Owens Corning: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 6 new, 6 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales from continuing operations fell 10%: Net sales were $2,265 million against $2,530 million a year earlier. Adjusted EBITDA was $369 million, a 16% margin against 22%. Source
• Diluted EPS from continuing operations declined: Diluted EPS from continuing operations was $0.47 against $2.95, and adjusted diluted EPS was $1.22 against $2.97. Net earnings attributable to OC were $38 million, a 2% margin. Source
• Roofing sales fell 14%: Roofing net sales were $960 million, down 14%. Segment EBITDA was $231 million, a 24% margin against 30% a year earlier. Source
• Doors margin fell to 7%: Doors net sales were $475 million against $540 million, down 12%. Segment EBITDA was $34 million, a 7% margin against 13%. Source
• Gross margin and operating income declined: Gross margin was $510 million against $725 million, and operating income was $120 million against $407 million. Other expense, net was $95 million against $22 million. Source
• Residential construction and remodeling under pressure: Management expects discretionary remodeling and residential new construction to remain under pressure. Source
• Free cash outflow reached $387 million: Operating cash outflow was $154 million and cash paid for property, plant and equipment was $233 million, giving free cash outflow of $387 million against $252 million. Source
• Glass reinforcements sale closed: The sale closed on April 30, 2026. Management said it advances the company's focus as a building products leader in North America and Europe. Source
• Sale seen supporting margins and cash flows: Management said the sale positions the company for higher and more resilient margins and cash flows, in support of its capital allocation strategy. Source

“Our first-quarter results highlight our ability to deliver strong financial performance within current market conditions.”

Brian Chambers, Chair and Chief Executive Officer

Guidance

What changed from last quarter

• New guidance: The prior release gave first-quarter 2026 guidance; this release adds second-quarter guidance for revenue and adjusted EBITDA margin. Source
• Guidance kept: Full-year 2026 general corporate expense, interest, tax rate, capital additions and depreciation and amortization ranges match the prior release. Source
• Ended: The glass reinforcements business is no longer owned by the company after the sale completed on April 30, 2026. Source
• New: Todd Fister's title is now Executive Vice President and Chief Financial and Operating Officer; the prior release gave Chief Financial Officer. Source
• New: The company now describes itself as a branded building products leader; the prior release used building products leader. Source

Quarter results and adjusting items

• Net sales from continuing operations fell 10%: Net sales were $2,265 million against $2,530 million a year earlier. Adjusted EBITDA was $369 million, a 16% margin against 22%. Source
• Diluted EPS from continuing operations declined: Diluted EPS from continuing operations was $0.47 against $2.95, and adjusted diluted EPS was $1.22 against $2.97. Net earnings attributable to OC were $38 million, a 2% margin. Source
• Adjusting items were a net expense: Adjusting items totalled a $75 million net expense, led by restructuring charges and a product recall charge, compared with a $1 million benefit a year earlier. Source

Segment performance

• Roofing sales fell 14%: Roofing net sales were $960 million, down 14%. Segment EBITDA was $231 million, a 24% margin against 30% a year earlier. Source
• Insulation sales fell 5%: Insulation net sales were $867 million against $909 million. Segment EBITDA was $167 million, a 19% margin against 25%. Source
• Doors margin fell to 7%: Doors net sales were $475 million against $540 million, down 12%. Segment EBITDA was $34 million, a 7% margin against 13%. Source

“With the sale of our glass reinforcements business complete, we are now well positioned to operate as a more integrated company”

Brian Chambers, Chair and Chief Executive Officer

Costs, margins and corporate expense

• Gross margin and operating income declined: Gross margin was $510 million against $725 million, and operating income was $120 million against $407 million. Other expense, net was $95 million against $22 million. Source
• Corporate expense and other EBITDA loss widened: Corporate, other and eliminations EBITDA was a $138 million loss against $59 million, including $63 million of general corporate expense and other. Source
• Interest and tax charges moved: Interest expense, net was $66 million against $64 million. Income tax expense was $15 million against $88 million. Source

Demand and end markets

• Residential construction and remodeling under pressure: Management expects discretionary remodeling and residential new construction to remain under pressure. Source
• Roofing demand tied to storms and restocking: Absent major storms, roofing demand is expected to stay solid but slightly down versus prior year, after heightened restocking at the end of the first quarter. Source
• Non-residential steady, Europe improving: North American non-residential construction is expected to be stable, and European market conditions are anticipated to gradually improve. Source
• Key economic drivers named: Management named residential repair, residential remodeling, U.S. housing starts and commercial construction activity as the key economic factors for the business. Source

“We are delivering strong margins at this point in the cycle in Roofing and Insulation, while we continue to reinvest for future growth and margin expansion”

Todd Fister, Executive Vice President and Chief Financial and Operating Officer

Cash flow and shareholder returns

• Free cash outflow reached $387 million: Operating cash outflow was $154 million and cash paid for property, plant and equipment was $233 million, giving free cash outflow of $387 million against $252 million. Source
• Working capital used cash: Changes in operating assets and liabilities used $404 million of cash, against $481 million a year earlier. Source
• Dividends paid and repurchase capacity remaining: Dividends of $63 million were paid and treasury stock purchases were $22 million. 12.5 million shares remained available for repurchase at quarter end. Source

Portfolio shift and glass sale

• Glass reinforcements sale closed: The sale closed on April 30, 2026. Management said it advances the company's focus as a building products leader in North America and Europe. Source
• Sale seen supporting margins and cash flows: Management said the sale positions the company for higher and more resilient margins and cash flows, in support of its capital allocation strategy. Source
• Three businesses run on one go-to-market: Management said it is executing the OC Advantages across three complementary businesses to enhance market positions and help customers win and grow. Source

Safety, recognition and leadership

• Recordable incident rate at 0.46: The company reported a recordable incident rate of 0.46 for the first quarter and described its safety performance as a high level. Source
• Sustainability recognition from S&P Global: S&P Global recognized the company as a top 1% performer in its Sustainability Yearbook for the building products industry. Source
• Expanded role for the finance chief: Todd Fister now also holds the operating role, and he said he looks forward to accelerating the benefits of the more focused company. Source

Coming up, as management said on 6 May 2026

• Sale proceeds to fund growth and returns: Management said proceeds from the sale will fund organic growth initiatives and cash returns to shareholders. Source

Risks management discussed

• Demand: Residential new construction and discretionary remodeling are expected to remain under pressure, which management flagged as a demand factor. Source
• External: Roofing demand depends on storm activity, which management named as a factor in its second-quarter view. Source
• Regulatory: Potential tariff refunds under the International Emergency Economic Powers Act are excluded from second-quarter guidance. Source

Earlier plans management reported on

• Met: The prior release said completion was targeted within a few months; the company reported the sale completed on April 30, 2026. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.