Pic: Owens Corning
The adjusted diluted earnings per share (EPS) grew 10 per cent to $15.91 from $14.42, while operating cash flow improved 10 per cent to $1.89 billion, and free cash flow increased 4 per cent to $1.25 billion. Strong commercial and operational execution fuelled enterprise margin expansion over prior year, as each of the businesses delivered strong performance relative to market conditions. The company posted a net loss attributable to OC of $258 million, compared to a net income of $131 million in the prior year, reflecting a 297 per cent decline, Owens Corning said in a press release.
The adjusted EBIT increased 10 per cent YoY to $430 million, with an adjusted EBITDA of $629 million, up 21 per cent YoY. The adjusted diluted earnings per share (EPS) remained steady at $3.22, while operating cash flow slightly declined to $676 million from $698 million, and free cash flow fell 15 per cent to $479 million.
“2024 was a transformative year for Owens Corning as we successfully executed three major strategic moves to reshape and focus the company on building products in North America and Europe, while consistently delivering higher, more resilient earnings and cash flow,” said Brian Chambers, chair and chief executive officer (CEO) at Owens Corning. “Through our unique enterprise capabilities, market-leading positions, and consistent execution, we have delivered on the three-year commitments set at our last investor day in 2021. As a new Owens Corning, we look forward to sharing more about our strategy and financial goals for the future at our next investor day in May.”
Owens Corning maintained strong safety performance in 2024 with a recordable incident rate (RIR) of 0.48. The company executed three key initiatives: acquiring Masonite International, reviewing its global glass reinforcements business, and agreeing to sell its building materials business in China and Korea. It announced the sale of its glass reinforcements business, set to close in 2025, with proceeds funding growth and shareholder returns.
The restructuring will integrate nonwovens and structural lumber into the roofing segment, while US glass melting plants will move to the Insulation segment. Additionally, Owens Corning is investing in a new laminate shingle plant in the southeastern US, expected to be operational by 2027.
Fourth quarter (Q4) financial
In the fourth quarter (Q4) FY24, the company delivered sales of $2.8 billion, growth of 23 per cent YoY. The company reported a net earnings margin of 6 per cent, an adjusted EBIT margin of 19 per cent, and an adjusted EBITDA margin of 25 per cent. It also delivered a diluted EPS of $7.37 and an adjusted diluted EPS of $15.91. It generated an operating cash flow of $1.9 billion and a free cash flow of $1.2 billion. The company returned $638 million, or 51 per cent of its free cash flow, to shareholders through dividends and share repurchases.
Q4 also marks the 18th consecutive quarter of the company delivering mid-teens or better EBIT margins and 20 per cent or better adjusted EBITDA margins.
Owens Corning first-quarter and full-year 2025 outlook
Owens Corning expects revenue from continuing operations to grow by mid-20 per cent in Q1 FY25, compared to $2.0 billion in the same quarter of prior year, adjusted for the reclassification of its glass reinforcements business to discontinued operations. The company anticipates an EBITDA margin from continuing operations in the low-20 per cent range.
Several key economic factors will impact performance, including residential repair and remodelling activity, US housing starts, and commercial construction. While nondiscretionary repair demand is expected to remain stable, new residential construction and remodelling may stay soft, and commercial construction in North America is likely to start the year at a slower pace than in 2024. Additionally, potential new tariffs could impact near-term performance, and European markets are expected to remain weak in both residential and commercial sectors.
Owens Corning continues to invest in capacity expansion, leading to a short-term increase in capital expenditures, particularly for previously announced projects. Despite this, the company remains focused on its capital allocation strategy, prioritising strong free cash flow generation and returning at least 50 per cent to shareholders over time, the release added.
Fibre2Fashion News Desk (SG)