Owens Corning: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 1 lowered, 2 new, 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales fell 7% year over year: Net sales were $2,489 million against $2,684 million a year earlier. Nine-month net sales were $7,510 million against $7,961 million. Source
• Diluted EPS loss; adjusted EPS $2.44: Diluted EPS was $(3.15) against $(5.93) a year earlier. Adjusted diluted EPS was $2.44 against $3.67, excluding the impairment charges. Source
• Adjusted EBITDA margin was 20%: Adjusted EBITDA was $489 million, a 20% margin, against $638 million and 24% a year earlier. The nine-month margin was 20% against 24%. Source
• Doors sales and margin declined: Doors net sales were $483 million against $545 million, with EBITDA of $25 million, a 5% margin against 10%. Nine-month Doors margin was 8% against 12%. Source
• Input and delivery inflation expected: Management expects significant input and delivery cost inflation to add expense, with minimal price expectations in the quarter. Source
• Returned $337 million to shareholders: The company repurchased 1.9 million shares for $275 million and paid a quarterly dividend of $62 million in the quarter. Source

“we remain focused on executing our strategy and leveraging our unique OC Advantages TM to create additional long-term value for our customers and shareholders.”

Chair and Chief Executive Officer Brian Chambers

Guidance

What changed from last quarter

• New guidance: Fourth-quarter 2026 revenue and enterprise adjusted EBITDA margin expectations were given in this release. Source
• Guidance lowered: General corporate EBITDA expense range moved from $245 million to $255 million to $235 million to $245 million. Source
• Guidance kept: Interest expense, tax rate, capital additions and depreciation and amortization ranges are unchanged from the second-quarter release. Source
• New: Non-cash, pre-tax impairment charges of $476 million related to the Doors business were recorded and excluded from adjusted results. Source
• New: Todd Fister was promoted to President and Chief Operating Officer, from Executive Vice President and Chief Financial and Operating Officer. Source

Results and growth drivers

• Net sales fell 7% year over year: Net sales were $2,489 million against $2,684 million a year earlier. Nine-month net sales were $7,510 million against $7,961 million. Source
• Diluted EPS loss; adjusted EPS $2.44: Diluted EPS was $(3.15) against $(5.93) a year earlier. Adjusted diluted EPS was $2.44 against $3.67, excluding the impairment charges. Source
• Adjusted EBITDA margin was 20%: Adjusted EBITDA was $489 million, a 20% margin, against $638 million and 24% a year earlier. The nine-month margin was 20% against 24%. Source
• Nine-month adjusted EPS fell: Nine-month adjusted diluted EPS from continuing operations was $7.58 against $10.81; nine-month diluted EPS was $1.25 against $1.10. Source

Segments and regions

• Roofing sales fell 16%: Roofing net sales were $1,042 million against $1,240 million, with EBITDA of $299 million, a 29% margin against 34%. Source
• Insulation sales rose 6%: Insulation net sales were $1,001 million against $941 million, with EBITDA of $215 million, a 21% margin against 23%. Source
• Doors sales and margin declined: Doors net sales were $483 million against $545 million, with EBITDA of $25 million, a 5% margin against 10%. Nine-month Doors margin was 8% against 12%. Source

“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,”

President and Chief Operating Officer Todd Fister

Demand and market conditions

• Second year without storm activity: Management expects a second consecutive year without significant storm activity, and related distribution destocking, to weigh on near-term Roofing demand. Source
• Residential markets expected under pressure: Management expects existing home sales, discretionary remodeling activity and residential new construction to remain under pressure. Source
• Non-residential pockets, stable Europe: Non-residential construction in North America is expected to show pockets of activity. Conditions in core European markets are anticipated to remain stable. Source

Costs, margins and cost actions

• Gross margin fell with sales: Gross margin was $615 million against $757 million; cost of sales was $1,874 million against $1,927 million. Source
• Input and delivery inflation expected: Management expects significant input and delivery cost inflation to add expense, with minimal price expectations in the quarter. Source
• Fourth-quarter margin factors cited: Management cites higher inflation and transportation costs, fourth-quarter seasonality and downtime from weaker market volumes for the fourth-quarter margin range. Source
• Other expense increased: Other expense, net was $50 million against $23 million; nine-month other expense was $169 million against $72 million. Source

“Looking ahead, our financial approach remains grounded in disciplined capital allocation”

Executive Vice President and Chief Financial Officer Jonathan Collins

Capital, cash and shareholder returns

• Returned $337 million to shareholders: The company repurchased 1.9 million shares for $275 million and paid a quarterly dividend of $62 million in the quarter. Source
• Operating and free cash flow: Operating cash flow was $813 million and free cash flow was $622 million, against $918 million and $752 million a year earlier. Nine-month free cash flow was $434 million. Source
• Debt reduced; leverage within target: Debt was reduced by $299 million. Net debt was $4,712 million and net leverage was 2.5, within the 2x to 3x target range. Source
• Shares outstanding declined: Shares outstanding were 77.1 million at September 30, 2026, against 80.2 million at December 31, 2025. Source

People and leadership

• Collins joined as CFO in August: Collins joined in August as Executive Vice President and Chief Financial Officer, succeeding Fister in that role. Source
• Recordable incident rate 0.81: The company reported a recordable incident rate of 0.81 for the quarter, with management describing a high level of safety performance. Source
• Ranked second on Best Citizens list: The company placed second on the 100 Best Corporate Citizens list, its ninth consecutive year among the top 10. Source

Coming up, as management said on 4 November 2026

• Cash taxes expected lower: Management anticipates cash taxes to be lower than the effective tax rate on adjusted earnings. Source
• Cost and commercial actions continue: Management said actions taken today are intended to further improve the cost position, strengthen commercial capabilities and increase earnings potential over time. Source

Risks management discussed

• Demand: A second consecutive year without significant storm activity and related distribution destocking is expected to weigh on near-term Roofing demand. Source
• Demand: Existing home sales, discretionary remodeling and residential new construction are expected to remain under pressure. Source
• External: Management cited a second consecutive year of storm activity below normal and rapidly rising transportation and input material costs as pressures on the quarter. Source

Earlier plans management reported on

• Met: Management stated the company maintained net leverage within the targeted range of 2x to 3x during the quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.