Owens Corning Delivers Net Sales of $2.3 Billion; Generates Net Earnings of $299 Million and Adjusted EBIT of $438 Million

Owens Corning, a global building and construction materials leader, reported first-quarter 2024 results.

• Reported Net Sales of $2.3 Billion, in-line with Prior Year
• Generated Net Earnings Margins of 13%, Adjusted EBIT Margins of 19%, and Adjusted EBITDA Margins of 25%
• Delivered Diluted EPS of $3.40 and Adjusted Diluted EPS of $3.59
• Produced Operating Cash Flow of $24 Million and Free Cash Outflow of $128 Million
• Returned $182 Million to Shareholders through Dividends and Share Repurchases

“Owens Corning started the year with first-quarter results that continue to highlight our strong and consistent enterprise performance. These results are driven by the strength of our team and the actions we have taken over the last several years to generate higher, more resilient earnings,” said Chair and Chief Executive Officer Brian Chambers. “We remain focused on helping our customers win in the market and delivering value to our shareholders in the near-term, while looking ahead to opportunities that grow our company and strengthen our leadership in building and construction materials.”

Enterprise Strategy Highlights

• Owens Corning sustained a high level of safety performance in first-quarter 2024, with a recordable incident rate (RIR) of 0.31, a more than 50% improvement over first-quarter 2023.
• Owens Corning’s previously announced acquisition of Masonite International Corporation, a leading global provider of interior and exterior doors and door systems, remains on track to close mid-2024.
• Owens Corning engaged Morgan Stanley as its financial advisor to review strategic alternatives for its global glass reinforcements business. The review of this business was announced in the first quarter and is ongoing.
• Owens Corning continues to invest in new product and process innovation to support customers and generate additional growth. In the first quarter, it launched 13 new or improved products.
• In March, Owens Corning published its 2023 Sustainability Report, Making the Difference, which outlined the company’s progress toward its 2030 sustainability goals. This marks the 18th sustainability report from Owens Corning, which published its first report in 2006.

Cash Returned to Shareholders

• During the first quarter, the company returned $182 million to shareholders through dividends and share repurchases. The company paid dividends of $52 million and repurchased 0.9 million shares of common stock for $130 million.
• Owens Corning’s capital allocation strategy is unchanged, and the company remains committed to returning approximately 50% of cash to shareholders over time through a combination of share repurchases and dividends. With the Masonite acquisition, the company will prioritize repayment of the short-term portion of the debt incurred until net debt-to-EBITDA is at the low end of the 2-3x target range.

“Owens Corning delivered an outstanding start to the year, growing enterprise earnings and expanding margins in the first quarter. These results demonstrate the value created through our enterprise strategy and operating model,” said Executive Vice President and Chief Financial Officer Todd Fister. “With a healthy balance sheet and disciplined capital allocation framework, we returned $182 million to shareholders while also investing in strategic capital projects.”

First-Quarter Business Performance

• The company started the year by strengthening earnings on relatively flat revenue, with good performance in each of its businesses.
• In Roofing, net sales increased 7% to $957 million compared with first-quarter 2023, resulting from carryover price and favorable mix driven by demand for premium laminate shingles and strong attachment of components products. Volumes for the quarter were positively impacted by strong carryover storm demand, which was mostly offset by volume impact from the segment’s exit of protective packaging. EBIT increased $77 million to $286 million, with 30% EBIT margins and 31% EBITDA margins, primarily due to positive price as well as favorable manufacturing costs and mix.
• In Insulation, net sales decreased 2% to $904 million compared with first-quarter 2023, as demand in the segment’s North American business remained relatively stable while its European business was impacted by the weaker macro environment. Favorable mix and positive price were more than offset by lower volumes, primarily in Europe. EBIT increased $5 million to $161 million, with 18% EBIT margins and 23% EBITDA margins, as positive price and favorable delivery were partially offset by lower volumes and higher overall manufacturing costs.
• In Composites, net sales decreased 11% to $523 million compared with first-quarter 2023, as positive price for nonwovens was offset by lower volumes and price declines in glass reinforcements on broader market pressure. EBIT decreased $3 million to $46 million, resulting in 9% EBIT margins and 17% EBITDA margins, primarily due to lower price and the impact of production downtime and lower demand, partially offset by favorable manufacturing costs, and deflation for both delivery and input costs.

Second-Quarter and Full-Year 2024 Outlook

• The key economic factors that impact the company’s business are residential repair and remodeling activity, U.S. housing starts, global commercial construction activity, and global industrial production.
• 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.

For full results click here.

About Owens Corning

Owens Corning is a global building and construction materials leader committed to building a sustainable future through material innovation. Our three integrated businesses – Roofing, Insulation, and Composites – provide durable, sustainable, energy-efficient solutions that leverage our unique material science, manufacturing, and market knowledge to help our customers win and grow. We are global in scope, human in scale with approximately 18,000 employees in 30 countries dedicated to generating value for our customers and shareholders, and making a difference in the communities where we work and live. Founded in 1938 and based in Toledo, Ohio, USA, Owens Corning posted 2023 sales of $9.7 billion. For more information, visit www.owenscorning.com.

Contact:

Amber Wohlfarth – Vice President, Investor Relations – Amber.Wohlfarth@owenscorning.com – (419) 248-5639

Source: Owens Corning