Owens Corning Posts Q3 Loss on $476 Million Doors Impairment; Adjusted EPS Falls 33.5% to $2.44
Owens Corning swung to a third-quarter loss after a $476 million impairment on its doors business, and it warned of a sharply weaker fourth quarter as a second straight year of light storm activity hurts roofing demand.
The building products maker reported a diluted loss from continuing operations of $3.15 per share, compared with a loss of $5.93 a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Adjusted EPS fell 33.5% to $2.44 from $3.67.
Net sales fell 7.3% to $2.49 billion from $2.68 billion. The net loss from continuing operations attributable to the company was $248 million, versus $495 million a year earlier, when it booked a $780 million goodwill impairment.
"During the quarter, challenging residential market conditions were further impacted by a second consecutive year of weak storm activity and rapidly rising transportation and input material costs," Chair and CEO Brian Chambers said in the release.
Roofing slides, insulation grows
Roofing sales dropped 16.0% to $1.04 billion, and the segment's EBITDA margin narrowed to 29% from 34%. Insulation sales rose 6.4% to $1.00 billion. Doors sales fell 11.4% to $483 million, with EBITDA of $25 million versus $56 million.
The quarter's non-cash, pre-tax impairment charges tied to doors totaled $476 million, including a $366 million goodwill impairment and a $77 million intangible asset impairment. Adjusted EBITDA fell 23.4% to $489 million, a 20% margin.
Weak fourth-quarter outlook
Owens Corning expects fourth-quarter revenue of $2.0 billion to $2.2 billion, with an adjusted EBITDA margin of an estimated 10% to 12%, the company said. It cited significantly higher inflation and transportation costs, seasonality and extra downtime from weaker volumes, and said it expects minimal pricing gains in the quarter.
Cash returns continue
Operating cash flow was $813 million and free cash flow was $622 million. The company returned $337 million to shareholders, buying back 1.9 million shares for $275 million and paying $62 million in dividends, and it reduced debt by $299 million.
The release also noted leadership changes: Todd Fister was promoted to president and chief operating officer, and Jonathan Collins joined in August as chief financial officer.
By the numbers
- Net sales: $2.49 billion, down 7.3%
- Adjusted EPS: $2.44, down 33.5%
- Diluted EPS from continuing operations: loss of $3.15
- Doors impairment charges: $476 million
- Q4 revenue outlook: $2.0 billion to $2.2 billion
- Shares repurchased: 1.9 million for $275 million
Sources
- Owens Corning Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0001370946-26-000223)
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