The company’s performance highlights the strain of ongoing inflation on building material suppliers. While insulation sales provided a rare bright spot with a 6.4% increase to $1 billion, these gains were insufficient to counter a 16% collapse in roofing revenue and an 11% decline in door sales. Investors reacted sharply to the news, sending shares down 4.5% to $112.51 in premarket trading.
In section Market Quotes
Owens Corning Sales Slide as High Costs and Weak Demand Persist
A second consecutive year of sluggish storm activity coupled with surging transportation costs pushed Owens Corning into a difficult third quarter. The construction giant reported a net loss of $250 million, missing Wall Street earnings expectations as sales dropped 7.3% to $2.49 billion amid a persistent residential market slump.
Chief Executive Brian Chambers pointed to a trifecta of pressures: weak demand in residential construction, lower remodeling activity, and rising input costs. Looking ahead, the company’s forecast remains cautious. Owens Corning anticipates fourth-quarter revenue between $2 billion and $2.2 billion, falling short of analyst projections of $2.23 billion. Management expects adjusted Ebitda margins to settle between 10% and 12%, citing additional downtime and inflation as primary headwinds. Despite the immediate volatility, President and Chief Operating Officer Todd Fister maintained that the company remains positioned for long-term growth.
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