Owens Corning (OC) | Investment Case

1. Company Snapshot

1.a. Company Description

Owens Corning manufactures and markets insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, and internationally.It operates in three segments: Composites, Insulation, and Roofing.The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and other specialized products.

Its products are used in building structures, roofing shingles, tubs and showers, pools, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades applications in the building and construction, renewable energy, and infrastructure markets.This segment sells its products directly to parts molders, fabricators, and shingle manufacturers.The Insulation segment manufactures and sells insulation products for residential, commercial, industrial, and other markets for thermal and acoustical applications; and glass fiber pipe insulation, flexible duct media, bonded and granulated mineral fiber insulation, cellular glass insulation, and foam insulation products used in construction applications.

This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors under the Thermafiber, FOAMULAR, FOAMGLAS, Paroc, Owens Corning PINK, and FIBERGLAS Insulation brand names.The Roofing segment manufactures and sells aminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications, as well as synthetic packaging materials.This segment sells its products through distributors, home centers, lumberyards, retailers, and contractors, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries.

Owens Corning was incorporated in 1938 and is headquartered in Toledo, Ohio.

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1.b. Last Insights on OC

Breaking News: Owens Corning Inc has seen increased investment interest lately. Cresset Asset Management LLC raised its stake in the company by 171.3% to 12,276 shares. Aptus Capital Advisors LLC also increased its position by 13.2% to 85,583 shares. There is no recent earnings release available. Analysts at various firms have not provided recommendations on the stock based on the provided data. Olive Resource Capital Inc which is a different company with ticker OC provided an update on its investments. Global market trends may impact the stock.

1.c. Company Highlights

Last Price	107.25
Change Percentage	-2.28%
Open	106.41
Previous Close	109.75
Market Cap ( Millions)	8815
Volume	1543817
Year High	159.42
Year Low	97.53
M A 50	122.8
M A 200	130.69

FCF Yield	6.98%
Dividend Yield	2.76%
ROE	-11.39%
Debt / Equity	159.75%
Net Debt / EBIDTA	595.69%
Price To Book	2.23
Price Earnings Ratio	-16.51
Price To FCF	14.33
Price To sales	0.87
EV / EBITDA	15.01

2. Owens Corning's Q4 FY '25 Earnings: A Review of Financial Performance

Owens Corning reported revenue of $2.1 billion and adjusted EBITDA of $362 million for Q4 FY '25, with an adjusted EBITDA margin of 17%. For the full year, the company generated revenue of $10.1 billion and adjusted EBITDA of $2.3 billion, with an adjusted EBITDA margin of 22%. The actual EPS for the quarter was not disclosed, while estimates were at $1.36. The company's financial performance was impacted by weakening U.S. residential trends and distribution destocking in the second half of the year.

Publication Date: Feb -26

                                    📋 Highlights
                                    Full-Year Financial Performance:
                                                Generated $10.1 billion in revenue and $2.3 billion adjusted EBITDA with a 22% margin, marking fifth consecutive year of 20%+ margins.
Shareholder Returns:
                                                Returned $1 billion to shareholders in 2025 (totaling $4 billion since 2020) via dividends and buybacks, with a 15% dividend hike tripling per-share payout vs. 5 years ago.
Strategic Divestitures:
                                                Sold China/Korea operations and announced glass reinforcements divestiture, unlocking $125 million in enterprise synergies from Doors acquisition integration.
Operational Efficiency:
                                                Achieved $75 million in cost synergies (manufacturing network optimization, automation) and plans $25–$30 million annual savings by year-end.
2026 Outlook:
                                                Projects $30 million first-quarter production curtailment costs but targets normalized CapEx at 4% of revenue and meets consensus EBITDA estimates with leverage at 2.1x EBITDA.

                                

Segment Performance

The Doors business faced significant challenges in 2025, with a 14% decline in fourth-quarter revenue to $486 million. Annual revenue was approximately $2.1 billion, with an EBITDA of $232 million and an 11% margin. Despite market headwinds, the integration is progressing well, with $125 million in enterprise run rate synergies captured to date. As Brian Chambers noted, "We're unlocking the full power of the enterprise to accelerate our performance by leveraging a set of capabilities that are truly unique to Owens Corning and creating the OC Advantage."

Outlook and Guidance

The company expects North American residential new construction activity to be relatively flat in 2026, while discretionary repair and remodel activity is anticipated to be up slightly. Roofing demand is expected to improve throughout the year, with full-year demand in line with historical averages. For the first quarter, Roofing revenue is expected to decline 20% year-over-year, driven by lower storm-related repair demand and delayed distributor restocking activity. Analysts estimate revenue growth of 3.2% for the next year.

Valuation and Return on Investment

Owens Corning's current valuation metrics include a P/E Ratio of -8.82, P/B Ratio of 2.72, P/S Ratio of 1.0, EV/EBITDA of 30.92, Dividend Yield of 2.32%, and Free Cash Flow Yield of 6.06%. The company's return on capital is 12% for the 12 months ending December 31, 2025, below the long-term target of mid-teens or better. The company's leverage is at 2.1x EBITDA, giving it ample capacity for return on cash flows and its balance sheet.

Operational Efficiencies and Cost Savings

The company is committed to driving operational cost efficiencies, having identified $75 million of operational cost synergies tied to its manufacturing network. It expects to deliver $25 million to $30 million of additional operational cost improvements through network optimization and expects to finish the year at that run rate. The company remains committed to its $2 billion return of cash to shareholders in 2025 and 2026.

3. NewsRoom

First Look: Oil Shock, Global Selloff, Airlines Warn on Fuel

Mar -09

Source: gurufocus.com

Owens Corning Inc $OC Shares Purchased by Cresset Asset Management LLC

Mar -09

Source: defenseworld.net

Aptus Capital Advisors LLC Purchases 9,947 Shares of Owens Corning Inc $OC

Mar -07

Source: defenseworld.net

Olive Resource Capital Provides Update on Investments for February 2026

Mar -06

Source: newsfilecorp.com

Citigroup Inc. Sells 28,779 Shares of Owens Corning Inc $OC

Mar -01

Source: defenseworld.net

Cozad Asset Management Inc. Trims Holdings in Owens Corning Inc $OC

Feb -26

Source: defenseworld.net

Here's What Key Metrics Tell Us About Owens Corning (OC) Q4 Earnings

Feb -25

Source: zacks.com

Owens Corning (OC) Lags Q4 Earnings and Revenue Estimates

Feb -25

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Roofing

Expected Growth: 2.2%

The roofing segment is expected to grow slightly above the global revenue growth hypothesis due to increasing demand for energy-efficient and durable roofing products, driven by rising housing starts and repair and remodel activity.

Insulation

Expected Growth: 2.5%

The insulation segment is expected to grow above the global revenue growth hypothesis due to increasing demand for energy-efficient buildings, driven by stringent building codes and government regulations promoting energy conservation.

Composites

Expected Growth: 1.8%

The composites segment is expected to grow slightly below the global revenue growth hypothesis due to its exposure to various industries with different growth dynamics, and potential fluctuations in demand from the automotive and other sectors.

Doors

Expected Growth: 7.2%

The growing demand for energy-efficient and durable doors, driven by increasing consumer focus on sustainability and home renovation, will drive the segment's growth.

Corporate, Other and Eliminations

Expected Growth: None%

None

7. Detailed Products

Roofing

Owens Corning's roofing products include asphalt shingles, metal roofing, and roofing underlayment, designed to provide durability and weather resistance for residential and commercial buildings.

Insulation

Owens Corning's insulation products include fiberglass batts, foam board, and spray foam, designed to provide energy efficiency and comfort in residential and commercial buildings.

Composites

Owens Corning's composites products include glass fiber reinforcements, resin systems, and composite materials, designed for use in a variety of industrial and consumer applications.

Cellulose Insulation

Owens Corning's cellulose insulation products are made from recycled paper products and are designed to provide energy efficiency and sustainability in residential and commercial buildings.

8. Owens Corning's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Owens Corning is medium due to the availability of alternative building materials such as drywall and plywood. However, the company's focus on innovative products and sustainability may reduce the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers for Owens Corning is low due to the company's strong brand reputation and wide distribution network. Customers have limited bargaining power to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Owens Corning is medium due to the company's dependence on raw materials such as fiberglass and resin. However, the company's vertical integration strategy may reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants for Owens Corning is low due to the high barriers to entry in the building materials industry. New entrants would require significant investment in manufacturing facilities, technology, and distribution networks.

Intensity Of Rivalry

The intensity of rivalry for Owens Corning is high due to the competitive nature of the building materials industry. The company faces intense competition from established players such as Saint-Gobain and Johns Manville.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	38.78%
Debt Cost	3.95%
Equity Weight	61.22%
Equity Cost	11.15%
WACC	8.36%
Leverage	63.36%

11. Quality Control: Owens Corning passed 7 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Masco

A-Score: 5.6/10

Value: 6.8

Growth: 5.8

Quality: 6.2

Yield: 4.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

Owens Corning

A-Score: 5.3/10

Value: 7.5

Growth: 7.3

Quality: 4.6

Yield: 5.0

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

Simpson Manufacturing Co

A-Score: 5.2/10

Value: 3.1

Growth: 7.8

Quality: 7.5

Yield: 1.0

Momentum: 4.5

Volatility: 7.3

1-Year Total Return ->

GMS

A-Score: 5.2/10

Value: 4.4

Growth: 7.4

Quality: 4.1

Yield: 0.0

Momentum: 7.5

Volatility: 7.7

1-Year Total Return ->

Installed Building Products

A-Score: 5.0/10

Value: 2.1

Growth: 9.0

Quality: 5.7

Yield: 2.0

Momentum: 7.0

Volatility: 4.3

1-Year Total Return ->

Carlisle

A-Score: 4.9/10

Value: 3.8

Growth: 8.0

Quality: 6.6

Yield: 2.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.64%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.36%

Owens Corning - US6907421019

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OC

1.c. Company Highlights

Higher Growth

Stable Momentum

Average Quality

Earnings Beats

Better Quality

Revenues Beats

Medium Volatility

Revenues Miss

Average Yield

2. Owens Corning's Q4 FY '25 Earnings: A Review of Financial Performance

Segment Performance

Outlook and Guidance

Valuation and Return on Investment

Operational Efficiencies and Cost Savings

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Roofing

Expected Growth: 2.2%

Insulation

Expected Growth: 2.5%

Composites

Expected Growth: 1.8%

Doors

Expected Growth: 7.2%

Corporate, Other and Eliminations

Expected Growth: None%

7. Detailed Products

Roofing

Insulation

Composites

Cellulose Insulation

8. Owens Corning's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Owens Corning passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

107.25$

Current Price

107.25$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA