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Mar 31, 2024

Owens Corning Q1 2024 Earnings Report

Owens Corning reported first-quarter results, with net sales in-line with the prior year and adjusted EBIT margin of 19%.

Key Takeaways

Owens Corning reported net sales of $2.3 billion, in-line with the prior year. The company generated net earnings of $299 million and adjusted EBIT of $438 million. Diluted EPS was $3.40 and adjusted diluted EPS was $3.59.

Net sales were $2.3 billion, in-line with prior year.

Net earnings margin was 13%, adjusted EBIT margin was 19%, and adjusted EBITDA margin was 25%.

Diluted EPS was $3.40 and adjusted diluted EPS was $3.59.

Operating cash flow was $24 million and free cash outflow was $128 million.

Total Revenue
$2.3B
Previous year: $2.33B
-1.3%
EPS
$3.59
Previous year: $2.77
+29.6%
Adjusted EBIT
$438M
Previous year: $361M
+21.3%
Operating Cash Flow
$24M
Gross Profit
$696M
Previous year: $589M
+18.2%
Cash and Equivalents
$1.25B
Previous year: $757M
+65.7%
Free Cash Flow
-$128M
Previous year: -$322M
-60.2%
Total Assets
$11.3B
Previous year: $10.8B
+4.0%

Owens Corning

Owens Corning

Owens Corning Revenue by Segment

Forward Guidance

Owens Corning expects its North American building and construction markets to remain favorable, with good demand for its products in the near-term. Outside North America, macroeconomic trends and geopolitical tensions continue to result in slow global economic growth. For the second-quarter 2024, the company expects overall performance to result in net sales in line with second quarter 2023, while generating approximately 20% EBIT margins for its existing businesses.

Positive Outlook

  • North American building and construction markets expected to remain favorable.
  • Good demand for products in the near-term.
  • Expects to generate approximately 20% EBIT margins for its existing businesses.
  • Capital Additions Approximately $550 million
  • Depreciation and Amortization Approximately $550 million

Challenges Ahead

  • Macroeconomic trends and geopolitical tensions continue to result in slow global economic growth.
  • General Corporate Expenses $240 million to $250 million
  • Interest Expense $70 million to $80 million
  • Effective Tax Rate on Adjusted Earnings 24% to 26%
  • The above outlook excludes the impact of any acquisitions or divestitures not yet completed.

Revenue & Expenses

Visualization of income flow from segment revenue to net income