Owens Corning (NYSE:OC) posted second-quarter earnings that surpassed analyst predictions, but its stock fell 0.6% as investors reacted to softening market conditions and narrowing margins.
The building materials company reported adjusted earnings per share of $4.21 for the quarter, beating estimates of $3.82 by $0.39.
Revenue reached $2.75 billion, slightly above the $2.71 billion consensus and up 10% year-over-year, supported by the acquisition of its Doors business in May 2024.
Despite the earnings beat, the adjusted EBITDA margin from continuing operations declined to 26% from 27% a year earlier, and adjusted diluted EPS dropped 4% compared to the prior year.
The company cited “more challenging near-term conditions” in its outlook, especially in residential construction.
“Our second quarter results continue to demonstrate the strength of our business and resiliency of our earnings to outperform the market despite more challenging near-term conditions,” said Brian Chambers, Chair and CEO of Owens Corning.
For Q3, Owens Corning expects revenue from continuing operations to be “slightly down to in-line with prior year,” in the range of $2.7 billion to $2.8 billion, with an adjusted EBITDA margin forecast between 23% and 25%.
The Roofing segment generated $1.3 billion in sales with a 35% EBITDA margin, while Insulation sales fell to $934 million from $974 million year-over-year, with EBITDA margin slipping to 24% from 25%.
During the quarter, Owens Corning returned $279 million to shareholders through dividends and share buybacks, as part of its plan to return $2 billion to shareholders across 2025 and 2026.
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