Free cash flow margins have deteriorated to -17.1% in 2026Q1, driven by elevated capital expenditures representing 10.3% of revenue despite the ongoing cyclical downturn.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1.68B | 1.79B | 1.89B | 1.72B | 1.76B | 1.5B | 1.14B | 1.04B | 803M | 1.02B | 943M | 742M | 441M | 418M | 330M | 289M | 488M | 541M | 193M | 182M | 15M | 746M | 449M | 326M | 357M | 478M | -190M | -28M | 124M | 131M | 335M |
| Operating CF Margin % | - | 17.68% | 17.24% | 17.76% | 18.03% | 17.69% | 16.09% | 14.48% | 11.38% | 15.91% | 16.61% | 13.87% | 8.36% | 7.89% | 6.38% | 5.42% | 9.77% | 11.26% | 3.3% | 3.66% | 0.23% | 11.8% | 7.91% | 8.03% | 7.33% | 10.04% | -3.85% | -0.55% | 2.48% | 3% | 8.74% |
| Operating CF Growth % | -229.35% | -5.6% | 10.06% | -2.33% | 17.1% | 32.42% | 9.45% | 29.14% | -20.96% | 7.74% | 27.09% | 68.25% | 5.5% | 26.67% | 14.19% | -40.78% | -9.8% | 180.31% | 6.04% | 1113.33% | -97.99% | 66.15% | 37.73% | -8.68% | -25.31% | 351.58% | -578.57% | -122.58% | -5.34% | -60.9% | -2.05% |
| Net Income | -533M | -522M | 647M | 1.19B | 1.24B | 995M | -385M | 405M | 547M | 290M | 399M | 334M | 228M | 205M | -16M | 281M | 940M | 67M | -811M | 96M | -65M | -4.1B | 204M | 115M | -2.81B | 39M | -478M | 270M | -1.06B | 47M | -284M |
| Depreciation & Amortization | 709M | 694M | 677M | 609M | 531M | 502M | 493M | 457M | 433M | 371M | 343M | 300M | 304M | 332M | 349M | 318M | 320M | 325M | 331M | 343M | 69M | 231M | 228M | 206M | 205M | 237M | 203M | 210M | 197M | 173M | 132M |
| Stock-Based Compensation | 68M | 71M | 93M | 51M | 51M | 50M | 41M | 39M | 47M | 44M | 41M | 30M | 29M | 28M | 24M | 21M | 23M | 52M | 17M | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 33M | 43M | -92M | 26M | 37M | 44M | 86M | 118M | 141M | 183M | 136M | 64M | -15M | 54M | -59M | 55M | -867M | 17M | 881M | -109M | -48M | -467M | 133M | 51M | -21M | 47M | -361M | 163M | -416M | 110M | -258M |
| Other Non-Cash Items | 1.38B | 1.58B | 520M | -127M | -81M | -70M | 806M | -15M | -106M | 74M | -57M | -74M | -55M | -158M | 26M | -124M | 57M | -54M | -27M | 2M | 14M | 5.05B | -120M | 6M | 3.07B | -93M | 504M | -645M | 1.33B | -256M | 693M |
| Working Capital Changes | 25M | -84M | 47M | -33M | -19M | -18M | 94M | 33M | -259M | 54M | 81M | 88M | -39M | -78M | 6M | -262M | 15M | 134M | -236M | -259M | 45M | 27M | 4M | -83M | -86M | 248M | -58M | -26M | 78M | 57M | 52M |
| Change in Receivables | 0 | 235M | 6M | -26M | -14M | -28M | -109M | 19M | 39M | -66M | 55M | -71M | -10M | -77M | 24M | -48M | 0 | 0 | 74M | -9M | 185M | -94M | -23M | -27M | 6M | 41M | -198M | 112M | -58M | 57M | 20M |
| Change in Inventory | 0 | -65M | -43M | 148M | -287M | -227M | 189M | 35M | -216M | -57M | 5M | 150M | -29M | -27M | -4M | -179M | 0 | 0 | -100M | 3M | 97M | -42M | -42M | 11M | -4M | 19M | -78M | -25M | 16M | 60M | -71M |
| Change in Payables | 0 | -130M | 13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -796M | -765M | -3.39B | -356M | -623M | -377M | -205M | -394M | -1.59B | -901M | -815M | -369M | -286M | -307M | -253M | -445M | -249M | -204M | -162M | -430M | -77M | -283M | -320M | -176M | -250M | -249M | -332M | -225M | 382M | -799M | -360M |
| Capital Expenditures | -1.2B | 0 | -647M | -526M | -446M | -416M | -307M | -447M | -537M | -337M | -373M | -393M | -363M | -353M | -332M | -442M | -314M | -243M | -434M | -247M | -77M | -288M | -232M | -208M | -248M | -270M | -476M | -244M | -253M | -227M | -325M |
| CapEx % of Revenue | 12.21% | 8.16% | 5.9% | 5.44% | 4.57% | 4.9% | 4.35% | 6.24% | 7.61% | 5.28% | 6.57% | 7.35% | 6.88% | 6.67% | 6.42% | 8.28% | 6.28% | 5.06% | 7.42% | 4.96% | 1.19% | 4.55% | 4.09% | 5.12% | 5.09% | 5.67% | 9.64% | 4.83% | 5.05% | 5.19% | 8.48% |
| Acquisitions | 5M | 0 | -2.86B | -6M | -417M | -42M | 0 | 0 | -1.14B | -570M | -452M | 0 | 7M | -64M | 21M | -84M | 0 | 0 | 0 | 0 | 0 | -14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 400M | -765M | 111M | 176M | 196M | 81M | 102M | 22M | 27M | 3M | 6M | 28M | 65M | 92M | 30M | 165M | 65M | 39M | 272M | 437M | 0 | 19M | -88M | 32M | 12M | 28M | 148M | 20M | 635M | -8M | 35M |
| Cash from Financing | -1.1B | -1.07B | 334M | -877M | -974M | -881M | -358M | -573M | 647M | 3M | -88M | -333M | -142M | -96M | -76M | 174M | -750M | -17M | 67M | -731M | -54M | -30M | -24M | -43M | -5M | -14M | 1B | 268M | -508M | 682M | 50M |
| Debt Issued (Net) | -252M | -74M | 1.04B | -33M | -30M | -216M | 78M | -411M | 980M | 238M | 226M | -136M | -50M | -46M | 55M | 304M | -602M | -11M | 167M | 659M | 1M | -28M | -21M | -43M | -7M | -10M | 1.02B | 282M | -117M | 690M | 50M |
| Equity Issued (Net) | -701M | -815M | -491M | -657M | -795M | -570M | -318M | -61M | -236M | -159M | -247M | -138M | -44M | -63M | -113M | -138M | -120M | -3M | -100M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -236M | -232M | -208M | -188M | -136M | -108M | -104M | -95M | -92M | -89M | -81M | -78M | -56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -12M | -16M | -16M | -14M | -3M |
| Share Repurchases | -701M | -815M | -491M | -657M | -795M | -570M | -318M | -61M | -236M | -159M | -247M | -138M | -44M | -63M | -113M | -138M | -120M | -3M | -100M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 88M | 49M | -5M | 1M | -13M | 13M | -14M | -6M | -5M | 13M | 14M | 19M | 8M | 13M | -18M | 8M | -28M | -3M | 0 | -1.39B | -55M | -2M | -3M | 0 | 2M | -4M | -4M | 2M | -375M | 6M | 3M |
| Net Change in Cash | -155M | 38M | -1.25B | 516M | 141M | 242M | 545M | 94M | -168M | 135M | 22M | 29M | 10M | 2M | 3M | 0 | -512M | 328M | 101M | -954M | -116M | 434M | 120M | 130M | 111M | 214M | 480M | 16M | -4M | 13M | 27M |
| Free Cash Flow | 480M | 962M | 1.25B | 1.19B | 1.31B | 1.09B | 828M | 590M | 266M | 679M | 570M | 349M | 78M | 65M | -2M | -153M | 174M | 298M | -241M | -65M | -62M | 458M | 217M | 118M | 109M | 208M | -666M | -272M | -129M | -96M | 10M |
| FCF Margin % | 4.88% | 9.52% | 11.34% | 12.33% | 13.46% | 12.79% | 11.74% | 8.24% | 3.77% | 10.64% | 10.04% | 6.52% | 1.48% | 1.23% | -0.04% | -2.87% | 3.48% | 6.2% | -4.12% | -1.31% | -0.96% | 7.24% | 3.82% | 2.91% | 2.24% | 4.37% | -13.48% | -5.39% | -2.58% | -2.2% | 0.26% |
| FCF Growth % | -57.18% | -22.73% | 4.36% | -9.21% | 20.88% | 31.28% | 40.34% | 121.8% | -60.82% | 19.12% | 63.32% | 347.44% | 20% | 3350% | 98.69% | -187.93% | -41.61% | 223.65% | -270.77% | -4.84% | -113.54% | 111.06% | 83.9% | 8.26% | -47.6% | 131.23% | -144.85% | -110.85% | -34.38% | -1060% | -84.85% |
| FCF per Share | 5.99 | 11.53 | 14.16 | 13.11 | 13.45 | 10.42 | 7.62 | 5.36 | 2.39 | 6.00 | 4.94 | 2.95 | 0.66 | 0.55 | -0.02 | -1.24 | 1.37 | 2.34 | -1.89 | -0.50 | -0.87 | 8.28 | 3.62 | 1.97 | 1.98 | 3.47 | -12.15 | -4.57 | -2.41 | -1.79 | 0.19 |
| FCF Conversion (FCF/Net Income) | -0.90x | -3.42x | 2.92x | 1.44x | 1.42x | 1.51x | -2.96x | 2.56x | 1.47x | 3.52x | 2.40x | 2.25x | 1.95x | 2.05x | -17.37x | 1.05x | 0.52x | 8.45x | -0.24x | 1.90x | -0.23x | -0.18x | 2.20x | 2.83x | -0.13x | 12.26x | 0.40x | -0.10x | -0.18x | 2.79x | -1.18x |
| Interest Paid | 0 | 0 | 226M | 135M | 123M | 133M | 135M | 131M | 158M | 106M | 118M | 113M | 122M | 126M | 122M | 111M | 108M | 120M | 120M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 423M | 428M | 319M | 244M | 78M | 58M | 91M | 67M | 69M | 33M | 19M | 29M | 30M | 24M | 16M | 18M | 33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Volatile working capital cycles
According to the provided cash flow data, the relationship between net income and operating cash flow has become increasingly erratic, with the OCF/NI ratio swinging from a negative 1.99 in 2025Q4 to a positive 1.47 in 2026Q1, highlighting significant volatility in earnings quality.
The frequent divergence between accounting profits and cash generation suggests that non-cash charges or massive working capital swings are masking the underlying cash-generating capacity of the business. Investors should monitor whether this instability reflects genuine operational friction or merely the accounting impact of recent strategic divestitures and restructuring.
As reported in financial statements, Owens Corning's free cash flow margin has deteriorated sharply, falling to -17.1% in 2026Q1 from a peak of 28.0% in 2025Q3, indicating that the company is currently struggling to convert its core operations into sustainable liquidity during this cyclical downturn.
The rapid shift from positive to negative free cash flow suggests that the company's high fixed-cost base is failing to scale down alongside declining revenue. This trend warrants further investigation into whether the current cash burn is a temporary byproduct of strategic investment or a sign of structural margin compression.
Based on reported figures, capital expenditures reached 10.3% of revenue in 2026Q1, a notable increase from the 4.6% observed in 2024Q3, suggesting that the company is maintaining high levels of investment despite the ongoing contraction in its primary residential construction end markets.
The persistence of elevated capital intensity during a period of revenue decline implies that management is prioritizing long-term asset modernization or integration costs over immediate cash preservation. This strategy may pressure liquidity in the near term, particularly if the expected returns on these capital outlays are delayed by housing market headwinds.
As evidenced by the quarterly cash flow statements, working capital changes have been highly inconsistent, ranging from a $404 million outflow in 2026Q1 to a $335 million inflow in 2025Q3, which significantly complicates the company's ability to maintain a predictable cash conversion cycle.
The extreme swings in working capital suggest that the company is struggling to manage inventory levels and receivables effectively amidst shifting demand patterns. Such volatility often indicates that the business is either overproducing in anticipation of demand that fails to materialize or facing significant delays in customer collections.
Quick answers to the most common questions about buying OC stock.
Owens Corning (OC) generated $1.79B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Owens Corning (OC) generated $962.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Owens Corning (OC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Owens Corning (OC) returned $232.0M to shareholders via cash dividends and spent $815.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.