Owens Corning (OC.N): Strong 2Q Beat with Some Pull-Forward in Roofing

Research evidence excerpt

Flash |

05 Aug 2026 06:48:43 ET │ 10 pages

Owens Corning (OC.N)

Strong 2Q Beat with Some Pull-Forward in Roofing

CITI'S TAKE

Strong 2Q beat on EBITDA ($660mm vs $564mm FactSet cons), EPS

($3.93 vs $3.09 cons), & topline ($2.76B vs $2.66B cons). Outperformance

was broad-based, with Roofing ($441mm EBITDA vs $402mm cons),

Insulation ($213mm vs $178mm cons) and Doors ($57mm vs $46mm

cons) all beating expectations; all 3 businesses continue to see Y/Y

EBITDA margin compression (Roofing -150bp, Insulation -220bp, Doors 240bp). OC guided 3Q topline flat to down slightly Y/Y (~$2.6-2.7B, vs

cons $2.67B) with EBITDA margins between 20-22% (vs 21.9% cons),

potentially pointing to EBITDA below expectations at midpoint (~$550560mm vs. $584mm cons). OC’s outlook for 3Q includes continued

weakness in new construction and R&R, with heavier 2Q inventory

stocking impacting 3Q distributor purchases along with a $40mm

inflation headwind. In 2Q OC returned $200mm (1.7mm shares) to

shareholders through repurchases, at the end of the quarter 10.8mm

shares remain available for repurchase.

Questions for the call — 1) Puts and takes for below cons 3Q sales guide, 2) drivers

of 2Q outperformance & details on inventory build, 3) NA resi Insulation vol

progression in 3Q given weak starts; further capacity actions needed?, 4) price/cost

and mix assumptions for Roofing & Insulation in 3Q given spring price hikes &

elevated oil prices, 5) Any signs of price/vol inflection in Doors.

Buy

Price (04 Aug 26 16:00)

US$145.53

Target price

US$149.00

Expected share price return

2.4%

Expected dividend yield

1.9%

Expected total return

4.3%

Market Cap

US$11,719M

Anthony PettinariAC

Bryan Burgmeier

Landry Moore

Conference call info — Today, 8 AM ET. U.S. 1-833-461-5787; Passcode:

845257538

Implications — While Roofing pull-forward drives a potentially below cons 3Q

outlook, the magnitude of the 2Q beat is much larger than the potential 3Q shortfall,

and we take earnings as positive overall.