Owens Corning shares rise 8% despite Q3 profit and revenue misses

Owens Corning (OC) missed third-quarter estimates for adjusted profit and revenue, the company said on Nov. 4, as weak storm activity and rising costs weighed on its residential business.

Shares rose 8.4% in regular trading as of 3:59 p.m. ET, from a regular-session close of $117.76.

Owens Corning is a branded building products company with roofing, insulation and doors businesses, sold primarily in residential markets in North America and Europe. It is based in Toledo, Ohio.

Here's how the company did:

• Adjusted EPS: $2.44 vs. $3.16 expected
• Net sales: $2.49 billion vs. $2.68 billion a year earlier
• Diluted EPS from continuing operations: a loss of $3.15 vs. a loss of $5.93 a year earlier

Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, excluding one-time items, was $489 million, down from $638 million a year earlier. The adjusted EBITDA margin was 20%, against 24% a year earlier.

The quarter included $476 million in non-cash, pre-tax impairment charges related to the Doors business, the company said. Free cash flow was $622 million. Owens Corning returned $337 million to shareholders through dividends and share repurchases and reduced debt by $299 million.

Chair and Chief Executive Officer Brian Chambers described the conditions. "During the quarter, challenging residential market conditions were further impacted by a second consecutive year of weak storm activity and rapidly rising transportation and input material costs," said Chair and Chief Executive Officer Brian Chambers. "Despite these pressures, our team demonstrated disciplined commercial and operational execution, delivering a resilient margin and strong cash flow."

Segment results

Roofing net sales were $1.04 billion, down 16% from a year earlier, and segment EBITDA was $299 million, against $423 million.

Insulation net sales rose 6% to $1.00 billion, and segment EBITDA was $215 million, compared with $212 million.

Doors net sales fell 11% to $483 million, and segment EBITDA dropped to $25 million from $56 million.

Outlook

For the fourth quarter, the company expects revenue of $2.0 billion to $2.2 billion and an enterprise adjusted EBITDA margin of approximately 10% to 12%. The company said the forecast reflects higher inflation and transportation costs, fourth-quarter seasonality and incremental downtime due to weaker market volumes.

On Aug. 5, the company had expected third-quarter revenue of $2.6 billion to $2.7 billion and an adjusted EBITDA margin of 20% to 22%. Its third-quarter margin was 20%.

The company lowered its 2026 general corporate EBITDA expense forecast to $235 million to $245 million, from $245 million to $255 million given on Aug. 5. Its interest expense forecast of $255 million to $265 million, capital additions of approximately $800 million and depreciation and amortization of approximately $680 million were unchanged.

President and Chief Operating Officer Todd Fister said the company is navigating a difficult near-term market. "While we are navigating a challenging market in the near-term, we have confidence in OC's long-term growth and performance through the cycle," said President and Chief Operating Officer Todd Fister.

Leadership changes

Fister was promoted to president and chief operating officer. Jonathan Collins joined the company in August as executive vice president and chief financial officer, succeeding Fister in that role.