The Q1 results confirm a sharp earnings contraction across all segments, with operating cash flow turning negative. The Q2 guidance for 20-22% adjusted EBITDA margins suggests a recovery from Q1's 16% but still below the 22% achieved in Q1 2025. Watch for the impact of the $60M Iran conflict inflation costs in Q2 and whether the glass reinforcements sale proceeds ($280M) will be deployed for share repurchases as previously signaled. The cross-filing context of the April 15 restructuring 8-K reinforces the bearish narrative of a company in transition.
Price Chart
Executive Summary
Owens Corning reported Q1 2026 results with net sales of $2.265B, down 10% YoY, and adjusted diluted EPS of $1.22, down 59% YoY. Revenue and earnings declined across all three segments (Roofing, Insulation, Doors) amid weak residential markets, while the company completed the sale of its glass reinforcements business. The Q2 revenue guidance of $2.6B-$2.7B and adjusted EBITDA margin of 20%-22% imply a sequential improvement but do not offset the YoY decline in the current quarter.
Key Financial Metrics
Key Facts
- Q1 2026 net sales from continuing operations: $2.265B, down 10% YoY from $2.530B
- Q1 2026 GAAP diluted EPS from continuing operations: $0.47, down 84% YoY from $2.95
- Q1 2026 adjusted diluted EPS from continuing operations: $1.22, down 59% YoY from $2.97
- Q1 2026 adjusted EBITDA from continuing operations: $369M, down 35% YoY from $565M; margin 16% vs 22%
- All three segments saw YoY revenue declines: Roofing -14%, Insulation -5%, Doors -12%
- Operating cash outflow of $154M and free cash outflow of $387M in Q1 2026
- Completed sale of glass reinforcements business on April 30, 2026, with ~$280M in cash proceeds
- Q2 2026 revenue guidance: approximately $2.6B to $2.7B; adjusted EBITDA margin guidance: ~20% to 22%
- Restructuring charges of $43M and Paroc marine recall costs of $32M in Q1 2026
- Prior 8-K (April 15, 2026) disclosed $140M additional loss on glass reinforcements sale
Financial Impact
Revenue decline of $265M (-10% YoY) and adjusted EBITDA decline of $196M (-35% YoY) in Q1 2026
Risk Factors
- Continued weakness in residential new construction and discretionary remodeling
- Incremental $60M cost impact from Iran conflict in Q2 2026
- Restructuring charges of $43M and Paroc marine recall costs of $32M weighing on margins
- Negative operating cash flow and free cash flow in Q1 2026
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001370946-26-000143 |
| Document: oc-20260506.htm | 0001370946-26-000143 |
| Document: 0001370946-26-000143-index-headers.html | 0001370946-26-000143 |
| Document: 0001370946-26-000143-index.html | 0001370946-26-000143 |
| Document: 0001370946-26-000143.txt | 0001370946-26-000143 |
| 8-K Data (Synthetic) | 0001370946-26-000143 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 8w ago | 8-K | $152.47 $134.25 | ▼ −11.95% | ▼ −11.35% | $118.36 (−22.37%) |
May 6, 2026 21w ago | 8-K | $122.96 $120.16 | ▲ +2.28% | ▲ +5.06% | $118.36 (+3.74%) |
Apr 15, 2026 24w ago | 8-K | $117.63 $118.56 | ▼ −0.79% | ▲ +5.03% | $118.36 (−0.62%) |
Feb 25, 2026 31w ago | 8-K | $123.14 $107.60 | ▲ +12.62% | ▲ +7.38% | $118.36 (+3.88%) |
US Market Status
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