Owens Corning (OC) AI Stock Analysis

• Market Cap: $9.21B
• Dividend Yield: 2.43%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: 3.47%
• EPS Growth: -148.53%
• Country: US
• Employees: 25,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 1.10
• Shares Outstanding: 80,383,160
• 10 Day Avg. Volume: 1,693,666
• 30 Day Avg. Volume: 1,463,237
• PEG Ratio: 0.10
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 9.71
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: 15.37
• 1Y Price Target: $145.22
• Price Target Upside: 24.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 9.7
• Revenue Forecast (FY): $9.70B

• Rating: 64 Neutral
• Price Target: $135.00 ▲(15.53% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by solid cash generation and a manageable balance sheet, which support resilience despite cyclical market weakness. Offsetting this, the latest sharp earnings deterioration and cautious near-term guidance (notably Roofing volume declines and curtailment impacts) keep the outlook constrained. Technicals and valuation are both mixed, with the stock below key long-term averages and a negative P/E limiting valuation support.

Positive Factors

Strong cash generation

Consistently high operating cash flow ($1.79B) and a ~61% YoY rise in free cash flow provide durable internal funding for capex, dividends, buybacks and debt service. This cash conversion cushions cyclical revenue swings and funds strategic investments without relying heavily on external financing.

Manageable leverage and liquidity

A modest debt load (~$1.0B vs $3.9B equity) and reported $1.8B liquidity create balance sheet flexibility. With year-end net debt-to-EBITDA around 2.1x management can fund ongoing capital projects, sustain shareholder returns and withstand near-term demand softness without immediate refinancing pressure.

Operational delivery and margin resilience

Sustained mid-20s-plus adjusted EBITDA margins across cycles, plus segment-level strength (Roofing/Insulation) reflect durable cost positions, product mix and pricing power. Combined with automation, network investments and exceeded synergy targets, this supports long-term margin sustainability as markets recover.

Negative Factors

Recent sharp earnings deterioration

A swing to a substantial net loss and steep EBIT decline signals meaningful earnings-quality deterioration. If structural demand or price/cost dynamics persist, reduced profitability could curtail internal capital formation, pressure returns on invested capital and complicate the path back to prior profit levels.

Roofing volume weakness and curtailments

Sustained low-20% shipment declines, distributor destocking and curtailments reduce utilization and create immediate margin pressure. Curtailment-related higher-cost inventory sales and disrupted plant operations can persist across quarters, delaying margin recovery even after pricing actions take effect.

Doors impairment and divestiture execution risk

A $1.1B goodwill impairment signals long-term weakness in the Doors business and lowers reported equity. The announced divestiture reduces diversification but is contingent on regulatory approvals, adding execution and timing risk that could affect near-term cash proceeds and strategic outcomes.

Owens Corning Business Overview & Revenue Model

Company Description

Owens Corning manufactures and markets insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, and internationally. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and other specialized products. Its products are used in building structures, roofing shingles, tubs and showers, pools, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades applications in the building and construction, renewable energy, and infrastructure markets. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The Insulation segment manufactures and sells insulation products for residential, commercial, industrial, and other markets for thermal and acoustical applications; and glass fiber pipe insulation, flexible duct media, bonded and granulated mineral fiber insulation, cellular glass insulation, and foam insulation products used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors under the Thermafiber, FOAMULAR, FOAMGLAS, Paroc, Owens Corning PINK, and FIBERGLAS Insulation brand names. The Roofing segment manufactures and sells aminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications, as well as synthetic packaging materials. This segment sells its products through distributors, home centers, lumberyards, retailers, and contractors, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. Owens Corning was incorporated in 1938 and is headquartered in Toledo, Ohio.

How the Company Makes Money

Owens Corning generates revenue through multiple key streams, primarily from its three business segments. The Insulation segment earns money by selling fiberglass insulation products for residential and commercial applications, capitalizing on the growing demand for energy-efficient building materials. The Roofing segment generates income through the sale of roofing shingles and related products, catering to both new construction and repair markets. The Composites segment profits by providing fiberglass reinforcements and other composite solutions to industries like automotive, aerospace, and wind energy. Significant partnerships with construction firms, contractors, and distributors enhance their market reach. Additionally, Owens Corning's focus on innovation and sustainability allows it to command premium pricing on advanced products, contributing to its overall profitability.

Owens Corning Financial Statement Overview

Summary

Mixed fundamentals: cash flow is strong (operating cash flow $1.79B; free cash flow up ~61% YoY) and leverage appears moderate-to-manageable (debt ~$1.0B vs. equity ~$3.9B). However, profitability deteriorated sharply in the latest year (net loss of -$522M, EBIT down to $360M from $2.1B) alongside a revenue decline (~-6% YoY), making near-term earnings quality the key risk.

Income Statement

Profitability has weakened meaningfully: after strong earnings in 2021–2024 (net margin roughly 6%–13%), the most recent annual period shows a net loss (-$522M) on lower revenue (about -6% year over year). Gross profit dollars held up versus 2023, but operating profitability compressed sharply (EBIT fell to $360M vs. $2.1B in 2024), indicating significant margin pressure and/or one-time costs. The longer-term backdrop is still constructive (revenue grew strongly from 2021–2024), but the latest year is a clear step-down and raises near-term earnings quality concerns.

Balance Sheet

Leverage appears moderate-to-manageable on the latest balance sheet, with total debt about $1.0B against $3.9B of equity (roughly 0.26x debt-to-equity using provided figures), a substantial improvement versus 2024 when leverage was higher (debt-to-equity ~1.11x). Equity remains sizable relative to the asset base, supporting balance-sheet flexibility. The key weakness is that the most recent year’s loss likely reduces internally generated capital and could pressure ratios if profitability does not recover.

Cash Flow

Cash generation is a bright spot: operating cash flow was strong at $1.79B in the latest annual period and free cash flow also rose sharply (up ~61% year over year), indicating good conversion of operations into cash despite weaker reported earnings. Prior years also show consistently positive free cash flow (roughly $1.1B–$1.3B from 2021–2024). The main watch-out is the divergence between strong cash flow and the latest net loss, which can occur with working-capital swings or non-cash/one-time charges; it’s supportive, but worth monitoring for sustainability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.10B	10.97B	9.68B	9.76B	8.50B
Gross Profit	2.88B	3.29B	2.84B	2.71B	2.22B
EBITDA	975.00M	1.75B	2.17B	2.07B	1.91B
Net Income	-522.00M	647.00M	1.20B	1.24B	995.00M
Balance Sheet
Total Assets	12.98B	14.07B	11.24B	10.75B	10.02B
Cash, Cash Equivalents and Short-Term Investments	353.00M	361.00M	1.61B	1.10B	959.00M
Total Debt	6.16B	5.62B	3.27B	3.22B	3.12B
Total Liabilities	9.09B	8.96B	6.03B	6.13B	5.68B
Stockholders Equity	3.85B	5.08B	5.17B	4.58B	4.30B
Cash Flow
Free Cash Flow	962.00M	1.25B	1.19B	1.31B	1.09B
Operating Cash Flow	1.79B	1.89B	1.72B	1.76B	1.50B
Investing Cash Flow	-765.00M	-3.39B	-356.00M	-623.00M	-377.00M
Financing Cash Flow	-1.07B	334.00M	-877.00M	-974.00M	-881.00M

Owens Corning Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 116.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OC, the sentiment is Negative. The current price of 116.85 is below the 20-day moving average (MA) of 129.33, below the 50-day MA of 122.92, and below the 200-day MA of 129.91, indicating a bearish trend. The MACD of -1.87 indicates Positive momentum. The RSI at 35.10 is Neutral, neither overbought nor oversold. The STOCH value of 15.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OC.

Owens Corning Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMS	76 Outperform	$12.55B	30.06	26.50%	0.47%	2.48%	-6.92%
AWI	72 Outperform	$7.28B	31.80	37.24%	0.66%	15.10%	23.35%
OC	64 Neutral	$9.21B	-17.89	-4.21%	2.43%	3.47%	-148.53%
MAS	64 Neutral	$13.85B	16.37	―	1.94%	-3.62%	3.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	52 Neutral	$10.78B	26.34	10.06%	―	-6.44%	-48.84%

Owens Corning Corporate Events

Owens Corning director to step down, board shrinks

On February 4, 2026, Owens Corning director Maryann T. Mannen informed the board that she will not stand for re-election at the company’s 2026 Annual Meeting of Stockholders, with the company stating her decision is not related to any disagreement over its operations, policies, or practices. Following her departure at the 2026 annual meeting, the board plans to decrease its size from ten to nine directors, signaling a modest streamlining of its governance structure without indicating broader strategic or operational shifts.

The most recent analyst rating on (OC) stock is a Hold with a $121.00 price target. To see the full list of analyst forecasts on Owens Corning stock, see the OC Stock Forecast page.