Owens Corning (NYSE:OC) Releases Earnings Results

Owens Corning (NYSE:OC) posted its quarterly earnings results on Wednesday. The construction company reported $3.93 EPS for the quarter, beating the consensus estimate of $3.09 by $0.84, FiscalAI reports. Owens Corning had a negative net margin of 5.43% and a positive return on equity of 19.86%. The business had revenue of $2.76 billion for the quarter, compared to analysts’ expectations of $2.66 billion. During the same period in the previous year, the company posted $4.21 EPS. Owens Corning’s revenue was up .3% on a year-over-year basis.

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 Stock Performance

OC traded up $10.22 on Wednesday, hitting $155.75. The company had a trading volume of 1,054,374 shares, compared to its average volume of 1,298,858. The stock has a market cap of $12.54 billion, a price-to-earnings ratio of -23.58, a price-to-earnings-growth ratio of 2.78 and a beta of 1.32. The company has a debt-to-equity ratio of 1.27, a current ratio of 1.24 and a quick ratio of 0.74. The company’s fifty day moving average price is $134.97 and its 200 day moving average price is $124.55. Owens Corning has a 1-year low of $97.53 and a 1-year high of $159.91.

Owens Corning Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 6th. Investors of record on Monday, July 20th will be issued 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 payout ratio is -47.81%.

Insider Activity at Owens Corning

In related news, insider Rachel Barthelemy Marcon sold 700 shares of the company’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $120.71, for a total transaction of $84,497.00. Following the completion of the sale, the insider directly owned 15,848 shares of the company’s stock, valued at approximately $1,913,012.08. This represents a 4.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 on Friday, May 8th. The shares were sold at an average price of $120.92, for a total transaction of $232,891.92. Following the completion of the transaction, the vice president owned 3,093 shares in the company, valued at $374,005.56. The trade was a 38.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.92% of the company’s stock.

Institutional Investors Weigh In On Owens Corning

A number of hedge funds have recently bought and sold shares of OC. Itau Unibanco Holding S.A. bought a new position in shares of Owens Corning in the fourth quarter worth about $29,000. Measured Wealth Private Client Group LLC bought a new position in Owens Corning in the 3rd quarter worth approximately $42,000. Global Retirement Partners LLC boosted its position in shares of Owens Corning by 1,173.3% in the fourth 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. Caitong International Asset Management Co. Ltd bought a new position in Owens Corning during the third quarter worth $56,000. Finally, Los Angeles Capital Management LLC acquired a new position in Owens Corning during the 4th quarter valued at $44,000. 88.40% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

OC has been the subject of a number of research reports. Barclays lifted their price objective on Owens Corning from $144.00 to $170.00 and gave the company an “overweight” rating in a research report on Tuesday, July 14th. JPMorgan Chase & Co. raised their price target on Owens Corning from $115.00 to $121.00 and gave the stock a “neutral” rating in a research note on Friday, May 8th. Wells Fargo & Company boosted their price target on Owens Corning from $150.00 to $165.00 and gave the company an “overweight” rating in a research note on Tuesday, July 14th. Deutsche Bank Aktiengesellschaft increased their price objective on Owens Corning from $136.00 to $165.00 and gave the stock a “buy” rating in a report on Tuesday, June 30th. Finally, The Goldman Sachs Group lifted their target price on shares of Owens Corning from $141.00 to $159.00 and gave the company a “neutral” rating in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $157.92.

About Owens Corning

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.