Owens Corning reported resilient second-quarter 2026 financial results, showcasing the benefits of its transformation into a residential-focused building products company. While demand across parts of the construction market remained challenging, the company maintained solid profitability, generated healthy cash flow, and continued returning capital to shareholders. Management credited the performance to disciplined execution, operational improvements, and the company’s strategic portfolio shift.
Chair and CEO Brian Chambers said the results validate the company’s strategy of building a larger, more focused residential products business with competitive advantages across roofing, insulation, and doors. He added that Owens Corning remains focused on delivering long-term revenue, earnings, and cash flow growth through continued investment and operational excellence.
Revenue Holds Steady as Margins Remain Strong
For the second quarter ended June 30, 2026, Owens Corning generated net sales from continuing operations of $2.76 billion, essentially unchanged from the prior-year period. The company reported net earnings of $310 million, representing an 11% net earnings margin, while adjusted EBITDA reached $660 million, producing a strong 24% adjusted EBITDA margin.
Diluted earnings per share from continuing operations came in at $3.84, with adjusted diluted EPS of $3.93. Although earnings declined modestly compared with last year, profitability remained resilient despite softer market conditions across portions of the construction sector.
Healthy Cash Generation Supports Shareholder Returns
Owens Corning continued to generate strong cash flows during the quarter. Operating cash flow totaled $398 million, while free cash flow reached $199 million.
The company also remained committed to rewarding shareholders, returning $264 million during the quarter through dividends and share repurchases. This included $200 million spent repurchasing approximately 1.7 million shares and $64 million paid in quarterly dividends. The capital return program remains part of Owens Corning’s broader commitment to return $2 billion to shareholders over 2025 and 2026.
Portfolio Transformation Continues
During the quarter, Owens Corning completed the sale of its glass reinforcements business, further advancing its strategy to focus on residential building products across North America and Europe. Management believes the streamlined portfolio will improve capital efficiency while supporting more stable margins and stronger long-term cash generation.
The company also highlighted continued progress in workplace safety and sustainability, including the publication of its 20th annual sustainability report earlier this year.
Outlook Remains Positive
Looking ahead, Owens Corning expects residential remodeling and new home construction to remain somewhat pressured, although non-residential construction activity in North America is expected to stay stable and European markets are projected to improve gradually.
For the third quarter of 2026, the company forecasts revenue between $2.6 billion and $2.7 billion and expects an adjusted EBITDA margin of 20% to 22%. Management believes structural improvements, market-leading brands, and disciplined execution will continue supporting strong financial performance despite ongoing macroeconomic uncertainty.
