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Sep 30, 2023

Owens Corning Q3 2023 Earnings Report

Owens Corning reported strong third-quarter results, driven by effective execution in dynamic market conditions and demonstrating the ability to outperform prior cycles.

Key Takeaways

Owens Corning reported net sales of $2.5 billion, with net earnings of $337 million and adjusted EBIT of $518 million. The company grew adjusted EBIT margins to 21% and adjusted EBITDA margins to 26%. They generated operating cash flow of $691 million and free cash flow of $581 million.

Net sales were $2.5 billion, similar to the prior year.

Adjusted EBIT margins grew to 21% and adjusted EBITDA margins to 26%.

Diluted EPS was $3.71, and adjusted diluted EPS was $4.15.

Operating cash flow was $691 million, and free cash flow was $581 million.

Total Revenue
$2.48B
Previous year: $2.53B
-2.0%
EPS
$4.15
Previous year: $3.57
+16.2%
Adjusted EBIT
$518M
Previous year: $487M
+6.4%
Operating Cash Flow
$691M
Previous year: $461M
+49.9%
Gross Profit
$727M
Previous year: $693M
+4.9%
Cash and Equivalents
$1.32B
Previous year: $751M
+76.2%
Free Cash Flow
$581M
Previous year: $367M
+58.3%
Total Assets
$11.1B
Previous year: $10.7B
+3.2%

Owens Corning

Owens Corning

Owens Corning Revenue by Segment

Forward Guidance

The company expects overall performance to result in net sales slightly below the fourth quarter of 2022, while generating mid-teen EBIT margins.

Positive Outlook

  • Building and construction end markets are expected to be relatively stable in the near term.

Challenges Ahead

  • Weaker macroeconomic trends outside of the U.S.
  • Increasing interest rates continue to result in slower global economic growth.

Revenue & Expenses

Visualization of income flow from segment revenue to net income