NYSE$OC

Owens Corning Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Owens Corning delivered record net sales and adjusted EBIT, with all three businesses posting double-digit EBIT margins for a fourth consecutive quarter.

Owens Corning reported record second-quarter results with net sales of $2.2 billion, net earnings of $298 million, and adjusted EBIT of $408 million. All three businesses continued to perform well, driven by strong commercial and operational execution.

  • Delivered adjusted EBIT margins of 18%, with all three businesses continuing to post double-digit EBIT margins for a fourth consecutive quarter.
  • Roofing produced $234 million of EBIT with 26% EBIT margins.
  • Insulation delivered $112 million of EBIT with 14% EBIT margins.
  • Composites reported $98 million of EBIT with 17% EBIT margins.

Headline financials

Total Revenue

$2.24B

Previous: $1.63B+37.8%
EPS (adj)

$2.60

Previous: $0.88+195.5%
Operating Cash Flow

$498M

Previous: $281M+77.2%
Free Cash Flow

$298M

Previous: $96M+210.4%
Net Income

$298M

Previous: $96M+210.4%
Operating Income

$425M

Previous: $168M+153.0%
Gross Profit

$618M

Previous: $343M+80.2%
Cash & Equivalents

$888M

Previous: $582M+52.6%
Total Assets

$9.98B

Previous: $9.37B+6.5%
Stock-Based Comp

$12M

Previous: $9M+33.3%

Revenue & EPS history

Owens Corning · Revenue · Quarterly

$2.24B

Q2 2021+37.8%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Owens Corning · $1.72B total across 2 segments · Q2 2021

  • Roofing
    $917M+35.5%
  • Insulation
    $806M+35.5%

Forward guidance

The company expects the U.S. residential housing market to remain robust and global commercial and industrial markets to continue to strengthen. General corporate expenses are now estimated to be between $150 million and $155 million, Capital additions are expected to be approximately $460 million. Depreciation and amortization is now estimated to be approximately $500 million, Interest expense is estimated to be between $120 million and $130 million. The company estimates an effective tax rate of 26% to 28%, and a cash tax rate of 18% to 20%, both on adjusted pre-tax earnings.

Tailwinds

  • U.S. residential housing market to remain robust
  • Global commercial markets to continue to strengthen
  • Global industrial markets to continue to strengthen

Headwinds

  • The company continues to closely monitor and manage the regional impacts of the COVID-19 pandemic on its businesses.
  • General corporate expenses are now estimated to be between $150 million and $155 million
  • Capital additions are expected to be approximately $460 million.
  • Depreciation and amortization is now estimated to be approximately $500 million
  • Interest expense is estimated to be between $120 million and $130 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.9%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

38%

26 / 68 earnings

Positive

+19.5%

Q3 2011

Best reaction

-13.9%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-2.6%-3.1%
Q4 2025-2.3%-7.8%-17.4%
Q3 2025-9.5%-15.8%-7.4%
Q1 2025-8.5%+0.4%-5.1%
Q4 2024-1.6%-6.9%-10.7%
Q3 2024+2.7%+6.0%+10.6%
Q2 2024-6.3%-4.5%-3.3%
Q1 2024-1.5%+2.4%+8.2%
Q4 2023-3.3%-4.8%+8.7%
Q3 2023-7.7%-8.7%+7.9%
Q2 2023+6.3%+7.1%+3.6%
Q1 2023+4.0%+6.1%+9.9%
Q4 2022-1.7%-3.4%-13.2%
Q3 2022-6.7%-4.2%+1.8%
Q2 2022+8.7%+12.3%+3.1%
Q1 2022+6.7%+8.3%+13.0%
Q4 2021+5.8%+6.2%+6.3%
Q3 2021+3.3%+4.1%-3.4%
Q2 2021+4.5%+2.4%+6.9%
Q1 2021+1.3%+2.3%+9.8%
Q4 2020-2.2%-2.1%+8.0%
Q3 2020-2.3%-1.1%+7.9%
Q2 2020+0.0%+1.4%+12.9%
Q1 2020+8.1%+1.1%+30.9%
Q4 2019+6.1%-1.8%-50.5%
Q3 2019-2.7%-0.6%+6.1%
Q2 2019+7.6%+3.6%-0.7%
Q1 2019-9.6%-6.7%-10.2%
Q4 2018-6.9%-10.7%-16.5%
Q3 2018-4.5%-6.2%+8.0%
Q2 2018-7.1%-3.8%-12.1%
Q1 2018-11.8%-13.5%-14.9%
Q4 2017-2.5%-1.9%-11.0%
Q3 2017-2.0%+0.8%+8.4%
Q2 2017+6.0%+4.6%+9.4%
Q1 2017-2.3%-3.1%-0.9%
Q4 2016+2.7%+4.1%+11.0%
Q3 2016-3.0%-2.0%+7.9%
Q2 2016-1.6%-2.6%-1.9%
Q1 2016-9.0%
Q4 2015-1.7%
Q3 2015-0.7%
Q2 2015+2.6%
Q1 2015-3.9%
Q4 2014-2.7%
Q3 2014+3.1%
Q2 2014-4.5%
Q1 2014-4.8%
Q4 2013+8.4%
Q3 2013-4.9%
Q2 2013-1.4%
Q1 2013+6.3%
Q4 2012-10.7%
Q3 2012-4.3%
Q2 2012+5.2%
Q1 2012-0.2%
Q4 2011-4.4%
Q3 2011+19.5%
Q2 2011-13.9%
Q1 2010+2.4%
Q1 2011+2.0%
Q4 2008+10.7%
Q4 2010+10.7%
Q3 2010-3.0%
Q3 2009-3.0%
Q2 2009-8.1%
Q4 2009-8.1%
Q2 2010-8.1%

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