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

Owens Corning (NYSE:OC) posted its quarterly earnings data 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 firm had revenue of $2.49 billion for the quarter, compared to analysts’ expectations of $2.62 billion. Owens Corning had a positive return on equity of 20.52% and a negative net margin of 6.81%. The company’s revenue for the quarter was down 7.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $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

NYSE OC traded up $8.04 during trading hours on Wednesday, reaching $125.80. The company’s stock had a trading volume of 2,243,548 shares, compared to its average volume of 1,228,867. The company has a quick ratio of 0.67, a current ratio of 1.16 and a debt-to-equity ratio of 1.10. Owens Corning has a 1 year low of $97.53 and a 1 year high of $159.91. The firm’s 50-day moving average price is $123.23 and its 200-day moving average price is $126.12. The company has a market capitalization of $9.94 billion, a price-to-earnings ratio of -15.59, a PEG ratio of 3.70 and a beta of 1.31.

Owens Corning Dividend Announcement

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

Insider Activity

In related news, insider Rachel Barthelemy Marcon sold 900 shares of the business’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $144.07, for a total value of $129,663.00. Following the sale, the insider owned 21,449 shares in the company, valued at approximately $3,090,157.43. The trade was a 4.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.92% of the stock is owned by company insiders.

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

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on OC. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Owens Corning in a research report on Monday, September 21st. Benchmark restated a “hold” rating on shares of Owens Corning in a report on Wednesday, July 15th. Vertical Research cut shares of Owens Corning from a “hold” rating to a “sell” rating and set a $106.00 target price on the stock. in a report on Wednesday, October 7th. Melius Research assumed coverage on shares of Owens Corning in a report on Tuesday, October 6th. They issued a “sell” rating and a $118.00 price target for the company. Finally, Wells Fargo & Company dropped their target price on shares of Owens Corning from $150.00 to $125.00 and set an “overweight” rating for the company in a research report on Friday, October 16th. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, five have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $142.07.

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.