Owens Corning (NYSE:OC) Releases Quarterly Earnings Results, Beats Expectations By $0.21 EPS

Owens Corning (NYSE:OC) posted its quarterly earnings data on Wednesday. The construction company reported $1.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.21, Zacks reports. Owens Corning had a negative net margin of 5.17% and a positive return on equity of 21.93%. The company’s revenue was down 10.5% on a year-over-year basis. During the same period last year, the business posted $2.97 EPS.

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

• Owens Corning delivered resilient profitability with $369 million of adjusted EBITDA in Q1 (16% margin); management is guiding to an enterprise EBITDA margin of roughly 20%–22% in Q2 and expects Roofing margins in the low-30% range.
• The company is capturing meaningful cost savings and portfolio cash — on track for ~$135 million run-rate enterprise synergies (exceeding its $125M target), pursuing an additional $75 million of structural COGS improvements, and completed the sale of Glass Reinforcements for ~$280 million plus $50–70M in excess alloy proceeds.
• Cash flow was pressured in Q1 with a net free cash flow outflow of $387 million due to seasonal working capital and elevated capex (Q1 capex $210 million; FY capex expected ~$800 million), although leverage remains mid-target at 2.5x and liquidity was $1.8 billion.
• Near-term margin risk from inflation and supply-costs — management estimates ~$60 million of incremental cost impact in Q2 (roughly half to Roofing), and says recent price increases will be realized with a lag while a potential ~$50 million tariff refund remains timing-uncertain and is excluded from guidance.

Owens Corning Price Performance

OC stock traded up $0.02 during trading on Wednesday, reaching $122.92. 2,342,838 shares of the company were exchanged, compared to its average volume of 1,398,041. The company has a debt-to-equity ratio of 1.20, a quick ratio of 0.70 and a current ratio of 1.26. The stock’s 50 day moving average price is $114.05 and its 200 day moving average price is $117.06. Owens Corning has a 52-week low of $97.53 and a 52-week high of $159.42. The company has a market cap of $9.88 billion, a P/E ratio of -19.21, a PEG ratio of 1.98 and a beta of 1.35.

Owens Corning Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Monday, March 9th were issued a dividend of $0.79 per share. The ex-dividend date of this dividend was Monday, March 9th. This represents a $3.16 dividend on an annualized basis and a yield of 2.6%. Owens Corning’s payout ratio is currently -49.38%.

Analyst Ratings Changes

Several brokerages have recently weighed in on OC. Royal Bank Of Canada set a $143.00 target price on shares of Owens Corning in a report on Friday, January 9th. UBS Group raised their price objective on shares of Owens Corning from $160.00 to $172.00 and gave the company a “buy” rating in a research report on Thursday, February 26th. Citigroup lowered their price objective on Owens Corning from $137.00 to $135.00 and set a “buy” rating on the stock in a report on Thursday, January 8th. Evercore set a $130.00 target price on Owens Corning in a research report on Friday, April 24th. Finally, Zacks Research raised Owens Corning from a “strong sell” rating to a “hold” rating in a report on Monday, April 27th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $145.09.

Institutional Investors Weigh In On Owens Corning

Institutional investors have recently modified their holdings of the company. Virtu Financial LLC raised its holdings in Owens Corning by 18.4% during the fourth quarter. Virtu Financial LLC now owns 3,286 shares of the construction company’s stock worth $368,000 after purchasing an additional 511 shares during the last quarter. Corient Private Wealth LLC grew its holdings in Owens Corning by 46.4% in the fourth 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 last quarter. Alberta Investment Management Corp purchased a new position in shares of Owens Corning in the fourth quarter valued at $3,782,000. Mercer Global Advisors Inc. ADV increased its position in shares of Owens Corning by 10.1% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 29,485 shares of the construction company’s stock valued at $3,300,000 after buying an additional 2,702 shares in the last quarter. Finally, Vident Advisory LLC grew its position 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 during the last quarter. Hedge funds and other institutional investors own 88.40% of the company’s stock.

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.