Homebuilders and Building Products: Weekly punch list: CSL bid for OC, FBIN CEO change, and appliance expert call

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Homebuilders and Building Products: Weekly punch list: CSL bid for OC, FBIN CEO change, and appliance expert call

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Homebuilders and Building Products

Weekly punch list: CSL bid for OC, FBIN

CEO change, and appliance expert call

Price Objective Change

OC: Focus on fundamentals despite potential CSL bid 12 July 2026

On June 29, The Wall Street Journal reported that Carlisle Companies (CSL) had made Equity

multiple unsolicited acquisition offers for Owens Corning (OC). OC shares initially rallied United States

~15% on the news, much of that gain has since been retraced, though the stock has still Homebuilders and Building Products

outperformed peers. The reported interest reinforces our view that the market continues Rafe Jadrosich

to undervalue OC's portfolio, particularly its Roofing business, which generates roughly Research Analyst

60% of company EBITDA and benefits from strong pricing power, resilient margins, and BofAS+1 646 855 5815

differentiated contractor relationships. We expect OC to realize approximately 3-4% of rafe.jadrosich@bofa.com

the April roofing price increase and 2-3% of the June increase. In addition, we believe Shaun Calnan, CFA

Research Analyst

roofing volumes improved during 2Q as distributors pulled forward shipments ahead of BofAS

announced price actions. We adjust our estimates to better reflect the timing of roofing +1 646 855 1362

shaun.calnan@bofa.com

shipments. Valuation remains compelling, in our view, with OC trading at less than 8x

Victoria Piskarev

EV/EBITDA. We raise our price objective to $168 from $141, based on a sum-of-the- Research Analyst

parts valuation that applies a 10.0x EV/EBITDA multiple to Roofing and 7.0x multiples to BofAS +1 646 855 0657

both the Insulation and Doors businesses (see Exhibit 3).