Owens Corning: An Undervalued Leader in Building Materials
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 21 2026
0mins
Should l Buy OC?
Source: Fool
- Strong Cash Flow: Owens Corning continues to generate robust cash flow, despite being priced like a struggling cyclical stock, indicating the company's resilience and profitability in the industry.
- Solid Margins: The company maintains solid margins, demonstrating its competitive advantage in the building materials sector, allowing it to sustain profitability amid demand fluctuations.
- Low Payout Ratio: Owens Corning's low payout ratio provides investors with steady dividend returns while leaving ample room for future growth and reinvestment, enhancing its appeal.
- Analysts Project Upside: Analysts project significant upside for the company, and as housing demand stabilizes, patient investors could reap substantial rewards, further solidifying its market position.
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Analyst Views on OC
Wall Street analysts forecast OC stock price to rise
14 Analyst Rating
8 Buy
6 Hold
0 Sell
Moderate Buy
Current: 114.560
Low
113.00
Averages
135.42
High
163.00
Current: 114.560
Low
113.00
Averages
135.42
High
163.00
About OC
Owens Corning is a building products company. The Company's segments include Roofing, Insulation and Doors. The Company's Roofing segment manufactures and sells residential roofing shingles, oxidized asphalt materials, roofing components and composite lumber primarily used in residential construction. This segment also manufactures and sells glass mat and specialty veil materials used in building and construction applications. Its Insulation segment manufactures and sells thermal and acoustical batts, loose fill insulation, spray foam insulation, wet used chopped strand, foam sheathing and accessories. It also manufactures and sells glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated stone wool insulation, cellular glass insulation, and foam insulation used in above- and below-grade construction applications. The Company's Doors segment manufactures and sells interior and exterior doors and door systems primarily used in residential construction.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UBS Increases Target Price for Owens Corning to $172, Up from $160
- Price Increase Announcement: UBS has raised its price target for Owen's stock from $160 to $172.
- Market Implications: This adjustment reflects UBS's positive outlook on Owen's performance in the market.
See More
Owens Corning Q4 2025 Earnings Call Insights
- Strong Financial Performance: In Q4 2025, Owens Corning reported revenue of $2.1 billion and adjusted EBITDA of $362 million with a 17% EBITDA margin, demonstrating profitability amid challenging market conditions.
- Accelerated Strategic Shift: The company completed the sale of its businesses in China and Korea and announced the divestiture of its glass reinforcements business, aiming to transition into more residential product categories to enhance long-term financial performance.
- Consistent Shareholder Returns: Owens Corning raised its dividend by 15% in December, marking the 12th consecutive year of growth, and committed to returning another $1 billion to shareholders by the end of 2026, reflecting a strong commitment to shareholder value.
- Cautious Market Outlook: Despite near-term market challenges, management expects conditions to improve in the second half of 2026, with first-quarter revenue projected between $2.1 billion and $2.2 billion and an EBITDA margin in the mid-teens.
See More
Owens Corning 2025 Earnings Highlights
- Roofing Segment Decline: The Roofing segment experienced a 27% year-over-year sales drop to $774 million, with EBITDA of $199 million and a 26% margin, indicating direct impacts from weak market demand on company performance.
- Insulation Sales Drop: The Insulation segment saw a 7% year-over-year decline in sales to $916 million, generating $186 million in EBITDA at a 20% margin, reflecting the overall sluggishness in the construction market.
- Increased Shareholder Returns: The company returned $1 billion to shareholders through dividends and share repurchases over the past year, announcing a quarterly cash dividend of 79 cents in December, a 15% increase from the previous quarter, demonstrating commitment to shareholder value.
- Cautious Future Outlook: Owens Corning expects first-quarter revenue between $2.1 billion and $2.2 billion, below the consensus of $2.222 billion, reflecting ongoing market challenges, particularly in residential construction and consumer spending.
See More
Owens Corning Reports Disappointing Q4 Results
- Sales Decline: Owens Corning reported fourth-quarter net sales of $2.14 billion, a 17% decrease from $2.57 billion a year earlier, falling short of the $2.17 billion consensus estimate, indicating significant challenges in a weak market environment.
- Earnings Miss: The company posted adjusted earnings per share of $1.10, missing analysts' expectations of $1.36, which reflects a notable decline in profitability amidst adverse conditions.
- Cash Flow and Shareholder Returns: Despite the challenges, Owens Corning returned $1.0 billion to shareholders in 2025 through dividends and share repurchases, while also raising its quarterly dividend by 15% to $0.79, marking the 12th consecutive year of dividend growth.
- 2026 Outlook: The company anticipates first-quarter 2026 revenue between $2.1 billion and $2.2 billion, with an adjusted EBITDA margin in the mid-teens, suggesting gradual improvement in market conditions as the year progresses.
See More
Owens Corning Reports Wider Q4 Loss Amid Impairment Charges
- Wider Loss: Owens Corning reported a fourth-quarter loss of $282 million, or $3.65 per share, which is a significant increase from last year's loss of $258 million or $2.97 per share, indicating heightened financial pressure on the company.
- Impairment Charges: The company incurred a goodwill impairment charge of $355 million and an asset impairment charge of $39 million this quarter, which directly contributed to the overall increase in losses, highlighting the challenges faced in the current market environment.
- Revenue Decline: Quarterly revenue decreased to $2.14 billion from $2.54 billion last year, representing a 13.5% decline, suggesting weak market demand that could impact future profitability and investor confidence.
- Stock Price Movement: In pre-market trading on the New York Stock Exchange, OC shares fell by 2.06% to $124.01, reflecting investor concerns over the company's financial performance, which may lead to short-term market volatility.
See More
Owens Corning Q4 Earnings Miss Expectations
- Disappointing Earnings: Owens Corning reported a Q4 non-GAAP EPS of $1.10, missing expectations by $0.26, indicating pressure on profitability amid challenging economic conditions, which may affect investor confidence.
- Significant Revenue Decline: The company's Q4 revenue of $2.14 billion represents a 16.7% year-over-year decline, falling short of expectations, reflecting weak demand in the building materials market that could pressure future performance.
- Cautious Financial Outlook: The 2026 financial outlook for continuing operations projects corporate EBITDA expenses between $245 million and $255 million, with interest expenses between $255 million and $265 million, highlighting challenges in cost management.
- Capital Expenditure Plans: Capital additions are expected to be approximately $800 million, with depreciation and amortization around $680 million, indicating that the company plans significant investments to maintain competitiveness despite current financial pressures.
See More
UBS Increases Target Price for Owens Corning to $172, Up from $160
- Price Increase Announcement: UBS has raised its price target for Owen's stock from $160 to $172.
- Market Implications: This adjustment reflects UBS's positive outlook on Owen's performance in the market.
See More
Owens Corning Q4 2025 Earnings Call Insights
- Strong Financial Performance: In Q4 2025, Owens Corning reported revenue of $2.1 billion and adjusted EBITDA of $362 million with a 17% EBITDA margin, demonstrating profitability amid challenging market conditions.
- Accelerated Strategic Shift: The company completed the sale of its businesses in China and Korea and announced the divestiture of its glass reinforcements business, aiming to transition into more residential product categories to enhance long-term financial performance.
- Consistent Shareholder Returns: Owens Corning raised its dividend by 15% in December, marking the 12th consecutive year of growth, and committed to returning another $1 billion to shareholders by the end of 2026, reflecting a strong commitment to shareholder value.
- Cautious Market Outlook: Despite near-term market challenges, management expects conditions to improve in the second half of 2026, with first-quarter revenue projected between $2.1 billion and $2.2 billion and an EBITDA margin in the mid-teens.
See More
Owens Corning 2025 Earnings Highlights
- Roofing Segment Decline: The Roofing segment experienced a 27% year-over-year sales drop to $774 million, with EBITDA of $199 million and a 26% margin, indicating direct impacts from weak market demand on company performance.
- Insulation Sales Drop: The Insulation segment saw a 7% year-over-year decline in sales to $916 million, generating $186 million in EBITDA at a 20% margin, reflecting the overall sluggishness in the construction market.
- Increased Shareholder Returns: The company returned $1 billion to shareholders through dividends and share repurchases over the past year, announcing a quarterly cash dividend of 79 cents in December, a 15% increase from the previous quarter, demonstrating commitment to shareholder value.
- Cautious Future Outlook: Owens Corning expects first-quarter revenue between $2.1 billion and $2.2 billion, below the consensus of $2.222 billion, reflecting ongoing market challenges, particularly in residential construction and consumer spending.
See More
Owens Corning Reports Disappointing Q4 Results
- Sales Decline: Owens Corning reported fourth-quarter net sales of $2.14 billion, a 17% decrease from $2.57 billion a year earlier, falling short of the $2.17 billion consensus estimate, indicating significant challenges in a weak market environment.
- Earnings Miss: The company posted adjusted earnings per share of $1.10, missing analysts' expectations of $1.36, which reflects a notable decline in profitability amidst adverse conditions.
- Cash Flow and Shareholder Returns: Despite the challenges, Owens Corning returned $1.0 billion to shareholders in 2025 through dividends and share repurchases, while also raising its quarterly dividend by 15% to $0.79, marking the 12th consecutive year of dividend growth.
- 2026 Outlook: The company anticipates first-quarter 2026 revenue between $2.1 billion and $2.2 billion, with an adjusted EBITDA margin in the mid-teens, suggesting gradual improvement in market conditions as the year progresses.
See More
Owens Corning Reports Wider Q4 Loss Amid Impairment Charges
- Wider Loss: Owens Corning reported a fourth-quarter loss of $282 million, or $3.65 per share, which is a significant increase from last year's loss of $258 million or $2.97 per share, indicating heightened financial pressure on the company.
- Impairment Charges: The company incurred a goodwill impairment charge of $355 million and an asset impairment charge of $39 million this quarter, which directly contributed to the overall increase in losses, highlighting the challenges faced in the current market environment.
- Revenue Decline: Quarterly revenue decreased to $2.14 billion from $2.54 billion last year, representing a 13.5% decline, suggesting weak market demand that could impact future profitability and investor confidence.
- Stock Price Movement: In pre-market trading on the New York Stock Exchange, OC shares fell by 2.06% to $124.01, reflecting investor concerns over the company's financial performance, which may lead to short-term market volatility.
See More
Owens Corning Q4 Earnings Miss Expectations
- Disappointing Earnings: Owens Corning reported a Q4 non-GAAP EPS of $1.10, missing expectations by $0.26, indicating pressure on profitability amid challenging economic conditions, which may affect investor confidence.
- Significant Revenue Decline: The company's Q4 revenue of $2.14 billion represents a 16.7% year-over-year decline, falling short of expectations, reflecting weak demand in the building materials market that could pressure future performance.
- Cautious Financial Outlook: The 2026 financial outlook for continuing operations projects corporate EBITDA expenses between $245 million and $255 million, with interest expenses between $255 million and $265 million, highlighting challenges in cost management.
- Capital Expenditure Plans: Capital additions are expected to be approximately $800 million, with depreciation and amortization around $680 million, indicating that the company plans significant investments to maintain competitiveness despite current financial pressures.
See More
