NYSE$OC

Owens Corning Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Owens Corning reported net sales of $2.8 billion and net earnings of $285 million.

Owens Corning reported a strong second quarter with net sales of $2.8 billion, a 9% increase from the prior year. The company generated net earnings of $285 million and adjusted EBIT of $588 million. The newly acquired Doors business contributed $311 million in revenue.

  • Net sales increased by 9% year-over-year to $2.8 billion, with the Doors segment contributing $311 million.
  • Net earnings margin was 10%, adjusted EBIT margin was 21%, and adjusted EBITDA margin was 27%.
  • Diluted EPS was $3.24, and adjusted diluted EPS was $4.64.
  • Operating cash flow was $493 million, and free cash flow was $336 million.

Headline financials

Total Revenue

$2.79B

Previous: $2.56B+8.8%
EPS

$3.24

Previous: $4.22-23.2%
Adjusted EBITDA

$678M

Previous: $664M+2.1%
Adjusted EBITDA Margin

27.0%

No prior period
Operating Cash Flow

$493M

Previous: $494M-0.2%
Free Cash Flow

$336M

No prior period
Capital Expenditures

-$157M

No prior period
Net Income

$285M

Previous: $345M-17.4%
Operating Income

$457M

Previous: $487M-6.2%
Gross Profit

$867M

Previous: $752M+15.3%
Cash & Equivalents

$254M

Previous: $968M-73.8%
Total Assets

$15B

Previous: $11B+36.3%
R&D Expense

$34M

No prior period
Stock-Based Comp

$39M

Previous: $14M+178.6%

Revenue & EPS history

Owens Corning · Revenue · Quarterly

$2.79B

Q2 2024+8.8%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Owens Corning · $2B total across 2 segments · Q3 2023

  • Roofing
    $1.08B+8.1%
  • Insulation
    $913M-5.4%

Forward guidance

For the third-quarter 2024, the company expects overall performance to result in net sales growth of low-20 percent. The enterprise is expected to generate EBIT margin in the high teens with EBITDA margin in the low-20 percent range.

Tailwinds

  • North American building and construction markets to remain healthy in the near-term.
  • Ongoing demand for single-family new construction given the overall need for housing.
  • High price and low availability of existing homes for sale.
  • Non-discretionary repair and remodeling activity is expected to drive solid demand.
  • Addition of a full quarter of revenue for the Doors segment.

Headwinds

  • Macroeconomic trends and geopolitical tensions continue to result in slow global economic growth.
  • Discretionary repair and remodeling activity remains soft.
  • Overall revenue for the legacy business in line with third quarter 2023.
  • Excludes the impact of any acquisitions or divestitures not yet completed.
  • Unspecified variability in timing and amount of adjusting items could have significant and unpredictable effect on our future GAAP results.

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 2024

Historical avgQ2 2024

-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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