Owens Corning Credits Margin Expansion, Enhanced Product Lineup For Q1 Performance

Owens Corning Inc OC reported a first-quarter fiscal 2024 net sales decline of 1% year-over-year to $2.3 billion, beating the consensus of $2.28 billion.

• Sales by segments: Composites $523 million (-11% Y/Y), Insulation $904 million (-2% Y/Y), and Roofing $957 million (+7% Y/Y).
• Adjusted EPS was $3.59, up from $2.80 a year ago, above the consensus of $3.08.
• Adjusted EBIT increased 21.3% Y/Y to $438 million, with margin expanding to 19% from 15% prior year quarter.
• Adjusted EBITDA rose by 16% Y/Y to $565 million, and the margin expanded to 25% from 21% a year ago.
• Operating Cash Flow for the quarter was $24 million compared to an outflow of $164 million a year ago, and free cash outflow stood at $128 million.

Owens Corning Outlook

During the year, the company paid dividends of $52 million and repurchased 0.9 million shares of common stock for $130 million.

Owens Corning maintains its commitment to innovation, unveiling 13 new or enhanced products in the first quarter to bolster customer support and foster further growth.

For the second quarter of 2024, the company expects overall performance to result in net sales in line with the second quarter of 2023 while generating ~20% EBIT margins for its existing businesses.

For 2024, Owens Corning expects general corporate expenses of $240 million-$250 million and capital additions of ~$550 million.

Price Action: OC shares are trading lower by 0.82 % at $166.24 at the last check Wednesday.

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