A month has gone by since the last earnings report for Owens Corning (OC). Shares have lost about 1.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Owens Corning due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Owens Corning Q1 Earnings & Sales Beat Estimates, Both Down Y/Y
Owens Corning turned in better-than-expected results for the first quarter of 2026, with adjusted earnings per share of $1.22, down 58.9% year over year but ahead of the Zacks Consensus Estimate of $1.01 by 20.8%. Sales of $2.27 billion declined 10.5% from the year-ago quarter yet topped the consensus mark of $2.18 billion by 3.9%.
The quarter reflected soft residential demand, but OC’s structural cost actions helped preserve profitability. Adjusted EBITDA margin from continuing operations came in at 16%, underscoring the company’s ability to stay resilient through the cycle.
Segment Details of Owens Corning
Roofing revenues were $960 million, down from $1.12 billion in the year-ago period. Management cited a softer environment shaped by affordability challenges, consumer uncertainty and a quiet storm season in the second half of last year that reduced carryover demand. Segment EBITDA was $231 million, translating to a 24% margin versus 30% a year earlier.
Insulation posted revenues of $867 million, down from $909 million a year ago. The decline was tied to softer North American residential demand, partly offset by steadier nonresidential activity and relatively stable markets in Europe. EBITDA was $167 million compared with $225 million in the prior-year quarter, with margin contracting to 19% from 25%.
Doors generated $475 million in revenues, down from $540 million a year ago, reflecting a challenging residential construction backdrop and the impact of strategic actions within the segment. Management cited pressure in markets linked to existing home sales, which remain sensitive to higher mortgage rates. EBITDA for Doors was $34 million, down from $68 million in the year-ago quarter, with a margin at 7% versus 13% last year.
OC’s Cash Use Reflects Seasonality and Investment Spend
The company reported operating cash outflow of $154 million and free cash outflow of $387 million in the quarter, reflecting typical early-year working-capital needs and higher capital spending. Capital additions for continuing operations were $210 million, up from last year, as the company invests in productivity, efficiency and capacity.
OC returned $63 million to shareholders through a cash dividend and reiterated its commitment to return $1 billion of cash to shareholders in 2026 through dividends and share repurchases. The company ended the quarter with $272 million in cash and total liquidity of $1.8 billion, supported by $1.5 billion of availability on bank debt facilities.
Owens Corning Details Outlook
For the second quarter of 2026, Owens Corning expects revenues from continuing operations of approximately $2.6-$2.7 billion and an enterprise adjusted EBITDA margin of roughly 20-22%. The company also expects incremental costs of about $60 million in the second quarter tied to inflationary impacts from the Iran conflict.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Owens Corning has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Owens Corning has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Owens Corning belongs to the Zacks Building Products - Miscellaneous industry. Another stock from the same industry, Jacobs Solutions (J), has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Jacobs Solutions reported revenues of $3.69 billion in the last reported quarter, representing a year-over-year change of +27%. EPS of $1.75 for the same period compares with $1.43 a year ago.
For the current quarter, Jacobs Solutions is expected to post earnings of $1.84 per share, indicating a change of +13.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Jacobs Solutions. Also, the stock has a VGM Score of D.
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This article originally published on Zacks Investment Research (zacks.com).