Owens Corning Inc. (NYSE:OC) stock rose in premarket trading Wednesday after the building materials company reported second-quarter results that topped Wall Street expectations on stronger-than-expected earnings and revenue.

Second-Quarter Results

Adjusted earnings increased to $3.93 per share, beating the analyst consensus estimate of $3.08. Revenue was $2.76 billion, roughly flat from a year earlier and above analysts’ estimate of $2.65 billion.

Adjusted EBITDA declined 6% year over year to $660 million, while adjusted EBITDA margin narrowed to 24% from 26% a year earlier.

Operating cash flow increased to $398 million from $327 million in the prior-year quarter. Free cash flow totaled $199 million. The company ended the quarter with $271 million in cash and cash equivalents.

Roofing And Insulation Offset Doors Weakness

The Roofing segment generated $1.31 billion in sales, up 1% from a year earlier, with EBITDA of $441 million and a 34% margin.

Insulation sales rose 4% to $971 million, producing EBITDA of $213 million and a 22% margin.

The Doors segment reported revenue of $513 million, down 7% year over year. EBITDA totaled $57 million, with an 11% margin.

Portfolio Changes And Capital Returns

Owens Corning completed the sale of its Glass Reinforcements business on April 30, advancing its strategy to focus on residential building products in North America and Europe.

The company said the divestiture is expected to improve margins, strengthen cash flow resilience and support long-term growth.

On July 29, Owens Corning named Jonathan Collins executive vice president and chief financial officer, effective Aug. 10.

The company returned $264 million to shareholders through dividends and share repurchases during the quarter. It repurchased 1.7 million shares for $200 million and had 10.8 million shares remaining under its existing authorization at quarter-end.

Outlook

Owens Corning expects third-quarter revenue of $2.6 billion to $2.7 billion, compared with the analyst consensus estimate of $2.68 billion. The company expects enterprise adjusted EBITDA margin of 20% to 22%.

Management said discretionary remodeling and residential new construction activity are expected to remain under pressure. Roofing demand from seasonal storms is expected to track historical trends, while elevated distributor inventory built during the second quarter is expected to reduce third-quarter purchases.

The company expects North American nonresidential construction to remain stable, with gradual improvement in its core European markets.

Owens Corning also said inflationary pressures related to the Iran conflict are expected to increase third-quarter costs by about $40 million.

The company exceeded its cost-synergy target for the Doors business, achieving $135 million in enterprise run-rate savings versus its $125 million mid-2026 goal. It remains on track to deliver an additional $75 million in structural cost savings through network optimization and operational improvements.

OC Price Action: Owens-Corning shares were trading up 3.07% at $150.00 during premarket trading on Wednesday, according to Benzinga Pro data.

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