Owens-Corning Inc (OC) Q3 2023 Earnings: Strong Performance Despite Market Challenges
Owens-Corning Inc (NYSE:OC) reported Q3 2023 net earnings of $337 million and net sales of $2.5 billion.
The company generated operating cash flow of $691 million and free cash flow of $581 million.
OC returned $187 million to shareholders through dividends and share repurchases.
Adjusted EBIT margins grew to 21% and Adjusted EBITDA margins to 26%.
On October 25, 2023, Owens-Corning Inc (NYSE:OC) released its third-quarter 2023 earnings report. The company reported net sales of $2.5 billion, similar to the prior year, and net earnings of $337 million. OC also generated robust operating cash flow of $691 million and free cash flow of $581 million, demonstrating its strong financial health.
Financial Highlights
Owens-Corning Inc (NYSE:OC) reported a slight decrease in net sales from $2.529 billion in Q3 2022 to $2.479 billion in Q3 2023. Despite this, the company managed to grow its Adjusted EBIT margins to 21% and Adjusted EBITDA margins to 26%. Diluted EPS stood at $3.71, with an adjusted figure of $4.15.
OC's net earnings attributable to the company were $337 million, a decrease of 28% from the $470 million reported in the same period last year. The company's adjusted EBIT was $518 million, a 6% increase from the $487 million reported in Q3 2022.
Shareholder Returns and Cash Flow
In Q3 2023, Owens-Corning Inc (NYSE:OC) 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.
OC generated an operating cash flow of $691 million and a free cash flow of $581 million. The company's CFO, Todd Fister, highlighted that through the third quarter, they generated $1 billion of operating cash flow and $631 million of free cash flow, while returning more than $500 million to shareholders.
Segment Performance
Owens-Corning Inc (NYSE:OC) reported an 8% increase in Roofing net sales to $1.1 billion in Q3 2023, driven by strong demand in several markets. However, Insulation net sales decreased by 5% to $913 million, primarily due to lower volumes in both the North American residential insulation and technical and global insulation businesses. Composites net sales also decreased by 11% to $567 million, mainly due to lower volumes and price declines in glass reinforcements.
Outlook
For Q4 2023, OC expects net sales slightly below the fourth quarter of 2022, while generating mid-teen EBIT margins. The company remains committed to maintaining its investment-grade balance sheet, returning cash to shareholders, and investing in organic growth and acquisitions to advance its strategy.
This article first appeared on GuruFocus.
