Owens Corning (NYSE:OC) moved higher in premarket trading on Wednesday after reporting first-quarter results that surpassed Wall Street forecasts on both earnings and revenue.
Shares gained about 2.5% following the announcement.
The company posted adjusted earnings per share of $1.22, comfortably ahead of analyst expectations of $0.89.
Revenue totaled $2.27 billion, exceeding consensus estimates of $2.15 billion, although sales declined 10% from $2.53 billion in the same quarter last year.
Company completes divestiture of glass reinforcements business
Owens Corning said it completed the sale of its glass reinforcements division on April 30, 2026, as part of its strategy to focus more heavily on core building products operations.
The transaction generated approximately $280 million in cash proceeds, with the company expecting an additional $50 million to $70 million from excess alloy sales over the next year.
“Our first-quarter results highlight our ability to deliver strong financial performance within current market conditions,” said Brian Chambers, chair and chief executive officer of the company.
“With the sale of our glass reinforcements business complete, we are now well positioned to operate as a more integrated company and unlock additional cost efficiencies.”
Roofing and insulation businesses remain key earnings drivers
The Roofing segment generated revenue of $960 million during the quarter and delivered an EBITDA margin of 24%.
Meanwhile, the Insulation business posted sales of $867 million with a 19% EBITDA margin.
The Doors segment reported revenue of $475 million and an EBITDA margin of 7%.
Overall adjusted EBITDA margin from continuing operations declined to 16%, compared with 22% in the prior-year period.
Second-quarter outlook reflects geopolitical cost pressures
For the second quarter, Owens Corning forecast revenue from continuing operations between $2.6 billion and $2.7 billion.
The midpoint of $2.65 billion came in below the range anticipated by many analysts.
The company expects adjusted EBITDA margin between 20% and 22% during the quarter.
Management also noted that the conflict involving Iran is expected to create approximately $60 million in incremental costs during the second quarter.
Shareholder returns continue
Owens Corning returned approximately $63 million to shareholders through dividends during the quarter.
The company reiterated its commitment to returning $2 billion to shareholders across 2025 and 2026.