Owens Corning (NYSE:OC) Issues Earnings Results

Owens Corning (NYSE:OC) issued its quarterly earnings data on Wednesday. The construction company reported $2.44 EPS for the quarter, missing the consensus estimate of $3.07 by ($0.63), FiscalAI reports. Owens Corning had a negative net margin of 6.81% and a positive return on equity of 20.52%. The business had revenue of $2.49 billion for the quarter, compared to analysts’ expectations of $2.62 billion. During the same quarter in the prior year, the company posted $3.67 EPS. The business’s revenue for the quarter was down 7.3% on a year-over-year basis.

Here are the key takeaways from Owens Corning’s conference call:

• Owens Corning generated $489 million in adjusted EBITDA at a 20% margin and $622 million in free cash flow in Q3 despite lower volumes and inflation. Revenue declined $195 million year over year, while a $476 million non-cash Doors impairment contributed to a reported net loss of $248 million.
• The company expects Q4 revenue of $2.0 billion–$2.2 billion and an enterprise adjusted EBITDA margin of 10%–12%, reflecting weak demand, inflation and transportation costs, seasonality, and additional downtime. Roofing distributors are expected to continue destocking after a second consecutive year of below-average storm activity.
• Roofing maintained a 29% Q3 EBITDA margin despite lower sales, while Insulation revenue rose 6% and EBITDA increased slightly, supported by non-residential and European demand. Management expects continued non-residential strength, though it cautioned that Insulation’s Q4 growth rate is not expected to remain at the recent pace indefinitely.
• Doors sales fell 11% and the segment posted a 5% Q3 EBITDA margin as lower volumes and inflation outweighed pricing and cost actions. Management expects low-single-digit Q4 margins amid continued weak markets, inflation, tariffs, and production downtime.
• Management reiterated its longer-term potential to reach approximately $12.5 billion in revenue, mid-20% EBITDA margins, and at least $1.5 billion in annual free cash flow in better markets, supported by investments in capacity, productivity, and customer programs. It is prioritizing debt reduction for now and expects to complete the remaining portion of its $2 billion shareholder-return commitment in 2027.

Owens Corning Stock Up 6.8%

NYSE:OC traded up $8.04 during trading hours on Wednesday, hitting $125.80. The company’s stock had a trading volume of 2,243,548 shares, compared to its average volume of 1,228,867. Owens Corning has a 52-week low of $97.53 and a 52-week high of $159.91. The stock has a market capitalization of $9.94 billion, a P/E ratio of -15.59, a price-to-earnings-growth ratio of 3.70 and a beta of 1.31. The company has a current ratio of 1.16, a quick ratio of 0.67 and a debt-to-equity ratio of 1.10. The stock has a fifty day moving average of $123.23 and a 200-day moving average of $126.12.

Owens Corning Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 5th. Investors of record on Monday, October 19th will be paid a dividend of $0.79 per share. The ex-dividend date is Monday, October 19th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 2.5%. Owens Corning’s payout ratio is presently -39.21%.

Insider Buying and Selling at Owens Corning

In related news, insider Rachel Barthelemy Marcon sold 900 shares of the business’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $144.07, for a total transaction of $129,663.00. Following the completion of the sale, the insider owned 21,449 shares in the company, valued at $3,090,157.43. The trade was a 4.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.92% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have recently commented on OC shares. Bank of America dropped their price objective on shares of Owens Corning from $155.00 to $145.00 and set a “buy” rating on the stock in a report on Tuesday, October 27th. The Goldman Sachs Group reduced their price objective on Owens Corning from $169.00 to $128.00 and set a “neutral” rating on the stock in a research report on Monday, October 12th. Vertical Research lowered shares of Owens Corning from a “hold” rating to a “sell” rating and set a $106.00 price objective on the stock. in a report on Wednesday, October 7th. Barclays decreased their target price on shares of Owens Corning from $177.00 to $162.00 and set an “overweight” rating on the stock in a research report on Tuesday, October 6th. Finally, Citigroup lifted their price target on shares of Owens Corning from $149.00 to $177.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have given a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, Owens Corning has an average rating of “Hold” and a consensus target price of $142.07.

Owens Corning News Summary

Here are the key news stories impacting Owens Corning this week:

• Positive Sentiment: Owens Corning generated $813 million in operating cash flow and reported a 20% adjusted EBITDA margin, offering some support amid weaker sales and earnings. Owens Corning third-quarter results
• Neutral Sentiment: The company issued fourth-quarter guidance, but the supplied reports do not provide its figures, leaving the outlook’s implications unclear. Owens Corning Q3 results and Q4 guidance
• Negative Sentiment: Third-quarter sales were about $2.5 billion, down 7% year over year and below analyst expectations. Adjusted diluted EPS was $2.44, also below consensus and down from $3.67 a year earlier. Owens Corning Q3 earnings and sales
• Negative Sentiment: Reported diluted EPS was a loss of $3.15, reflecting a $476 million non-cash, pre-tax impairment charge related to the Doors business. The charge weighs on reported results, although it is excluded from adjusted EPS. Owens Corning third-quarter results

Owens Corning Company Profile

Owens Corning (NYSE:OC) is a global building materials company that develops and manufactures products used in residential, commercial and industrial construction. Its offerings are designed to improve energy efficiency, weather protection, durability and comfort in buildings.

The company’s primary businesses include roofing, insulation and doors. Its products include asphalt roofing shingles and components, fiberglass and mineral wool insulation, and residential and commercial door systems.