Owens Corning (NYSE:OC) Releases Earnings Results, Beats Estimates By $0.84 EPS

Owens Corning (NYSE:OC) issued its quarterly earnings data on Wednesday. The construction company reported $3.93 EPS for the quarter, topping the consensus estimate of $3.09 by $0.84, FiscalAI reports. The company had revenue of $2.76 billion during the quarter, compared to analyst estimates of $2.66 billion. Owens Corning had a positive return on equity of 20.52% and a negative net margin of 6.81%.Owens Corning’s revenue was up .3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $4.21 earnings per share.

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 Price Performance

Shares of NYSE:OC traded up $6.26 during midday trading on Friday, reaching $156.86. 695,465 shares of the company were exchanged, compared to its average volume of 1,296,714. The stock has a market cap of $12.63 billion, a PE ratio of -19.45, a price-to-earnings-growth ratio of 2.96 and a beta of 1.32. The business’s fifty day moving average is $136.11 and its two-hundred day moving average is $124.93. Owens Corning has a one year low of $97.53 and a one year high of $159.91. The company has a current ratio of 1.16, a quick ratio of 0.74 and a debt-to-equity ratio of 1.10.

Owens Corning Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 6th. Investors of record on Monday, July 20th were given a dividend of $0.79 per share. The ex-dividend date was Monday, July 20th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 2.0%. Owens Corning’s dividend payout ratio is currently -47.81%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on OC. Evercore restated an “outperform” rating and set a $193.00 price target on shares of Owens Corning in a research note on Thursday, July 23rd. Truist Financial set a $198.00 price objective on shares of Owens Corning in a research note on Thursday. Bank of America dropped their price objective on shares of Owens Corning from $140.00 to $138.00 and set a “buy” rating on the stock in a report on Monday, April 20th. Barclays boosted their target price on shares of Owens Corning from $170.00 to $177.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, Wells Fargo & Company upped their target price on shares of Owens Corning from $150.00 to $165.00 and gave the company an “overweight” rating in a report on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned 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 has an average rating of “Moderate Buy” and a consensus price target of $159.75.

Insider Buying and Selling

In other Owens Corning news, insider Rachel Barthelemy Marcon sold 700 shares of the business’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $120.71, for a total value of $84,497.00. Following the sale, the insider owned 15,848 shares in the company, valued at $1,913,012.08. The trade was a 4.23% decrease in their position. The sale was disclosed in a document filed 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 currently owned by insiders.

Institutional Investors Weigh In On Owens Corning

Several large investors have recently made changes to their positions in OC. Virtu Financial LLC grew its holdings in Owens Corning by 18.4% during the 4th quarter. Virtu Financial LLC now owns 3,286 shares of the construction company’s stock valued at $368,000 after buying an additional 511 shares in the last quarter. Corient Private Wealth LLC raised its holdings in shares of Owens Corning by 46.4% during the 4th quarter. Corient Private Wealth LLC now owns 47,940 shares of the construction company’s stock worth $5,365,000 after acquiring an additional 15,197 shares in the last quarter. Alberta Investment Management Corp bought a new position in shares of Owens Corning during the 4th quarter valued at approximately $3,782,000. Mercer Global Advisors Inc. ADV boosted its position in shares of Owens Corning by 10.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 29,485 shares of the construction company’s stock valued at $3,300,000 after acquiring an additional 2,702 shares during the last quarter. Finally, Vident Advisory LLC grew its holdings in shares of Owens Corning by 13.5% in the fourth quarter. Vident Advisory LLC now owns 12,950 shares of the construction company’s stock valued at $1,449,000 after purchasing an additional 1,536 shares in the last quarter. 88.40% of the stock is owned by institutional investors.

Owens Corning Company Profile

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.