Owens Corning

Previous wording

Net earnings from continuing operations attributable to Owens Corning were earnings of $38 million in the first quarter of 2026, compared to earnings of $255 million in the first quarter of 2025. The Company generated $369 million in adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) from continuing operations in the first quarter of 2026, compared to $565 million in the first quarter of 2025. See the Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization From Continuing Operations section of the MD&A for further information regarding Adjusted EBITDA from continuing operations, including the reconciliation to Net earnings from continuing operations attributable to Owens Corning. First quarter of 2026 segment earnings before interest, taxes, depreciation and amortization (“EBITDA”) performance compared to the first quarter of 2025 decreased $101 million in our Roofing segment, decreased $58 million in our Insulation segment and decreased $34 million in our Doors segment. Within our Corporate, Other and Eliminations category, General corporate expenses and other increased by $3 million.

Current wording

Net earnings from continuing operations attributable to Owens Corning were earnings of $310 million in the second quarter of 2026, compared to earnings of $334 million in the second quarter of 2025. The Company generated $660 million in adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) from continuing operations in the second quarter of 2026, compared to $703 million in the second quarter of 2025. See the Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization From Continuing Operations section of the MD&A for further information regarding Adjusted EBITDA from continuing operations, including the reconciliation to Net earnings from continuing operations attributable to Owens Corning. Second quarter of 2026 segment earnings before interest, taxes, depreciation and amortization (“EBITDA”) performance compared to the second quarter of 2025 decreased $16 million in our Roofing segment, decreased $12 million in our Insulation segment and decreased $18 million in our Doors segment. Within our Corporate, Other and Eliminations category, General corporate expenses and other increased by $3 million.

Previous wording

On February 13, 2025, the Company entered into a definitive agreement ("GR Agreement") for the sale of our global glass reinforcements ("GR") business for a purchase price of approximately $436 million, less costs to sell. The GR business, historically part of the Company’s Composites segment, manufactures, fabricates, and sells glass fiber reinforcements for a wide variety of applications in wind energy, infrastructure, industrial, transportation and consumer markets.

Current wording

On February 13, 2025, the Company entered into a definitive agreement ("GR Agreement") for the sale of our global glass reinforcements ("GR") business, historically reported within the Composites segment, for a purchase price of approximately $436 million, less costs to sell. The GR business manufactured, fabricated, and sold glass fiber reinforcements for a broad range of end markets.

Previous wording

The transaction represented a strategic shift that has a major effect on the Company's operations and financial results and therefore, beginning with the quarterly report on Form 10-Q for the period ended March 31, 2025, the GR business financial results are reflected in the Company’s consolidated financial statements as discontinued operations for all periods presented.

Current wording

The transaction represented a strategic shift that has a major effect on the Company's operations and financial results. Accordingly, beginning with the quarterly report on Form 10-Q for the period ended March 31, 2025 and ending with the close of the transaction, the financial results of the GR business are reflected in the Company’s consolidated financial statements as discontinued operations for all periods presented.

Previous wording

On April 14, 2026, the Company entered into an amendment to the GR Agreement ("Amendment") to address changing market conditions. The Amendment includes a $110 million decrease in the purchase price, the transfer of approximately $32 million in carrying value of additional assets at close and elimination of the $225 million promissory notes that were to be issued to the Company by the purchasers. As of March 31, 2026, the estimated purchase price was $413 million, net of cash, less costs to sell. The change since signing is due to revised terms of the transaction as well as other changes in customary and transaction-specific price adjustments. The sale subsequently closed on April 30, 2026. The sale completes Owens Corning’s review of strategic alternatives for the business, announced on February 9, 2024, and aligns with the strategy to reshape the Company to focus on residential and commercial building products in North America and Europe.

Current wording

On April 14, 2026, the Company entered into an amendment to the GR Agreement ("Amendment") based on changes in market conditions, including a $110 million decrease in the purchase price, the transfer of approximately $32 million in carrying value of additional assets at closing, and the elimination of previously contemplated $225 million seller financing. The Company completed the sale on April 30, 2026 for proceeds of $370 million, net of cash divested and a deposit received at the announcement of the deal. The final proceeds are subject to customary post-closing adjustments. The sale completed Owens Corning’s review of strategic alternatives for the business, announced on February 9, 2024, and aligns with the strategy to reshape the Company to focus on residential and commercial building products in North America and Europe.

Previous wording

Following the decision of the U.S. Supreme Court, the Company may be entitled to a refund of tariffs previously paid on certain imported products under the International Emergency Economic Powers Act. The Company estimates that approximately $50 million of tariff payments may be eligible for refund as a result of the decision; however, no asset has been recorded as of March 31, 2026.

Current wording

Beginning in the first quarter of 2025, the U.S. government announced additional tariffs on goods imported into the U.S. from numerous countries and multiple nations have responded with reciprocal tariffs and other actions. Following the decision of the U.S. Supreme Court in the first quarter of 2026, the Company may be entitled to a refund of tariffs previously paid on certain imported products under the International Emergency Economic Powers Act. The Company estimates that approximately $50 million of tariff payments may be eligible for refund as a result of the decision. During the six months ended June 30, 2026, $25 million of the total estimated amount was recognized within Cost of sales.

Previous wording

Based on the current tariff policies, the Company expects to partially offset the operating profit impact of the enacted tariffs with supply chain adjustments and productivity and cost savings actions. If additional tariffs or other trade restrictions are enacted, or if the Company is unable to offset their impact, then demand for our products and the Company's revenue and profitability could be adversely impacted.

Current wording

Based on current tariff policies, the Company expects to partially offset the operating profit impact of enacted tariffs through mitigation actions, including supply chain adjustments and productivity and cost savings actions. However, additional tariffs, changes in trade policies or retaliatory measures by foreign governments, or the Company's inability to fully offset related impacts could adversely affect demand for our products, revenue, profitability and cash flows.

Previous wording

Other expense, net increased $73 million in the first quarter 2026 compared to the first quarter 2025. The increase was primarily driven by higher restructuring costs and an increase in the liability for the Paroc marine recall.

Current wording

Other expense, net decreased $5 million and increased $70 million in the second quarter and year-to-date 2026 compared to the same periods in 2025, respectively. For the second quarter, the decrease was primarily driven by lower acquisition-related transaction costs and gain related to the sale of a site that was part of a previous restructuring action in the Roofing segment. For year-to-date, the increase was primarily driven by higher restructuring costs and an increase in the liability for the Paroc marine recall.

Previous wording

Interest expense, net increased $2 million in the first quarter 2026 compared to the first quarter 2025. The increase was driven by lower interest income due to lower cash balances.

Current wording

Interest expense, net increased $6 million and increased $8 million in the second quarter and year-to-date 2026 compared to the same periods in 2025, respectively. For the second quarter and year-to-date 2026, the increase was driven by lower interest income, partially offset by lower interest on commercial paper balances.

Previous wording

Income tax expense for the three months ended 2026 was $15 million. The Company’s effective tax rate for the first quarter 2026 was 28% on pre-tax income of $54 million. The difference between the 28% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily due to U.S. state and local income tax expense, foreign tax effects, and changes in unrecognized tax benefits.

Current wording

Income tax expense for the three and six months ended 2026 was $102 million and $117 million, respectively. The Company’s effective tax rate for the second quarter 2026 and the six months ended June 30, 2026 was 25%. The difference between the 25% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily due to U.S. state and local income tax expense and foreign tax effects.

Previous wording

Income tax expense for the three months ended 2025 was $88 million. The Company’s effective tax rate for the first quarter 2025 was 26%. The difference between the 26% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily due to U.S. state and local income tax expense and foreign rate differential.

Current wording

Income tax expense for the three and six months ended 2025 was $110 million and $198 million, respectively. The Company’s effective tax rate for the second quarter 2025 and the six months ended June 30, 2025 was 25%. The difference between the 25% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily due to U.S. state and local income tax expense and foreign rate differential.

Previous wording

In our Roofing segment, net sales decreased $160 million in the first quarter 2026 compared to the first quarter 2025. Lower volumes of approximately 14% and lower selling prices of $13 million were slightly offset by favorable mix.

Current wording

For year-to-date 2026, net sales in our Roofing segment decreased $150 million compared to the same period in 2025. Lower volumes of approximately 7% and lower selling prices of $11 million were slightly offset by favorable mix and the favorable impact from translating sales denominated in foreign currencies into United States dollars.

Previous wording

In our Insulation segment, EBITDA decreased $58 million in the first quarter 2026 compared to the first quarter 2025. The decrease was driven by lower selling prices of $21 million, the impact of production downtime of $20 million and input cost inflation of $11 million. The remaining variance primarily resulted from lower volumes, partially offset favorable mix.

Current wording

For year-to-date 2026, EBITDA in our Roofing segment decreased $117 million compared to the same period in 2025. The decrease was primarily driven by lower volumes, input cost inflation of $25 million, and higher delivery costs of $23 million. The remaining variance was driven by lower selling prices of $11 million, the impact of production downtime, and higher manufacturing costs of $6 million, which were partially offset by favorable mix.

Previous wording

In our Roofing segment, the Company expects non-discretionary roof replacement activity to remain solid in the near-term. Uncertainties that may impact Roofing demand include demand from storms and other weather-related events (including the frequency thereof), competitive pricing pressure and the cost and availability of raw materials, particularly asphalt. The Company expects global non-residential construction markets to be relatively stable in the near-term. The Company will continue to focus on managing costs, capital expenditures and working capital to best service the market demand.

Current wording

In our Roofing segment, the Company expects non-discretionary roof replacement activity to remain solid in the near-term. The Company expects seasonal storm demand to be in line with historical averages, but the impact of heavier inventory restocking in the second quarter is expected to reduce purchases in the third quarter. The Company expects global non-residential construction markets to be relatively stable in the near-term. The Company will continue to focus on managing costs, capital expenditures and working capital to best service the market demand.

Previous wording

In our Insulation segment, net sales decreased $42 million in the first quarter 2026 compared to the first quarter 2025. Lower volumes of 3% and lower selling prices of $21 million were partially offset by slightly favorable mix. A favorable impact of $25 million from translating sales denominated in foreign currencies into United States dollars offset the unfavorable impact from the divestiture of our building materials business in China and Korea.

Current wording

In our Insulation segment, net sales increased $37 million in the second quarter 2026 compared to the second quarter 2025. Higher volumes of 7% and a $14 million favorable impact from translating sales denominated in foreign currencies into United States dollars were partially offset by the unfavorable impact from the divestiture of our building materials business in China and Korea and lower selling prices of $11 million.

Previous wording

During the first quarter of 2026, the average Seasonally Adjusted Annual Rate (“SAAR”) of U.S. housing starts was 1.419 million starts, which was up from 1.370 million starts in the first quarter of 2025.

Current wording

During the second quarter of 2026, the average Seasonally Adjusted Annual Rate (“SAAR”) of U.S. housing starts was 1.347 million starts, which was up from 1.327 million starts in the second quarter of 2025.

Previous wording

The Company expects the new residential construction market in North America to remain challenged in the near-term, driven by an overall weakness in housing starts due to affordability challenges and consumer uncertainty. The global non-residential construction markets are expected to be relatively stable in the near-term. The Company continues to concentrate on driving productivity, managing costs, capital expenditures and working capital as we position ourselves to expand capacity within our existing manufacturing network.

Current wording

The Company expects the new residential construction market in North America to remain challenged in the near-term, driven by affordability challenges and consumer uncertainty. The global non-residential construction markets are expected to be relatively stable in the near-term. The Company continues to concentrate on driving productivity, managing costs, capital expenditures and working capital as we position ourselves to expand capacity within our existing manufacturing network.

Previous wording

In our Doors segment, net sales decreased $65 million in the first quarter 2026 compared to the first quarter 2025, primarily due to lower volumes of 12%. A $10 million unfavorable impact from the divestiture of our distribution business was offset by a $6 million favorable impact of translating sales denominated in foreign currencies into United States dollars and favorable mix.

Current wording

For year-to-date 2026, net sales in our Doors segment decreased $106 million compared to the same period in 2025, primarily due to lower volumes of 8% and a $29 million unfavorable impact from the divestiture of our distribution business. This was partially offset by a $6 million favorable impact of translating sales denominated in foreign currencies into United States dollars and slightly favorable mix.

Previous wording

In our Doors segment, EBITDA decreased $34 million in the first quarter 2026 compared to the first quarter 2025. Lower volumes, input cost inflation of $10 million, higher manufacturing costs of $9 million and the impact of production downtime were partially offset by $9 million of lower selling, general and administrative costs and slightly favorable mix.

Current wording

In our Doors segment, EBITDA decreased $18 million in the second quarter 2026 compared to the second quarter 2025. Higher delivery costs of $11 million, lower volumes, higher manufacturing costs of $7 million, and unfavorable mix were partially offset by $8 million of lower selling, general and administrative costs and lower input cost inflation of $7 million, which includes the impact of tariff refunds.

Previous wording

In our Roofing segment, EBITDA decreased $101 million in the first quarter 2026 compared to the first quarter 2025. The decrease was primarily driven by lower volumes, higher manufacturing costs of $17 million, lower selling prices of $13 million, input cost inflation of $6 million, and the impact of production downtime.

Current wording

For year-to-date 2026, EBITDA in our Doors segment decreased $52 million compared to the same period in 2025. The decrease was primarily driven by lower volumes, higher manufacturing costs of $16 million and higher delivery costs of $11 million. Lower selling, general and administrative costs of $17 million were offset by the impact of production downtime, unfavorable mix, and input cost inflation of $3 million, which includes the impact of tariff refunds.

Previous wording

The impact on EBITDA from Corporate, Other and Eliminations in the first quarter 2026 was $79 million higher compared to the first quarter 2025. The increase was primarily driven by higher restructuring costs and an increase in the liability for the Paroc marine recall.

Current wording

The impact on EBITDA from Corporate, Other and Eliminations was $26 million lower and $53 million higher in the second quarter and year-to-date 2026 compared to the same periods in 2025, respectively. For the second quarter, the decrease was primarily driven by the loss on sale of business in the prior year. For year-to-date, the increase primarily driven by higher restructuring costs and an increase in the liability for the Paroc marine recall, partially offset by the loss on sale of business in the prior year.

Previous wording

General corporate expense and other in the first quarter 2026 was $3 million higher than in the first quarter 2025.

Current wording

General corporate expense and other was $3 million lower and remained flat in the second quarter and year-to-date 2026 compared to the same periods in 2025, respectively.

Previous wording

The Company's primary sources of liquidity are its balance of Cash and cash equivalents from continuing operations of $272 million as of March 31, 2026, its commercial paper program ("CP Program") and Senior Revolving Credit Facility (as defined below).

Current wording

The Company's primary sources of liquidity are its balance of Cash and cash equivalents from continuing operations of $271 million as of June 30, 2026, its commercial paper program ("CP Program") and Senior Revolving Credit Facility (as defined below).

Previous wording

Cash and cash equivalents were $285 million as of March 31, 2026, compared to $440 million as of March 31, 2025. Cash and cash equivalents held by foreign subsidiaries may be subject to foreign withholding taxes upon repatriation to the U.S. As of March 31, 2026 and December 31, 2025, the Company had $142 million and $97 million, respectively, in cash and cash equivalents in certain of its foreign subsidiaries. The Company continues to assert indefinite reinvestment for certain of its continuing operations in accordance with Accounting Standards Codification (“ASC”) 740 based on the laws as of enactment of the tax legislation.

Current wording

Cash and cash equivalents were $271 million as of June 30, 2026, compared to $265 million as of June 30, 2025. Cash and cash equivalents held by foreign subsidiaries may be subject to foreign withholding taxes upon repatriation to the U.S. As of June 30, 2026 and December 31, 2025, the Company had $144 million and $97 million, respectively, in cash and cash equivalents in certain of its foreign subsidiaries. The Company continues to assert indefinite reinvestment for certain of its continuing operations in accordance with Accounting Standards Codification (“ASC”) 740 based on the laws as of enactment of the tax legislation.

Previous wording

Operating activities: Net cash flow used for operating activities increased by $105 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase was primarily due to lower cash earnings, partially offset by the change in working capital. For the three months ended March 31, 2026, there was no depreciation and amortization related to discontinued operations.

Current wording

Operating activities: Net cash flow provided by operating activities decreased by $34 million for the six months ended June 30, 2026 compared to the same period in 2025. The decrease was primarily due to lower cash earnings, partially offset by the change in working capital. For the six months ended June 30, 2026, there was no depreciation and amortization related to discontinued operations.

Previous wording

Investing activities: Net cash flow used for investing activities increased by $31 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase was primarily driven by higher cash paid for property, plant and equipment and lower proceeds from sale of assets or affiliates. For the three months ended March 31, 2026, cash paid for property, plant and equipment related to discontinued operations was $23 million.

Current wording

Investing activities: Net cash flow provided by investing activities increased by $354 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase was primarily driven by the proceeds from the sale of GR business, partially offset by higher cash paid for property, plant and equipment. For the six months ended June 30, 2026, cash paid for property, plant and equipment related to discontinued operations was $28 million.

Previous wording

Financing activities: Net cash flow provided by financing activities decreased by $29 million for the three months ended March 31, 2026 compared to the same period in 2025. The decrease was primarily driven by lower net proceeds from CP Notes, partially offset by lower treasury stock repurchases and lower payments on long-term debt in the current year.

Current wording

Financing activities: Net cash flow used for financing activities increased by $254 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase was primarily driven by lower net proceeds from CP Notes, partially offset by lower treasury stock repurchases in the current year.

Previous wording

Our anticipated uses of cash include capital expenditures, working capital needs, share repurchases, meeting financial obligations, payments of any dividends authorized by our Board of Directors, acquisitions, restructuring actions and pension contributions. We expect that our cash on hand, coupled with future cash flows from operations and other available sources of liquidity, including our Senior Revolving Credit Facility and our CP Program, will provide ample liquidity to enable us to meet our cash requirements for at least the next 12 months and foreseeable future thereafter.

Current wording

Our anticipated uses of cash include capital expenditures, working capital needs, share repurchases, meeting financial obligations including repayment of senior notes maturing in the next twelve months, payments of any dividends authorized by our Board of Directors, acquisitions, restructuring actions and pension contributions. We expect that our cash on hand, coupled with future cash flows from operations and other available sources of liquidity, including our Senior Revolving Credit Facility, our CP Program and access to credit markets will provide ample liquidity to enable us to meet our cash requirements for at least the next twelve months and foreseeable future thereafter.

Previous wording

Please refer to Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in the 2025 Form 10-K for more details on these material cash requirements. During the first quarter of 2026, there have been no material changes to our expected uses of cash and contractual obligations.

Current wording

Please refer to Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in the 2025 Form 10-K for more details on these material cash requirements. During the second quarter of 2026, there have been no material changes to our expected uses of cash and contractual obligations.

Previous wording

As of March 31, 2026, the Company had $5.5 billion of total debt. The Company's current portion of long-term debt primarily relates to $400 million of the current portion of 3.4% senior notes maturing in the third quarter of 2026. Further discussion of the amount and timing of the future scheduled maturities of our senior notes can be found in Note 10 of the Consolidated Financial Statements. As of March 31, 2026, the Company's Short-term debt includes $380 million of CP Notes.

Current wording

As of June 30, 2026, the Company had $5.2 billion of total debt. The Company's current portion of long-term debt primarily relates to $899 million of the current portion of 3.400% senior notes maturing in the third quarter of 2026 and 5.500% senior notes maturing in the second quarter of 2027. Further discussion of the amount and timing of the future scheduled maturities of our senior notes can be found in Note 10 of the Consolidated Financial Statements. As of June 30, 2026, the Company's Short-term debt includes $65 million of CP Notes.

Previous wording

On March 5, 2025, the Company established a CP Program for the issuance of CP Notes with maturities ranging up to 397 days from the date of issuance. As of March 31, 2026, there were $380 million of CP Notes outstanding under the CP Program with a weighted average interest rate and weighted average maturity period of 4.10% and 9 days, respectively. We do not intend to have outstanding borrowings under the CP Program in excess of available capacity under our Senior Revolving Credit Facility.

Current wording

On March 5, 2025, the Company established a CP Program for the issuance of CP Notes with maturities ranging up to 397 days from the date of issuance. As of June 30, 2026, there were $65 million of CP Notes outstanding under the CP Program with a weighted average interest rate and weighted average maturity period of 4.00% and 5 days, respectively. We do not intend to have outstanding borrowings under the CP Program in excess of available capacity under our Senior Revolving Credit Facility.

Previous wording

Working safely is an expectation at Owens Corning. We believe this organization-wide expectation provides for a safer work environment for employees, improves our manufacturing processes, reduces our costs and enhances our reputation. Furthermore, striving to be a world-class leader in safety provides a platform for all employees to understand and apply the resolve necessary to be a high-performing, global organization. One of our primary safety measures is the Recordable Incidence Rate (“RIR”) as defined by the United States Bureau of Labor Statistics. For the three months ended March 31, 2026, our RIR was 0.46, compared to 0.54 in the same period a year ago.

Current wording

Working safely is an expectation at Owens Corning. We believe this organization-wide expectation provides for a safer work environment for employees, improves our manufacturing processes, reduces our costs and enhances our reputation. Furthermore, striving to be a world-class leader in safety provides a platform for all employees to understand and apply the resolve necessary to be a high-performing, global organization. One of our primary safety measures is the Recordable Incidence Rate (“RIR”) as defined by the United States Bureau of Labor Statistics. For the three months ended June 30, 2026, our RIR was 0.75, compared to 0.60 in the same period a year ago. For the six months ended June 30, 2026, our RIR was 0.65, compared to 0.58 in the same period a year ago.