Company Performance - Owens Corning (OC) has gained approximately 18.5% year-to-date, outperforming the average gain of 11% for the Construction sector [4] - The Zacks Consensus Estimate for OC's full-year earnings has increased by 10.2% over the past quarter, indicating improving analyst sentiment [3] - Owens Corning holds a Zacks Rank of 2 (Buy), suggesting a positive outlook for the stock [3] Industry Comparison - Owens Corning is part of the Building Products - Miscellaneous industry, which includes 28 stocks and currently ranks 50 in the Zacks Industry Rank [5] - The average gain for stocks in the Building Products - Miscellaneous industry is 12.7% this year, indicating that OC is performing better than its peers [5] - In contrast, PulteGroup, another Construction stock, has returned 12.8% year-to-date and belongs to the Building Products - Home Builders industry, which has gained 6.6% this year and ranks 22 [4][6] Sector Overview - The Construction sector consists of 95 individual stocks and currently holds a Zacks Sector Rank of 1, indicating strong overall performance [2] - The Zacks Rank system emphasizes earnings estimates and revisions, helping to identify stocks poised to outperform the market [3]

Owens Corning (OC) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The upward trend in estimate revisions for this construction materials company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation betwe ...

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Owens Corning (OC) reported impressive results in first-quarter 2024, with earnings and net sales surpassing the Zacks Consensus Estimate. Earnings increased on a year-over-year basis despite a net sales decline. Sales declined due to lower sales volumes in the Insulation and Composites segments. Owens Corning's shares dropped 1.4% on Apr 24 after the earnings release. Inside the Headlines The company reported adjusted earnings per share (EPS) of $3.59, which topped the consensus mark of $3.04 by 18.1% and ...

Financial Data and Key Metrics Changes - The company reported adjusted EBIT of $438 million for Q1 2024, significantly above the previous year, with adjusted EBIT margins at 19% and adjusted EBITDA margins at 25% [19][22] - Adjusted diluted earnings per share were $3.59, compared to $2.80 in the same quarter last year, reflecting strong operational execution [16][19] - The company had liquidity of approximately $5.6 billion, consisting of $1.3 billion in cash and $4.3 billion in available credit [11] Business Line Data and Key Metrics Changes - **Roofing**: Revenue grew by 7% year-over-year to $957 million, with EBIT of $286 million, up $77 million from last year, resulting in EBIT margins of 30% and EBITDA margins of 31% [12][22] - **Insulation**: Revenue was $904 million, a 2% decrease from the previous year, with EBIT of $161 million, up $5 million, and EBIT margins of 18% [21] - **Composites**: Sales decreased by 11% to $523 million, with EBIT of $46 million, down $3 million, resulting in EBIT margins of 9% [22] Market Data and Key Metrics Changes - The U.S. asphalt shingle market volume increased by 27% year-over-year, driven by strong market demand and storm-related needs [12] - North American residential insulation demand remained solid, while European markets faced challenges due to a weaker macroeconomic environment [16][21] Company Strategy and Development Direction - The company is focused on aligning its business units with an enterprise strategy centered on building and construction solutions, highlighted by the acquisition of Masonite, which expands its market to a total addressable market of $75 billion [8][9] - A strategic review of the glass reinforcement business is underway, as it does not align with the company's focus on residential and commercial building materials [9] Management's Comments on Operating Environment and Future Outlook - Management expects favorable conditions in North American building and construction markets, with continued demand for roofing products driven by repair and remodeling activities [30] - The company anticipates second-quarter results to be similar to the prior year, with flat sales and EBIT margins around 20% [30] Other Important Information - The company achieved a 28% reduction in Scope 1 and 2 emissions from a 2018 baseline, progressing towards a goal of 50% reduction by 2030 [7] - A cash dividend of $0.60 per share was declared in February, with a capital allocation strategy focused on returning approximately 50% of free cash flow to investors [12][20] Q&A Session Summary Question: Insights on insulation business pricing - Management indicated that additional price realization in Q2 reflects prior increases and expects continued momentum [36] Question: Comments on Masonite's architectural business divestiture - Management noted that the architectural business was not a strategic fit and supported Masonite's decision to seek alternatives [40][48] Question: Impact of packaging exit on roofing performance - The exit from the protective packaging business resulted in a revenue impact of approximately $25 million per quarter, expected to continue over the next few quarters [42][43] Question: Geographic market share changes in roofing - Management confirmed strong positions in the West and Rocky Mountains, with improvements in demand across other regions, but no significant share shifts [46] Question: Future pricing expectations in composites - Management expects pricing to remain under pressure but noted stabilization in demand and potential for improvement in the back half of the year [52][63]

Financial Performance - Net sales were $23 billion in Q1 2024, a decrease of 1% compared to $2331 billion in Q1 2023[7] - Adjusted EBIT increased to $438 million in Q1 2024 from $361 million in Q1 2023, representing 19% and 15% of net sales respectively[7] - Adjusted EBITDA rose to $565 million in Q1 2024, compared to $487 million in Q1 2023, accounting for 25% and 21% of net sales respectively[7] - Return on capital was 17% for the last twelve months[9] Business Segment Results - Roofing business net sales increased by 7% to $957 million in Q1 2024 from $895 million in Q1 2023, with EBIT at $286 million and 30% of net sales[17] - Insulation business net sales decreased by 2% to $904 million in Q1 2024 from $919 million in Q1 2023, with EBIT at $161 million and 18% of net sales[11, 21] - Composites business net sales decreased by 11% to $523 million in Q1 2024 from $585 million in Q1 2023, with EBIT at $46 million and 9% of net sales[34, 35] Capital Allocation and Outlook - Capital additions are expected to be approximately $550 million[15] - General corporate expenses are expected to range between $240 million and $250 million[15] - The company returned $182 million of free cash flow to shareholders through share repurchases and dividends[9]

Owens Corning (OC) reported $2.3 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 1.3%. EPS of $3.59 for the same period compares to $2.77 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.26 billion, representing a surprise of +1.75%. The company delivered an EPS surprise of +18.09%, with the consensus EPS estimate being $3.04.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) For the first quarter ended March 31, 2024, Owens Corning reported net sales of $2.3 billion, a slight decrease from $2.331 billion in the prior-year period, with net earnings attributable to the company at $299 million, or $3.40 per diluted share, compared to $383 million, or $4.17 per diluted share, in Q1 2023, while the balance sheet remains solid with total assets of $11.27 billion and operating activities generated $24 million in cash, a significant improvement from the $164 million used in the same period last year [Consolidated Statements of Earnings](index=4&type=section&id=Consolidated%20Statements%20of%20Earnings) Net sales for Q1 2024 were $2.3 billion, a slight decrease from $2.331 billion in Q1 2023, with gross margin improving to $680 million from $589 million, though operating income decreased to $403 million from $534 million, largely due to a $189 million gain on a site sale in the prior-year period, consequently, net earnings attributable to Owens Corning fell to $299 million from $383 million, with diluted EPS at $3.40 compared to $4.17 Consolidated Statements of Earnings (Q1 2024 vs Q1 2023) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net Sales** | $2,300 million | $2,331 million | | **Gross Margin** | $680 million | $589 million | | **Operating Income** | $403 million | $534 million | | **Net Earnings Attributable to Owens Corning** | $299 million | $383 million | | **Diluted Earnings Per Share (EPS)** | $3.40 | $4.17 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, Owens Corning's total assets were $11.27 billion, slightly up from $11.24 billion at year-end 2023, with cash and cash equivalents decreasing to $1.25 billion from $1.62 billion, while total liabilities stood at $6.0 billion, and total equity increased to $5.25 billion from $5.19 billion at the end of 2023 Consolidated Balance Sheet Highlights | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,254 million | $1,615 million | | **Total current assets** | $3,981 million | $3,917 million | | **Total Assets** | $11,269 million | $11,237 million | | **Total current liabilities** | $2,268 million | $2,324 million | | **Long-term debt, net of current portion** | $2,645 million | $2,615 million | | **Total Liabilities** | $5,997 million | $6,027 million | | **Total Equity** | $5,247 million | $5,185 million | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first three months of 2024, net cash provided by operating activities was $24 million, a significant turnaround from the $164 million used in the same period of 2023, while net cash used for investing activities was $146 million, compared to $24 million provided in the prior year, mainly due to proceeds from an asset sale in 2023, and net cash used for financing activities was $234 million, primarily for share repurchases and dividends Consolidated Cash Flow Summary (Q1 2024 vs Q1 2023) | Cash Flow Category | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net cash flow from operating activities** | $24 million | ($164) million | | **Net cash flow from investing activities** | ($146) million | $24 million | | **Net cash flow from financing activities** | ($234) million | ($216) million | | **Net decrease in cash** | ($361) million | ($342) million | | **Cash at end of period** | $1,262 million | $765 million | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant corporate activities, including the definitive agreement to acquire Masonite International Corporation for approximately $3.9 billion and a strategic review of the global glass reinforcements business, with segment performance showing strong results in Roofing, stable performance in Insulation, and weaker results in Composites, and the company also details its debt structure, including a new $3.0 billion credit facility to finance the Masonite acquisition, and discusses contingent liabilities related to product recalls at its Paroc subsidiary - The company entered into a definitive agreement to acquire Masonite International Corporation for approximately **$3.9 billion**, a move to strengthen its position in building and construction materials[34](index=34&type=chunk) - A strategic review of the global glass reinforcements (GR) business, which generates about **$1.3 billion** in annual revenue, is underway, with options including a potential sale or spin-off[35](index=35&type=chunk) - The company's subsidiary, Paroc, is addressing product nonconformances in its marine insulation product line, which led to recalls and sales suspensions, and an estimated liability has been recorded for expected costs[118](index=118&type=chunk) - To finance the Masonite acquisition, the company entered into a new **$3.0 billion** 364-Day Credit Facility in March 2024[106](index=106&type=chunk) - During Q1 2024, the company repurchased **0.9 million shares** of its common stock for **$130 million**[146](index=146&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported Q1 2024 Adjusted EBIT of $438 million, up from $361 million in Q1 2023, driven by strong performance in the Roofing segment, where EBIT increased by $77 million due to higher selling prices and favorable mix, while Insulation EBIT was stable, increasing by $5 million, and Composites EBIT decreased by $3 million amid lower volumes and prices, as the company executes key strategic initiatives, including the pending $3.9 billion acquisition of Masonite and a strategic review of its glass reinforcements business, with liquidity remaining strong with $1.3 billion in cash and significant availability under its credit facilities, including a new $3.0 billion facility for the acquisition Adjusted EBIT Reconciliation (Q1 2024 vs Q1 2023) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net Earnings Attributable to Owens Corning** | $299 million | $383 million | | **Earnings Before Interest and Taxes (EBIT)** | $403 million | $534 million | | **Total Adjusting Items** | ($35) million | $173 million | | **Adjusted EBIT** | $438 million | $361 million | Segment EBIT Performance (Q1 2024 vs Q1 2023) | Segment | EBIT Q1 2024 | EBIT Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Roofing** | $286 million | $209 million | +$77 million | | **Insulation** | $161 million | $156 million | +$5 million | | **Composites** | $46 million | $49 million | -$3 million | - The company's outlook for the Roofing segment anticipates a stable North American new residential construction market[186](index=186&type=chunk) - For the Insulation segment, the company expects stable North American residential and commercial markets, but anticipates temporary softness in global commercial and industrial markets due to weaker macroeconomic conditions[193](index=193&type=chunk) - The Composites segment outlook anticipates continued impacts from economic uncertainty and competitive pricing pressure[198](index=198&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material change in its exposure to market risk during the first three months of 2024, and for a detailed discussion of market risk exposure, the company refers to its 2023 Form 10-K - There has been no material change in the company's exposure to market risk during the three months ended March 31, 2024[231](index=231&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2024, with no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[233](index=233&type=chunk) - No changes occurred in the company's internal control over financial reporting during Q1 2024 that have materially affected, or are reasonably likely to materially affect, the controls[234](index=234&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 12 of the Consolidated Financial Statements, which discusses contingent liabilities, including matters related to the Paroc marine insulation product recall - Details on legal proceedings are provided in Note 12 of the Consolidated Financial Statements, covering contingent liabilities and other matters[236](index=236&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes to the risk factors disclosed in the Company's 2023 Form 10-K[237](index=237&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2024, Owens Corning repurchased a total of 1,079,124 shares of its common stock at an average price of $150.24 per share, of which 868,257 shares were repurchased under its publicly announced program, and as of March 31, 2024, approximately 8.1 million shares remained available for repurchase under the current authorization Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Remaining Authorization | | :--- | :--- | :--- | :--- | :--- | | **January 2024** | 374,852 | $149.04 | 374,852 | 8,570,350 | | **February 2024** | 415,805 | $148.50 | 219,739 | 8,350,611 | | **March 2024** | 288,467 | $154.29 | 273,666 | 8,076,945 | | **Total Q1 2024** | **1,079,124** | **$150.24** | **868,257** | **8,076,945** | - As of March 31, 2024, **8.1 million shares** remain available for repurchase under the company's share repurchase authorization[239](index=239&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) Several company executives entered into Rule 10b5-1 trading plans during the quarter for the future sale of company common stock, and additionally, the report details the voting results from the 2024 Annual Meeting of Stockholders, where all director nominees were elected, the selection of PricewaterhouseCoopers LLP as the independent auditor was ratified, and the executive compensation was approved on an advisory basis - Multiple executives, including the President of Insulation, President of Composites, and the CFO, entered into Rule 10b5-1 trading plans for selling company stock[242](index=242&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk) - At the 2024 Annual Meeting of Stockholders, all director nominees were elected, the independent auditor was ratified, and the advisory vote on executive compensation was approved[245](index=245&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including credit agreements, the Masonite arrangement agreement, executive compensation agreements, and required certifications from the CEO and CFO

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Owens Corning (OC) , which belongs to the Zacks Building Products - Miscellaneous industry, could be a great candidate to consider.This construction materials company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 11.81%.For the most recent qu ...

Owens Corning (OC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changing earning ...