On April 20, 2023, the Company's stockholders approved the Owens Corning 2023 Stock Plan (the “2023 Stock Plan”) which authorizes grants of stock options, stock appreciation rights, stock awards (including restricted stock awards, restricted stock units and bonus stock awards), performance share awards and performance share units. At March 31, 2026, the number of shares remaining available under the 2023 Stock Plan for all stock awards was 2.2 million. Future equity-based awards to Company employees who were former Masonite employees may be granted from the remaining available shares under the Masonite Stock Plan. At March 31, 2026, the number of shares remaining available under the Masonite Stock Plan was 0.6 million shares of Owens Corning common stock.

Stock-based compensation expense included in Marketing and administrative expenses in the accompanying Consolidated Statements of Earnings is as follows:


	Three Months Ended March 31,
(In millions)		2026		2025
Total stock-based compensation expense from continuing operations		$	17	$	20
Total stock-based compensation expense from discontinued operations		1		1
Total stock-based compensation expense		$	18	$	21

The Company has granted restricted stock units (“RSUs”) under its stockholder-approved stock plans. Generally, all outstanding RSUs will fully settle in stock. Compensation expense for RSUs is measured based on the closing market price of the stock at date of grant and is recognized on a straight-line basis over the vesting period, which is typically three years. The Stock Plan allows alternate vesting schedules for death, disability and retirement.


	Number of RSUs	Weighted-Average Fair Value
Balance at December 31, 2025	994,201	$	122.10
Granted	322,440	131.86

Vested	(307,257)	135.03
Forfeited	(16,636)	142.27
Balance at March 31, 2026	992,748	$	120.92

As of March 31, 2026, there was $71 million of total unrecognized compensation cost related to RSUs. That cost is expected to be recognized over a weighted-average period of 1.96 years. The total grant date fair value of stock vested during the three months ended March 31, 2026 and 2025 was $41 million and $40 million, respectively.

The Company has granted performance share units (“PSUs”) as a part of its long-term incentive plan. All outstanding PSUs will fully settle in stock. The amount of shares ultimately distributed from PSUs will vary depending on each award's design and are contingent on meeting the applicable internal performance metrics and external stock performance metrics. PSUs typically vest after a three-year period.

Performance of these metrics is monitored quarterly and if it becomes probable that the internal-based performance goals will not be achieved or will be exceeded, compensation expense recognized will be adjusted and previous surplus compensation expense recognized will be reversed or additional expense will be recognized. The expected term represents the period from the grant date to the end of the three-year performance period. Pro-rata vesting may be utilized in the case of death, disability or retirement, and awards, if earned, will be paid at the end of the three-year period.

The initial fair value for all internal performance metric PSUs is based on the grant date stock price. Internal performance metric PSU grants issued from 2023 through 2025 contained both a service and performance condition. In the three months ended March 31, 2025, the grant date fair value of the granted PSUs was $171.94.

The external-based metric PSUs vest after a three-year period. Outstanding grants issued from 2023 to 2025 are based on the Company’s total stockholder return relative to a peer group. The amount of stock distributed will vary depending on the relative stockholder return performance. The fair value of external-based metric PSUs has been estimated at the grant date using a Monte Carlo simulation that uses various assumptions.


			Three Months Ended March 31,
			2025
Expected volatility			32.78%
Risk free interest rate			4.14%
Expected term (in years)			2.90
Grant date fair value of units granted			$221.54

The risk-free interest rate was based on zero-coupon United States Treasury STRIPS at the grant date. The expected term represents the period from the grant date to the end of the three-year performance period.

Beginning in 2026, all PSUs issued are internal performance metric PSUs that are subject to a modifier adjustment based on the Company’s total shareholder return relative to a peer group. The number of shares earned depends on the achievement of both performance and market conditions. The fair value of PSUs granted for the three months ended March 31, 2026 has been estimated at the grant date using a Monte Carlo simulation with various assumptions.


			Three Months Ended March 31,
			2026
Expected volatility			32.66%
Risk free interest rate			3.60%
Expected term (in years)			2.90
Grant date fair value of units granted			$132.81

As of March 31, 2026, there was $29 million total unrecognized compensation cost related to PSUs. That cost is expected to be recognized over a weighted-average period of 2.23 years.


	Number of PSUs	Weighted-Average Grant Date Fair Value
Balance at December 31, 2025	172,611	$	177.12
Granted	138,924	132.81
Vested	—	—
Other (1)	44,729	50.97
Forfeited	(6,450)	162.73
Balance at March 31, 2026	349,814	$	157.25

The Owens Corning Employee Stock Purchase Plan (“ESPP”) is a tax-qualified plan under Section 423 of the Internal Revenue Code. The purchase price of shares purchased under the ESPP is equal to 85% of the lower of the fair market value of shares of Owens Corning common stock at the beginning or ending of the offering period, which is a six month period ending on May 31 and November 30 of each year. On April 16, 2020, the Company's stockholders approved the Amended and Restated Owens Corning Employee Stock Purchase Plan which increased the number of shares available for issuance under the plan by 4.2 million shares. As of March 31, 2026, 2.8 million shares remain available for purchase.

Included in total stock-based compensation is $3 million of expense related to the Company's ESPP for each of the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, the Company had $2 million of total unrecognized compensation costs related to the ESPP.