Owens Corning (OC) closed the most recent trading day at $154.04, moving +1.3% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.59%. Meanwhile, the Dow experienced a rise of 1.39%, and the technology-dominated Nasdaq saw an increase of 1.63%.The construction materials company's stock has dropped by 20.31% in the past month, falling short of the Construction sector's loss of 9.68% and the S&P 500's loss of 2.42%.The upcoming earnings release of Owens Corning ...

Group 1 - The article highlights Owens Corning (NYSE: OC) as a stable investment following its acquisition of Masonite, emphasizing the company's transformation and strategic focus on ESG, insulation, and energy transition [1] - The investment group "Value In Corporate Events" provides members with opportunities to capitalize on significant corporate events such as IPOs, mergers & acquisitions, and earnings reports, covering around 10 major events monthly [1]

Owens Corning (OC) reported impressive results for fourth-quarter 2024, wherein earnings and net sales surpassed the Zacks Consensus Estimate, given the success of its strategic initiatives and structural improvements, leading to strong cash flow and higher margins despite challenging market conditions. This marks the eighth consecutive earnings beat for the company.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company successfully executed strategic initiatives, including acqui ...

Financial Data and Key Metrics Changes - In Q4 2024, Owens Corning reported revenue of $2.8 billion, up 23% year-over-year, with an adjusted EBIT margin of 15% and an adjusted EBITDA margin of 22% [15][16] - For the full year 2024, revenues reached $11 billion, a 13% increase, with adjusted EBIT of $2 billion and adjusted EBITDA of $2.7 billion [16][34] - Adjusted earnings per diluted share for Q4 were $3.22, consistent with the prior year, while full-year adjusted earnings per diluted share increased by 10% to $15.91 [34][36] - Free cash flow for the year was $1.2 billion, an increase of over $50 million from the prior year, with a free cash conversion rate of 89% of adjusted earnings [36][38] Business Line Data and Key Metrics Changes - The roofing business generated Q4 sales of $912 million, slightly down from the prior year, with EBIT of $280 million and EBIT margins of 31% [40][42] - Insulation business revenues for Q4 were $926 million, in line with the prior year, with EBIT of $155 million and EBIT margins of 17% [47][48] - The Doors business reported Q4 revenue of $564 million, with EBIT of $29 million and an EBIT margin of 5% [50][51] - The composites business had Q4 sales of $515 million, with EBIT of $47 million, reflecting a year-over-year increase [58][59] Market Data and Key Metrics Changes - The US asphalt shingle market volume increased by 1% year-over-year, with strong demand in Florida, the Southwest, and Southeast [41] - The insulation business experienced demand headwinds outside the US, particularly in Europe and Asia, impacting overall revenue [49][135] - The overall market conditions in Europe are expected to remain challenging but stable, similar to the second half of 2024 [68] Company Strategy and Development Direction - Owens Corning executed three major strategic moves in 2024: the acquisition of Masonite, the sale of its building materials business in Asia, and the sale of its glass reinforcements business [12][22] - The company is focusing on expanding its capacity in profitable product lines and modernizing manufacturing facilities to strengthen market positions [24][27] - The strategic review of the glass reinforcements business concluded with an agreement to sell it to Pranic Group, allowing Owens Corning to focus on residential and commercial building products [55][56] Management's Comments on Operating Environment and Future Outlook - Management expects mixed opportunities in residential and commercial end markets as 2025 begins, with stable demand for non-discretionary repair activity in roofing [67][68] - The company anticipates Q1 2025 revenue growth of mid-20% compared to the prior year, with EBITDA expected to deliver low 20% growth [69] - Management highlighted the importance of disciplined capital allocation and maintaining an investment-grade balance sheet while pursuing growth [78] Other Important Information - Owens Corning returned 51% of free cash flow to shareholders in 2024, marking the eleventh consecutive year of increasing dividends [17][36] - The company plans to host an investor day in May 2025 to discuss its strategy and financial goals [79] Q&A Session Summary Question: Potential tariff impacts and mitigation strategies - Management indicated that tariff exposure is about 5% or less of total costs, with a significant portion being local production for local customers [88][90] Question: Pricing trends in residential markets - Management noted good pricing trends in core residential insulation and roofing businesses, with expectations for continued positive price realization [95][100] Question: Revenue contribution from new segments - Management expects revenue from new segments to be consistent across the year, with some seasonality in nonwoven products [106] Question: Capacity coming online in roofing - Management anticipates a positive mix shift towards laminate shingles, which should enhance margins [114][116] Question: Impact of new roofing capacity on industry margins - Management believes that the addition of new capacity will allow for better service to customer demand without negatively impacting margins [128][129] Question: Utilization rates across technical footprint - Management reported healthy utilization rates in North America, with challenges primarily in international markets [135]

Key TakeawaysSales of Owens Corning's legacy products slumped and the company warned of business headwinds ahead.The maker of insulation and other building materials anticipates near-term softness in residential construction and remodeling and North American commercial construction.The company beat earnings and revenue estimates for the fourth quarter. Owens Corning (OC) shares fell 4% Monday as the maker of insulation and other building materials saw a drop in demand for its legacy products and warned of b ...

FOURTH-QUARTER AND FULL-YEAR 2024 RESULTS Brian Chambers | Chair & Chief Executive Officer Todd Fister | Chief Financial Officer February 24, 2025 | Q4 & FY 2024 FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES This presentation and the associated remarks contain forward-looking statements. We caution you against relying on these statements as they are subject to risks, uncertainties and other factors and actual results may differ materially from those results projected in the statements. These risks, uncer ...

Core Insights - Owens Corning reported quarterly earnings of $3.22 per share, exceeding the Zacks Consensus Estimate of $2.87 per share, and showing a slight increase from $3.21 per share a year ago, resulting in an earnings surprise of 12.20% [1] - The company achieved revenues of $2.84 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.27% and increasing from $2.3 billion year-over-year [2] Earnings Performance - Over the last four quarters, Owens Corning has consistently surpassed consensus EPS estimates, achieving this four times [2] - The company had a previous quarter earnings expectation of $4.01 per share but reported $4.38, delivering a surprise of 9.23% [1] Stock Performance and Outlook - Owens Corning shares have declined approximately 2.9% since the beginning of the year, contrasting with the S&P 500's gain of 2.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Estimate Revisions - The trend for estimate revisions ahead of the earnings release was favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the next quarter is $3.24 on revenues of $2.88 billion, and for the current fiscal year, it is $15.85 on revenues of $11.65 billion [7] Industry Context - The Building Products - Miscellaneous industry, to which Owens Corning belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - Net earnings attributable to Owens Corning decreased to $647 million in 2024 from $1,196 million in 2023[158]. - Adjusted EBIT increased to $2,038 million in 2024 compared to $1,805 million in 2023, with segment EBIT performance showing increases in Roofing and Insulation segments[158]. - Net sales rose by $1,298 million to $10,975 million in 2024, primarily driven by the Doors segment due to the Masonite acquisition[169]. - Gross margin increased by $571 million to $3,254 million in 2024, attributed to the Doors segment and higher selling prices[170]. - Operating income decreased to $1,127 million in 2024 from $1,812 million in 2023, indicating a decline of 37.8%[317]. - Total comprehensive earnings attributable to Owens Corning were $460 million in 2024, down from $1,374 million in 2023[320]. - Net earnings for 2024 were $647 million, a decrease of 45.8% compared to $1,193 million in 2023[327]. Segment Performance - In the Roofing segment, net sales increased by $22 million to $4,052 million, with a 1% increase from the prior year[186]. - EBIT in the Roofing segment rose by $124 million to $1,298 million, representing 32% of net sales, up from 29% in 2023[186]. - Insulation segment net sales increased by $24 million to $3,692 million, driven by higher selling prices of $81 million[190]. - EBIT in the Insulation segment increased by $63 million to $682 million, with EBIT as a percentage of net sales rising to 18%[190]. - The new Doors segment generated net sales of $1,448 million and EBIT of $99 million following the acquisition of Masonite on May 15, 2024[196]. - Composites segment net sales decreased by $168 million to $2,118 million, with EBIT declining by $27 million to $215 million[200]. Acquisition and Impairment - The Company recorded a $483 million impairment charge related to the strategic review of the glass reinforcements business in 2024[173]. - A loss of $91 million was recorded on the sale of the building materials business in China and Korea, classified as held for sale[172]. - The Masonite acquisition cost $3.2 billion, funded primarily through debt, and is expected to enhance the Company's growth platform in building products[164]. - The Company completed the acquisition of Masonite for a total purchase price of $3.2 billion, acquiring $979 million of intangible assets related to customer relationships[243]. - The Company incurred a loss on the sale of business amounting to $91 million and an impairment charge of $483 million due to a strategic review in 2024[317]. - Owens Corning entered into a definitive agreement to sell its global glass reinforcements business for approximately $436 million, aligning with its strategy to focus on residential and commercial building products in North America and Europe[334]. Cash Flow and Debt - As of December 31, 2024, the Company had cash and cash equivalents of $361 million and a $1.0 billion Senior Revolving Credit Facility[209]. - As of December 31, 2024, the company had cash and cash equivalents of $361 million, a decrease from $1.6 billion as of December 31, 2023[215]. - Net cash flow provided by operating activities increased by $173 million for the twelve months ended December 31, 2024, compared to the same period in 2023[216]. - Net cash flow used for investing activities increased by $3.0 billion for the twelve months ended December 31, 2024, primarily due to the Masonite acquisition[217]. - Net cash flow provided by financing activities increased by $1.2 billion for the twelve months ended December 31, 2024, driven by net proceeds from long-term debt related to the Masonite acquisition[218]. - As of December 31, 2024, the company had total debt of $5.1 billion, including a current portion of long-term debt of $38 million[222]. - Long-term debt increased to $5,116 million in 2024 from $2,615 million in 2023, marking a rise of 95.7%[323]. Equity and Dividends - Total equity at the end of 2024 was $5,120 million, a slight decrease from $5,185 million in 2023[325]. - The company declared dividends of $2.49 per share in 2024, up from $2.16 per share in 2023[325]. - The Board of Directors declared a quarterly dividend of $0.69 per common share, payable on April 10, 2025, to shareholders of record as of March 10, 2025[335]. Inventory and Expenses - Inventory levels rose to $1,587 million in 2024 from $1,198 million in 2023, an increase of 32.5%[323]. - Marketing and advertising expenses for the years ended December 31, 2024, 2023, and 2022 were $148 million, $134 million, and $125 million, respectively[348]. - Other expense, net increased by $259 million in 2024, primarily due to higher acquisition and strategic review-related costs[175]. Tax and Pension - The effective tax rate for 2024 was 30% on pre-tax income of $916 million, compared to 25% in 2023 on pre-tax income of $1,591 million[178][179]. - The discount rate for the United States pension plan was 5.65% as of December 31, 2024, compared to 5.00% at December 31, 2023[270]. - The expected return on plan assets is projected to be 6.00% for the measurement date of December 31, 2024, up from 5.75% for December 31, 2023[271]. - The company expects to contribute $20 million in cash to its pension plans during 2025, up from $7 million in 2024[227]. Miscellaneous - The Company applies a more-likely-than-not recognition threshold for all tax uncertainties, including claims by the Internal Revenue Service[244]. - The Company had no borrowings on its Senior Revolving Credit Facility or Receivables Securitization Facility as of December 31, 2024[284]. - The fair market value of senior notes would decrease by 12% for maturities in 2047 and 2048 with a one percentage point increase in interest rates[285].

Financial Performance - Owens Corning reported full-year net sales of $11.0 billion, a 13% increase from the prior year, with the newly acquired Doors business contributing $1.4 billion in revenue[4]. - The company generated net earnings of $647 million, resulting in a net earnings margin of 6%, and an adjusted EBIT margin of 19% for the full year[4]. - Adjusted EBITDA for the year was $2.7 billion, reflecting a 17% increase compared to 2023, with an adjusted EBITDA margin of 25%[4]. - Free cash flow for 2024 was $1.2 billion, with 51% of this amount, or $638 million, returned to shareholders through dividends and share repurchases[4][6]. - In the fourth quarter, Owens Corning achieved net sales of $2.8 billion, a 23% increase year-over-year, with an adjusted EBIT margin of 15%[12]. - For the full year 2024, net sales totaled $10,975 million, a 13.4% increase from $9,677 million in 2023[26]. - The diluted earnings per share for the full year 2024 was $7.37, down from $13.14 in 2023, reflecting the impact of the net loss in Q4[26]. - Adjusted diluted earnings per share attributable to Owens Corning common stockholders for 2024 was $15.91, compared to $14.42 in 2023, reflecting a year-over-year increase of 10.4%[31]. - Adjusted EBITDA for the full year 2024 was $2,702 million, representing 25% of net sales, compared to 24% in 2023, indicating stable operational performance despite challenges[28]. Segment Performance - Owens Corning's Roofing segment reported net sales of $4.1 billion in 2024, with an EBIT margin of 32%[11]. - The Roofing segment reported net sales of $4,052 million for 2024, a slight increase of 0.5% from $4,030 million in 2023[40]. - The Insulation segment achieved EBIT of $682 million in 2024, up from $619 million in 2023, marking a growth of 10.2%[41]. - The Doors segment generated net sales of $1,448 million in 2024, with EBIT of $99 million, reflecting a new revenue stream as it was not reported in 2023[42]. - Composites segment net sales for Q4 2024 were $515 million, a slight increase from $514 million in Q4 2023, but a 7% decrease year-over-year for the twelve months ended December 31, 2024, compared to $2,286 million in 2023[43]. - EBIT for the Composites segment increased to $47 million in Q4 2024 from $26 million in Q4 2023, with EBIT as a percentage of net sales rising to 9% from 5%[43]. - EBITDA for the Composites segment was $94 million in Q4 2024, up from $68 million in Q4 2023, representing 18% of net sales compared to 13% in the prior year[43]. Cash Flow and Investments - Net cash flow provided by operating activities for 2024 was $1,892 million, up from $1,719 million in 2023, indicating an increase of 10.1%[38]. - Free cash flow for the twelve months ended December 31, 2024, was $1,245 million, an increase from $1,193 million in 2023[47]. - Free cash flow conversion for the twelve months ended December 31, 2024, was 89%, compared to 91% in the previous year[48]. - Net cash flow provided by operating activities for Q4 2024 was $676 million, slightly down from $698 million in Q4 2023[47]. - The company plans to invest approximately $800 million in capital additions in 2025, with a focus on expanding manufacturing capacity for its laminate shingle portfolio[14]. Challenges and Risks - The company is facing risks including supply chain disruptions, inflationary pressures, and competitive pricing factors, which may affect future performance[23]. - The company incurred an impairment charge of $483 million due to a strategic review in Q4 2024, impacting overall financial performance[26]. - Total operating expenses surged to $1,041 million in Q4 2024, up from $286 million in Q4 2023, primarily due to impairment charges and losses on the sale of business[26]. - The company incurred a loss on the sale of business amounting to $91 million in 2024, which was not present in 2023[38]. Recognition and Awards - The company has been recognized as one of the top 250 Best-Managed Companies by the Wall Street Journal, ranking fourth in customer satisfaction[9].

Company Performance - Owens Corning closed at $174.13, reflecting a -1.96% change from the previous day, underperforming the S&P 500's gain of 0.24% [1] - The stock has decreased by 5.15% over the past month, compared to the Construction sector's loss of 4.2% and the S&P 500's gain of 2.37% [1] Upcoming Earnings Report - Owens Corning is set to release its earnings on February 24, 2025, with an expected EPS of $2.87, indicating a 10.59% decline from the same quarter last year [2] - Revenue is anticipated to be $2.78 billion, representing a 20.53% increase from the equivalent quarter last year [2] Analyst Projections - Recent shifts in analyst projections for Owens Corning are important for investors, as positive revisions indicate optimism regarding the company's business and profitability [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows that Owens Corning currently holds a Zacks Rank of 2 (Buy) [5] - Over the last 30 days, the Zacks Consensus EPS estimate has increased by 0.59% [5] Valuation Metrics - Owens Corning has a Forward P/E ratio of 11.21, which is lower than the industry average of 18.66 [6] - The company has a PEG ratio of 1.94, compared to the industry average PEG ratio of 1.81 [6] Industry Context - The Building Products - Miscellaneous industry, part of the Construction sector, has a Zacks Industry Rank of 176, placing it in the bottom 30% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]