Owens Corning Q1 Results Beat Expectations

  • Owens Corning OC reported first-quarter FY22 net sales growth of 23% year-over-year to $2.34 billion, beating the consensus of $2.23 billion.
  • Sales by segments: Composites $714 million (+28% Y/Y), Insulation $859 million (+23% Y/Y), and Roofing $838 million (+18% Y/Y).
  • Adjusted EPS was $2.84 (+59% Y/Y), beating the consensus of $2.43.
  • Gross margin improved by 320 bps to 26.4%. Operating income increased 47.6% to $440 million, with a margin of 18.8%, up 320 bps.
  • Adjusted EBITDA improved by 35.7% Y/Y to $543 million, and margin expanded by 226 bps to 23.3%.
  • For the quarter, Owens Corning generated an operating cash flow of $158 million (-23% Y/Y) and a free cash flow of $51 million (-58% Y/Y).
  • Owens Corning repurchased 2.5 million shares of common stock for $229 million in Q1, with 10.9 million shares still available for repurchase under the current authorization.
  • In late March, Owens Corning decided to exit Russia through a transfer or sale of its facilities and halted all future investments in Russia. 2021 net sales in Russia were ~$100 million, or about 1% of the company’s consolidated net sales.
  • For 2Q22, OC expects overall performance to result in net sales and adjusted EBIT growth Y/Y.
  • FY22 Outlook: The company expects general corporate expenses of $160 million - $170 million, capital additions of ~$480 million, and depreciation and amortization of ~$520 million.
  • Price Action: OC shares closed lower by 2.09% at $86.16 on Tuesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!