Financial Performance - Net earnings attributable to Owens Corning decreased to $647 million in 2024 from $1,196 million in 2023[158]. - Adjusted EBIT increased to $2,038 million in 2024 compared to $1,805 million in 2023, with segment EBIT performance showing increases in Roofing and Insulation segments[158]. - Net sales rose by $1,298 million to $10,975 million in 2024, primarily driven by the Doors segment due to the Masonite acquisition[169]. - Gross margin increased by $571 million to $3,254 million in 2024, attributed to the Doors segment and higher selling prices[170]. - Operating income decreased to $1,127 million in 2024 from $1,812 million in 2023, indicating a decline of 37.8%[317]. - Total comprehensive earnings attributable to Owens Corning were $460 million in 2024, down from $1,374 million in 2023[320]. - Net earnings for 2024 were $647 million, a decrease of 45.8% compared to $1,193 million in 2023[327]. Segment Performance - In the Roofing segment, net sales increased by $22 million to $4,052 million, with a 1% increase from the prior year[186]. - EBIT in the Roofing segment rose by $124 million to $1,298 million, representing 32% of net sales, up from 29% in 2023[186]. - Insulation segment net sales increased by $24 million to $3,692 million, driven by higher selling prices of $81 million[190]. - EBIT in the Insulation segment increased by $63 million to $682 million, with EBIT as a percentage of net sales rising to 18%[190]. - The new Doors segment generated net sales of $1,448 million and EBIT of $99 million following the acquisition of Masonite on May 15, 2024[196]. - Composites segment net sales decreased by $168 million to $2,118 million, with EBIT declining by $27 million to $215 million[200]. Acquisition and Impairment - The Company recorded a $483 million impairment charge related to the strategic review of the glass reinforcements business in 2024[173]. - A loss of $91 million was recorded on the sale of the building materials business in China and Korea, classified as held for sale[172]. - The Masonite acquisition cost $3.2 billion, funded primarily through debt, and is expected to enhance the Company's growth platform in building products[164]. - The Company completed the acquisition of Masonite for a total purchase price of $3.2 billion, acquiring $979 million of intangible assets related to customer relationships[243]. - The Company incurred a loss on the sale of business amounting to $91 million and an impairment charge of $483 million due to a strategic review in 2024[317]. - Owens Corning entered into a definitive agreement to sell its global glass reinforcements business for approximately $436 million, aligning with its strategy to focus on residential and commercial building products in North America and Europe[334]. Cash Flow and Debt - As of December 31, 2024, the Company had cash and cash equivalents of $361 million and a $1.0 billion Senior Revolving Credit Facility[209]. - As of December 31, 2024, the company had cash and cash equivalents of $361 million, a decrease from $1.6 billion as of December 31, 2023[215]. - Net cash flow provided by operating activities increased by $173 million for the twelve months ended December 31, 2024, compared to the same period in 2023[216]. - Net cash flow used for investing activities increased by $3.0 billion for the twelve months ended December 31, 2024, primarily due to the Masonite acquisition[217]. - Net cash flow provided by financing activities increased by $1.2 billion for the twelve months ended December 31, 2024, driven by net proceeds from long-term debt related to the Masonite acquisition[218]. - As of December 31, 2024, the company had total debt of $5.1 billion, including a current portion of long-term debt of $38 million[222]. - Long-term debt increased to $5,116 million in 2024 from $2,615 million in 2023, marking a rise of 95.7%[323]. Equity and Dividends - Total equity at the end of 2024 was $5,120 million, a slight decrease from $5,185 million in 2023[325]. - The company declared dividends of $2.49 per share in 2024, up from $2.16 per share in 2023[325]. - The Board of Directors declared a quarterly dividend of $0.69 per common share, payable on April 10, 2025, to shareholders of record as of March 10, 2025[335]. Inventory and Expenses - Inventory levels rose to $1,587 million in 2024 from $1,198 million in 2023, an increase of 32.5%[323]. - Marketing and advertising expenses for the years ended December 31, 2024, 2023, and 2022 were $148 million, $134 million, and $125 million, respectively[348]. - Other expense, net increased by $259 million in 2024, primarily due to higher acquisition and strategic review-related costs[175]. Tax and Pension - The effective tax rate for 2024 was 30% on pre-tax income of $916 million, compared to 25% in 2023 on pre-tax income of $1,591 million[178][179]. - The discount rate for the United States pension plan was 5.65% as of December 31, 2024, compared to 5.00% at December 31, 2023[270]. - The expected return on plan assets is projected to be 6.00% for the measurement date of December 31, 2024, up from 5.75% for December 31, 2023[271]. - The company expects to contribute $20 million in cash to its pension plans during 2025, up from $7 million in 2024[227]. Miscellaneous - The Company applies a more-likely-than-not recognition threshold for all tax uncertainties, including claims by the Internal Revenue Service[244]. - The Company had no borrowings on its Senior Revolving Credit Facility or Receivables Securitization Facility as of December 31, 2024[284]. - The fair market value of senior notes would decrease by 12% for maturities in 2047 and 2048 with a one percentage point increase in interest rates[285].

Financial Performance - Owens Corning reported full-year net sales of $11.0 billion, a 13% increase from the prior year, with the newly acquired Doors business contributing $1.4 billion in revenue[4]. - The company generated net earnings of $647 million, resulting in a net earnings margin of 6%, and an adjusted EBIT margin of 19% for the full year[4]. - Adjusted EBITDA for the year was $2.7 billion, reflecting a 17% increase compared to 2023, with an adjusted EBITDA margin of 25%[4]. - Free cash flow for 2024 was $1.2 billion, with 51% of this amount, or $638 million, returned to shareholders through dividends and share repurchases[4][6]. - In the fourth quarter, Owens Corning achieved net sales of $2.8 billion, a 23% increase year-over-year, with an adjusted EBIT margin of 15%[12]. - For the full year 2024, net sales totaled $10,975 million, a 13.4% increase from $9,677 million in 2023[26]. - The diluted earnings per share for the full year 2024 was $7.37, down from $13.14 in 2023, reflecting the impact of the net loss in Q4[26]. - Adjusted diluted earnings per share attributable to Owens Corning common stockholders for 2024 was $15.91, compared to $14.42 in 2023, reflecting a year-over-year increase of 10.4%[31]. - Adjusted EBITDA for the full year 2024 was $2,702 million, representing 25% of net sales, compared to 24% in 2023, indicating stable operational performance despite challenges[28]. Segment Performance - Owens Corning's Roofing segment reported net sales of $4.1 billion in 2024, with an EBIT margin of 32%[11]. - The Roofing segment reported net sales of $4,052 million for 2024, a slight increase of 0.5% from $4,030 million in 2023[40]. - The Insulation segment achieved EBIT of $682 million in 2024, up from $619 million in 2023, marking a growth of 10.2%[41]. - The Doors segment generated net sales of $1,448 million in 2024, with EBIT of $99 million, reflecting a new revenue stream as it was not reported in 2023[42]. - Composites segment net sales for Q4 2024 were $515 million, a slight increase from $514 million in Q4 2023, but a 7% decrease year-over-year for the twelve months ended December 31, 2024, compared to $2,286 million in 2023[43]. - EBIT for the Composites segment increased to $47 million in Q4 2024 from $26 million in Q4 2023, with EBIT as a percentage of net sales rising to 9% from 5%[43]. - EBITDA for the Composites segment was $94 million in Q4 2024, up from $68 million in Q4 2023, representing 18% of net sales compared to 13% in the prior year[43]. Cash Flow and Investments - Net cash flow provided by operating activities for 2024 was $1,892 million, up from $1,719 million in 2023, indicating an increase of 10.1%[38]. - Free cash flow for the twelve months ended December 31, 2024, was $1,245 million, an increase from $1,193 million in 2023[47]. - Free cash flow conversion for the twelve months ended December 31, 2024, was 89%, compared to 91% in the previous year[48]. - Net cash flow provided by operating activities for Q4 2024 was $676 million, slightly down from $698 million in Q4 2023[47]. - The company plans to invest approximately $800 million in capital additions in 2025, with a focus on expanding manufacturing capacity for its laminate shingle portfolio[14]. Challenges and Risks - The company is facing risks including supply chain disruptions, inflationary pressures, and competitive pricing factors, which may affect future performance[23]. - The company incurred an impairment charge of $483 million due to a strategic review in Q4 2024, impacting overall financial performance[26]. - Total operating expenses surged to $1,041 million in Q4 2024, up from $286 million in Q4 2023, primarily due to impairment charges and losses on the sale of business[26]. - The company incurred a loss on the sale of business amounting to $91 million in 2024, which was not present in 2023[38]. Recognition and Awards - The company has been recognized as one of the top 250 Best-Managed Companies by the Wall Street Journal, ranking fourth in customer satisfaction[9].

Company Performance - Owens Corning closed at $174.13, reflecting a -1.96% change from the previous day, underperforming the S&P 500's gain of 0.24% [1] - The stock has decreased by 5.15% over the past month, compared to the Construction sector's loss of 4.2% and the S&P 500's gain of 2.37% [1] Upcoming Earnings Report - Owens Corning is set to release its earnings on February 24, 2025, with an expected EPS of $2.87, indicating a 10.59% decline from the same quarter last year [2] - Revenue is anticipated to be $2.78 billion, representing a 20.53% increase from the equivalent quarter last year [2] Analyst Projections - Recent shifts in analyst projections for Owens Corning are important for investors, as positive revisions indicate optimism regarding the company's business and profitability [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows that Owens Corning currently holds a Zacks Rank of 2 (Buy) [5] - Over the last 30 days, the Zacks Consensus EPS estimate has increased by 0.59% [5] Valuation Metrics - Owens Corning has a Forward P/E ratio of 11.21, which is lower than the industry average of 18.66 [6] - The company has a PEG ratio of 1.94, compared to the industry average PEG ratio of 1.81 [6] Industry Context - The Building Products - Miscellaneous industry, part of the Construction sector, has a Zacks Industry Rank of 176, placing it in the bottom 30% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Owens Corning (OC) is expected to report quarterly earnings of $2.87 per share, reflecting a decline of 10.6% year-over-year, while revenues are forecasted to reach $2.78 billion, indicating a 20.5% increase compared to the previous year [1] - Analysts have revised their consensus EPS estimate upward by 1.9% over the past 30 days, suggesting a collective reassessment of the company's performance [1][2] Financial Metrics - Estimated 'Net Sales- Insulation' is projected at $925.96 million, showing a year-over-year decline of 0.5% [4] - 'Net Sales- Roofing' is expected to be $894.86 million, reflecting a decrease of 3.6% from the prior-year quarter [4] - 'Net Sales- Composites' is anticipated to reach $505.30 million, indicating a year-over-year change of -1.7% [4] EBIT Projections - 'EBIT- Composites' is projected at $30.49 million, an increase from $26 million reported in the same quarter last year [5] - 'EBIT- Roofing' is expected to be $268.52 million, down from $284 million reported in the previous year [5] - 'EBIT- Insulation' is forecasted to reach $150.61 million, slightly up from $150 million reported in the same quarter last year [6] Market Performance - Owens Corning shares have returned -1.8% over the past month, contrasting with a +4.7% change in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 2 (Buy), indicating expectations to outperform the overall market in the near future [6]

Core Viewpoint - Owens Corning has sold its glass reinforcements business to Praana Group for $755 million, completing its strategic review and focusing on residential and commercial building products in North America and Europe [1][2][7] Group 1: Transaction Details - The divestiture streamlines Owens Corning's portfolio, enhancing capital efficiency and allowing resource reallocation to higher growth segments [2][5] - The glass reinforcements business generated approximately $1.1 billion in revenues in 2024 and operates in 18 locations across 12 countries [3] - The sale provides Praana Group with a global footprint in advanced materials, enhancing its expertise in composites for the industrial sector [3][6] Group 2: Strategic Implications for Owens Corning - Post-sale, Owens Corning retains key assets in its Composites segment, integrating them into Roofing and Insulation segments to align operations with core strengths [5] - The divestiture is expected to improve operational efficiency, drive profitability, and enhance cash generation, positioning the company for long-term growth [5][7] Group 3: Market Performance and Outlook - Owens Corning's shares have gained 10.3% over the past six months, outperforming the Zacks Building Products - Miscellaneous industry's 5% growth [8] - The Zacks Consensus Estimate for Owens Corning's 2025 earnings per share (EPS) has increased to $15.85, indicating a 2.3% year-over-year growth [9] - The company's trailing 12-month return on equity (ROE) stands at 25.8%, significantly higher than the industry's 14.8%, reflecting efficient use of shareholders' funds [9]

Core Viewpoint - Owens Corning is set to report its financial results on February 24, 2025, with expectations of a decrease in EPS but an increase in revenue compared to the previous year [2]. Group 1: Stock Performance - Owens Corning's stock closed at $178.28, reflecting a -1.03% change from the previous day, underperforming the S&P 500's gain of 0.03% [1]. - Over the past month, Owens Corning's shares have appreciated by 6.28%, outperforming the Construction sector's gain of 3.08% and the S&P 500's gain of 4.19% [1]. Group 2: Earnings Forecast - The forecast for Owens Corning's EPS is $2.87, indicating a 10.59% decrease from the same quarter last year [2]. - Revenue is expected to reach $2.78 billion, representing a 20.53% increase compared to the same quarter of the previous year [2]. Group 3: Analyst Estimates - Changes in analyst estimates for Owens Corning are crucial as they reflect the shifting dynamics of short-term business patterns, with positive revisions indicating analysts' confidence in the company's performance [3]. - The Zacks Consensus EPS estimate has seen a 0.59% increase over the last 30 days, and Owens Corning currently holds a Zacks Rank of 2 (Buy) [5]. Group 4: Valuation Metrics - Owens Corning has a Forward P/E ratio of 11.36, which is below the industry average of 17.81 [6]. - The company has a PEG ratio of 1.97, compared to the industry average PEG ratio of 1.78 [6]. Group 5: Industry Context - The Building Products - Miscellaneous industry, which includes Owens Corning, ranks in the bottom 45% of all industries according to the Zacks Industry Rank [7]. - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Owens Corning (OC) as a strong value stock based on various financial metrics [2][4][7] Group 1: Value Investing Strategy - Value investing is a popular strategy that relies on traditional analysis of key valuation metrics to identify undervalued stocks [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category [3] Group 2: Owens Corning Financial Metrics - Owens Corning has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential [4] - The current P/E ratio for OC is 11.54, significantly lower than the industry average of 17.41 [4] - OC's Forward P/E has fluctuated between 9.27 and 13.40 over the past 12 months, with a median of 10.95 [4] - The P/S ratio for OC is 1.49, compared to the industry's average of 1.82, suggesting it may be undervalued [5] - OC's P/CF ratio is 9.61, which is attractive compared to the industry's average of 15.87 [6] - Over the past 12 months, OC's P/CF has ranged from 6.94 to 11.02, with a median of 8.98 [6] Group 3: Investment Outlook - The financial metrics indicate that Owens Corning is likely undervalued, making it an attractive investment opportunity [7]

Core Viewpoint - Brokerage recommendations, particularly for Owens Corning (OC), suggest a favorable outlook, but investors should be cautious in relying solely on these ratings for investment decisions [2][4][9]. Brokerage Recommendations - Owens Corning has an average brokerage recommendation (ABR) of 1.87, indicating a position between Strong Buy and Buy, based on 15 brokerage firms [2]. - Out of the 15 recommendations, eight are Strong Buy and one is Buy, representing 53.3% and 6.7% of total recommendations respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation potential [4]. - Analysts from brokerage firms tend to exhibit a strong positive bias due to vested interests, issuing five "Strong Buy" recommendations for every "Strong Sell" [5][9]. Zacks Rank as an Alternative - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is presented as a more reliable indicator of near-term price performance compared to ABR [7][8]. - The Zacks Rank is based on earnings estimate revisions, which have shown a strong correlation with stock price movements [10]. Current Earnings Estimates for Owens Corning - The Zacks Consensus Estimate for Owens Corning has increased by 0.6% over the past month to $15.49, reflecting analysts' growing optimism about the company's earnings prospects [12]. - The recent change in consensus estimates, along with other factors, has resulted in a Zacks Rank 2 (Buy) for Owens Corning, suggesting a positive outlook for the stock [13].

Owens Corning (OC) closed at $182.15 in the latest trading session, marking a +0.79% move from the prior day. This change outpaced the S&P 500's 0.39% gain on the day. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 0.2%.The construction materials company's stock has climbed by 7.08% in the past month, exceeding the Construction sector's loss of 0.7% and the S&P 500's gain of 1.7%.Investors will be eagerly watching for the performance of Owens Corning i ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...