Carrier Global vs. Owens Corning: Which Industrials Stock Is a Better Buy in 2026?

Building a resilient portfolio often means looking at the backbone of modern infrastructure. Investors frequently compare Carrier Global Corp. (NYSE:CARR) and Owens Corning (NYSE:OC) when seeking exposure to global construction and climate markets.

Carrier Global focuses on sophisticated HVAC and refrigeration technologies for commercial and residential use. Owens Corning specializes in building materials, including roofing, insulation, and doors. While both benefit from green building trends, they offer different profiles in terms of profitability and market cyclicality, making the choice a matter of valuation and risk tolerance.

The case for Carrier Global

Carrier Global provides climate and energy solutions, including HVAC, refrigeration, and building automation. The company serves customers in over 160 countries while focusing on the global transition to high-efficiency systems. This strategy aligns with the growing demand for energy-efficient buildings among industrial stocks. With approximately 47,000 employees, the firm remains a massive force in the intelligent climate solutions market.

In FY 2025, revenue reached nearly $21.8 billion, which represented a decrease of approximately 3% from the previous year. The company reported net income of roughly $1.5 billion for the period, down from $5.6 billion in the prior year. It’s worth noting that the 2024 net income was helped by cash from divesting some of its business lines. Stripping out the one-time benefit of that puts net income from continuing operations in 2024 at $2.3 billion.

The case for Owens Corning

Owens Corning operates three market-leading businesses: roofing, insulation, and doors. The company serves residential and commercial markets primarily across North America and Europe, with a workforce of about 25,000. SEC filings show that two customers accounted for roughly 16% and 12% of annual net sales, respectively. Customer concentration like this adds a layer of risk to the business since the loss of either client would significantly impact the top line.

For FY 2025, the company generated revenue of approximately $10.1 billion, a decline of nearly 8% from the $11 billion earned in the previous year. The company also reported a net loss of $522 million during this fiscal period. This loss resulted in a negative net margin of roughly 5.2%. This shift into negative territory follows a much more profitable FY 2024, where the company earned over $600 million.

Risk profile comparison

Carrier faces significant risks from its heavy reliance on international operations, which generated roughly 52% of net sales in 2025. This exposure creates vulnerability to currency swings and geopolitical instability in diverse markets. The company also competes with major players such as Trane Technologies (NYSE:TT) and Johnson Controls International (NYSE:JCI). Supply chain constraints on single-source components, such as motors, or on raw materials like copper, can also disrupt production.

Owens Corning is highly sensitive to the cyclical nature of the residential and non-residential construction markets. Changes in interest rates or economic downturns can quickly reduce demand for roofing and insulation. The company also faces potential litigation and product liability costs, including fire safety issues recently identified with its Paroc subsidiary. Furthermore, it must navigate trade tariffs on imports from countries like China, which can increase costs while competing against firms like Mohawk Industries (NYSE:MHK).

Valuation comparison

Owens Corning trades at a lower Forward P/E based on future earnings estimates and a lower P/S ratio compared to Carrier.

Sector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

In an age when seemingly every company wants to highlight its connection to AI, it may come as no surprise that one of the companies under discussion has an AI connection.

Carrier Global’s move into climate-focused HVAC work for large customers is paying off with surging demand from AI data centers. In the first quarter of its fiscal 2026, the global data center business was up more than 500%, with management saying they expect the AI sector to account for more than $1.5 billion of its revenue this year. Meanwhile, in Europe, surging fossil fuel prices from the Iran war have sparked an uptick in Carrier’s heat pump business.

Not everything is bullish, however. The portion of Carrier Global’s business serving U.S. homebuilders is flagging due to weaker demand in that sector. Yet it’s worth noting that this situation affects Owens Corning even more.

With a forward price-to-earnings ratio of 24, Carrier Global is not cheap, but it is below the average sector peer ratio of 30.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Johnson Controls International, Owens Corning, and Trane Technologies Plc. The Motley Fool has a disclosure policy.