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what it is
Owens Corning sells the stuff that goes into your walls, on your roof, and in your front doorway.
how it gets paid
Last year Owens Corning made $10.1B in revenue. Roofing was the main engine at $3.8B, or 38% of sales.
mixed year
Revenue grew 2.6% FY, but profits compressed: the painful print was Q4 EPS falling from about $3.02 to $1.10 vs. prior year—not a full-year EPS pair unless the filing says so.
what just happened
Owens Corning missed estimates, with EPS at $1.10 versus a $1.40 consensus.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
5/100 earnings predictability — expect surprises
9.7x trailing p/e — the market's not buying it — or you found a deal
2.9% dividend yield — cash in your pocket every quarter
13.0% return on capital — nothing to write home about
xvary composite: 58/100 — below average
What they do
Owens Corning sells the stuff that goes into your walls, on your roof, and in your front doorway.
Owens Corning wins by being in three parts of your building you cannot skip: insulation, roofing, and doors. If you replace your roof, finish your attic, or swap your front entry, you are shopping in markets Owens Corning already serves. That reach helped produce $10.1 billion in annual revenue and supports a 13.0% return on capital (return on capital → profit from money invested → the core business still earns real money).
How they make money
$10.1B
annual revenue · their business grew +2.6% last year
Roofing
$3.8B
4.0%
Insulation
$2.9B
3.0%
Doors
$2.6B
+18.0%
Glass reinforcements
$0.8B
8.0%
The products that matter
manufactures building insulation
Insulation
inside a $10.1B company
insulation rises and falls with housing starts, retrofit work, and efficiency spending. company revenue grew ~2.6% FY—do not use a 26.9% growth line that contradicts the total above.
housing-sensitive
manufactures roofing materials
Roofing
replacement demand matters
roofing is the part of the story that can hold up better when new construction slows, because damaged roofs still get replaced. in an ~8.6% net margin business (per health strip), that distinction matters.
repair demand
manufactures fiberglass composites
Composites
industrial diversification
composites push OC beyond housing and into industrial demand. that helps diversify the $10.1B revenue base, but the company still scores 5/100 on earnings predictability, so diversification is not the same as stability.
industrial exposure
Key numbers
9.7x
trailing p/e
P/E → price compared with annual profit → you are paying less than 10 years of earnings for this business.
$10.1B
annual revenue
That sales base is large enough to absorb bad quarters, but it also makes slowdowns visible fast.
13.0%
return on capital
Return on capital → profit on the money put into the business → Owens Corning still earns above-average returns despite the slowdown.
2.9%
dividend yield
Dividend yield → cash paid to you each year as a share of the stock price → you are getting paid while waiting.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
- long-term debt $4.7B (33% of capital)
- net profit margin 8.6% — keeps 9 cents of every dollar in revenue
- return on equity 22% — $0.22 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in OC 3 years ago → it's now worth $12,360.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
Owens Corning missed estimates, with EPS at $1.10 versus a $1.40 consensus.
Fourth-quarter adjusted EPS fell from about $3.02 a year earlier to $1.10 as sales dropped ~17% and divisions saw lower volume. Management also said under-used factories hurt margins.
$2.1B
Q4 revenue (approx.)
$1.10
eps
29.4%
gross margin
the number that mattered
The key number was Q4 EPS moving from about $3.02 to $1.10—that is the profit-compression signal when volume falls.
-
the near-term profit outlook for owens corning is not encouraging.
-
adjusted earnings fell sharply in the fourth quarter, to $1.10 per share from $3.02 in the prior year.
-
total sales declined 17%, and all three divisions recorded lower volume.
-
margins were hurt by under-utilization of its manufacturing base.the building materials industry is being hurt by weak consumer confidence and an uncertain economic environment.
-
these conditions seem likely to persist in the near term.
source: company earnings report, 2026
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What could go wrong
the #1 risk is construction and repair demand falling far enough to turn the $9.75 EPS reset into another step lower.
med
construction demand rolls over harder than expected
OC's $10.1B revenue base is tied to building and industrial activity. if housing starts, reroofing, and factory demand soften at the same time, the income statement feels it fast.
FY2026 revenue is already modeled at $10B after $10.1B last year. there is almost no top-line cushion in the current setup.
med
2025 was peak earnings, not a base
full-year EPS was $12.05, but the current FY2026 estimate is $9.75. if that reset keeps sliding, the low multiple stops looking contrarian and starts looking ordinary.
a 5/100 earnings predictability score means the market will not give this company much benefit of the doubt.
med
cost inflation eats into an 8.8% margin
net margin is 8.8%. that is fine for building products, but it is not roomy. raw materials, freight, or energy costs do not have to move much to matter.
when you keep about nine cents of every revenue dollar, even modest cost pressure can do visible damage to earnings.
med
$4.7B of debt matters more in a bad patch
OC carries $4.7B of long-term debt, equal to 33% of capital. that is manageable with a B++ balance sheet. it still reduces flexibility if cash generation weakens.
debt is not the main problem today. it becomes one faster if the earnings reset deepens.
The stock looks cheap, but cheap stocks get cheaper when earnings fall 19.1%.
source: institutional data · regulatory filings · risk analysis
Pay attention to
estimate reset
FY2026 EPS at $9.75
this is the number holding the stock down. if estimates stabilize here, 9.7x earnings starts to look interesting. if they keep falling, the low multiple is just catching up.
macro
housing starts and reroof activity
insulation and roofing demand do not move on management commentary. they move on what gets built and what gets replaced. those data points will tell you more than a polished earnings call.
trend
revenue after the 26.9% jump
last year was big. the next question is smaller and more important: does $10.1B flatten around $10B, or does the slowdown keep spreading.
ownership
whether institutional selling cools off
209 buyers versus 326 sellers in 4q2025 is not panic. it is caution. if that flips, you have one signal that sentiment has stopped getting worse.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts do not see a clean near-term edge here.
risk profile
average
stability score 3 means the stock sits near the middle of the pack on risk. not a bunker. not a cliff.
chart momentum
average
technical score 3 says price action looks ordinary. the chart is not saving the thesis and it is not killing it either.
earnings predictability
5 / 100
earnings are hard to model here. translation: the cycle can make smart forecasts look dumb.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 209 buyers vs. 326 sellers in 4q2025. total institutional holdings: 74.6M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$96
$209
$117
current price
$153
target midpoint · +31% from current · 3-5yr high: $205 (+75% · 17% ann'l return)
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