A month has gone by since the last earnings report for Owens Corning (OC Quick QuoteOC - Free Report) . Shares have lost about 12.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Owens Corning due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Owens Corning Inc before we dive into how investors and analysts have reacted as of late.

Owens Corning Q4 Earnings & Sales Miss Estimates, Margins Down Y/Y

Owens Corning reported disappointing results for the fourth quarter of 2025, wherein adjusted earnings and net sales missed the Zacks Consensus Estimate and declined on a year-over-year basis.

Quarterly Earnings & Sales Discussion

The company reported adjusted earnings per share (EPS) of $1.10, which missed the Zacks Consensus Estimate of $1.33 by 17.3%. In the year-ago quarter, it reported an adjusted EPS of $3.02.

Net sales of $2.14 billion missed the consensus mark of $2.2 billion by 2.6% and declined 17% year over year on lower volumes.

Segment Details

Roofing: Sales of $774 million declined from $1.06 billion reported a year ago. EBITDA of $199 million was down year over year from $338 million, with the EBITDA margin of 26% contracting 600 basis points (bps).

Insulation: Sales slipped 7.2% year over year to $916 million. EBITDA fell to $186 million from $228 million reported in the year-ago quarter and the EBITDA margin was 20%, down 300 bps.

Doors: Sales declined year over year to $486 million from $564 million. EBITDA of $33 million was down year over year from $82 million, with the EBITDA margin of 7% contracting 800 bps.

Operating Highlights

Gross profit declined to $498 million from $749 million last year, with gross margin contracting 590 bps to 23.2%.

Adjusted EBITDA of $362 million tumbled 36% year over year, translating into a 17% margin down 500 bps to 17%.

2026 Outlook of Continuing Operations

For the first quarter, Owens Corning expects to continue delivering strong financial performance in a challenging market environment. Revenues are expected to be approximately $2.1-$2.2 billion. Adjusted EBITDA margin from continuing operations is expected to be in the mid-teens. The company anticipates realizing the impact of higher cost inventory flowing through the P&L in the first quarter, based on the higher fourth-quarter 2025 downtime taken to manage inventories.

For 2026, the company expects to see market improvement as the year progresses, resulting in top and bottom-line results largely aligned with current consensus estimates.

In the long term, the company expects revenue growth, an annual adjusted EBITDA margin of mid-20% for the enterprise, and $5 billion of cumulative free cash flow by 2028.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -29.34% due to these changes.

VGM Scores

Currently, Owens Corning has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Owens Corning has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.