Owens Corning Delivers Net Sales of $2.5 Billion; Generates Net Earnings of $337 Million and Adjusted EBIT of $518 Million

Owens Corning, a global building and construction materials leader, reported third-quarter 2023 results.

• Reported Net Sales of $2.5 Billion, Similar to Prior Year
• Grew Adjusted EBIT Margins to 21% and Adjusted EBITDA Margins to 26%
• Delivered Diluted EPS of $3.71 and Adjusted Diluted EPS of $4.15
• Generated Operating Cash Flow of $691 Million and Free Cash Flow of $581 Million
• Returned $187 Million to Shareholders through Dividends and Share Repurchases

“Owens Corning delivered another strong quarter, as our global teams executed incredibly well in response to dynamic market conditions. The sustained quality and consistency of performance reflects the strength of our team, our market positions and our strategy,” said Board Chair and Chief Executive Officer Brian Chambers. “These results demonstrate our ongoing ability to outperform prior cycles as we position the company for long-term success.”

Enterprise Strategy Highlights

• In the third quarter, the safety performance resulted in a recordable incident rate (RIR) of 0.66.
• Owens Corning continues to invest in accelerating new product and process innovation to support customers and generate additional growth. In the third quarter, 8 new or refreshed products were launched bringing the total through nine months to 25 launches.
• In September, Owens Corning joined the European Alliance to Save Energy to partner in its mission to advance energy efficiency and contribute to a more sustainable Europe. The membership will strengthen the company’s partnership with key stakeholders in the region and support Owens Corning’s mission to build a more sustainable future through material innovation.
• In October, the company announced that the Roofing team with its partners, has proven at scale a pilot to reclaim 100% of materials from recycled waste shingles. The team is also conducting studies with the National Center for Asphalt Technology to leverage recycled shingles in asphalt paving applications. Together, these initiatives support the company’s goal of recycling two million tons of shingles annually in the U.S. by 2030.

Cash Returned to Shareholders

• During the third quarter, the company returned $187 million to shareholders through dividends and share repurchases. The company paid a quarterly cash dividend of $47 million and repurchased 1.0 million shares of common stock for $140 million. As of the end of the quarter, 10.8 million shares were available for repurchase under the current authorization.

“I am thrilled to partner with Brian as CFO as we execute the enterprise strategy to grow and strengthen the company. We remain committed to maintaining our investment-grade balance sheet, returning cash to shareholders, and investing in organic growth and acquisitions to advance our strategy,” said Executive Vice President and Chief Financial Officer Todd Fister. “Year-to-date through the third quarter, we generated $1 billion of operating cash flow and $631 million of free cash flow, while returning more than $500 million to shareholders through share repurchases and dividends.”

Other Notable Highlights

• Owens Corning recently earned placement in the Top 10 of the 100 Best Corporate Citizens list for the sixth consecutive year. The list recognizes outstanding environmental, social, and governance performance and transparency among the largest, publicly traded companies in the U.S. The company placed first within its industry category.

Segment Performance

• Roofing net sales increased 8% to $1.1 billion in third-quarter 2023 compared with third-quarter 2022, with strong demand in several markets driven primarily by higher levels of storm activity, in addition to favorable mix and positive price. EBIT increased $114 million to $343 million, expanding EBIT margins to 32% and EBITDA margins to 33%. The EBIT improvement was primarily due to positive price/cost as well as higher volumes.
• Insulation net sales decreased 5% to $913 million in third-quarter 2023 compared with third-quarter 2022. The change was primarily due to lower volumes in both the North American residential insulation and technical and global insulation businesses partially offset by positive price realization. EBIT decreased $23 million to $150 million, with EBIT margins of 16% and EBITDA margins of 22%, on lower volumes and planned maintenance downtime and production investments, partially offset by positive price realization.
• Composites net sales decreased 11% to $567 million in third-quarter 2023 compared with third-quarter 2022, primarily due to lower volumes and price declines resulting from lower spot prices in glass reinforcements. EBIT decreased $46 million to $80 million while delivering 14% EBIT margins and 22% EBITDA margins. With slowing demand for glass reinforcements, the company continued to take actions to balance inventories with corresponding production downtime.

Fourth-Quarter 2023 Outlook

• The key economic factors that impact the company’s businesses are residential repair and remodeling activity, U.S. housing starts, global commercial construction activity, and global industrial production.
• Weaker macroeconomic trends outside of the U.S. and increasing interest rates continue to result in slower global economic growth, but the company expects most of its building and construction end markets to be relatively stable in the near term.
• For fourth-quarter 2023, the company expects overall performance to result in net sales slightly below the fourth quarter of 2022, while generating mid-teen EBIT margins.

For the full third quarter 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 – Composites, Insulation, and Roofing – 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 19,000 employees in 31 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 2022 sales of $9.8 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