Owens Corning reports flat second-quarter sales amid margin compression

The Tip Desk · August 5, 2026 · 2 min read

The building materials manufacturer reported net sales of $2.8 billion for the second quarter.

Owens Corning (OC), the building materials manufacturer, reported net sales from continuing operations of $2.8 billion for the second quarter. The result remained flat compared to the second quarter of 2025, though it marked a sequential increase from the $2.3 billion recorded in the first quarter of 2026.

The quarter reflected a recovery in cash flow and profitability from a volatile first quarter. Net earnings margin from continuing operations reached 11%. While this was down from 12% in the second quarter of 2025, it represented a sharp recovery from the 2% margin reported in the first quarter of 2026.

Cash generation improved significantly as the company reversed a sequential free cash outflow of $387 million from the first quarter. Free cash flow rose to $199 million, up from $129 million in the second quarter of 2025. Operating cash flow similarly increased to $398 million, compared to $327 million in the prior-year period.

Performance varied across business segments. Roofing sales remained flat at $1.31 billion, while Insulation sales increased to $971 million from $934 million in the second quarter of 2025. Doors sales declined to $513 million from $554 million in the same period last year.

Profitability compressed across all divisions. Adjusted EBITDA margin for continuing operations fell to 24% from 26% a year earlier. Segment EBITDA margins declined in Roofing from 35% to 34%, in Insulation from 24% to 22%, and in Doors from 14% to 11%.

Strategic shifts included the completion of the sale of the company's glass reinforcements business on April 30, 2025. In its Doors business, the company achieved $135 million in enterprise run-rate cost synergies, exceeding its previous commitment of $125 million.

Owens Corning projects third-quarter revenue between $2.6 billion and $2.7 billion, with an expected adjusted EBITDA margin of 20% to 22%. An expected inflationary impact from the Iran conflict will result in approximately $40 million of incremental costs in the third quarter.

The company announced a leadership transition effective August 10, 2025. Jonathan Collins will be appointed as CFO, succeeding Todd Fister, who will transition to the role of President and COO.