Owens Corning Delivers Net Sales of $2.8 Billion; Generates Net Earnings of $285 Million and Adjusted EBIT of $588 Million
Owens Corning (NYSE: OC) reported Q2 2024 results with net sales of $2.8 billion, a 9% increase from the prior year, driven by the recent acquisition of Masonite International's doors segment, contributing $311 million.
Net earnings were $285 million with a 10% margin. Adjusted EBIT was $588 million, and Adjusted EBITDA was $742 million, with margins of 21% and 27% respectively. Diluted EPS was $3.24, while Adjusted Diluted EPS was $4.64.
Owens Corning generated $493 million in operating cash flow and $336 million in free cash flow. Shareholders received $52 million in dividends. The company ended Q2 with net debt-to-adjusted EBITDA leverage in the lower range of its target.
The roofing segment saw a 2% sales decrease to $1.1 billion, while insulation net sales rose 1% to $916 million. The newly acquired doors segment generated $311 million in net sales. Composites net sales decreased 12% to $546 million.
The company expects net sales growth of low-20% for Q3 2024, bolstered by the full-quarter contribution from the doors segment.
Owens Corning (NYSE: OC) ha riportato i risultati del Q2 2024 con vendite nette pari a 2,8 miliardi di dollari, un aumento del 9% rispetto all'anno precedente, spinto dall'acquisizione recente del segmento porte di Masonite International, che ha contribuito con 311 milioni di dollari.
Gli utili netti ammontano a 285 milioni di dollari con un margine del 10%. L'EBIT rettificato è stato di 588 milioni di dollari, mentre l'EBITDA rettificato è stato di 742 milioni di dollari, con margini rispettivamente del 21% e 27%. L'EPS diluito era di 3,24 dollari, mentre l'EPS diluito rettificato era di 4,64 dollari.
Owens Corning ha generato 493 milioni di dollari in flusso di cassa operativo e 336 milioni di dollari in flusso di cassa libero. Gli azionisti hanno ricevuto 52 milioni di dollari in dividendi. L'azienda ha concluso il Q2 con un debito netto rispetto all'EBITDA rettificato nella fascia inferiore del suo obiettivo.
Il segmento coperture ha registrato un calo delle vendite del 2% a 1,1 miliardi di dollari, mentre le vendite nette dell'isolamento sono aumentate dell'1% a 916 milioni di dollari. Il segmento porte recentemente acquisito ha generato 311 milioni di dollari in vendite nette. Le vendite nette di compositi sono diminuite del 12% a 546 milioni di dollari.
L'azienda prevede una crescita delle vendite nette deglio bassa del 20% per il Q3 2024, sostenuta dal contributo per l'intero trimestre del segmento porte.
Owens Corning (NYSE: OC) reportó los resultados del Q2 2024 con ventas netas de 2.8 mil millones de dólares, un aumento del 9% en comparación con el año anterior, impulsado por la reciente adquisición del segmento de puertas de Masonite International, que contribuyó con 311 millones de dólares.
Las ganancias netas fueron de 285 millones de dólares con un margen del 10%. El EBIT ajustado fue de 588 millones de dólares, y el EBITDA ajustado fue de 742 millones de dólares, con márgenes del 21% y 27% respectivamente. El EPS diluido fue de 3.24 dólares, mientras que el EPS diluido ajustado fue de 4.64 dólares.
Owens Corning generó 493 millones de dólares en flujo de efectivo operativo y 336 millones de dólares en flujo de efectivo libre. Los accionistas recibieron 52 millones de dólares en dividendos. La compañía cerró el Q2 con un apalancamiento de deuda neta a EBITDA ajustado en el rango inferior de su objetivo.
El segmento de techos vio una disminución del 2% en las ventas hasta 1.1 mil millones de dólares, mientras que las ventas netas de aislamiento aumentaron un 1% hasta 916 millones de dólares. El segmento de puertas, recién adquirido, generó 311 millones de dólares en ventas netas. Las ventas netas de compuestos disminuyeron un 12% hasta 546 millones de dólares.
La compañía espera un crecimiento en las ventas netas del 20% bajo para el Q3 2024, respaldado por la contribución de todo el trimestre del segmento de puertas.
오웬스 코닝 (NYSE: OC)는 2024년 2분기 실적을 보고하며 순매출이 28억 달러에 달하며, 지난해 대비 9% 증가했다고 발표했습니다. 이는 메이소나이트 인터내셔널의 문 부문 인수에 의해 촉진되었으며, 여기서 3억 1100만 달러가 기여했습니다.
순익은 2억 8500만 달러로 10%의 마진을 기록했습니다. 조정 EBIT는 5억 8800만 달러, 조정 EBITDA는 7억 4200만 달러로 각각 21%와 27%의 마진을 나타냈습니다. 희석 EPS는 3.24 달러, 조정 희석 EPS는 4.64 달러였습니다.
오웬스 코닝은 4억 9300만 달러의 운영 현금 흐름과 3억 3600만 달러의 자유 현금 흐름을 기록했습니다. 주주들은 5200만 달러의 배당금을 받았습니다. 회사는 2분기를 조정 EBITDA 대비 순부채 비율 목표의 하한선에 맞춰 마무리했습니다.
지붕 부문에서는 11억 달러로 2%의 매출 감소가 있었고, 단열재의 순매출은 9억 1600만 달러로 1% 증가했습니다. 새롭게 인수한 문 부문은 3억 1100만 달러의 순매출을 기록했습니다. 복합재 매출은 5억 4600만 달러로 12% 감소했습니다.
회사는 2024년 3분기 맞이하여 문 부문에서 전 분기의 기여가 발휘되어 순매출 성장률이 20% 초반에 이를 것으로 예상하고 있습니다.
Owens Corning (NYSE: OC) a annoncé les résultats du Q2 2024 avec des ventes nettes de 2,8 milliards de dollars, soit une augmentation de 9% par rapport à l'année précédente, grâce à l'acquisition récente du segment de portes de Masonite International, contribuant à hauteur de 311 millions de dollars.
Le bénéfice net était de 285 millions de dollars avec une marge de 10%. L'EBIT ajusté s'élevait à 588 millions de dollars, et l'EBITDA ajusté à 742 millions de dollars, avec des marges de 21% et 27% respectivement. Le BPA dilué était de 3,24 dollars, tandis que le BPA dilué ajusté était de 4,64 dollars.
Owens Corning a généré 493 millions de dollars de flux de trésorerie opérationnel et 336 millions de dollars de flux de trésorerie disponible. Les actionnaires ont reçu 52 millions de dollars en dividendes. L'entreprise a terminé le Q2 avec un ratio d'endettement net par rapport à l'EBITDA ajusté dans la partie inférieure de son objectif.
Le segment de toiture a connu une baisse de 2% des ventes à 1,1 milliard de dollars, tandis que les ventes nettes de matériaux isolants ont augmenté de 1% à 916 millions de dollars. Le segment de portes nouvellement acquis a généré 311 millions de dollars de ventes nettes. Les ventes nettes de composites ont diminué de 12% à 546 millions de dollars.
L'entreprise s'attend à une croissance des ventes nettes d'environ 20% pour le Q3 2024, soutenue par la contribution complète du segment de portes pour le trimestre.
Owens Corning (NYSE: OC) hat die Ergebnisse des Q2 2024 veröffentlicht, mit Nettoverkäufen von 2,8 Milliarden Dollar, einem Anstieg von 9% im Vergleich zum Vorjahr, angetrieben durch die kürzliche Übernahme des Türsegments von Masonite International, das 311 Millionen Dollar beigetragen hat.
Der Nettogewinn betrug 285 Millionen Dollar mit einer Marge von 10%. Das bereinigte EBIT lag bei 588 Millionen Dollar, und das bereinigte EBITDA bei 742 Millionen Dollar, mit Margen von 21% und 27% respectively. Das verwässerte EPS betrug 3,24 Dollar, während das bereinigte verwässerte EPS 4,64 Dollar betrug.
Owens Corning generierte 493 Millionen Dollar an operativem Cashflow und 336 Millionen Dollar an freiem Cashflow. Die Aktionäre erhielten 52 Millionen Dollar an Dividenden. Das Unternehmen beendete das Q2 mit einem Nettoverschuldungsgrad gegenüber bereinigtem EBITDA im unteren Bereich seiner Zielvorgaben.
Im Bereich Dachbau verzeichnete man einen Verkaufsrückgang von 2% auf 1,1 Milliarden Dollar, während die Nettoverkäufe von Isolierungen um 1% auf 916 Millionen Dollar anstiegen. Das neu übernommene Türsegment erzielte 311 Millionen Dollar an Nettoverkäufen. Die Nettoverkäufe im Bereich Verbundstoffe sanken um 12% auf 546 Millionen Dollar.
Das Unternehmen erwartet für das Q3 2024 ein Nettoverkaufswachstum im niedrigen 20%-Bereich, gestützt durch den vollen Quartalsbeitrag des Türsegments.
- Owens Corning reported Q2 2024 net sales of $2.8 billion, a 9% increase.
- The newly acquired doors segment contributed $311 million in revenue.
- Adjusted EBIT was $588 million, a 10% increase.
- Adjusted EBITDA was $742 million, with a 27% margin.
- Operating cash flow was $493 million.
- Free cash flow was $336 million.
- Shareholders received $52 million in dividends.
- Net debt-to-adjusted EBITDA leverage is towards the low end of the target range.
- Net earnings decreased by 17% to $285 million.
- Diluted EPS decreased by 14% to $3.24.
- Free cash flow decreased by 10% to $336 million.
- Roofing segment net sales decreased by 2% to $1.1 billion.
- Composites net sales decreased by 12% to $546 million.
- Interest expense outlook increased from $70-$80 million to $210-$220 million.
Owens Corning's Q2 2024 results demonstrate strong financial performance despite market challenges. Key highlights include:
$2.8 billion in net sales, up9% year-over-year$285 million in net earnings, with a10% margin$588 million in adjusted EBIT, with a21% margin- Diluted EPS of
$3.24 and adjusted diluted EPS of$4.64
The acquisition of Masonite contributed
Owens Corning's Q2 results reveal mixed market dynamics across segments:
- Roofing: Slight volume decline, outperforming the market
- Insulation: Strong North American demand, weaker European market
- Doors: In line with expectations, facing market pressure in North America and Europe
- Composites: Softer end markets and price declines in glass reinforcements
The company's outlook for Q3 2024 suggests cautious optimism, expecting low-20 percent net sales growth. This forecast, combined with the expectation of healthy North American building and construction markets, indicates resilience in core markets. However, global economic slowdown and geopolitical tensions pose ongoing challenges, particularly for international operations.
Owens Corning's Q2 results highlight the company's strategic transformation and growth initiatives:
- Successful integration of Masonite, expanding into the doors segment
- Progress on reviewing strategic alternatives for the glass reinforcements business
- Maintained investment-grade balance sheet post-acquisition
- Commitment to returning cash to shareholders (50% over time)
The
-
Reported Net Sales of
$2.8 Billion 9% Increase from Prior Year, with Newly Acquired Doors Business Contributing$311 Million -
Generated Net Earnings Margin of
10% , Adjusted EBIT Margin of21% , and Adjusted EBITDA Margin of27% -
Delivered Diluted EPS of
$3.24 $4.64 -
Produced Operating Cash Flow of
$493 Million $336 Million -
Returned
$52 Million
“Owens Corning delivered another outstanding quarter, generating strong margins and cash flow while completing the acquisition of Masonite and continuing our review of glass reinforcements,” said Chair and Chief Executive Officer Brian Chambers. “Through our talented people and highly valued customer partnerships, we continue to outperform the market as we transform and grow into an even stronger residential and commercial building products company for the future.”
Enterprise Performance
($ in millions, except per share amounts) |
Second-Quarter |
Six Months |
||||||
2024 |
2023 |
Change |
2024 |
2023 |
Change |
|||
Net Sales |
|
|
|
|
|
|
|
|
Net Earnings Attributable to OC |
285 |
345 |
(60) |
( |
584 |
728 |
(144) |
( |
As a Percent of Net Sales |
|
|
N/A |
N/A |
|
|
N/A |
N/A |
Adjusted EBIT |
588 |
534 |
54 |
|
1,026 |
895 |
131 |
|
As a Percent of Net Sales |
|
|
N/A |
N/A |
|
|
N/A |
N/A |
Adjusted EBITDA |
742 |
664 |
78 |
|
1,307 |
1,151 |
156 |
|
As a Percent of Net Sales |
|
|
N/A |
N/A |
|
|
N/A |
N/A |
Diluted EPS |
3.24 |
3.78 |
(0.54) |
( |
6.63 |
7.94 |
(1.31) |
( |
Adjusted Diluted EPS |
4.64 |
4.25 |
0.39 |
|
8.22 |
7.03 |
1.19 |
|
Operating Cash Flow |
493 |
494 |
(1) |
—% |
517 |
330 |
187 |
|
Free Cash Flow |
336 |
372 |
(36) |
( |
208 |
50 |
158 |
|
Enterprise Strategy Highlights
- Owens Corning sustained a high level of safety performance in second-quarter 2024, with a recordable incident rate (RIR) of 0.46. This excludes the Doors business, which will be integrated into company safety reporting in 2025.
-
On May 15, Owens Corning announced the completion of its acquisition of Masonite International Corporation. The transaction strengthens Owens Corning’s position as a market leader in building and construction materials and increases its offering of branded residential building products to customers. Integration is in progress and includes planned delivery of
$125 million - Owens Corning continues to make progress on the review of strategic alternatives for its global glass reinforcements business.
Cash Returned to Shareholders
-
During the second quarter, the company returned
$52 million - As a result of its disciplined capital allocation strategy following the completion of the Masonite acquisition, Owens Corning finished the second quarter with net debt-to-adjusted EBITDA leverage toward the low end of its target range of 2-3x.
-
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.
“In the second quarter, we built on the strength of our first-quarter results to grow earnings and expand margin. Our year-over-year growth is the result of strong commercial execution and manufacturing performance by our outstanding teams as well as the strategic choice to acquire Masonite,” said Executive Vice President and Chief Financial Officer Todd Fister. "Moving forward, we remain committed to maintaining our investment grade balance sheet through a balanced capital allocation strategy that continues to return cash to shareholders and positions our company for long-term success.”
Second-Quarter Business Performance
- In the second quarter, the company increased earnings with strong performance in each of its businesses and grew revenue as a result of the acquisition of Masonite.
-
Roofing net sales decreased
2% to$1.1 billion $35 million $373 million 34% EBIT margin and35% EBITDA margin, as the result of strong commercial execution leading to positive price realization and favorable mix. -
Insulation net sales increased
1% to$916 million Europe . EBIT increased$20 million $183 million 20% EBIT margin and26% EBITDA margin, as positive price, favorable delivery and favorable mix offset lower volumes and costs to evaluate capacity expansion within theU.S. fiberglass network. -
Doors, which reported for the period May 15 through June 30, generated net sales of
$311 million North America andEurope . EBIT was$34 million 11% EBIT margin, as the$11 million $61 million 20% margin. -
Composites net sales decreased
12% to$546 million $26 million $61 million 11% EBIT margin and19% EBITDA margin, as lower price and volumes in glass reinforcements, as well as the impact of production downtime, was partially offset by favorable manufacturing and delivery costs.
Third-Quarter 2024 Outlook
-
The key economic factors that impact the company’s business are
U.S. residential repair and remodeling activity,U.S. housing starts, global commercial construction, and global industrial production. -
Owens Corning expects its North American building and construction markets to remain healthy in the near-term. The company expects ongoing demand for single-family new construction given the overall need for housing, and the high price and low availability of existing homes for sale. Non-discretionary repair and remodeling activity is expected to drive solid demand while discretionary repair and remodeling activity remains soft. Outside
North America , macroeconomic trends and geopolitical tensions continue to result in slow global economic growth. - For the third-quarter 2024, the company expects overall performance to result in net sales growth of low-20 percent. This includes overall revenue for the legacy business in line with third quarter 2023 plus the addition of a full quarter of revenue for the Doors segment. The enterprise is expected to generate EBIT margin in the high teens with EBITDA margin in the low-20 percent range.
Current 2024 financial outlook is presented below.
General Corporate Expenses |
|
Interest Expense |
|
Effective Tax Rate on Adjusted Earnings |
|
Capital Additions |
Approximately |
Depreciation and Amortization |
Approximately |
The above outlook excludes the impact of any acquisitions or divestitures not yet completed.
(1) Previously
(2) Previously
(3) Previously approximately
Second-Quarter 2024 Conference Call and Presentation
Tuesday, August 6, 2024
9 a.m. Eastern Time
All Callers
-
Live dial-in telephone number:
U.S. 1.833.470.1428;Canada 1.833.950.0062; and other international +1.404.975.4839. - Entry number: 688625 (Please dial in 10-15 minutes before conference call start time)
- Live webcast: https://events.q4inc.com/attendee/391039233
Telephone and Webcast Replay
-
Telephone replay will be available one hour after the end of the call through August 13, 2024. In the
U.S. , call 1.866.813.9403. InCanada , call 1.226.828.7578. In other international locations, call +1.929.458.6194. - Conference replay number: 158425
- Webcast replay will be available for one year using the above link.
About Owens Corning
Owens Corning is a global residential and commercial building products leader committed to building a sustainable future through material innovation. Our four integrated businesses – Roofing, Insulation, Doors, 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 more than 25,000 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
Use of Non-GAAP Measures
Owens Corning uses non-GAAP measures in its earnings press release that are intended to supplement investors' understanding of the company's financial information. These non-GAAP measures include EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, adjusted earnings, adjusted diluted earnings per share attributable to Owens Corning common stockholders ("adjusted EPS"), adjusted pre-tax earnings, free cash flow, free cash flow conversion and net debt-to-adjusted EBITDA. When used to report historical financial information, reconciliations of these non-GAAP measures to the corresponding GAAP measures are included in the financial tables of this press release. Specifically, see Table 2 for EBIT, adjusted EBIT, EBITDA, and adjusted EBITDA, Table 3 for adjusted earnings and adjusted EPS, and Table 8 for free cash flow and free cash flow conversion (annually).
For purposes of internal review of Owens Corning's year-over-year operational performance, management excludes from net earnings attributable to Owens Corning certain items it believes are not representative of ongoing operations. The non-GAAP financial measures resulting from these adjustments (including adjusted EBIT, adjusted EBITDA, adjusted earnings, adjusted EPS, and adjusted pre-tax earnings) are used internally by Owens Corning for various purposes, including reporting results of operations to the Board of Directors, analysis of performance, and related employee compensation measures. Management believes that these adjustments result in a measure that provides a useful representation of its operational performance; however, the adjusted measures should not be considered in isolation or as a substitute for net earnings attributable to Owens Corning as prepared in accordance with GAAP.
Free cash flow is a non-GAAP liquidity measure used by investors, financial analysts and management to help evaluate the company's ability to generate cash to pursue opportunities that enhance shareholder value. The company defines free cash flow as net cash flow provided by operating activities, less cash paid for property, plant and equipment. Free cash flow is not a measure of residual cash flow available for discretionary expenditures due to the company's mandatory debt service requirements. Free cash flow conversion is a non-GAAP liquidity measure used to measure the company’s efficiency in turning profits into free cash flow from its core operations. The company defines free cash flow conversion as free cash flow divided by adjusted earnings. Free cash flow and free cash flow conversion is used internally by the company for various purposes, including reporting results of operations to the Board of Directors of the company and analysis of performance.
Management believes that these measures provide a useful representation of our operational performance and liquidity; however, the measures should not be considered in isolation or as a substitute for net cash flow provided by operating activities or net earnings attributable to Owens Corning as prepared in accordance with GAAP.
When the company provides forward-looking expectations for non-GAAP measures, the most comparable GAAP measures and a reconciliation between the non-GAAP expectations and the corresponding GAAP measures are generally not available without unreasonable effort due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP measures in future periods. The variability in timing and amount of adjusting items could have significant and unpredictable effect on our future GAAP results.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to risks, uncertainties and other factors and actual results may differ materially from those results projected in the statements. These risks, uncertainties and other factors include, without limitation: levels of residential and commercial or industrial construction activity; demand for our products; industry and economic conditions including, but not limited to, supply chain disruptions, recessionary conditions, inflationary pressures, interest rate and financial markets volatility, and the viability of banks and other financial institutions; availability and cost of energy and raw materials; levels of global industrial production; competitive and pricing factors; relationships with key customers and customer concentration in certain areas; issues related to acquisitions, divestitures and joint ventures or expansions, including the acquisition of Masonite International Corporation ("Masonite"); climate change, weather conditions and storm activity; legislation and related regulations or interpretations, in
Owens Corning Company News / Owens Corning Investor Relations News
Table 1 |
||||||||||||
Owens Corning and Subsidiaries |
||||||||||||
Consolidated Statements of Earnings |
||||||||||||
(unaudited) |
||||||||||||
(in millions, except per share amounts) |
||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
NET SALES |
$ |
2,789 |
|
$ |
2,563 |
|
$ |
5,089 |
|
$ |
4,894 |
|
COST OF SALES |
|
1,922 |
|
|
1,811 |
|
|
3,542 |
|
|
3,553 |
|
Gross margin |
|
867 |
|
|
752 |
|
|
1,547 |
|
|
1,341 |
|
OPERATING EXPENSES |
|
|
|
|
||||||||
Marketing and administrative expenses |
|
249 |
|
|
207 |
|
|
461 |
|
|
411 |
|
Science and technology expenses |
|
34 |
|
|
28 |
|
|
65 |
|
|
56 |
|
Gain on sale of site |
|
— |
|
|
— |
|
|
— |
|
|
(189 |
) |
Other expense, net |
|
127 |
|
|
30 |
|
|
161 |
|
|
42 |
|
Total operating expenses |
|
410 |
|
|
265 |
|
|
687 |
|
|
320 |
|
OPERATING INCOME |
|
457 |
|
|
487 |
|
|
860 |
|
|
1,021 |
|
Non-operating income |
|
(1 |
) |
|
— |
|
|
(1 |
) |
|
— |
|
EARNINGS BEFORE INTEREST AND TAXES |
|
458 |
|
|
487 |
|
|
861 |
|
|
1,021 |
|
Interest expense, net |
|
64 |
|
|
23 |
|
|
81 |
|
|
45 |
|
EARNINGS BEFORE TAXES |
|
394 |
|
|
464 |
|
|
780 |
|
|
976 |
|
Income tax expense |
|
110 |
|
|
121 |
|
|
198 |
|
|
251 |
|
Equity in net earnings of affiliates |
|
2 |
|
|
1 |
|
|
2 |
|
|
1 |
|
NET EARNINGS |
|
286 |
|
|
344 |
|
|
584 |
|
|
726 |
|
Net earnings (loss) attributable to non-redeemable and redeemable noncontrolling interests |
|
1 |
|
|
(1 |
) |
|
— |
|
|
(2 |
) |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING |
$ |
285 |
|
$ |
345 |
|
$ |
584 |
|
$ |
728 |
|
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS |
|
|
|
|
||||||||
Basic |
$ |
3.27 |
|
$ |
3.81 |
|
$ |
6.69 |
|
$ |
8.01 |
|
Diluted |
$ |
3.24 |
|
$ |
3.78 |
|
$ |
6.63 |
|
$ |
7.94 |
|
WEIGHTED AVERAGE COMMON SHARES |
|
|
|
|
||||||||
Basic |
|
87.2 |
|
|
90.5 |
|
|
87.3 |
|
|
90.9 |
|
Diluted |
|
88.0 |
|
|
91.3 |
|
|
88.1 |
|
|
91.7 |
|
Table 2 |
Owens Corning and Subsidiaries |
EBIT Reconciliation Schedules |
(unaudited) |
Adjusting income (expense) items to EBIT are shown in the table below (in millions):
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
Restructuring costs |
$ |
(47 |
) |
$ |
(47 |
) |
$ |
(61 |
) |
$ |
(65 |
) |
Gain on sale of |
|
— |
|
|
— |
|
|
— |
|
|
189 |
|
Gains on sale of certain precious metals |
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
Paroc marine recall |
|
(6 |
) |
|
— |
|
|
(7 |
) |
|
— |
|
Strategic review-related charges |
|
(15 |
) |
|
— |
|
|
(17 |
) |
|
— |
|
Acquisition-related transaction costs |
|
(29 |
) |
|
— |
|
|
(47 |
) |
|
— |
|
Acquisition-related integration costs |
|
(21 |
) |
|
— |
|
|
(21 |
) |
|
— |
|
Recognition of acquisition inventory fair value step-up |
|
(12 |
) |
|
|
(12 |
) |
|
— |
|
||
Total adjusting items |
$ |
(130 |
) |
$ |
(47 |
) |
$ |
(165 |
) |
$ |
126 |
|
The reconciliation from Net earnings attributable to Owens Corning to EBIT and Adjusted EBIT, and the reconciliation from EBIT to EBITDA and adjusted EBITDA are shown in the table below (in millions):
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING |
$ |
285 |
|
$ |
345 |
|
$ |
584 |
|
$ |
728 |
|
Net earnings (loss) attributable to non-redeemable and redeemable noncontrolling interests |
|
1 |
|
|
(1 |
) |
|
— |
|
|
(2 |
) |
NET EARNINGS |
|
286 |
|
|
344 |
|
|
584 |
|
|
726 |
|
Equity in net earnings of affiliates |
|
2 |
|
|
1 |
|
|
2 |
|
|
1 |
|
Income tax expense |
|
110 |
|
|
121 |
|
|
198 |
|
|
251 |
|
EARNINGS BEFORE TAXES |
|
394 |
|
|
464 |
|
|
780 |
|
|
976 |
|
Interest expense, net |
|
64 |
|
|
23 |
|
|
81 |
|
|
45 |
|
EARNINGS BEFORE INTEREST AND TAXES |
|
458 |
|
|
487 |
|
|
861 |
|
|
1,021 |
|
Less: Adjusting items from above |
|
(130 |
) |
|
(47 |
) |
|
(165 |
) |
|
126 |
|
ADJUSTED EBIT |
$ |
588 |
|
$ |
534 |
|
$ |
1,026 |
|
$ |
895 |
|
Net sales |
$ |
2,789 |
|
$ |
2,563 |
|
$ |
5,089 |
|
$ |
4,894 |
|
ADJUSTED EBIT as a % of Net sales |
|
21 |
% |
|
21 |
% |
|
20 |
% |
|
18 |
% |
|
|
|
|
|
||||||||
EARNINGS BEFORE INTEREST AND TAXES |
$ |
458 |
|
$ |
487 |
|
$ |
861 |
|
$ |
1,021 |
|
Depreciation and amortization |
|
167 |
|
|
159 |
|
|
298 |
|
|
286 |
|
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION |
|
625 |
|
|
646 |
|
|
1,159 |
|
|
1,307 |
|
Less: Adjusting items from above |
|
(130 |
) |
|
(47 |
) |
|
(165 |
) |
|
126 |
|
Accelerated depreciation and amortization included in restructuring and integration |
|
(13 |
) |
|
(29 |
) |
|
(17 |
) |
|
(30 |
) |
ADJUSTED EBITDA |
$ |
742 |
|
$ |
664 |
|
$ |
1,307 |
|
$ |
1,151 |
|
Net sales |
$ |
2,789 |
|
$ |
2,563 |
|
$ |
5,089 |
|
$ |
4,894 |
|
ADJUSTED EBITDA as a % of Net sales |
|
27 |
% |
|
26 |
% |
|
26 |
% |
|
24 |
% |
Table 3 |
Owens Corning and Subsidiaries |
EPS Reconciliation Schedules |
(unaudited) |
(in millions, except per share data) |
A reconciliation from Net earnings attributable to Owens Corning to adjusted earnings and a reconciliation from diluted earnings per share to adjusted diluted earnings per share are shown in the tables below:
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
RECONCILIATION TO ADJUSTED EARNINGS |
|
|
|
|
||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING |
$ |
285 |
|
$ |
345 |
|
$ |
584 |
|
$ |
728 |
|
Adjustment to remove adjusting items and other adjustments(a) |
|
146 |
|
|
47 |
|
|
181 |
|
|
(126 |
) |
Adjustment to remove tax (benefit)expense on adjusting items and other adjustments (b) |
|
(24 |
) |
|
(11 |
) |
|
(31 |
) |
|
35 |
|
Adjustment to tax (benefit) expense to reflect pro forma tax rate (c) |
|
1 |
|
|
7 |
|
|
(10 |
) |
|
8 |
|
ADJUSTED EARNINGS |
$ |
408 |
|
$ |
388 |
|
$ |
724 |
|
$ |
645 |
|
|
|
|
|
|
||||||||
RECONCILIATION TO ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS |
|
|
|
|
||||||||
DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS |
$ |
3.24 |
|
$ |
3.78 |
|
$ |
6.63 |
|
$ |
7.94 |
|
Adjustment to remove adjusting items (a) |
|
1.66 |
|
|
0.51 |
|
|
2.05 |
|
|
(1.37 |
) |
Adjustment to remove tax (benefit) expense on adjusting items (b) |
|
(0.27 |
) |
|
(0.12 |
) |
|
(0.35 |
) |
|
0.38 |
|
Adjustment to tax (benefit) expense to reflect pro forma tax rate (c) |
|
0.01 |
|
|
0.08 |
|
|
(0.11 |
) |
|
0.08 |
|
ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS |
$ |
4.64 |
|
$ |
4.25 |
|
$ |
8.22 |
|
$ |
7.03 |
|
|
|
|
|
|
||||||||
RECONCILIATION TO DILUTED SHARES OUTSTANDING |
|
|
|
|
||||||||
Weighted-average number of shares outstanding used for basic earnings per share |
|
87.2 |
|
|
90.5 |
|
|
87.3 |
|
|
90.9 |
|
Non-vested restricted stock units and performance share units |
|
0.8 |
|
|
0.8 |
|
|
0.8 |
|
|
0.8 |
|
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share |
|
88.0 |
|
|
91.3 |
|
|
88.1 |
|
|
91.7 |
|
(a) |
Please refer to Table 2 "EBIT Reconciliation Schedules" for additional information on adjusting items. Adjusting items shown here also include financing fees of |
(b) |
The tax impact of adjusting items is based on our expected tax accounting treatment and rate for the jurisdiction of each adjusting item. |
(c) |
To compute adjusted earnings, we apply a full year pro forma effective tax rate to each quarter presented. For 2024, we have used a full year pro forma effective tax rate of
|
Table 4 |
||||||
Owens Corning and Subsidiaries |
||||||
Consolidated Balance Sheets |
||||||
(unaudited) |
||||||
(in millions, except per share data) |
||||||
ASSETS |
June 30, 2024 |
December 31, 2023 |
||||
CURRENT ASSETS |
|
|
||||
Cash and cash equivalents |
$ |
254 |
|
$ |
1,615 |
|
Receivables, less allowance of |
|
1,680 |
|
|
987 |
|
Inventories |
|
1,576 |
|
|
1,198 |
|
Other current assets |
|
209 |
|
|
117 |
|
Total current assets |
|
3,719 |
|
|
3,917 |
|
Property, plant and equipment, net |
|
4,640 |
|
|
3,841 |
|
Operating lease right-of-use assets |
|
456 |
|
|
222 |
|
Goodwill |
|
2,683 |
|
|
1,392 |
|
Intangible assets, net |
|
3,006 |
|
|
1,528 |
|
Deferred income taxes |
|
39 |
|
|
24 |
|
Other non-current assets |
|
448 |
|
|
313 |
|
TOTAL ASSETS |
$ |
14,991 |
|
$ |
11,237 |
|
LIABILITIES AND EQUITY |
|
|
||||
CURRENT LIABILITIES |
|
|
||||
Accounts payable |
$ |
1,403 |
|
$ |
1,216 |
|
Current operating lease liabilities |
|
87 |
|
|
62 |
|
Short-term debt |
|
155 |
|
|
1 |
|
Long-term debt - current portion |
|
435 |
|
|
431 |
|
Other current liabilities |
|
642 |
|
|
614 |
|
Total current liabilities |
|
2,722 |
|
|
2,324 |
|
Long-term debt, net of current portion |
|
5,020 |
|
|
2,615 |
|
Pension plan liability |
|
66 |
|
|
69 |
|
Other employee benefits liability |
|
110 |
|
|
112 |
|
Non-current operating lease liabilities |
|
386 |
|
|
165 |
|
Deferred income taxes |
|
811 |
|
|
427 |
|
Other liabilities |
|
351 |
|
|
315 |
|
Total liabilities |
|
9,466 |
|
|
6,027 |
|
Redeemable noncontrolling interest |
|
— |
|
|
25 |
|
OWENS CORNING STOCKHOLDERS’ EQUITY |
|
|
||||
Preferred stock, par value |
|
— |
|
|
— |
|
Common stock, par value |
|
1 |
|
|
1 |
|
Additional paid in capital |
|
4,186 |
|
|
4,166 |
|
Accumulated earnings |
|
5,273 |
|
|
4,794 |
|
Accumulated other comprehensive deficit |
|
(597 |
) |
|
(503 |
) |
Cost of common stock in treasury (c) |
|
(3,391 |
) |
|
(3,292 |
) |
Total Owens Corning stockholders’ equity |
|
5,472 |
|
|
5,166 |
|
Noncontrolling interests |
|
53 |
|
|
19 |
|
Total equity |
|
5,525 |
|
|
5,185 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
14,991 |
|
$ |
11,237 |
|
| (a) | 10 shares authorized; none issued or outstanding at June 30, 2024, and December 31, 2023 |
| (b) | 400 shares authorized; 135.5 issued and 86.9 outstanding at June 30, 2024; 135.5 issued and 87.2 outstanding at December 31, 2023 |
| (c) | 48.6 shares at June 30, 2024, and 48.3 shares at December 31, 2023 |
Table 5 |
||||||
Owens Corning and Subsidiaries |
||||||
Consolidated Statements of Cash Flows |
||||||
(unaudited) |
||||||
(in millions) |
||||||
|
Six Months Ended June 30, |
|||||
|
2024 |
2023 |
||||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES |
|
|
||||
Net earnings |
$ |
584 |
|
$ |
726 |
|
Adjustments to reconcile net earnings to cash from operating activities: |
|
|
||||
Depreciation and amortization |
|
298 |
|
|
286 |
|
Deferred income taxes |
|
(26 |
) |
|
43 |
|
Stock-based compensation expense |
|
53 |
|
|
27 |
|
Gain on sale of site |
|
— |
|
|
(189 |
) |
Other adjustments to reconcile net earnings to cash from operating activities |
|
(8 |
) |
|
2 |
|
Changes in operating assets and liabilities |
|
(376 |
) |
|
(559 |
) |
Pension fund contribution |
|
(3 |
) |
|
(3 |
) |
Payments for other employee benefits liabilities |
|
(6 |
) |
|
(6 |
) |
Other |
|
1 |
|
|
3 |
|
Net cash flow provided by operating activities |
|
517 |
|
|
330 |
|
NET CASH FLOW USED FOR INVESTING ACTIVITIES |
|
|
||||
Cash paid for property, plant, and equipment |
|
(309 |
) |
|
(280 |
) |
Proceeds from the sale of assets or affiliates |
|
12 |
|
|
189 |
|
Investment in subsidiaries and affiliates, net of cash acquired |
|
(2,857 |
) |
|
— |
|
Other |
|
— |
|
|
(11 |
) |
Net cash flow used for investing activities |
|
(3,154 |
) |
|
(102 |
) |
NET CASH FLOW PROVIDED BY (USED FOR) FINANCING ACTIVITIES |
|
|
||||
Proceeds from long-term debt |
|
1,968 |
|
|
— |
|
Payments on long-term debt |
|
(473 |
) |
|
— |
|
Proceeds from senior revolving credit and receivables securitization facilities |
|
470 |
|
|
— |
|
Payments on senior revolving credit and receivables securitization facilities |
|
(315 |
) |
|
— |
|
Proceeds from term loan borrowing |
|
2,784 |
|
|
— |
|
Payments on term loan borrowing |
|
(2,800 |
) |
|
— |
|
Dividends paid |
|
(104 |
) |
|
(95 |
) |
Purchases of treasury stock |
|
(185 |
) |
|
(275 |
) |
Finance lease payments |
|
(19 |
) |
|
(16 |
) |
Other |
|
(5 |
) |
|
1 |
|
Net cash flow provided by (used for) financing activities |
|
1,321 |
|
|
(385 |
) |
Effect of exchange rate changes on cash |
|
(33 |
) |
|
27 |
|
Net decrease in cash, cash equivalents and restricted cash |
|
(1,349 |
) |
|
(130 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
1,623 |
|
|
1,107 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD |
$ |
274 |
|
$ |
977 |
|
Table 6 |
Owens Corning and Subsidiaries |
Segment Information |
(unaudited) |
Roofing
The table below provides a summary of net sales, EBIT, depreciation and amortization expense and EBITDA for the Roofing segment (in millions):
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
Net sales |
$ |
1,105 |
|
$ |
1,123 |
|
$ |
2,062 |
|
$ |
2,018 |
|
% change from prior year |
|
-2 |
% |
|
10 |
% |
|
2 |
% |
|
9 |
% |
EBIT |
$ |
373 |
|
$ |
338 |
|
$ |
659 |
|
$ |
547 |
|
EBIT as a % of net sales |
|
34 |
% |
|
30 |
% |
|
32 |
% |
|
27 |
% |
Depreciation and amortization expense |
$ |
15 |
|
$ |
16 |
|
$ |
30 |
|
$ |
32 |
|
EBITDA |
$ |
388 |
|
$ |
354 |
|
$ |
689 |
|
$ |
579 |
|
EBITDA as a % of net sales |
|
35 |
% |
|
32 |
% |
|
33 |
% |
|
29 |
% |
Insulation
The table below provides a summary of net sales, EBIT, depreciation and amortization expense and EBITDA for the Insulation segment (in millions):
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
Net sales |
$ |
916 |
|
$ |
905 |
|
$ |
1,820 |
|
$ |
1,824 |
|
% change from prior year |
|
1 |
% |
|
-3 |
% |
|
— |
% |
|
2 |
% |
EBIT |
$ |
183 |
|
$ |
163 |
|
$ |
344 |
|
$ |
319 |
|
EBIT as a % of net sales |
|
20 |
% |
|
18 |
% |
|
19 |
% |
|
17 |
% |
Depreciation and amortization expense |
$ |
51 |
|
$ |
57 |
|
$ |
102 |
|
$ |
108 |
|
EBITDA |
$ |
234 |
|
$ |
220 |
|
$ |
446 |
|
$ |
427 |
|
EBITDA as a % of net sales |
|
26 |
% |
|
24 |
% |
|
25 |
% |
|
23 |
% |
Doors
The table below provides a summary of net sales, EBIT, depreciation and amortization expense and EBITDA for the Doors segment (in millions):
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
Net sales |
$ |
311 |
|
$ |
— |
|
$ |
311 |
|
$ |
— |
|
% change from prior year |
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
EBIT |
$ |
34 |
|
$ |
— |
|
$ |
34 |
|
$ |
— |
|
EBIT as a % of net sales |
|
11 |
% |
|
N/A |
|
|
11 |
% |
|
N/A |
|
Depreciation and amortization expense |
$ |
27 |
|
$ |
— |
|
$ |
27 |
|
$ |
— |
|
EBITDA |
$ |
61 |
|
$ |
— |
|
$ |
61 |
|
$ |
— |
|
EBITDA as a % of net sales |
|
20 |
% |
|
— |
% |
|
20 |
% |
|
— |
% |
Table 6 (continued) |
Owens Corning and Subsidiaries |
Segment Information |
(unaudited) |
Composites
The table below provides a summary of net sales, EBIT, depreciation and amortization expense and EBITDA for the Composites segment (in millions):
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
Net sales |
$ |
546 |
|
$ |
620 |
|
$ |
1,069 |
|
$ |
1,205 |
|
% change from prior year |
|
-12 |
% |
|
-14 |
% |
|
-11 |
% |
|
-16 |
% |
EBIT |
$ |
61 |
|
$ |
87 |
|
$ |
107 |
|
$ |
136 |
|
EBIT as a % of net sales |
|
11 |
% |
|
14 |
% |
|
10 |
% |
|
11 |
% |
Depreciation and amortization expense |
$ |
45 |
|
$ |
43 |
|
$ |
89 |
|
$ |
87 |
|
EBITDA |
$ |
106 |
|
$ |
130 |
|
$ |
196 |
|
$ |
223 |
|
EBITDA as a % of net sales |
|
19 |
% |
|
21 |
% |
|
18 |
% |
|
19 |
% |
Table 7 |
Owens Corning and Subsidiaries |
Corporate, Other and Eliminations |
(unaudited) |
Corporate, Other and Eliminations
The table below provides a summary of EBIT and depreciation and amortization expense for the Corporate, Other and Eliminations category (in millions):
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
Restructuring costs |
$ |
(47 |
) |
$ |
(47 |
) |
$ |
(61 |
) |
$ |
(65 |
) |
Gain on sale of |
|
— |
|
|
— |
|
|
— |
|
|
189 |
|
Gains on sale of certain precious metals |
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
Paroc marine recall |
|
(6 |
) |
|
— |
|
|
(7 |
) |
|
— |
|
Strategic review-related charges |
|
(15 |
) |
|
— |
|
|
(17 |
) |
|
— |
|
Acquisition-related transaction costs |
|
(29 |
) |
|
— |
|
|
(47 |
) |
|
— |
|
Acquisition-related integration costs |
|
(21 |
) |
|
— |
|
|
(21 |
) |
|
— |
|
Recognition of acquisition inventory fair value step-up |
|
(12 |
) |
|
— |
|
|
(12 |
) |
|
— |
|
General corporate expense and other |
|
(63 |
) |
|
(54 |
) |
|
(118 |
) |
|
(107 |
) |
EBIT |
$ |
(193 |
) |
$ |
(101 |
) |
$ |
(283 |
) |
$ |
19 |
|
Depreciation and amortization |
$ |
29 |
|
$ |
43 |
|
$ |
50 |
|
$ |
59 |
|
Table 8 |
Owens Corning and Subsidiaries |
Free Cash Flow Reconciliation Schedule |
(unaudited) |
The reconciliation from net cash flow provided by (used for) operating activities to free cash flow is shown in the table below (in millions):
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES |
$ |
493 |
|
$ |
494 |
|
$ |
517 |
|
$ |
330 |
|
Less: Cash paid for property, plant and equipment |
|
(157 |
) |
|
(122 |
) |
|
(309 |
) |
|
(280 |
) |
FREE CASH FLOW |
$ |
336 |
|
$ |
372 |
|
$ |
208 |
|
$ |
50 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806762612/en/
Media Inquiries:
Megan James
419.348.0768
Investor Inquiries:
Amber Wohlfarth
419.248.5639
Source: Owens Corning
FAQ
What were Owens Corning's Q2 2024 net sales?
How did the acquisition of Masonite International impact Owens Corning's Q2 2024 results?
What were Owens Corning's Q2 2024 net earnings?
What was Owens Corning's Q2 2024 adjusted EBIT?
How much did Owens Corning generate in operating cash flow in Q2 2024?
What is Owens Corning's Q3 2024 outlook?
