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

Owens Corning (NYSE:OC) released its earnings results on Wednesday. The construction company reported $3.93 earnings per share for the quarter, topping analysts’ consensus estimates of $3.09 by $0.84, FiscalAI reports. The business had revenue of $2.76 billion for the quarter, compared to analyst estimates of $2.66 billion. Owens Corning had a positive return on equity of 19.86% and a negative net margin of 5.43%.The business’s revenue was up .3% compared to the same quarter last year. During the same quarter last year, the firm 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 Stock Performance

Shares of OC stock traded up $10.46 during trading hours on Wednesday, hitting $155.99. The company’s stock had a trading volume of 1,031,374 shares, compared to its average volume of 1,298,700. The company has a current ratio of 1.24, a quick ratio of 0.74 and a debt-to-equity ratio of 1.27. The company has a 50 day moving average of $134.97 and a 200 day moving average of $124.55. Owens Corning has a 12-month low of $97.53 and a 12-month high of $159.91. The stock has a market cap of $12.56 billion, a PE ratio of -23.65, a price-to-earnings-growth ratio of 2.78 and a beta of 1.32.

Owens Corning Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 6th. Shareholders of record on Monday, July 20th will be paid a dividend of $0.79 per share. This represents a $3.16 annualized dividend and a yield of 2.0%. The ex-dividend date is Monday, July 20th. Owens Corning’s payout ratio is presently -47.81%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. JPMorgan Chase & Co. raised their target price on shares of Owens Corning from $115.00 to $121.00 and gave the stock a “neutral” rating in a research report on Friday, May 8th. Barclays upped their target price on Owens Corning from $144.00 to $170.00 and gave the stock an “overweight” rating in a report on Tuesday, July 14th. Truist Financial boosted their target price on shares of Owens Corning from $120.00 to $125.00 and gave the stock a “hold” rating in a report on Thursday, May 7th. Zacks Research raised shares of Owens Corning from a “strong sell” rating to a “hold” rating in a research report on Monday, April 27th. Finally, Benchmark restated a “hold” rating on shares of Owens Corning in a research note on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Owens Corning currently has a consensus rating of “Moderate Buy” and an average price target of $157.92.

Insider Activity

In other news, insider Rachel Barthelemy Marcon sold 700 shares of the company’s stock in a transaction dated Thursday, May 28th. The stock was 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. This represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a 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. Also, VP Mari Doerfler sold 1,926 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $120.92, for a total value of $232,891.92. Following the completion of the sale, the vice president directly owned 3,093 shares in the company, valued at approximately $374,005.56. The trade was a 38.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.92% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Virtu Financial LLC raised its holdings in Owens Corning by 18.4% in the fourth quarter. Virtu Financial LLC now owns 3,286 shares of the construction company’s stock valued at $368,000 after acquiring an additional 511 shares in the last quarter. Corient Private Wealth LLC boosted its position in shares of Owens Corning by 46.4% in the 4th quarter. Corient Private Wealth LLC now owns 47,940 shares of the construction company’s stock valued at $5,365,000 after purchasing an additional 15,197 shares during the period. Alberta Investment Management Corp acquired a new stake in shares of Owens Corning in the fourth quarter valued at approximately $3,782,000. Mercer Global Advisors Inc. ADV grew its position in shares of Owens Corning by 10.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 29,485 shares of the construction company’s stock worth $3,300,000 after acquiring an additional 2,702 shares during the last quarter. Finally, Vident Advisory LLC increased its holdings in shares of Owens Corning by 13.5% in the 4th quarter. Vident Advisory LLC now owns 12,950 shares of the construction company’s stock valued at $1,449,000 after acquiring an additional 1,536 shares during the period. Institutional investors and hedge funds own 88.40% of the company’s stock.

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.