Owens Corning (OC)
NYSE:OC
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Owens Corning
(NYSE:OC)
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Rating:67Neutral
Price Target:
$133.00
▲(8.27% Upside)
Action:ReiteratedDate:04/21/26
The score is driven primarily by solid cash flow and an improved balance-sheet profile, but it is held back by the sharp recent profitability deterioration and earnings-quality concerns. Technicals are constructive with positive momentum, while valuation is weakened by negative earnings; the latest call and events reinforce meaningful near-term demand headwinds and some transaction-related downside.
Positive Factors
Strong cash generation
Consistent, high operating cash flow and a large year-over-year rise in free cash flow provide durable financial flexibility. This supports continued capital investments, dividends and buybacks, and cushions the business through cyclical construction demand, improving the firm's ability to fund strategic projects without levering excessively.
Negative Factors
Profitability deterioration
A swing to a sizeable net loss and dramatic EBIT compression signals weakened earnings quality and structural margin pressure. Even with strong cash flow, sustained profitability weakness can erode retained capital, limit reinvestment or dividend sustainability, and require repeated cost actions to restore long-term return on capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, high operating cash flow and a large year-over-year rise in free cash flow provide durable financial flexibility. This supports continued capital investments, dividends and buybacks, and cushions the business through cyclical construction demand, improving the firm's ability to fund strategic projects without levering excessively.
Read all positive factors
Owens Corning (OC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.74B
Dividend Yield2.43%
Average Volume (3M)1.32M
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth-7.95%
EPS Growth-187.64%
CountryUS
Employees25,000
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)1.10
Shares Outstanding80,383,160
10 Day Avg. Volume1,137,384
30 Day Avg. Volume1,323,227
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 Cap1.60
Enterprise Value/Revenue1.54
Enterprise Value/Gross Profit5.43
Enterprise Value/Ebitda15.96
Forecast
1Y Price Target
$141.45Price Target Upside15.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)9.36
Revenue Forecast (FY)$9.68B
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 Com...
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 custome...
Owens Corning Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call communicated a balanced picture: meaningful executional achievements (strong margins, cash returns, exceeded synergy targets, safety and innovation progress, and targeted capacity investments) contrasted with material near-term market headwinds (sharp Roofing volume decline, ongoing curtailments, negative price/cost dynamics, a $1.1 billion goodwill impairment in Doors, and free cash flow pressure from elevated CapEx). Management emphasized multiple levers to drive recovery and a path to long-term targets, while acknowledging near-term softness and one-time/noncash charges.Positive Updates
Strong Full-Year Financials and Margins
Full-year revenue of $10.1 billion and adjusted EBITDA of $2.3 billion with a 22% adjusted EBITDA margin; Q4 revenue $2.1 billion with adjusted EBITDA $362 million and a 17% Q4 margin. This marks the company's fifth consecutive year with 20%+ EBITDA margins.
Negative Updates
Significant Near-Term Roofing Volume Declines
Q4 Roofing sales of $774 million, down 27% year-over-year driven primarily by lower shingle volumes, unusually quiet second-half storm season and distributor destocking; Q1 shipments expected to be down low-20% vs. prior year with production curtailments creating a roughly $30 million P&L headwind as higher-cost inventory is sold through.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financials and Margins
Full-year revenue of $10.1 billion and adjusted EBITDA of $2.3 billion with a 22% adjusted EBITDA margin; Q4 revenue $2.1 billion with adjusted EBITDA $362 million and a 17% Q4 margin. This marks the company's fifth consecutive year with 20%+ EBITDA margins.
Read all positive updates
Company Guidance
Owens Corning guided first-quarter revenue from continuing operations of about $2.1–$2.2 billion with adjusted EBITDA margin in the mid‑teens; by business, Roofing ARMA shipments are expected down low‑20% with roofing revenue down low‑20%, Q1 roofing EBITDA margin in the low‑20s and a roughly $30 million curtailment headwind (an April price increase should begin to realize in Q2); Insulation revenue is expected down mid‑ to high‑single digits (North American residential down low double‑digits) with Q1 EBITDA margins just below 20%; Doors revenue is expected down mid‑teens (including ~$150 million of divested annual revenue) with Q1 EBITDA margins around 7%; corporate guidance includes general corporate EBITDA expense of $245–255 million, an effective tax rate of 24–26%, D&A of ~ $680 million and capital additions of ~ $800 million (more than half to strategic investments), with year‑end leverage at 2.1x EBITDA, liquidity of $1.8 billion, continued commitment to shareholder returns (Investor Day $2 billion target for 2025–26 already underway) and full‑year revenue/adjusted EBITDA largely aligned with consensus.Owens Corning Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
70
Positive
Cash Flow
82
Very Positive
| 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
Positive
122.84
Price Trends
116.44
Positive
115.97
Positive
125.24
Negative
Market Momentum
1.93
Negative
65.46
Neutral
81.58
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 above the 20-day moving average (MA) of 110.38, above the 50-day MA of 116.44, and below the 200-day MA of 125.24, indicating a neutral trend. The MACD of 1.93 indicates Negative momentum. The RSI at 65.46 is Neutral, neither overbought nor oversold. The STOCH value of 81.58 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.40B | 30.06 | 25.82% | 0.47% | 1.60% | 0.43% | |
74 Outperform | $7.21B | 26.64 | 34.81% | 0.66% | 9.71% | 13.17% | |
67 Neutral | $9.74B | -17.89 | -11.39% | 2.43% | -7.95% | -187.64% | |
67 Neutral | $14.38B | 14.37 | -566.50% | 1.94% | -0.31% | 10.03% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $9.22B | 90.31 | 10.11% | ― | -7.38% | -57.13% |
* Industrials Sector Average
OC
Owens Corning
121.18
-20.70
-14.59%
AWI
Armstrong World
168.84
24.90
17.30%
BLDR
Builders Firstsource
83.38
-36.25
-30.30%
MAS
Masco
71.26
11.77
19.79%
WMS
Advanced Drainage Systems
146.41
33.50
29.67%
Owens Corning Corporate Events
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....
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Owens Corning director to step down, board shrinks
Neutral
Feb 6, 2026
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 disagr...
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.