Owens Corning (OC) AI Stock Analysis

• Market Cap: $8.67B
• Dividend Yield: 2.43%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• 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: 1,847,374
• 30 Day Avg. Volume: 1,568,881
• 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: 1.70
• Enterprise Value/Revenue: 1.46
• Enterprise Value/Gross Profit: 5.16
• Enterprise Value/Ebitda: 15.15
• 1Y Price Target: $141.89
• Price Target Upside: 30.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 9.67
• Revenue Forecast (FY): $9.70B

• Rating: 64 Neutral
• Price Target: $115.00 ▲(5.55% 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 and rising free cash flow

Sustained high operating cash flow ($1.79B) and a ~61% YoY rise in free cash flow provide durable internal funding for capex, share returns and debt reduction. This cash conversion cushions cyclical revenue swings, sustaining strategic investments and shareholder distributions over the medium term.

Manufacturing scale and strategic capacity investments

Recent plant start-ups and modernization (new shingle, nonwovens and XPS lines plus automation) strengthen cost position and scalable capacity. These structural investments lower unit costs, speed product innovation adoption and position Owens Corning to capture demand recovery with improved margin economics over coming quarters.

Realized synergies and ongoing structural cost program

Exceeding $125M of run-rate synergies and targeting another $75M indicates durable margin tailwinds from structural efficiency. These realized and prospective cost reductions lower operating leverage, improve margin resilience versus input-cost volatility and provide recurring benefits beyond short-term cycles.

Negative Factors

Sharp Roofing volume declines and curtailments

Roofing is a high-margin, high-contribution segment; sustained volume weakness (Q4 -27%, Q1 shipments down low-20%) and planned curtailments that generate a ~$30M headwind materially lower fixed-cost absorption. Prolonged weakness can compress margins and delay recovery of portfolio profitability for multiple quarters.

Doors segment impairment and structural underperformance

A $1.1B goodwill impairment signals revised, lower long-term cash flow expectations for Doors and highlights structural demand or competitive issues. This reduces reported equity cushions and reflects persistent underperformance, raising execution and capital-allocation risks until the business shows sustainable recovery.

Sharp deterioration in reported earnings and margins

A swing to a net loss (-$522M) and EBIT collapse versus prior year erodes return on capital and can constrain reinvestment. Even with strong cash flow, persistent earnings weakness risks higher funding costs, reduced reinvestment capacity and pressure on medium-term margin recovery absent structural demand or pricing improvements.

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 makes money primarily by manufacturing and selling building-material products through its operating segments, generating revenue from product sales to contractors, builders, distributors/wholesalers, retailers, and industrial customers (customer mix varies by segment and geography). (1) Roofing: Revenue is driven by sales of asphalt roofing shingles and associated roofing components/accessories used in new construction and re-roofing (repair/remodel) activity. Earnings in this segment are influenced by volumes (housing starts and re-roof demand), product mix (e.g., premium shingles vs. entry-level), pricing actions, and input costs (notably asphalt and other petroleum- and commodity-linked materials), as well as manufacturing utilization and distribution reach. (2) Insulation: Revenue comes from selling insulation solutions (commonly fiberglass insulation, along with other insulation-related products depending on the offering) into residential, commercial, and industrial end markets. Profitability depends on demand from construction/remodel cycles, pricing vs. competing insulation materials, energy-efficiency and building-code trends, and production costs (including glass and energy inputs). (3) Composites: Revenue is generated through sales of fiberglass reinforcements and related composite materials used by manufacturers in end markets such as transportation, infrastructure/construction, industrial, and consumer applications. Earnings are affected by industrial production levels, customer demand in composite-consuming sectors, product specialization/value-added offerings, and raw material and energy costs. Across the company, cash generation and margins are supported by brand strength, manufacturing scale, distribution relationships, and the ability to manage cyclical demand via pricing, cost control, and product mix; however, specific significant partnerships are not available in the provided context and are therefore null.

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: 108.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 108.95 is below the 20-day moving average (MA) of 116.39, below the 50-day MA of 121.24, and below the 200-day MA of 127.76, indicating a bearish trend. The MACD of -5.11 indicates Positive momentum. The RSI at 37.58 is Neutral, neither overbought nor oversold. The STOCH value of 34.35 is Neutral, 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	$10.89B	30.06	25.82%	0.47%	2.48%	-6.92%
AWI	72 Outperform	$7.29B	31.80	36.09%	0.66%	15.10%	23.35%
OC	64 Neutral	$8.67B	―	-11.39%	2.43%	3.47%	-148.53%
MAS	64 Neutral	$12.57B	16.37	-537.31%	1.94%	-3.62%	3.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	52 Neutral	$10.03B	90.31	10.11%	―	-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.