Owens Corning (OC) investor relations material

Executive summary

• Q1 2026 net sales were $2.3 billion, down 10% year-over-year, with adjusted EBITDA of $369 million (16% margin), reflecting challenging residential markets and portfolio changes.

• Net earnings from continuing operations were $38 million (2% margin), with adjusted EPS at $1.22 and diluted EPS at $0.47.

• Completed the sale of the glass reinforcements business, unlocking $280 million in cash proceeds and $50–$70 million expected from excess alloy sales, but resulting in a $182 million pre-tax loss from discontinued operations.

• Maintained strong safety performance with a recordable incident rate of 0.46 and 85% of sites injury-free.

• Recognized by S&P Global as a top 1% sustainability performer in the building products industry.

Financial highlights

• Q1 2026 net sales were $2.265–$2.3 billion, down 10% year-over-year; adjusted EBITDA was $369 million (16% margin), and adjusted EPS was $1.22.

• Net earnings from continuing operations attributable to shareholders were $38 million, down from $255 million a year ago.

• Free cash outflow was $387 million, reflecting seasonal working capital and higher capex.

• Gross margin declined to $510 million (23% of net sales) from $725 million (29%) year-over-year.

• Return on capital for the trailing 12 months was 10%; debt-to-EBITDA ratio at 2.5x; liquidity at quarter end was $1.8 billion.

Outlook and guidance

• Q2 2026 revenue expected at $2.6–$2.7 billion, slightly below prior year, with adjusted EBITDA margin guidance of 20–22%.

• Roofing revenue expected down low to mid single-digits; EBITDA margin in low 30% range.

• Insulation revenue expected down low single-digits; EBITDA margin around 20%.

• Doors revenue expected down mid single-digits; EBITDA margin to improve to high single-digits.

• General corporate EBITDA expense for 2026 expected at $245–$255 million; capex at $800 million; effective tax rate 24–26%.