NYSE$OC

Owens Corning Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Owens Corning reported net sales of $3.0 billion and net earnings of $321 million.

Owens Corning reported strong third-quarter 2024 results, with net sales of $3.0 billion, a 23% increase from the prior year, driven by the newly acquired Doors business. The company's net earnings were $321 million, with an adjusted EBIT of $582 million. They delivered diluted EPS of $3.65 and adjusted diluted EPS of $4.38. The company generated strong operating cash flow and returned $252 million to shareholders through dividends and share repurchases.

  • Net sales reached $3.0 billion, a 23% increase year-over-year, with the Doors business contributing $573 million.
  • Net earnings margin was 11%, adjusted EBIT margin was 19%, and adjusted EBITDA margin was 25%.
  • Diluted EPS was $3.65, and adjusted diluted EPS was $4.38.
  • Operating cash flow was $699 million, and free cash flow was $558 million.

Headline financials

Total Revenue

$3.05B

Previous: $2.48B+22.9%
EPS

$3.65

Previous: $4.15-12.0%
Adjusted EBITDA

$705M

Previous: $644M+9.5%
Adjusted EBITDA Margin

26.0%

Previous: 26.0%+0.0%
Operating Cash Flow

$699M

Previous: $691M+1.2%
Free Cash Flow

$558M

No prior period
Capital Expenditures

-$141M

Previous: -$110M-28.2%
Net Income

$321M

Previous: $337M-4.7%
Operating Income

$509M

Previous: $462M+10.2%
Gross Profit

$908M

Previous: $727M+24.9%
Cash & Equivalents

$499M

Previous: $1.32B-62.3%
Total Assets

$15.1B

Previous: $11.1B+36.0%
R&D Expense

$36M

Previous: $29M+24.1%
Stock-Based Comp

$21M

Previous: $11M+90.9%

Revenue & EPS history

Owens Corning · Revenue · Quarterly

$3.05B

Q3 2024+22.9%vs Q3 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 fourth-quarter 2024, despite more challenging market conditions, the company expects to continue delivering strong results, reflecting structural changes to its portfolio and cost structure. It expects net sales growth around 20 percent, including overall revenue for the legacy business slightly below fourth-quarter 2023 plus the addition of revenue for the Doors segment. The enterprise is expected to generate mid-teens EBIT margin and EBITDA margin of approximately 20 percent.

Tailwinds

  • Net sales growth around 20 percent, including overall revenue for the legacy business slightly below fourth-quarter 2023 plus the addition of revenue for the Doors segment.
  • Enterprise is expected to generate mid-teens EBIT margin.
  • EBITDA margin of approximately 20 percent.
  • Continue delivering strong results, reflecting structural changes to its portfolio and cost structure.
  • Non-discretionary repair and remodeling activity is expected to be solid

Headwinds

  • Near-term demand to be impacted by ongoing challenging conditions in most markets and normalizing seasonality.
  • Discretionary repair and remodeling activity is expected to remain soft.
  • Demand from single-family new construction is also expected to be down with the decline in lagged housing starts.
  • Macroeconomic trends and geopolitical tensions continue to result in slow global economic growth.
  • Challenging markets and price declines in glass reinforcements

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 Q3 2024

Historical avgQ3 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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