The 28% EPS beat and robust cash flow affirm the post-divestiture earnings power. However, Q3 revenue guidance slightly below prior year and Iran cost headwinds warrant watch for demand softening. Strength in Roofing (+1% sales) and Insulation (+4% sales) partly offset Doors decline (-7%). Expect positive near-term momentum from capital return program.
Price Chart
Executive Summary
Owens Corning reported Q2 2026 adjusted diluted EPS of $3.93, beating the $3.06 consensus by 28%, with net sales of $2.8B flat YoY. Adjusted EBITDA margin reached 24%, operating cash flow was $398M, and $264M was returned to shareholders. The company maintained its full-year outlook but guided Q3 revenue slightly below prior year, citing inventory destocking and $40M in Iran conflict costs.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS from continuing operations: $3.93 vs consensus $3.06 (beat +28.4%)
- Net sales from continuing operations: $2,756M, flat YoY ($2,747M)
- Adjusted EBITDA margin: 24% (Q2 2025: 26%)
- Operating cash flow: $398M (up 22% YoY); Free cash flow: $199M (up 54% YoY)
- Returned $264M to shareholders: $200M in share repurchases (1.7M shares) and $64M in dividends
- Q3 2026 outlook: revenue $2.6B-$2.7B, Adjusted EBITDA margin 20%-22%
- Full-year 2026 outlook maintained: CapEx ~$800M, D&A ~$680M, interest expense $255-$265M
- Completed sale of glass reinforcements business on April 30, 2026; $135M cost synergies achieved in Doors (exceeded $125M target)
Financial Impact
Q2 EPS beat consensus by $0.87 (28.4%), with strong cash flow generation and margin resilience
Risk Factors
- Incremental $40M Iran conflict costs in Q3
- Heavy Q2 inventory stocking may dampen Q3 distributor purchases
- Discretionary remodeling and residential new construction remain under pressure
- Potential tariffs or trade policy changes
- Doors segment sales down 7% YoY, need to monitor recovery
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001370946-26-000175 |
| Document: oc-20260805.htm | 0001370946-26-000175 |
| Document: 0001370946-26-000175-index-headers.html | 0001370946-26-000175 |
| Document: 0001370946-26-000175-index.html | 0001370946-26-000175 |
| Document: 0001370946-26-000175.txt | 0001370946-26-000175 |
| 8-K Data (Synthetic) | 0001370946-26-000175 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 8w ago | 8-K | $152.47 $134.25 | ▼ −11.95% | ▼ −11.35% | $118.11 (−22.53%) |
May 6, 2026 21w ago | 8-K | $122.96 $120.16 | ▲ +2.28% | ▲ +5.06% | $118.11 (+3.94%) |
Apr 15, 2026 24w ago | 8-K | $117.63 $118.56 | ▼ −0.79% | ▲ +5.03% | $118.11 (−0.41%) |
Feb 25, 2026 31w ago | 8-K | $123.14 $107.60 | ▲ +12.62% | ▲ +7.38% | $118.11 (+4.08%) |
US Market Status
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