Owens Corning (NYSE:OC) Announces Quarterly Earnings Results

Key Points

• Owens Corning exceeded quarterly expectations, reporting EPS of $3.93 versus the $3.09 consensus estimate and revenue of $2.76 billion versus $2.66 billion expected. Revenue rose 0.3% year over year, while adjusted EBITDA reached $660 million with a 24% margin.
• Insulation sales grew 4% year over year, supported by stronger non-residential demand, data centers and commercial applications. The company also surpassed its Doors synergy target, achieving $135 million in run-rate savings compared with its $125 million commitment.
• Management expects near-term pressure, forecasting third-quarter revenue of $2.6 billion–$2.7 billion and adjusted EBITDA margins of 20%–22%; roofing revenue may decline mid-to-high single digits as distributors reduce inventories. Analysts maintain a “Moderate Buy” consensus with an average price target of $157.92, and the company declared a quarterly dividend of $0.79 per share.

Owens Corning (NYSE:OC - Get Free Report) announced its earnings results on Wednesday. The construction company reported $3.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.09 by $0.84, FiscalAI reports. Owens Corning had a positive return on equity of 19.86% and a negative net margin of 5.43%.The firm had revenue of $2.76 billion during the quarter, compared to analyst estimates of $2.66 billion. During the same quarter in the prior year, the company earned $4.21 EPS. The business's revenue was up .3% compared to the same quarter last year.

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

• Second-quarter results were resilient, with revenue of $2.8 billion, adjusted EBITDA of $660 million, and a 24% adjusted EBITDA margin despite challenging market conditions. Free cash flow improved to $199 million, and the company returned $264 million to shareholders during the quarter.
• Insulation sales increased 4% year over year, supported by higher volumes in North American non-residential markets and Europe, including strength in data centers and other commercial applications. Management expects mid-single-digit revenue growth in the third quarter.
• Owens Corning exceeded its Doors synergy target, achieving $135 million in run-rate cost synergies versus the $125 million commitment, and identified another $75 million of structural cost improvements. The company is also expanding distribution placement and applying its commercial model to support future growth.
• Third-quarter revenue is expected to decline slightly year over year to $2.6 billion-$2.7 billion, with adjusted EBITDA margins forecast at approximately 20%-22%. Roofing revenue is expected to fall mid-to-high single digits as distributors work through inventory purchased ahead of price increases, while inflation is expected to keep price-cost unfavorable.
• The company plans approximately $800 million of 2026 capital spending, including new insulation and roofing capacity, and will restart its Nephi, Utah plant in the fourth quarter to support the network during future rebuilds. Owens Corning also announced that Jonathan Collins will become CFO on August 10, while Todd Fister transitions to President and COO.

Owens Corning Price Performance

OC stock traded up $10.46 during midday trading on Wednesday, hitting $155.99. The company's stock had a trading volume of 1,031,374 shares, compared to its average volume of 1,298,700. The firm has a market capitalization of $12.56 billion, a price-to-earnings ratio of -23.65, a price-to-earnings-growth ratio of 2.78 and a beta of 1.32. The company has a 50 day moving average of $134.97 and a two-hundred day moving average of $124.55. Owens Corning has a 12 month low of $97.53 and a 12 month high of $159.91. The company has a quick ratio of 0.74, a current ratio of 1.24 and a debt-to-equity ratio of 1.27.

Owens Corning Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 6th. Shareholders of record on Monday, July 20th will be paid a $0.79 dividend. This represents a $3.16 annualized dividend and a yield of 2.0%. The ex-dividend date is Monday, July 20th. Owens Corning's dividend payout ratio is presently -47.81%.

Wall Street Analyst Weigh In

A number of analysts have recently commented on OC shares. Wells Fargo & Company boosted their target price on shares of Owens Corning from $150.00 to $165.00 and gave the company an "overweight" rating in a report on Tuesday, July 14th. Weiss Ratings upgraded Owens Corning from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft increased their price target on shares of Owens Corning from $136.00 to $165.00 and gave the company a "buy" rating in a report on Tuesday, June 30th. JPMorgan Chase & Co. lifted their price objective on Owens Corning from $115.00 to $121.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. Finally, Truist Financial increased their price target on Owens Corning from $120.00 to $125.00 and gave the company a "hold" rating in a report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Owens Corning currently has a consensus rating of "Moderate Buy" and an average target price of $157.92.

Insider Transactions at Owens Corning

In other news, insider Rachel Barthelemy Marcon sold 700 shares of Owens Corning stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $120.71, for a total value of $84,497.00. Following the sale, the insider directly owned 15,848 shares of the company's stock, valued at approximately $1,913,012.08. The trade was a 4.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Mari Doerfler sold 1,926 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $120.92, for a total value of $232,891.92. Following the transaction, the vice president owned 3,093 shares of the company's stock, valued at $374,005.56. This represents a 38.37% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.92% of the company's stock.

Institutional Investors Weigh In On Owens Corning

Large investors have recently added to or reduced their stakes in the stock. Sivia Capital Partners LLC purchased a new stake in Owens Corning during the 2nd quarter valued at $277,000. Evolve Private Wealth LLC bought a new position in Owens Corning during the fourth quarter valued at $301,000. Twinbeech Capital LP purchased a new stake in shares of Owens Corning in the fourth quarter valued at $287,000. Pitcairn Co. lifted its holdings in shares of Owens Corning by 4.6% in the 2nd quarter. Pitcairn Co. now owns 1,821 shares of the construction company's stock worth $250,000 after acquiring an additional 80 shares during the last quarter. Finally, Caerus Investment Advisors LLC grew its holdings in Owens Corning by 37.0% during the 4th quarter. Caerus Investment Advisors LLC now owns 1,953 shares of the construction company's stock valued at $219,000 after purchasing an additional 527 shares during the last quarter. 88.40% of the stock is owned by institutional investors.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source