Roofing sales fell 16% and EBITDA fell 29%, with margin dropping to 29% from 34%; Insulation was the only segment to grow revenue, but its margin also contracted, while Doors revenue and EBITDA both fell sharply. Management attributed the pressure to weak residential markets, a second consecutive year of limited storm activity, distributor destocking, and rising transportation and input costs. 〔0〕

The bigger change is the forward reset. For Q4, management now expects revenue of $2.0–$2.2 billion and an enterprise adjusted EBITDA margin of only 10%–12%, citing inflation, transportation costs, seasonality and incremental downtime. That is a sharp step down from the prior quarter’s expectation of continued strong performance at a 20%–22% margin, and it suggests the weakness is spreading from a temporary roofing-volume issue into broader near-term operating deleverage. 〔1〕

Cash generation and capital discipline soften the blow, but do not offset the operating miss. Third-quarter operating cash flow remained $813 million and free cash flow $622 million, while the company returned $337 million to shareholders and reduced debt by $299 million. Net leverage stayed at 2.5x, inside the 2x–3x target range. Those figures support balance-sheet flexibility, but the underlying earnings trajectory is deteriorating: nine-month adjusted EBITDA is down 20% and free cash flow is down 31% year over year.

Bottom line: This is a clear earnings miss followed by a steep Q4 outlook reset. Owens Corning’s long-term reshaping remains intact, but the filing weakens the current story by showing that weak residential demand and cost inflation are overwhelming the expected near-term benefits of that strategy.

What to watch next

Q4 2026 earnings report, expected February 2027

Original filing on SEC EDGAR

More Owens Corning news

Owens Corning earnings miss as roofing slump forces Q4 reset | OC Stock News
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