Owens Corning (NYSE:OC) Announces Earnings Results

Key Points

• Owens Corning beat Q1 EPS estimates with $1.22 vs. $1.01 expected, but revenue fell about 10.5% year-over-year and the company reported a negative net margin of 5.17%.
• The company delivered resilient profitability with $369 million of adjusted EBITDA (16% margin), is guiding to an enterprise EBITDA margin of roughly 20%–22% in Q2, and has achieved ~$135 million of run-rate synergies while completing a ~$280 million sale of its Glass Reinforcements business.
• Cash flow was pressured with a $387 million free cash flow outflow in Q1 due to seasonal working capital and elevated capex (Q1 capex $210 million; FY capex ~$800 million), and management warned of a ~$60 million incremental cost headwind in Q2 with a potential ~$50 million tariff refund timing-uncertain and excluded from guidance.

Owens Corning (NYSE:OC - Get Free Report) released its quarterly earnings data on Wednesday. The construction company reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.21, Zacks reports. Owens Corning had a positive return on equity of 21.93% and a negative net margin of 5.17%.During the same quarter in the previous year, the company posted $2.97 earnings per share. The company's revenue was down 10.5% on a year-over-year basis.

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

• Owens Corning delivered resilient profitability with $369 million of adjusted EBITDA in Q1 (16% margin); management is guiding to an enterprise EBITDA margin of roughly 20%–22% in Q2 and expects Roofing margins in the low-30% range.
• The company is capturing meaningful cost savings and portfolio cash — on track for ~$135 million run-rate enterprise synergies (exceeding its $125M target), pursuing an additional $75 million of structural COGS improvements, and completed the sale of Glass Reinforcements for ~$280 million plus $50–70M in excess alloy proceeds.
• Cash flow was pressured in Q1 with a net free cash flow outflow of $387 million due to seasonal working capital and elevated capex (Q1 capex $210 million; FY capex expected ~$800 million), although leverage remains mid-target at 2.5x and liquidity was $1.8 billion.
• Near-term margin risk from inflation and supply-costs — management estimates ~$60 million of incremental cost impact in Q2 (roughly half to Roofing), and says recent price increases will be realized with a lag while a potential ~$50 million tariff refund remains timing-uncertain and is excluded from guidance.

Owens Corning Stock Performance

OC stock traded up $0.02 on Wednesday, hitting $122.92. The company's stock had a trading volume of 2,342,838 shares, compared to its average volume of 1,398,041. The stock has a market cap of $9.88 billion, a price-to-earnings ratio of -19.21, a price-to-earnings-growth ratio of 1.98 and a beta of 1.35. The firm has a 50 day moving average of $114.05 and a two-hundred day moving average of $117.06. The company has a current ratio of 1.26, a quick ratio of 0.70 and a debt-to-equity ratio of 1.20. Owens Corning has a 1 year low of $97.53 and a 1 year high of $159.42.

Owens Corning Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Monday, March 9th were given a $0.79 dividend. The ex-dividend date was Monday, March 9th. This represents a $3.16 annualized dividend and a yield of 2.6%. Owens Corning's dividend payout ratio is -49.38%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of OC. Itau Unibanco Holding S.A. acquired a new stake in shares of Owens Corning during the fourth quarter worth about $29,000. Measured Wealth Private Client Group LLC acquired a new position in Owens Corning in the 3rd quarter valued at about $42,000. Global Retirement Partners LLC increased its position in Owens Corning by 1,173.3% in the 4th quarter. Global Retirement Partners LLC now owns 382 shares of the construction company's stock valued at $43,000 after acquiring an additional 352 shares during the period. Los Angeles Capital Management LLC purchased a new stake in Owens Corning during the 4th quarter valued at approximately $44,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in Owens Corning during the 3rd quarter worth approximately $56,000. 88.40% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Owens Corning in a report on Friday, March 27th. Evercore set a $130.00 price objective on shares of Owens Corning in a research report on Friday, April 24th. Barclays cut their price target on shares of Owens Corning from $138.00 to $135.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 8th. Citigroup reduced their price target on shares of Owens Corning from $137.00 to $135.00 and set a "buy" rating for the company in a research report on Thursday, January 8th. Finally, Bank of America decreased their price objective on shares of Owens Corning from $140.00 to $138.00 and set a "buy" rating for the company in a research note on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $145.09.

Owens Corning Company Profile

Owens Corning is a global leader in composite materials and building products, with a primary focus on insulation, roofing, and fiberglass composites. The company serves professional contractors, builders and industrial manufacturers by providing solutions designed to improve energy efficiency, structural performance and durability. Its products are used in residential, commercial, and industrial applications worldwide.

The company's core product lines include fiberglass insulation for thermal and acoustic comfort, roofing shingles and underlayment systems engineered for weather protection, and advanced composite materials for markets such as wind energy, automotive, marine and infrastructure.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.