Owens Corning (OC) · Nov 4, 2026 · Earnings
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 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| 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.
Q4 2026 earnings report, expected February 2027
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