A month has gone by since the last earnings report for Owens Corning (OC Quick QuoteOC - Free Report) . Shares have lost about 10.6% in that time frame, underperforming the S&P 500.

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 catalysts for Owens Corning Inc before we dive into how investors and analysts have reacted as of late.

OC Q2 Earnings Beat Estimates on Strong Commercial Execution

Owens Corning posted adjusted earnings of $3.93 per share for the second quarter of 2026, down 6.7% year over year but ahead of the Zacks Consensus Estimate of $3.06 by 28.4%. Net sales rose 0.3% to $2.76 billion and beat the $2.67 billion consensus mark by 3.2%.

Results reflected strong commercial execution across Roofing and Insulation, partly offset by inflation and weaker Doors volumes. Roofing sales increased 0.8% year over year, while the business delivered a 34% EBITDA margin.

OC's Profitability Reflects Resilient Execution

Adjusted EBITDA was $660 million, down 6.1% from $703 million a year ago. The adjusted EBITDA margin contracted to 24% from 26% as inflation weighed on profitability.

Second-quarter EBITDA included $25 million of tariff refunds, about half of which benefited Doors. These refunds partly offset $30 million of net cost inflation tied to the Iran conflict. The company recorded only $3 million of adjusting items during the quarter.

Segmental Discussion

Roofing revenues were $1.31 billion, up 0.8% from $1.30 billion a year earlier. Growth was supported by favorable product mix and solid demand for higher-value products. Shingle and components volumes were slightly ahead of the broader market, while elevated industry restocking supported market shipments.

Roofing EBITDA fell 3.5% to $441 million. Higher inflation, including transportation costs, created negative price-cost pressure amid relatively flat pricing. Management noted solid realization from price increases announced during the quarter.

Insulation revenues increased 4.0% year over year to $971 million, driven mainly by higher volumes and a modest currency benefit. North American residential revenues edged higher, while nonresidential revenues benefited from higher volumes and pockets of strong end-market growth. European operations also posted growth as core markets improved and commercial execution remained strong.

Segment EBITDA declined 5.3% to $213 million because of slightly lower pricing and continued inflation, while the EBITDA margin was 22%.

Doors revenues declined 7.4% to $513 million, mainly because of strategic business exits. The divested distribution business and Oregon components facility reduced second-quarter revenues by a combined $30 million.

Doors EBITDA fell 24.0% to $57 million due to lower volumes and higher transportation costs. The segment's 11% EBITDA margin nevertheless exceeded management's prior guidance, helped by tariff refunds. Owens Corning has achieved $135 million of enterprise run-rate synergies in Doors, above its original $125 million target.

OC Generates Higher Quarterly Free Cash Flow

Free cash flow increased 54.3% year over year to $199 million, aided by disciplined working capital management. Capital additions from continuing operations were $194 million, up $18 million from the prior-year quarter, while return on capital for the 12 months ended June 30 was 10%.

Owens Corning ended the quarter with $1.8 billion of liquidity, including $271 million in cash and $1.5 billion available under bank debt facilities. The company returned $264 million to shareholders through $200 million of share repurchases and $64 million of dividends.

Owens Corning Sees Softer Q3 Roofing Demand

For the third quarter of 2026, Owens Corning expects revenues of $2.6 billion to $2.7 billion and an adjusted EBITDA margin of 20% to 22%. The outlook includes about $40 million of incremental inflation costs tied to the Iran conflict.

Roofing revenues are expected to decline by mid- to high-single digits year over year, with an EBITDA margin near 30%, as heavier second-quarter stocking weighs on distributor purchases. Insulation revenues are projected to grow by mid-single digits with a 22% EBITDA margin, while Doors revenues are expected to fall by mid-single digits with a margin of about 10%.

How Have Estimates Been Moving Since Then?

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

VGM Scores

At this time, Owens Corning has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. 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. Notably, Owens Corning has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Owens Corning belongs to the Zacks Building Products - Miscellaneous industry. Another stock from the same industry, Jacobs Solutions (J Quick QuoteJ - Free Report) , has gained 2.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Jacobs Solutions reported revenues of $4.08 billion in the last reported quarter, representing a year-over-year change of +34.5%. EPS of $1.84 for the same period compares with $1.62 a year ago.

Jacobs Solutions is expected to post earnings of $2.17 per share for the current quarter, representing a year-over-year change of +24%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.9%.

Jacobs Solutions has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.