Owens Corning (NYSE:OC) Releases Quarterly Earnings Results, Misses Expectations By $0.63 EPS

Owens Corning (NYSE:OC) issued its quarterly earnings results on Wednesday. The construction company reported $2.44 earnings per share for the quarter, missing the consensus estimate of $3.07 by ($0.63), FiscalAI reports. The company had revenue of $2.49 billion for the quarter, compared to analyst estimates of $2.62 billion. Owens Corning had a positive return on equity of 20.52% and a negative net margin of 6.81%. Owens Corning’s revenue for the quarter was down 7.3% compared to the same quarter last year. During the same period in the prior year, the business earned $3.67 earnings per share.

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

• Owens Corning generated $489 million in adjusted EBITDA at a 20% margin and $622 million in free cash flow in Q3 despite lower volumes and inflation. Revenue declined $195 million year over year, while a $476 million non-cash Doors impairment contributed to a reported net loss of $248 million.
• The company expects Q4 revenue of $2.0 billion–$2.2 billion and an enterprise adjusted EBITDA margin of 10%–12%, reflecting weak demand, inflation and transportation costs, seasonality, and additional downtime. Roofing distributors are expected to continue destocking after a second consecutive year of below-average storm activity.
• Roofing maintained a 29% Q3 EBITDA margin despite lower sales, while Insulation revenue rose 6% and EBITDA increased slightly, supported by non-residential and European demand. Management expects continued non-residential strength, though it cautioned that Insulation’s Q4 growth rate is not expected to remain at the recent pace indefinitely.
• Doors sales fell 11% and the segment posted a 5% Q3 EBITDA margin as lower volumes and inflation outweighed pricing and cost actions. Management expects low-single-digit Q4 margins amid continued weak markets, inflation, tariffs, and production downtime.
• Management reiterated its longer-term potential to reach approximately $12.5 billion in revenue, mid-20% EBITDA margins, and at least $1.5 billion in annual free cash flow in better markets, supported by investments in capacity, productivity, and customer programs. It is prioritizing debt reduction for now and expects to complete the remaining portion of its $2 billion shareholder-return commitment in 2027.

Owens Corning Price Performance

Shares of NYSE:OC traded up $8.03 during midday trading on Wednesday, hitting $125.79. 2,358,714 shares of the stock were exchanged, compared to its average volume of 1,229,314. The stock has a market cap of $9.94 billion, a P/E ratio of -15.54, a PEG ratio of 3.70 and a beta of 1.31. The company has a current ratio of 1.16, a quick ratio of 0.67 and a debt-to-equity ratio of 1.10. Owens Corning has a twelve month low of $97.53 and a twelve month high of $159.91. The company has a 50 day moving average price of $123.23 and a 200-day moving average price of $126.12.

Owens Corning Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 5th. Investors of record on Monday, October 19th will be paid a $0.79 dividend. This represents a $3.16 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Monday, October 19th. Owens Corning’s dividend payout ratio (DPR) is presently -39.21%.

Analyst Ratings Changes

Several analysts have recently commented on OC shares. The Goldman Sachs Group reduced their target price on shares of Owens Corning from $169.00 to $128.00 and set a “neutral” rating for the company in a research note on Monday, October 12th. Benchmark reiterated a “hold” rating on shares of Owens Corning in a research note on Wednesday, July 15th. Evercore set a $185.00 price target on shares of Owens Corning in a report on Thursday, October 1st. Melius Research started coverage on shares of Owens Corning in a research report on Tuesday, October 6th. They issued a “sell” rating and a $118.00 price objective for the company. Finally, Bank of America lowered their price objective on Owens Corning from $155.00 to $145.00 and set a “buy” rating on the stock in a report on Tuesday, October 27th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, Owens Corning currently has an average rating of “Hold” and a consensus price target of $142.07.

Trending Headlines about Owens Corning

Here are the key news stories impacting Owens Corning this week:

• Positive Sentiment: Owens Corning generated $813 million in operating cash flow and reported a 20% adjusted EBITDA margin, offering some support amid weaker sales and earnings. Owens Corning third-quarter results
• Neutral Sentiment: The company issued fourth-quarter guidance, but the supplied reports do not provide its figures, leaving the outlook’s implications unclear. Owens Corning Q3 results and Q4 guidance
• Negative Sentiment: Third-quarter sales were about $2.5 billion, down 7% year over year and below analyst expectations. Adjusted diluted EPS was $2.44, also below consensus and down from $3.67 a year earlier. Owens Corning Q3 earnings and sales
• Negative Sentiment: Reported diluted EPS was a loss of $3.15, reflecting a $476 million non-cash, pre-tax impairment charge related to the Doors business. The charge weighs on reported results, although it is excluded from adjusted EPS. Owens Corning third-quarter results

Insider Activity at Owens Corning

In other news, insider Rachel Barthelemy Marcon sold 900 shares of the company’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $144.07, for a total value of $129,663.00. Following the sale, the insider directly owned 21,449 shares in the company, valued at $3,090,157.43. This represents a 4.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.92% of the stock is owned by corporate insiders.

Owens Corning Company Profile

Owens Corning (NYSE:OC) is a global building materials company that develops and manufactures products used in residential, commercial and industrial construction. Its offerings are designed to improve energy efficiency, weather protection, durability and comfort in buildings.

The company’s primary businesses include roofing, insulation and doors. Its products include asphalt roofing shingles and components, fiberglass and mineral wool insulation, and residential and commercial door systems.