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

Owens Corning (NYSE:OC) posted its earnings results on Wednesday. The construction company reported $3.93 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.09 by $0.84, FiscalAI reports. Owens Corning had a negative net margin of 5.43% and a positive return on equity of 19.86%. The company had revenue of $2.76 billion during the quarter, compared to the consensus estimate of $2.66 billion. During the same period in the previous year, the firm posted $4.21 earnings per share. The firm’s quarterly revenue was up .3% on a year-over-year basis.

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

OC opened at $153.28 on Thursday. The firm’s fifty day simple moving average is $135.59 and its two-hundred day simple moving average is $124.75. Owens Corning has a 52-week low of $97.53 and a 52-week high of $159.91. The company has a market cap of $12.34 billion, a price-to-earnings ratio of -23.19, a PEG ratio of 2.83 and a beta of 1.32. The company has a quick ratio of 0.74, a current ratio of 1.24 and a debt-to-equity ratio of 1.27.

Owens Corning Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 6th. Shareholders of record on Monday, July 20th will be issued a dividend of $0.79 per share. This represents a $3.16 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Monday, July 20th. Owens Corning’s dividend payout ratio (DPR) is presently -47.81%.

Insider Activity

In related news, insider Rachel Barthelemy Marcon sold 700 shares of Owens Corning 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 directly owned 15,848 shares in the company, valued at approximately $1,913,012.08. The trade was a 4.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Mari Doerfler sold 1,926 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $120.92, for a total value of $232,891.92. Following the sale, the vice president owned 3,093 shares of the company’s stock, valued at approximately $374,005.56. This trade represents a 38.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.92% of the stock is owned by corporate insiders.

Institutional Trading of Owens Corning

A number of institutional investors have recently made changes to their positions in OC. Gendell Jeffrey L raised its holdings in shares of Owens Corning by 349.3% during the 4th quarter. Gendell Jeffrey L now owns 922,063 shares of the construction company’s stock worth $103,188,000 after acquiring an additional 716,839 shares during the period. Dimensional Fund Advisors LP increased its position in Owens Corning by 33.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,576,405 shares of the construction company’s stock worth $288,332,000 after purchasing an additional 645,773 shares during the last quarter. First Trust Advisors LP increased its position in Owens Corning by 51.8% during the fourth quarter. First Trust Advisors LP now owns 1,775,411 shares of the construction company’s stock worth $198,686,000 after purchasing an additional 605,926 shares during the last quarter. Goldentree Asset Management LP purchased a new position in Owens Corning during the fourth quarter worth about $59,011,000. Finally, Millennium Management LLC boosted its holdings in Owens Corning by 380.9% in the 4th quarter. Millennium Management LLC now owns 600,922 shares of the construction company’s stock valued at $67,249,000 after purchasing an additional 475,971 shares during the last quarter. 88.40% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts recently commented on OC shares. JPMorgan Chase & Co. raised their target price on Owens Corning from $115.00 to $121.00 and gave the stock a “neutral” rating in a report on Friday, May 8th. Zacks Research upgraded Owens Corning from a “strong sell” rating to a “hold” rating in a research report on Monday, April 27th. Benchmark reaffirmed a “hold” rating on shares of Owens Corning in a research note on Wednesday, July 15th. Royal Bank Of Canada lifted their target price on shares of Owens Corning from $148.00 to $172.00 and gave the company an “outperform” rating in a report on Friday, July 10th. Finally, Barclays reissued an “overweight” rating and set a $177.00 price target on shares of Owens Corning in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Owens Corning has a consensus rating of “Moderate Buy” and an average price target of $158.50.

About Owens Corning

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.