Owens Corning Q3 Sales Fall as Roofing and Doors Demand Weakens

Owens Corning (NYSE: OC) reported lower third-quarter revenue and adjusted earnings as softer construction markets and limited storm activity weighed on Roofing and Doors, while Insulation delivered sales growth. The company expects those pressures, along with inflation, transportation costs and production downtime, to result in a fourth-quarter adjusted EBITDA margin of about 10% to 12%.

Net sales from continuing operations fell 7% to $2.49 billion from $2.68 billion a year earlier. Adjusted EBITDA declined to $489 million from $638 million, reducing the adjusted EBITDA margin to 20% from 24%. Adjusted earnings were $192 million, or $2.44 per diluted share, compared with $306 million, or $3.67 per share, in the prior-year quarter.

On a GAAP basis, Owens Corning recorded a net loss attributable to the company of $248 million, or $3.15 per diluted share, compared with a loss of $495 million, or $5.93 per share, a year earlier. Third-quarter adjusting items included $366 million of goodwill impairment and $77 million of intangible-asset impairment. The company said its adjusted results exclude the effect of the Doors non-cash impairment.

For the first nine months of 2026, sales declined to $7.51 billion from $7.96 billion. Adjusted EBITDA fell to $1.52 billion from $1.91 billion, while adjusted diluted earnings per share decreased to $7.58 from $10.81.

Roofing pressured by weaker shipments and limited storm demand

Roofing remained Owens Corning’s largest earnings contributor, but third-quarter sales declined 16% to $1.04 billion. Segment EBITDA fell to $299 million from $423 million, and its margin narrowed to 29% from 34%.

U.S. Asphalt Roofing Manufacturers Association shipments were down 13% year over year. Owens Corning said no Atlantic hurricanes made landfall during the quarter, while year-to-date storm demand remained below historical averages. A continuing shift toward higher-value laminate shingles, growth in components and contractor engagement supported results and helped the business retain a relatively strong margin despite lower demand.

For the fourth quarter, the company expects Roofing revenue to decline by a high-single-digit percentage. It anticipates U.S. end-market industry shipments will fall by a high-teens percentage, with Owens Corning’s volumes performing above the market. Pricing is expected to be relatively flat, while input and transportation inflation and downtime associated with weaker demand are expected to produce negative price-cost effects. Roofing’s EBITDA margin is projected at 18% to 20%.

Insulation sales rise, but costs weigh on margins

Insulation was the only segment to report third-quarter revenue growth. Sales increased 6% to $1.00 billion, supported by commercial execution in North American non-residential markets and solid performance in core European markets. North American residential operations also delivered what the company described as solid performance against a softer market backdrop.

Segment EBITDA edged up to $215 million from $212 million, though the EBITDA margin declined to 21% from 23%. Positive pricing was more than offset by inflation, including higher transportation costs, resulting in negative price-cost performance.

Owens Corning expects fourth-quarter Insulation revenue to rise by a mid-single-digit percentage. North American residential revenue is projected to decline by a low-single-digit percentage, while non-residential revenue is expected to grow by a low-teens percentage. European revenue is also expected to increase. The company forecasts an Insulation EBITDA margin in the high teens, with manufacturing performance partially offsetting input and transportation inflation.

Doors faces weak markets and business exits

Doors sales fell 11% to $483 million as repair-and-remodel and new-construction markets remained challenging. Strategic business exits and lower volumes also reduced revenue. Segment EBITDA declined to $25 million from $56 million, with the margin falling to 5% from 10% as inflation and transportation expenses added to the pressure.

The company said its integrated go-to-market strategy contributed positively to performance, although weaker demand, tariffs and inflation masked that progress. Management continues to see potential for meaningful margin expansion over time.

Fourth-quarter Doors revenue is expected to decline by a mid-single-digit percentage, reflecting the divestiture of a distribution business and lower volumes. Modestly positive pricing is expected to be outweighed by input and transportation inflation and higher manufacturing costs, including downtime. The segment’s EBITDA margin is projected to be in the low single digits.

Cash generation supports debt reduction and shareholder returns

Consolidated operating cash flow, including discontinued operations, was $813 million in the quarter, down from $918 million a year earlier. Free cash flow declined to $622 million from $752 million after $191 million of capital spending.

Owens Corning returned $337 million to shareholders during the quarter and reduced debt by about $299 million. Through the first nine months, it returned $664 million through dividends and share repurchases. At September 30, net debt was $4.71 billion and net leverage was 2.5 times last-12-month adjusted EBITDA, within the company’s target range. Available liquidity totaled $1.6 billion.

For the fourth quarter, Owens Corning expects enterprise revenue of $2.0 billion to $2.2 billion. Management said North American residential markets remain under pressure, while non-residential markets continue to show pockets of strength and Europe remains stable. A second consecutive year without significant storm activity and distribution destocking are expected to weigh on Roofing demand.

The outlook also assumes significantly higher inflation and transportation costs, as well as additional downtime caused by weaker market volumes. For full-year 2026, the company expects capital additions of about $800 million, depreciation and amortization of approximately $680 million, and an effective tax rate of 24% to 26%.

Owens Corning identified further uncertainty from construction activity, product demand, tariffs and trade policy, raw-material and energy costs, pricing competition, acquisition integration, weather, foreign exchange, debt and financing conditions, and potential manufacturing or supply-chain disruptions.