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Owens Corning
(NYSE:OC)
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Rating:65Neutral
Price Target:
$171.00
▲(39.21% Upside)
Action:Reiterated
Date:07/01/26
The score is driven by mixed fundamentals—recent earnings deterioration and balance-sheet volatility offset by still-positive cash generation—while technically the stock is in a strong uptrend (well above major moving averages). Valuation is constrained by loss-making earnings (negative P/E) despite a modest dividend, and the latest earnings call supports a moderately positive outlook via margin guidance and cost actions, albeit with ongoing demand and inflation headwinds.
Positive Factors
Durable cash generation
Consistent multi-hundred-million operating cash flow and positive free cash flow provide a durable internal funding source. This supports ongoing capex, debt servicing, portfolio actions and shareholder returns even during cyclical housing weakness, preserving strategic optionality over months.
Negative Factors
Sustained revenue weakness
Broad-based top-line declines across key segments reflect persistent softness in new construction, remodels and industrial end markets. Prolonged revenue contraction risks lower capacity utilization and weaker fixed‑cost absorption, pressuring margins and earnings consistency over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable cash generation
Consistent multi-hundred-million operating cash flow and positive free cash flow provide a durable internal funding source. This supports ongoing capex, debt servicing, portfolio actions and shareholder returns even during cyclical housing weakness, preserving strategic optionality over months.
Read all positive factors
Owens Corning (OC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.80B
Dividend Yield2.43%
Average Volume (3M)1.13M
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth-12.20%
EPS Growth-333.77%
CountryUS
Employees25,000
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)-6.68
Shares Outstanding80,528,320
10 Day Avg. Volume1,094,747
30 Day Avg. Volume1,130,477
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)2.42
Price to Sales (P/S)0.92
P/FCF Ratio9.71
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit5.92
Enterprise Value/Ebitda22.39
Forecast
1Y Price Target
$152.23Price Target Upside23.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)9.45
Revenue Forecast (FY)$9.90B
Owens Corning Business Overview & Revenue Model
Company Description
Owens Corning provides residential and commercial building products in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: Roofing, Insulation, and Doors. The company offers laminate and strip asph...
How the Company Makes Money
Owens Corning makes money by manufacturing and selling building-material products through its three main operating segments, with revenue primarily generated from product sales to distributors, retailers, contractors, builders, and industrial cust...
Owens Corning Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call reflects a constructive and confident tone: the company delivered resilient margins and operational progress despite meaningful volume declines and inflationary headwinds. Management highlighted several strategic wins (cost synergies ahead of target, portfolio monetization, improved safety/sustainability recognition, digital investments, and a strong distribution footprint) and provided an outlook with materially higher expected margins in Q2. Notable near-term negatives include a 10% YoY revenue decline, a Q1 free cash flow outflow of $387 million, $75 million of adjusting charges (including a recall), and inflationary pressures (including an expected ~$60 million Iran-related cost impact in Q2) that create uncertainty. On balance, the company appears to be effectively managing a challenging macro environment and positioned to capitalize on recovery and structural improvements.Positive Updates
Resilient profitability and margins
Generated $369 million of adjusted EBITDA in Q1 2026 with an adjusted EBITDA margin of 16% and adjusted EPS of $1.22, demonstrating durable margin structure despite volume headwinds; company notes margin improvement of over 500 basis points in Roofing and Insulation versus similar market conditions over the past 10 years.
Negative Updates
Revenue declines across businesses
Overall Q1 revenue declined 10% year-over-year. Segment declines include Roofing sales down 14% YoY (Q1 sales $960 million), Insulation sales down 5% YoY (Q1 sales $867 million), and Doors sales down 12% YoY (Q1 sales $475 million).
Read all updates
Q1-2026 Updates
Positive
Negative
Resilient profitability and margins
Generated $369 million of adjusted EBITDA in Q1 2026 with an adjusted EBITDA margin of 16% and adjusted EPS of $1.22, demonstrating durable margin structure despite volume headwinds; company notes margin improvement of over 500 basis points in Roofing and Insulation versus similar market conditions over the past 10 years.
Read all positive updates
Company Guidance
Owens Corning guided Q2 revenue of approximately $2.6–$2.7 billion and an enterprise adjusted EBITDA margin of roughly 20%–22%; by segment they expect Roofing revenue down low‑ to mid‑single digits with an EBITDA margin in the low‑30% range, Insulation revenue down low‑single digits (price roughly flat) with ~20% EBITDA margin, and Doors revenue down mid‑single digits with EBITDA margins improving to the high‑single digits. They expect Iran‑related cost headwinds of about $60 million in Q2 (≈50% Roofing, remainder split toward Insulation), did not include potential tariff refunds (~$50 million total, ~$25M already submitted) in the outlook, and reiterated corporate guidance of general corporate EBITDA expense $245–$255M, an effective tax rate of 24%–26%, D&A ≈$680M, and capital additions ≈$800M for 2026; liquidity was $1.8B and net leverage ~2.5x.Owens Corning Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.84B | 10.10B | 10.97B | 9.68B | 9.76B | 8.50B |
| Gross Profit | 2.65B | 2.88B | 3.29B | 2.84B | 2.71B | 2.22B |
| EBITDA | 702.00M | 975.00M | 1.75B | 2.17B | 2.07B | 1.91B |
| Net Income | -533.00M | -522.00M | 647.00M | 1.20B | 1.24B | 995.00M |
Balance Sheet | ||||||
| Total Assets | 13.09B | 12.98B | 14.07B | 11.24B | 10.75B | 10.02B |
| Cash, Cash Equivalents and Short-Term Investments | 272.00M | 353.00M | 361.00M | 1.61B | 1.10B | 959.00M |
| Total Debt | 6.02B | 6.16B | 5.62B | 3.27B | 3.22B | 3.12B |
| Total Liabilities | 9.41B | 9.09B | 8.96B | 6.03B | 6.13B | 5.68B |
| Stockholders Equity | 3.64B | 3.85B | 5.08B | 5.17B | 4.58B | 4.30B |
Cash Flow | ||||||
| Free Cash Flow | 480.00M | 962.00M | 1.25B | 1.19B | 1.31B | 1.09B |
| Operating Cash Flow | 1.68B | 1.79B | 1.89B | 1.72B | 1.76B | 1.50B |
| Investing Cash Flow | -796.00M | -765.00M | -3.39B | -356.00M | -623.00M | -377.00M |
| Financing Cash Flow | -1.10B | -1.07B | 334.00M | -877.00M | -974.00M | -881.00M |
Owens Corning Technical Analysis
Positive
122.84
Price Trends
123.44
Positive
119.94
Positive
120.08
Positive
Market Momentum
3.56
Negative
63.83
Neutral
85.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OC, the sentiment is Positive. The current price of 122.84 is below the 20-day moving average (MA) of 127.67, below the 50-day MA of 123.44, and above the 200-day MA of 120.08, indicating a bullish trend. The MACD of 3.56 indicates Negative momentum. The RSI at 63.83 is Neutral, neither overbought nor oversold. The STOCH value of 85.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OC.
Owens Corning Risk Analysis
Owens Corning disclosed 32 risk factors in its most recent earnings report. Owens Corning reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Owens Corning Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.85B | 22.60 | 34.81% | 0.66% | 9.71% | 13.17% | |
67 Neutral | $16.42B | 20.24 | -566.50% | 1.94% | -0.31% | 10.03% | |
67 Neutral | $12.03B | 28.64 | 22.43% | 0.47% | 5.03% | -5.49% | |
65 Neutral | $12.80B | -23.67 | -12.50% | 2.43% | -12.20% | -333.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $9.62B | 34.14 | 6.92% | ― | -8.33% | -66.48% |
* Industrials Sector Average
OC
Owens Corning
158.96
19.00
13.58%
AWI
Armstrong World
160.42
-3.95
-2.40%
BLDR
Builders Firstsource
89.48
-37.43
-29.49%
MAS
Masco
81.37
15.50
23.54%
WMS
Advanced Drainage Systems
156.96
37.93
31.86%
Owens Corning Corporate Events
Business Operations and StrategyM&A Transactions
Owens Corning Completes Sale of Global Glass Reinforcements
Positive
May 1, 2026
On February 13, 2025, Owens Corning agreed to sell substantially all of its global glass reinforcements business to Triumph Composites Private Limited and 3B Lux S.à r.l., affiliates of the Praana Group, under a definitive transaction that wa...
Business Operations and StrategyExecutive/Board Changes
Owens Corning Elevates Todd Fister to Combined Finance-Operations Role
Positive
May 1, 2026
On April 28, 2026, Owens Corning’s board promoted Todd W. Fister to Executive Vice President, Chief Financial and Operating Officer, effective May 1, 2026, combining financial and operational leadership while the company conducts an external...
Executive/Board ChangesShareholder Meetings
Owens Corning Shareholders Reaffirm Board and Governance Framework
Positive
Apr 20, 2026
On April 14, 2026, Owens Corning stockholders elected nine directors, including CEO Brian D. Chambers, to serve until the 2027 annual meeting, reaffirming the existing board’s leadership and governance structure. The strong support across th...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Owens Corning Revises Glass Reinforcements Business Sale Terms
Negative
Apr 15, 2026
On February 14, 2025, Owens Corning disclosed an expected impairment charge tied to the planned sale of its global glass reinforcements business, which has been reclassified as discontinued operations and held for sale in its financial statements....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.