Owens Corning (NYSE:OC) shares are trading lower on Wednesday after the company reported worse-than-expected fourth-quarter earnings results.
Earnings Snapshot
- The company reported adjusted EPS of $1.10, missing the $1.35 estimate.
- Revenue declined 17% year over year (Y/Y) to $2.142 billion, missing the $2.171 billion analyst forecast.
- Adjusted EBITDA decreased 36% Y/Y to $362 million, with a margin of 17%, vs. 22% a year ago quarter.
- Operating cash flow totaled $590 million, down from $676 million in the year-ago period. Free cash flow dropped 30% Y/Y to $333 million.
- Owens Corning ended the quarter with $345 million in cash and cash equivalents.
Segment Performance
In the Roofing segment, sales fell 27% Y/Y to $774 million, with EBITDA of $199 million and a margin of 26%.
The Insulation segment saw a 7% Y/Y decline in sales to $916 million, generating $186 million in EBITDA at a 20% margin.
Meanwhile, Doors business contributed $486 million in revenue (-14% Y/Y) and $33 million in EBITDA, with a margin of 7%.
Executive Vice President and CFO Todd Fister added, “While the challenging end markets in Doors resulted in a non-cash impairment charge, we continue to be confident in the long-term earnings potential of the business. Moving forward, we remain focused on improving the margins and cash flows of our businesses as markets improve later this year.”
Shareholders Appreciation
The company returned $1 billion to shareholders through dividends and share repurchases during the year.
In December 2025, Owens Corning announced a quarterly cash dividend of 79 cents per common share, a 15% increase from the prior quarter’s dividend.
Outlook
For the first quarter, Owens Corning expects revenue of around $2.1–$2.2 billion (vs. consensus of $2.222 billion) and enterprise adjusted EBITDA margins in the mid-teens.
This reflects strong execution despite higher-cost inventory flowing through the P&L after increased downtime in the fourth quarter of 2025.
For the full year, management expects market conditions to improve, with results broadly in line with consensus forecasts.
Owens Corning expects residential new construction and discretionary remodeling to remain under pressure early in the year, due to lower lagged single-family starts and cautious consumer spending.
In the roofing segment, manufacturer shipments are projected to soften due to reduced storm carryover demand and lower restocking.
North American non-residential construction is expected to remain broadly stable year over year, while European market conditions should improve gradually, supported by favorable currency dynamics.
The company anticipates a limited tariff-related impact in the first quarter, estimating a net exposure of roughly $10 million following mitigation actions.
Owens Corning continues to target its long-term objectives outlined at the 2025 Investor Day, including sustained revenue growth, enterprise adjusted EBITDA margins in the mid-20% range, and $5 billion in cumulative free cash flow by 2028.
Price Action: OC shares are trading lower by 1.68% at $124.50 at the last check on Wednesday.
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