Owens ning(US:OC) ZACKSยท2025-05-08 16:30Core Viewpoint - Owens Corning reported better-than-expected results for Q1 2025, marking the 24th consecutive earnings beat, with adjusted earnings and net sales surpassing estimates, although the bottom line declined year over year [1][4]. Financial Performance - Adjusted EPS was $2.97, exceeding the Zacks Consensus Estimate of $2.82 by 5.3%, down from $3.40 in the same quarter last year [5]. - Net sales reached $2.53 billion, slightly above the consensus mark of $2.52 billion, reflecting a 25% year-over-year increase [5]. - Adjusted EBITDA improved 9.7% year-over-year to $565 million, but the adjusted EBITDA margin contracted 400 basis points to 22% [8]. Segment Performance - Roofing Segment: Net sales were $1.12 billion, up 2% from $1.1 billion a year ago, driven by higher selling prices of $37 million, partially offset by lower volumes [5]. - Insulation Segment: Net sales were $909 million, down 5% year-over-year due to lower sales volumes of about 6% and a $10 million unfavorable impact from foreign currency translation, partially offset by higher selling prices of $22 million [6]. - Doors Segment: Reported net sales of $540 million, attributed to the acquisition of Masonite, with EBITDA of $68 million and an EBITDA margin of 13% [7]. Guidance and Outlook - For Q2 2025, revenues are expected to grow in high single digits year-over-year, with adjusted EBITDA margin anticipated in the low-to-mid 20% range [11]. - Roofing segment revenues are expected to increase in low-single digits, while Insulation revenues are anticipated to decline in mid-single digits [12]. - The Doors segment's revenues are expected to rise in low-single digits sequentially [13]. Financial Position - As of March 31, 2025, cash and cash equivalents were $400 million, up from $321 million at the end of 2024, while long-term debt decreased to $5.05 billion from $5.07 billion [10]. - Net cash used by operating activities was $49 million, compared to net cash provided of $24 million in the same period last year, with free cash flow at $(252) million [10]. Corporate Strategy - The company aims to focus on business growth and profitability through 2025, executing capital-efficient investments to strengthen market position and drive long-term growth [4][14].