Owens Corning OC
Owens Corning's Q2 2026 results — $2.8B in revenue and a 24% adjusted EBITDA margin — confirm the post-acquisition business is stabilizing after a messy FY2025 that saw a $522M net loss, revenue declining 8% to $10.1B, and total debt climbing to $6.16B against equity of just $3.85B. However, the stock at $151.23 already trades well above its 50-day ($141.36) and 200-day ($122.85) moving averages, and EV/EBITDA of 25.86 runs roughly 90% above the peer median of 13.62, pricing in a recovery that is still early and carrying a heavily leveraged balance sheet.
Multiple insiders including the new CFO and all three segment presidents acquired shares on August 10 at $153.80, and smart money scores have turned slightly positive (0.0257 as of Q2 2026), but these are offset by the negative trailing EPS, compressed margins (gross margin fell to 28.5% in FY2025 from 30%), and unresolved leverage overhang.
What could go wrong
- Balance sheet leverage. Total debt of $6.16B against equity of $3.85B at FY2025-end leaves little room for error if construction end markets weaken further; interest costs contributed to the $522M net loss.
- Valuation stretch. EV/EBITDA of 25.86 is ~90% above the peer median of 13.62, and the trailing P/E is negative at -18.58, meaning the market is paying a premium on a forward recovery that may not materialize fast enough.
- Margin compression. Gross margin fell to 28.5% in FY2025 from 30.0% in FY2024 and operating margin dropped to 17.0% from 19.2%, suggesting integration costs and mix headwinds are pressuring profitability.
- Cyclical demand exposure. Q2 2026 commentary cited 'uneven construction and remodeling conditions,' meaning a housing slowdown could derail the volume recovery implied by the current stock price.
What would change my mind
Where this comes from: MarketBeat news snippet, 2026-08-08 · FMP annual fundamentals, FY2025 · derived_metrics, FY2025 vs FY2024 · peer_relative, as of 2026-08-19. Orin's read on OC; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All OC filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Portfolio Management | $869.3M | 0.0% of fund |
| Aqr Capital Management | $577.9M | 0.2% of fund |
| Vanguard Capital Management | $577.1M | 0.0% of fund |
| State Street | $492.4M | 0.0% of fund |
| Geode Capital Management | $324.8M | 0.0% of fund |
| Price T Rowe Associates /Md/ | $268.5M | 0.0% of fund |
75 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 259 Form 4 filings, net −$163K. Of the 50 on hand, 0 were open-market purchases and 3 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about OC
Orin answers questions about OC from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| EV/EBITDA | 22.5× | — | — |
| P/S | 1.00× | — | — |
| P/B | 2.6× | — | — |
-1.5%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$176
$150 – $198 · +44% against today's price
- 17 buy or overweight
- 25 hold
- 1 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| OCOwens Corning | $10B | — | 22.5× | 26.2% | -6.8% | -17% |
| APOGApogee Enterprises, Inc. | $768M | 11.4× | 6.6× | 23.3% | 4.9% | 13% |
| BLDRBuilders FirstSource, Inc. | $6B | 64.3× | 11.2× | 29.2% | 0.7% | 2% |
| CSLCarlisle Companies Incorporated | $13B | 18.5× | 12.3× | 35.3% | 14.2% | 41% |
| FBINFortune Brands Innovations, Inc. | $5B | 31.7× | 15.4× | 45.6% | 3.4% | 6% |
| JCIJohnson Controls International plc | $88B | 25.3× | 27.0× | 36.7% | 14.3% | 27% |
| LIILennox International Inc. | $13B | 16.8× | 13.1× | 33.1% | 14.6% | 65% |
| MASMasco Corporation | $13B | 15.7× | 11.0× | 36.9% | 11.6% | -406% |
| NXQuanex Building Products Corporation | $911M | 20.0× | 7.6× | 22.7% | 2.4% | 6% |
| TTTrane Technologies plc | $96B | 33.0× | 22.9× | 35.4% | 13.3% | 34% |
The median is of the 9 peers listed above and nothing else — check it against the column. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.