Owens Corning (NYSE:OC) posted third-quarter results that fell short of Wall Street expectations, as softening residential demand in the U.S. dragged on sales across multiple product categories. Shares edged 0.2% higher in premarket trading Wednesday following the announcement.
The company reported adjusted earnings of $3.67 per share, missing the analyst consensus of $3.74, while revenue slipped 3% year over year to $2.68 billion, just below the $2.71 billion forecast. Owens Corning also reported a net loss of $5.93 per share, largely due to a $780 million non-cash impairment charge related to its Doors business, reflecting a tougher near-term demand outlook.
“Our third-quarter financial results continue to demonstrate our ability to perform at a high level even in the face of challenging market conditions, as we see weakening residential demand trends in the U.S. impacting our volumes,” said Brian Chambers, Chair and CEO of Owens Corning.
Despite the softer demand, the company maintained healthy margins, with adjusted EBITDA margin from continuing operations at 24%, down slightly from 26% a year earlier. Owens Corning also generated $918 million in operating cash flow and $752 million in free cash flow during the quarter, underscoring solid cash generation.
By segment, Roofing remained a bright spot, with sales up 2% to $1.24 billion and an EBITDA margin of 34%. However, Insulation sales declined 7% to $941 million, and Doors revenue fell 5% to $545 million amid slower construction activity.
Looking ahead, the company expects continued headwinds, forecasting fourth-quarter revenue to decline in the mid-to-high teens to around $2.1–$2.2 billion, with adjusted EBITDA margins between 16% and 18%.
“As we navigate near-term market dynamics, we remain focused on maximizing our performance and investing in the growth of the enterprise to create long-term value for our customers and shareholders,” Chambers added.
During the quarter, Owens Corning returned $278 million to shareholders through dividends and share repurchases, reaffirming its commitment to return $2 billion to shareholders across 2025 and 2026.