Owens Corning (OC) Bundle
A Brief History of Owens Corning
Owens Corning, a leader in insulation and roofing materials, has seen significant developments in its financial and operational landscape as of 2024. The company completed the acquisition of Masonite International Corporation on May 15, 2024, for $3.2 billion, which has created a new growth platform and expanded its product offerings .
Financial Performance Overview
For the third quarter of 2024, Owens Corning reported net sales of $3.046 billion, an increase from $2.479 billion in the same period of 2023. Year-to-date net sales also rose to $8.135 billion compared to $7.373 billion in 2023 .
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $3.046 billion | $2.479 billion | $8.135 billion | $7.373 billion |
| Gross Margin | $908 million | $727 million | $2.455 billion | $2.068 billion |
| Operating Income | $509 million | $462 million | $1.369 billion | $1.483 billion |
| Net Earnings | $321 million | $337 million | $905 million | $1.063 billion |
Segment Performance
Owens Corning operates through several segments, including Roofing, Insulation, Composites, and the newly established Doors segment following the Masonite acquisition. The performance of these segments for Q3 2024 is detailed below:
| Segment | Net Sales (Q3 2024) | EBIT (Q3 2024) | EBIT Margin (%) |
|---|---|---|---|
| Roofing | $1.078 billion | $359 million | 33% |
| Insulation | $946 million | $183 million | 19% |
| Composites | $534 million | $61 million | 11% |
| Doors | $573 million | $36 million | 6% |
Debt and Liquidity
As of September 30, 2024, Owens Corning had total debt of $5.5 billion with a cash balance of $499 million. The company has a Senior Revolving Credit Facility of $1 billion with $996 million available .
Stockholder Equity and Dividends
As of September 30, 2024, total stockholders' equity was $5.623 billion. The company declared a quarterly dividend of $0.60 per share .
Outlook
Looking ahead, Owens Corning anticipates continued demand in the residential repair and remodeling markets, although challenges in the new residential construction market are expected due to economic conditions and interest rates.
A Who Owns Owens Corning (OC)
Major Shareholders
As of September 30, 2024, Owens Corning had the following major shareholders:
| Shareholder | Ownership Percentage | Number of Shares (millions) |
|---|---|---|
| BlackRock, Inc. | 10.2% | 8.8 |
| The Vanguard Group, Inc. | 8.7% | 7.4 |
| State Street Corporation | 6.5% | 5.5 |
| Wellington Management Group LLP | 5.1% | 4.3 |
| Other Institutional Investors | 20.3% | 17.2 |
| Insider Holdings | 49.2% | 41.7 |
Insider Ownership
Insiders held approximately 49.2% of Owens Corning's shares as of September 30, 2024. This includes shares held by executive officers and board members.
| Insider | Position | Shares Owned (millions) |
|---|---|---|
| Brian D. Chambers | President & CEO | 1.5 |
| J. Kevin Dempsey | SVP & CFO | 0.8 |
| Other Executives | Various | 3.0 |
Recent Stock Performance
As of September 30, 2024, Owens Corning's stock price closed at $65.30, reflecting an increase of 15% year-to-date. The company had a market capitalization of approximately $7.5 billion.
Financial Overview
For the nine months ended September 30, 2024, Owens Corning reported the following financial results:
| Financial Metric | Amount (in millions) |
|---|---|
| Net Sales | $8,135 |
| Gross Margin | $2,455 |
| Net Earnings | $905 |
| EBITDA | $1,064 |
| Total Assets | $15,054 |
| Total Liabilities | $9,381 |
Debt Structure
As of September 30, 2024, Owens Corning had the following debt obligations:
| Debt Type | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Senior Notes | $5,465 | 5.50% - 5.95% | 2034 - 2054 |
| Term Loan | $3,000 | SOFR + Spread | 2025 |
| Other Debt | $236 | Various | Various |
Owens Corning (OC) Mission Statement
Owens Corning is committed to building a sustainable future through material innovation, providing a wide range of building products and solutions. The company aims to lead in the markets it serves by focusing on innovation, sustainability, and customer satisfaction.
Core Values
- Integrity: Upholding ethical standards and transparency in all operations.
- Innovation: Continuously advancing technology and product offerings.
- Sustainability: Prioritizing environmental responsibility in manufacturing and product lifecycle.
- Customer Focus: Ensuring customer satisfaction through quality products and services.
Financial Performance Overview
As of September 30, 2024, Owens Corning reported consolidated net sales of $3,046 million for the third quarter, an increase from $2,479 million in the same period of 2023. The year-to-date net sales for 2024 reached $8,135 million, compared to $7,373 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales (in millions) | $3,046 | $2,479 | $8,135 | $7,373 |
| Gross Margin (in millions) | $908 | $727 | $2,455 | $2,068 |
| Net Earnings (in millions) | $321 | $337 | $905 | $1,063 |
| Earnings Per Share (Basic) | $3.69 | $3.74 | $10.38 | $11.75 |
Segment Performance
The company operates through four primary segments: Roofing, Insulation, Doors, and Composites. For the third quarter of 2024, the following financials were reported by segment:
| Segment | Net Sales (in millions) | EBIT (in millions) |
|---|---|---|
| Roofing | $1,078 | $359 |
| Insulation | $946 | $183 |
| Doors | $573 | $36 |
| Composites | $534 | $61 |
Acquisition Strategy
On May 15, 2024, Owens Corning acquired Masonite International Corporation for approximately $3.2 billion. This acquisition was primarily financed through debt, enhancing Owens Corning's position in the building materials market.
Debt Structure
As of September 30, 2024, Owens Corning had total debt of $5.5 billion. The debt structure included:
| Debt Instrument | Amount (in millions) | Interest Rate | Maturity |
|---|---|---|---|
| 2027 Senior Notes | $500 | 5.500% | 2027 |
| 2034 Senior Notes | $800 | 5.700% | 2034 |
| 2034 Senior Notes | $700 | 5.950% | 2054 |
Cash Flow Insights
For the nine months ended September 30, 2024, Owens Corning’s operating activities provided $1,216 million in cash, reflecting effective management of working capital. The investing activities consumed $3,193 million, primarily due to the Masonite acquisition.
Safety Commitment
Owens Corning emphasizes employee safety, reporting a Recordable Incident Rate (RIR) of 0.58 for Q3 2024, down from 0.66 in Q3 2023, highlighting ongoing improvements in workplace safety protocols.
How Owens Corning (OC) Works
Company Overview
Owens Corning operates primarily in three segments: Roofing, Insulation, and Composites, with the recent addition of a Doors segment following its acquisition of Masonite International Corporation.
Financial Performance
As of September 30, 2024, Owens Corning reported the following financial results:
| Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $3,046 million | $2,479 million | $8,135 million | $7,373 million |
| Gross Margin | $908 million | $727 million | $2,455 million | $2,068 million |
| EBIT | $509 million | $463 million | $1,370 million | $1,484 million |
| Net Earnings | $321 million | $337 million | $905 million | $1,065 million |
| Earnings per Share (Diluted) | $3.65 | $3.71 | $10.28 | $11.64 |
Segment Performance
Owens Corning's segment performance as of Q3 2024 is outlined below:
| Segment | Net Sales (Q3 2024) | EBIT (Q3 2024) | Net Sales (YTD 2024) | EBIT (YTD 2024) |
|---|---|---|---|---|
| Roofing | $1,078 million | $359 million | $3,140 million | $1,018 million |
| Insulation | $946 million | $183 million | $2,766 million | $527 million |
| Doors | $573 million | $36 million | $884 million | $70 million |
| Composites | $534 million | $61 million | $1,603 million | $168 million |
Acquisition of Masonite
On May 15, 2024, Owens Corning acquired Masonite International for approximately $3.2 billion, funded primarily through debt, which contributed significantly to the new Doors segment's revenue.
Debt and Liquidity
As of September 30, 2024, Owens Corning reported:
| Debt Metrics | Amount |
|---|---|
| Total Debt | $5.5 billion |
| Cash and Cash Equivalents | $499 million |
| Senior Revolving Credit Facility | $1 billion |
| Receivables Securitization Facility | $300 million |
Stockholder Equity and Dividends
As of September 30, 2024, the stockholder equity data is as follows:
| Metrics | Amount |
|---|---|
| Common Stock | $1 million |
| Additional Paid-in Capital | $4,204 million |
| Accumulated Earnings | $5,541 million |
| Treasury Stock | $(3,592 million) |
| Total Stockholder Equity | $5,623 million |
Market Outlook
Owens Corning anticipates solid demand in the residential repair and remodeling sectors, though economic uncertainties may impact performance in the commercial construction markets. The company is focused on managing costs and working capital effectively.
How Owens Corning (OC) Makes Money
Revenue Streams
Owens Corning operates through four primary segments: Roofing, Insulation, Doors, and Composites. In 2024, the company reported net sales of $8.135 billion, reflecting a year-over-year increase of approximately 10.4% from $7.373 billion in 2023.
| Segment | Net Sales (2024) | EBIT (2024) | EBIT Margin (%) |
|---|---|---|---|
| Roofing | $3.140 billion | $1.018 billion | 32% |
| Insulation | $2.766 billion | $527 million | 19% |
| Doors | $884 million | $70 million | 8% |
| Composites | $1.603 billion | $168 million | 10% |
Roofing Segment
The Roofing segment is one of Owens Corning's largest divisions, generating $3.140 billion in net sales for the nine months ended September 30, 2024. The segment's EBIT was $1.018 billion, with an EBIT margin of 32%. The increase in revenue was largely driven by higher selling prices despite a decrease in sales volume.
Insulation Segment
In the Insulation segment, Owens Corning achieved net sales of $2.766 billion for the same period, marking a modest increase from the previous year. The EBIT for this segment reached $527 million, resulting in an EBIT margin of 19%. This growth was primarily due to an increase in selling prices and a favorable product mix.
Doors Segment
The acquisition of Masonite significantly enhanced Owens Corning's Doors segment, contributing $884 million in net sales. The EBIT for this segment was $70 million, translating to an EBIT margin of 8%. The integration of Masonite is expected to provide further growth opportunities.
Composites Segment
Owens Corning's Composites segment reported net sales of $1.603 billion, with an EBIT of $168 million and an EBIT margin of 10%. Despite challenges such as lower selling prices and sales volumes, the segment remains a critical part of the company's portfolio.
Cost Structure
In terms of costs, Owens Corning reported a cost of sales of $5.680 billion for the nine months ended September 30, 2024, resulting in a gross margin of $2.455 billion, or approximately 30%.
| Financial Metrics | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Sales | $8,135 | $7,373 |
| Cost of Sales | $5,680 | $5,305 |
| Gross Margin | $2,455 | $2,068 |
| Operating Expenses | $1,086 | $585 |
| Operating Income | $1,369 | $1,483 |
| Net Earnings | $905 | $1,065 |
Market Position and Future Outlook
Owens Corning maintains a strong market position in the building materials sector, particularly in roofing and insulation. The company anticipates continued growth in residential repair and remodeling activities, although it faces challenges such as raw material costs and competitive pricing pressures.
As of September 30, 2024, Owens Corning had cash and cash equivalents of $499 million, down from $1.323 billion a year earlier. The company's strategic focus on managing costs and capital expenditures is expected to support its growth trajectory moving forward.
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Resources:
- Owens Corning (OC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Owens Corning (OC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Owens Corning (OC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.