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Owens Corning: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. Guidance figures: 3 new, 6 kept. The quarter’s numbers.

Key takeaways

  • Net sales flat, adjusted EBITDA margin 24%: Second-quarter net sales of $2,756 million were level with $2,747 million a year earlier. Adjusted EBITDA was $660 million against $703 million, a 24% margin versus 26%. Source
  • Doors sales down 7%, margin 11%: Doors net sales were $513 million, down 7%, with EBITDA of $57 million, an 11% margin against 14%. Six-month Doors sales fell 10% to $988 million. Source
  • Doors playbook exceeded synergy target: The Doors business playbook produced $135 million of enterprise run-rate cost synergies, above the $125 million planned for mid-2026. Source
  • Operating and free cash flow rose: Operating cash flow was $398 million against $327 million, and free cash flow was $199 million against $129 million. Six-month free cash flow was negative $188 million. Source
  • Returned $264 million to shareholders: Shareholder returns were $200 million for repurchases of 1.7 million shares and a $64 million quarterly dividend. Source
  • Glass reinforcements sale completed: The company completed the glass reinforcements sale on April 30, 2026, to operate as a residential-focused building products leader in North America and Europe. Source
  • CFO transition announced: Jonathan Collins, a finance executive with operational expertise and experience scaling fast-changing businesses, succeeds Todd Fister as Chief Financial Officer. Source

“These outstanding second-quarter results demonstrate the strength of our reshaped company.”

Chair and Chief Executive Officer Brian Chambers

Guidance

AreaPeriodFigureAgainst last quarter
Net sales Sourcethird quarter 2026approximately $2.6 billion to $2.7 billionNew
Enterprise adjusted EBITDA margin Sourcethird quarter 2026approximately 20% to 22%New
Incremental costs from inflation linked to the Iran conflict Sourcethird quarter 2026approximately $40 millionNew
General corporate EBITDA expenses Sourcefull year 2026$245 million to $255 millionKept
Interest expense Sourcefull year 2026$255 million to $265 millionKept
Capital additions Sourcefull year 2026approximately $800 millionKept
Depreciation and amortization Sourcefull year 2026approximately $680 millionKept
Cash returned to shareholders Source2025 and 2026$2 billionKept
Effective tax rate on adjusted earnings Sourcefull year 202624% to 26%Kept

What changed from last quarter

  • New guidance: Third-quarter 2026 ranges for revenue and enterprise adjusted EBITDA margin were given; the prior release had given second-quarter ranges. Source
  • New: Jonathan Collins was appointed Executive Vice President and Chief Financial Officer, succeeding Todd Fister in that role. Source
  • New: Todd Fister assumes the role of President and Chief Operating Officer. Source

Results and growth drivers

  • Net sales flat, adjusted EBITDA margin 24%: Second-quarter net sales of $2,756 million were level with $2,747 million a year earlier. Adjusted EBITDA was $660 million against $703 million, a 24% margin versus 26%. Source
  • Per-share earnings slightly lower: Diluted EPS from continuing operations was $3.84 against $3.91. Adjusted diluted EPS was $3.93 against $4.21 in the prior-year quarter. Source
  • Six-month earnings fell sharply: Six-month net earnings from continuing operations attributable to OC were $348 million against $589 million. Six-month net sales were $5,021 million against $5,277 million. Source

Segments and regions

  • Roofing sales up 1%, margin 34%: Roofing net sales were $1,313 million, up 1%, with EBITDA of $441 million, a 34% margin against 35%. Six-month roofing sales fell 6% to $2,273 million. Source
  • Insulation sales up 4%, margin 22%: Insulation net sales rose 4% to $971 million, with EBITDA of $213 million, a 22% margin against 24%. Six-month insulation sales were $1,838 million, flat year on year. Source
  • Doors sales down 7%, margin 11%: Doors net sales were $513 million, down 7%, with EBITDA of $57 million, an 11% margin against 14%. Six-month Doors sales fell 10% to $988 million. Source

“Our second-quarter performance was driven by the disciplined commercial work of our teams and the execution of company-specific initiatives to grow our revenue and improve productivity.”

Executive Vice President and Chief Financial and Operating Officer Todd Fister

Costs, margins and pricing

  • Gross margin narrowed: Gross margin was $793 million against $858 million. Operating income was $482 million against $505 million, with operating expenses of $311 million against $353 million. Source
  • Doors playbook exceeded synergy target: The Doors business playbook produced $135 million of enterprise run-rate cost synergies, above the $125 million planned for mid-2026. Source
  • Adjusting items weigh on EBITDA: Adjusting items were a net $3 million charge in the quarter and $78 million for six months, including restructuring of $16 million and $59 million, excluding depreciation. Source
  • Iran conflict inflation adds costs: Management expects inflation linked to the Iran conflict to add incremental costs in the third quarter. Source

Demand and the order book

  • Roofing storm demand seen near average: Management expects roofing storm demand in the third quarter to be in line with historical averages. Source
  • Non-residential activity seen stable: Non-residential construction in North America is expected to remain stable, and core European markets are anticipated to improve gradually. Source
  • Branded products supported second-quarter demand: Management said demand for the company's branded products, backed by market-leading positions and commercial capabilities, supported second-quarter results. Source

“In the second half of the year, we are committed to maintaining our healthy balance sheet, investing in capital projects to grow our future earnings power, and returning significant cash to shareholders.”

Executive Vice President and Chief Financial and Operating Officer Todd Fister

Capital, cash and returns to shareholders

  • Operating and free cash flow rose: Operating cash flow was $398 million against $327 million, and free cash flow was $199 million against $129 million. Six-month free cash flow was negative $188 million. Source
  • Capital spending close to prior level: Cash paid for property, plant and equipment was $199 million in the quarter against $198 million, and $432 million for six months against $401 million. Source
  • Returned $264 million to shareholders: Shareholder returns were $200 million for repurchases of 1.7 million shares and a $64 million quarterly dividend. Source
  • Repurchase authorization capacity lower: At quarter end, 10.8 million shares remained available for repurchase under current authorizations, down from 12.5 million at the end of the first quarter. Source

Strategy and portfolio

  • Glass reinforcements sale completed: The company completed the glass reinforcements sale on April 30, 2026, to operate as a residential-focused building products leader in North America and Europe. Source
  • Reshaped company built on residential focus: Management described the company's strategic pivot as building a residential-focused building products company across market-leading businesses with unifying competitive advantages. Source
  • Go-to-market integration and simpler work: The new President and COO role is described as integrating the go-to-market strategy and standardizing work across the enterprise using OC Advantages. Source

People and leadership

  • CFO transition announced: Jonathan Collins, a finance executive with operational expertise and experience scaling fast-changing businesses, succeeds Todd Fister as Chief Financial Officer. Source
  • Fister moves to operating role: Todd Fister will become President and Chief Operating Officer, leading execution of key enterprise initiatives to drive growth and performance. Source
  • Collins to accelerate organic growth: Fister said Collins will partner with the executive team to accelerate organic growth and performance. Source

Safety, recognition and sustainability

  • Recordable incident rate rose to 0.75: The recordable incident rate was 0.75 in the second quarter, against 0.46 in the first quarter. Source
  • Fortune 500 listing continued: The company was named to the Fortune 500 for the 72nd consecutive year, a list ranking the largest U.S. companies by revenue. Source
  • Sustainability report published in May: The 2025 Sustainability Report, Built to Sustain, was published in May and is the company's 20th annual sustainability report. Source

Coming up, as management said on 5 August 2026

  • CFO takes office August 10: Jonathan Collins begins as Executive Vice President and Chief Financial Officer on August 10, 2026. Source

Risks management discussed

  • Demand: Heavier second-quarter distributor inventory stocking is expected to reduce third-quarter distributor purchases. Source
  • External: Inflation tied to the Iran conflict is expected to add incremental costs in the third quarter. Source
  • Demand: Discretionary remodeling activity and residential new construction are expected to stay under some pressure. Source

Earlier plans management reported on

  • Ahead: The company reports $135 million of enterprise run-rate cost synergies achieved, against the $125 million commitment. Source
  • On track: The company is on track for a further $75 million of structural cost improvements through network optimization and operational efficiencies. Source

Other quarters

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.