TOLEDO, Ohio - Owens Corning (NYSE:OC), a leader in the building and construction materials industry, announced its first-quarter 2024 financial results today, surpassing analyst expectations for adjusted earnings per share (EPS) but reporting net sales that were in line with predictions. Shares were up 1.06% in premarket trading.
The company achieved an adjusted EPS of $3.59, which was $0.53 higher than the analyst estimate of $3.06. Net sales for the quarter stood at $2.3 billion, aligning with the consensus estimate of $2.28 billion.
The company's performance in the first quarter showed resilience with net sales remaining steady compared to the prior year, despite a slight dip of 1%. However, net earnings attributable to Owens Corning (NYSE:GLW) saw a decrease of 22% from the same quarter last year, coming in at $299 million, which represents a 13% net earnings margin. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins improved to 25%, up from 21% in the previous year, indicating enhanced profitability.
Owens Corning's Roofing segment experienced a 7% increase in net sales, driven by demand for premium laminate shingles and strong attachment of components products. The Insulation segment, however, faced a 2% decline in net sales, primarily due to lower volumes in Europe, which were not fully offset by positive pricing and favorable mix. Composites net sales decreased by 11% due to lower volumes and price declines in glass reinforcements.
Chair and Chief Executive Officer Brian Chambers commented on the company's strong start to the year, emphasizing the team's strength and strategic actions that have led to more resilient earnings. "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," Chambers stated.
Looking ahead, Owens Corning expects its North American building and construction markets to remain favorable, with good demand for its products in the near-term. The company anticipates overall performance in the second quarter of 2024 to result in net sales in line with the second quarter of 2023 and to generate approximately 20% EBIT margins for its existing businesses.
The company continues to return value to shareholders, with $182 million returned through dividends and share repurchases in the first quarter. Executive Vice President and Chief Financial Officer Todd Fister highlighted the company's disciplined capital allocation framework and commitment to returning cash to shareholders while investing in strategic capital projects.
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